Yesterday, USPS said itâ€™s suspending the employerâ€™s contributions for the defined benefit portion of the Federal Employees Retirement System, or FERS (Link EXTRA, 6/22). The Postal Service said it was taking this step to conserve cash and preserve liquidity.
Today, PMG Pat Donahoe â€” in a video message to employees â€” says the suspension will not affect them. Noting that USPS has a surplus of $6.9 billion in payments to FERS, he says â€œWe simply are stopping this ongoing overpayment toward the annuity FERS retirees receive because we have already met that obligation.â€
Donahoe says the suspension is â€œonly a stop-gap measure,â€ adding Congress must approve legislation that can help the Postal Service return to profitability. As he has in the past, the PMG urges Congress to eliminate the requirement for pre-payments to the retiree health benefits fund; grant USPS access to the FERS overpayment; and give the Postal Service flexibility to determine the frequency of mail delivery.