USPS begins cash conservation plan – USPS Employee News

The Postal Service has knowledgeable the Office of Personnel Management (OPM) of its intention to quickly droop its employer’s contributions for the outlined profit portion of the Federal Employees Retirement System (FERS) to preserve cash and protect liquidity on account of its ongoing, extreme monetary disaster.

“There will not be any immediate detrimental impact to our current or future retirements if normal FERS cost payments are temporarily withheld,” stated Postal Service Chief Financial Officer Luke Grossmann. “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. We will continue to transmit to OPM employees’ contributions to FERS and will also continue to transmit employer automatic and matching contributions and employee contributions to the Thrift Savings Plan. It must be noted that our pension systems remain much better funded than other agencies.”

The Postal Service pays about $200 million each different week to OPM for the FERS annuity. Suspension of funds, efficient April 10, will free about $2.5 billion within the present fiscal yr.

More particulars can be found within the FERS action FAQ.