USPS Suspends Employer Pension Contributions Amid Severe Cash Crisis
The U.S. Postal Service (USPS) has announced a temporary suspension of employer contributions to the Federal Employees Retirement System (FERS) to preserve liquidity during an ongoing financial crisis. Chief Financial Officer Luke Grossmann stated that without this measure, the agency risks running out of cash by February 2027. While current and future retirees will not face immediate impacts, the move allows USPS to prioritize payroll, supplier payments, and mail delivery. This is the second time since 2011 the agency has deferred such payments. The decision comes as USPS faces declining mail volume, dropping from 220 billion pieces in 2006 to roughly 110 billion today, resulting in $9 billion in net losses for fiscal year 2025. Postmaster General David Steiner has urged Congress to lift borrowing caps and grant rate-setting authority to stabilize the 250-year-old service.
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USPS Suspends Employer Pension Contributions Amid Severe Cash Crisis
The U.S. Postal Service (USPS) has announced a temporary suspension of employer contributions to the Federal Employees Retirement System (FERS) to preserve liquidity during an ongoing financial crisis. Chief Financial Officer Luke Grossmann stated that without this measure, the agency risks running out of cash by February 2027. While current and future retirees will not face immediate impacts, the move allows USPS to prioritize payroll, supplier payments, and mail delivery. This is the second time since 2011 the agency has deferred such payments. The decision comes as USPS faces declining mail volume, dropping from 220 billion pieces in 2006 to roughly 110 billion today, resulting in $9 billion in net losses for fiscal year 2025. Postmaster General David Steiner has urged Congress to lift borrowing caps and grant rate-setting authority to stabilize the 250-year-old service.
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