USPS begins cash conservation plan
The Postal Service has informed the Office of Personnel Management (OPM) of its intention to temporarily suspend its employer’s contributions for the defined benefit portion of the Federal Employees Retirement System (FERS) to conserve cash and preserve liquidity due to its ongoing, severe financial crisis.
“There will not be any immediate detrimental impact to our current or future retirees if normal FERS cost payments are temporarily withheld,” said Postal Service Chief Financial Officer Luke Grossmann.
The Postal Service pays about $200 million every other week to OPM for the FERS annuity. Suspension of payments, effective April 10, will free about $2.5 billion in the current fiscal year.