"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."
"USPS deferred payments in 2011 during another financial crisis, indicating a pattern of financial management under duress."
"The Postal Service will continue transmitting employees' retirement contributions to the federal Office of Personnel Management, along with Thrift Savings Plan contributions."
"Brian Renfroe, president of the National Association of Letter Carriers, stated that the temporary suspension of annuity payments is 'not ideal' but does not immediately impact his members."
The U.S. Postal Service is temporarily suspending employer contributions to Federal Employees Retirement System annuities to maintain cash flow amid a severe financial crisis. This decision allows USPS to continue payroll and operations while seeking to increase postage rates, including raising the price of a First-Class Mail Forever stamp. Despite the suspension, current and future retirees will not be immediately affected. USPS aims to preserve liquidity as it faces potential cash shortages by February 2027, having previously deferred payments during a past financial crisis.
Read at ABC7 Los Angeles
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