USPS Halts FERS Employer Contributions to Shore Up Cash Reserves
The U.S. Postal Service announced a cash-conservation plan that temporarily suspends employer contributions to the defined-benefit portion of the Federal Employees Retirement System starting April 10, to preserve liquidity amid a severe financial crisis. The move frees about $2.5 billion in the current fiscal year; employee contributions to FERS and employer automatic/matching contributions to the Thrift Savings Plan, as well as employee contributions to the TSP, will continue. CFO Luke Grossmann says there will be no immediate harm to current or future retirees, and notes that FERS remains better funded than many other agencies. The USPS pays roughly $200 million biweekly to OPM for the FERS annuity, with more details in the FERS action FAQ.
