Yesterday, USPS said it’s suspending the employer’s contributions for the defined benefit portion of the Federal Employees Retirement System, or FERS. The Postal Service said it was taking this step to conserve cash and preserve liquidity.
Today, PMG Pat Donahoe — in a video message to employees — says the suspension will not affect them. Noting that USPS has a surplus of $6.9 billion in payments to FERS, he says “We simply are stopping this ongoing overpayment toward the annuity FERS retirees receive because we have already met that obligation.”
Donahoe says the suspension is “only a stop-gap measure,” adding Congress must approve legislation that can help the Postal Service return to profitability. As he has in the past, the PMG urges Congress to eliminate the requirement for pre-payments to the retiree health benefits fund; grant USPS access to the FERS overpayment; and give the Postal Service flexibility to determine the frequency of mail delivery.