12 08, 2019

New postal workers would no longer earn a pension under preliminary business plan

2019-08-12T08:44:46-07:00August 12th, 2019|Categories: Defined Benefit Plans|Tags: |

The U.S. Postal Service, facing pressure from Congress to propose initiatives to ensure the agency’s long-term viability, is floating a business plan that would include significant cuts to employees’ take-home pay and benefits. USPS included a hike to the employee contribution level for pensions in a first draft of a 10-year business plan presented to lawmakers and stakeholders, according to multiple people who were briefed on it, as well as phasing out pensions altogether for new hires in favor of [...]

15 08, 2017

U.S. Postal Service warns of $6.9B pension default

2017-08-15T16:57:42-07:00August 15th, 2017|Categories: Pension Funding|Tags: |

The U.S. Postal Service warned Thursday that it will likely default on up to $6.9 billion in payments for future retiree health and pension benefits for the fifth straight year, citing a coming cash crunch that could disrupt day-to-day mail delivery. The service said it expected cash balances to run low by October and to avoid bankruptcy would likely not make all of its payments as required under federal law. Postmaster General Megan Brennan stressed an urgent need for [...]