USPS suspends contributions to employee pensions after warning of "cash crisis"

TL;DR

The U.S. Postal Service (USPS) is suspending contributions to the Federal Employees Retirement System (FERS).
This decision is a measure to conserve cash amidst significant financial losses and a projected cash crisis.
The USPS contributes approximately $400 million monthly to its employee pension plan.
Worker and employer contributions to the Thrift Savings Plan will continue.
Postmaster General David Steiner warned of a potential cash shortage within 12 months without corrective actions.
Possible corrective actions include raising first-class stamp prices to 95 cents or reducing delivery days.
The USPS reported a $9 billion loss in 2025 and faces ongoing financial challenges due to declining mail volume and rising costs.
Suspending FERS payments is expected to free up $2.5 billion in the current fiscal year.
The USPS also plans to temporarily increase postage prices to cover fuel costs related to the Iran war, with an 8% surcharge starting April 26, 2026.

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