USPS suspends contributions to employee pensions after warning of "cash crisis"
CBS News • • business
Key Points:
- The U.S. Postal Service is suspending its contributions to the Federal Employees Retirement System (FERS) to conserve cash amid mounting financial losses and risk of running out of funds.
- USPS currently contributes about $400 million monthly to the pension plan but will continue to send worker contributions and payments to the Thrift Savings Plan.
- Postmaster General David Steiner warned Congress that without changes like raising stamp prices or reducing delivery days, USPS could run out of cash within 12 months, risking mail delivery stoppage.
- The agency reported a $9 billion loss in 2025 and faces ongoing challenges from declining mail volume and rising delivery costs despite a 10-year plan to restore profitability.
- Suspending FERS payments will free approximately $2.5 billion this fiscal year, prioritizing liquidity for postal operations over longer-term pension fund risks.
