Cash-strapped US Postal Service suspends contributions to pension plan - Reuters

<a href="https://news.google.com/rss/articles/CBMirgFBVV95cUxPbi00aHU3SVo0TmpLMmV6S3VlVE9ONVRHTzVlQnpiMXo4TXlXeWpBYVlLUXhNdGlpV0dnZUtJV3RFU051NnVuc1pQWnpWRmlZVXNDOFVKbnRwOFE0c2lKRGl3Q09ob0VNUUhEMnI2MVljbnEwNmpIZ0Nzakl3VDFvcHh2Mk5MWl82enZBanNYTTdwMWYwX2Z6MU5mNEQ1ckF4eWpVWWdNNU5QYzJrZnc?oc=5" target="_blank">Cash-strapped US Postal Service suspends contributions to pension plan</a>&nbsp;&nbsp;<font color="#6f6f6f">Reuters</font>

Facing a severe financial crisis, the U.S. Postal Service has decided to temporarily suspend its employer contributions to the Federal Employees Retirement System (FERS) annuities to conserve cash and maintain operations like payroll, supplier payments, and mail delivery. The move, effective immediately, does not affect current or future retirees and allows USPS to prioritize liquidity over pension contributions. It also continues to fund other retirement and Social Security contributions.

The U.S. Postal Service has informed federal budget officials that it will temporarily suspend its employer contributions to Federal Employees Retirement System annuities, allowing it to keep making payroll, paying suppliers, and delivering the mail. This decision is aimed at preserving cash and liquidity due to the Postal Service's ongoing severe financial crisis. Despite the suspension, current and future retirees will not be immediately impacted.

The financially troubled Postal Service is suspending its contributions to its employees' pension fund. The agency said Wednesday it is acting to conserve cash as it continues to lose money. The post office was $8 billion in the red last year because of the combined effects of the recession and the switch of much mail business to the Internet. It faces the possibility of running short of money by the end of this fiscal year in September.

The U.S. Postal Service is suspending its $115 million defined benefits (DB) contributions to the Federal Employees Retirement System (FERS) to preserve liquidity through the rest of its fiscal year. The $6.9 billion USPS said that it had overpaid in contributions to date. The service will continue its employee contributions to FERS and its $264 billion Thrift Savings Plan, both in Washington. The Postal Service is expecting to save about $800 million by the September 30 close of its 2011 fiscal year. USPS’ finances have been affected by prefunding mandates for retiree health care, including a $5.5 billion payment due in September as well as the FERS contributions.