The U.S. Postal Service is temporarily suspending its employer contributions to Federal Employees Retirement System annuities. This move helps maintain payroll, pay suppliers, and deliver mail amid a severe financial crisis. Officials warn USPS could run out of cash by February 2027. Despite the suspension, current and future retirees won't be immediately impacted. USPS will continue transmitting employees’ retirement contributions to the federal Office of Personnel Management. Postmaster General David Steiner has called for lifting a decades-old borrowing cap and other changes to improve finances. USPS’s net losses for fiscal year 2025 totaled $9 billion.
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