Post Office stops making FERS contributions

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USPS suspends contributions to pension plan to delay running out of cash​

The Postal Service is temporarily suspending payments to a governmentwide pension plan, after warning Congress that it’s less than a year away from running out of cash.

USPS told the Office of Personnel Management on Thursday that it will hold off paying its contributions to the Federal Employees Retirement System (FERS), a move that’s expected to conserve cash in the near term.

The mail agency, which has posted billion-dollar net losses almost every year since 2007, has relied on these extraordinary measures before to conserve cash.

USPS previously suspended its employer contributions to FERS in June 2011 to retain as much cash as possible during another acute period of financial stress. That suspension, however, only lasted for several months, and USPS resumed biweekly payments and paid back what it owed OPM.

More:

USPS suspends contributions to pension plan to delay running out of cash | Federal News Network

Postmaster General David Steiner warned lawmakers that USPS will run on of cash in less than 12 months, if it continued to pay its bills on time.

federalnewsnetwork.com