Summary
The United States Postal Service (USPS) announced it will temporarily stop making contributions to the Federal Employees Retirement System. This decision is due to financial difficulties and aims to save about $2.5 billion this fiscal year.
Key Facts
- The USPS has decided to suspend pension contributions temporarily.
- The suspension affects the Federal Employees Retirement System.
- The reason is a "severe financial crisis" faced by the USPS.
- The suspension will free up approximately $2.5 billion.
- The change will start this coming Friday.
- According to the USPS, there will be no immediate negative impact on retirees.
- The USPS will still transmit employees' personal contributions to FERS and the Thrift Savings Plan.
- The USPS states its pension systems are better funded than those of other agencies.
