US EditionUSPS Suspends Employer Pension Contributions to Conserve Cash
The move is expected to free $2.5 billion this fiscal year as USPS warns it could run out of cash within a year.
- On Thursday, the United States Postal Service announced it will suspend employer contributions to the Federal Employees Retirement System starting Friday to preserve cash amid a severe financial crisis.
- The agency reported a $9 billion loss in 2025 and warns it could run out of cash by February 2027, as transportation costs exacerbated by the war with Iran strain operations.
- Saving about $2.5 billion through September 30, USPS Chief Financial Officer Luke Grossmann argued that "insufficient liquidity for postal operations dramatically outweighs any longer-term risk to the pension funds."
- Earlier this week, the Postal Regulatory Commission approved a temporary 8% price surcharge on certain package deliveries beginning April 26, remaining in place through January 17, 2027.
- Postmaster General David Steiner warned Congress last month that without further changes, the service faces potential shutdown, with options including raising first-class stamp prices to 95 cents or $1, or reducing delivery to five days weekly.
124 Articles
124 Articles
Postal pension problems: Letter Carriers blame lawmaker inaction for payment pause
WASHINGTON —The nation’s two big postal unions, the Letter Carriers (NALC) and the Postal Workers (APWU) reacted in different ways to Postal Service’s suspension of its financial contributions to their pension plans, which began April 10. Workers will continue to contribute to the two plans, the Federal Employees Retirement System, and the Thrift Savings Plan, a 401(k)-style arrangement, USPS said. But it won’t match those amounts, at least thro…
USPS pauses pension payments to avoid cash crisis
The U.S. Postal Service says it is taking steps to conserve cash amid what officials describe as an ongoing, severe financial crisis. Beginning April 10, USPS is temporarily suspending its employer contributions to the defined-benefit portion of the Federal Employees Retirement System, according to the agency. Postal officials said the move will free about $2.5 billion in the current fiscal year. Why USPS is suspending pension payments USPS said…
USPS is set to suspend pension contributions, seeks 4-cent stamp price hike
The US Postal Service said Thursday it has informed federal budget officials it will temporarily suspend its employer contributions to Federal Employees Retirement System annuities, allowing it to keep making payroll, paying suppliers and delivering the mail.
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