Nov. 20 (Bloomberg) -- American Express Co., Meredith Corp. and Time Warner Inc. are among almost 50 businesses, unions and industry associations asking Congress to grant the U.S. Postal Service relief from government-mandated retiree health-insurance payments to help the agency weather the global financial crisis.

A 2006 law requires the postal service to pay $5.4 billion to $5.8 billion each year for future retiree health coverage during the next decade. A drop in mail volume for the year ended Sept. 30 and higher fuel costs have made the payment schedule ``unrealistic,'' according to a letter from the groups posted today on the Internet.

``The funding requirement is there to address a liability down the road,'' said Paul Fronstin, director of health research and education for the Employee Benefit Research Institute, a non- partisan group based in Washington. ``If it's given an exception for a year or two, it doesn't mean they aren't going to pay retiree benefits in the future.''

In the Nov. 17 letter to Senate Majority Leader Harry Reid, companies, publishers and bulk mailers called for an ``adjustment to the payment schedule, which would preserve the law's requirement for full funding of the benefits, but lessen the financial demand on the Postal Service for several years.''

``The $900 billion mailing industry, millions of jobs, continued efficient universal postal services, and the long-term survival of the Postal Service are at stake,'' according to the letter, posted on the American Postal Workers Union Web site. The request wouldn't relieve the agency of any existing financial obligations, the groups said in the letter.

Projected Loss

The agency, which serves 146 million homes and businesses six days a week, faces a $7.7 billion loss for the current year ending in 2009 because of requirements to pre-fund retiree health benefits, Postal Service Chief Financial Officer H. Glen Walker said last week.

The Postal Service had a $2.8 billion loss for the year ended Sept. 30 and before the 2006 law didn't have any, Walker said Nov. 13. The payments ``caused us to incur debt,'' he said.

Compensation and benefits for current employees and retiree health benefits in 2007 constituted 80 percent of Postal Service operating expenses, according to an agency report. Retirement health-benefit premium expenses rose each year since 2005 and recipients also increased annually to 450,000 in 2007.

Groups Concerned

Conde Nast Publications Inc., Pitney Bowes Inc., McGraw-Hill Cos., Lands' End Inc., Magazine Publishers of America and the National Association of Letter Carriers are among those who signed the letter.

``The thing that stands out is this is not just one company raising its hand,'' Matthew Broder, vice president of external communications for Pitney Bowes Inc., said in a telephone interview. ``It's a broad-based group of companies, and the unions, that are equally concerned.''

The global economic slump will keep trimming mail volume through 2009, after a 4.5 percent drop last year, postal officials have said. The wider loss projected for 2009 prompted them to raise shipping prices for some of the agency's services and further lower costs, including reducing work hours.

To contact the reporter on this story: Joi Preciphs in Washington at jpreciphs1@bloomberg.net.

Last Updated: November 20, 2008 15:41 EST