The United States Postal Service (USPS) suspended employer contributions to the Federal Employees Retirement System (FERS) on Thursday, freeing roughly $2.5 billion in liquidity as the agency warned of liquidity pressures that could affect postal operations.
Beginning April 10, USPS will halt its $200 million every-other-week employer contribution to the defined benefit portion of the Federal Employees Retirement System (FERS).
Chief Financial Officer Luke Grossmann said the risk to postal operations from insufficient liquidity “dramatically outweighs any longer-term risk to the pension funds.” Employee contributions to FERS and the Thrift Savings Plan will continue uninterrupted, the agency said.
The move follows cumulative losses of roughly $118 billion since 2007. USPS has separately proposed raising the …
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