Postal Service Suspends Pension Contributions

Townhall Staff

Jun 22, 2011 1:33 PM Jun 22, 2011

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The U.S Postal Service this week will suspend payments to its Federal Employees Retirement System account, officials said on Wednesday.

In the face of financial insolvency, the Postal Service on June 24 will halt employer contributions to the FERS defined benefit plan, which the agency estimates will free up $800 million in cash this fiscal year. USPS lost $2.6 billion in the first half of fiscal 2011 and expects to be down $8 billion by the end of the year.

Postal employees still will be able to contribute to FERS, officials said.