The U.S. Postal Service anticipates having only five days of operating cash on hand after making its annual workers’ compensation payment in October, leaving the agency with slim reserves in the event of an unforeseen downturn.

“This is a dangerously low level of cash,” said USPS Chief Financial Officer Joseph Corbett during a teleconference with reporters on Monday. “We do not have a sufficient cash cushion to run a business the size of the Postal Service.”

Already, the Postal Service expects to default on its next payment for a controversial requirement to prefund its retiree health benefits. Congress imposed the rule in 2006, but USPS officials and labor groups are calling for a repeal of the policy, which costs the agency about $5.5 billion each year.

The Postal Service released its third-quarter financial report Monday, showing a loss of $740 million for that period. The number represents a vast improvement over a $5.2 billion loss during the same period last year.

via Postal Service expects only five-day cash reserve in October- Washington Post