The U.S. Postal Service (USPS) has temporarily suspended contributions to its Employee Pension Plans in an effort to "conserve cash" due to an "ongoing, severe financial crisis." "There will not be any immediate detrimental impact to our current or future Retirees if normal FERS (Federal Employees Retirement System) cost payments are temporarily withheld," USPS Postal Service Chief Financial Officer Luke Grossmann said. "The risk to the Postal Service and the American Public from insufficient liquidity for postal operations dramatically outweighs any longer-term risk to the pension funds from not making the currently due payments." Officials warn the USPS is on course to run out of cash by around February 2027. The temporary suspension went into effect on Friday (April 10th), but current and future Retirees will not be immediately impacted, Grossman said. The USPS estimates it will save $2.5 billion through September 30th with the suspension.

Subsequently, National Association of Letter Carriers (NALC) Union President Brian Renfroe released the following statement: The Postal Service announced it will temporarily pause employer contributions to the defined benefit portion of the Federal Employees Retirement System (FERS) account through the end of the fiscal year. This pause has no immediate impact on any current or future retired Letter Carriers. This move is necessitated by the Postal Service’s current financial situation and is a direct result of continued inaction by Congress to fix the legislative constraints that inhibit the Postal Service's ability to invest in its infrastructure and modernize to meet the needs of its Employees and the American People. If Congress were to allow for a new investment strategy for USPS Retiree Health and Pension Funds, a fair recalculation of the Agency’s Civil Service Retirement System Pension obligations, and an increase in the Agency’s borrowing authority, this pause in FERS contributions would not be necessary. It is time for Congress to act on these common-sense policy changes to protect our jobs, retirements, and the essential and reliable service we provide to every American.

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