By Brian Croce
Source: Pensions & Investments
The United States Postal Service temporarily suspended its employer contributions for the defined benefit portion of the Federal Employees Retirement System amid its “ongoing, severe financial crisis.”
In an effort to conserve cash and preserve liquidity, suspension of payments, effective April 10, will free about $2.5 billion in the current fiscal year, the organization announced April 9. The organization said the action was needed because it could run out of cash as early as February 2027.
The USPS pays about $200 million every other week to the Office of Personnel Management for the Federal Employee Retirement System.