The Postal Service wants to increase postage prices by 5% starting 12 July, but the plan needs to be approved by the Postal Regulatory Commission, an independent agency that oversees the USPS. Despite the suspension of employer contributions, effective Friday, current and future retirees will not be immediately impacted, Grossman said. “The risk to the Postal Service and the American public from insufficient liquidity for postal operations dramatically outweighs any longer-term risk to the pension funds from not making the currently due payments,” he said in the statement. In 2011, the Postal Service suspended its employer contributions to FERS to conserve as much cash as possible because it was going through another acute period of financial stress. The Postal Service said it will continue transmitting employees’ retirement contributions to the federal Office of Personnel Management, along with Thrift Savings Plan contributions, including employer automatic and matching funds, and will also maintain its employer contributions to Social Security.

Source: Mint April 10, 2026 03:47 UTC