USPS Is Set to Suspend Pension Contributions as It Seeks Another Price Hike

Last week, the U.S. Postal Service said it had informed federal budget officials it will temporarily suspend its employer contributions to Federal Employees Retirement System (FERS) annuities, allowing it to keep making payroll, paying suppliers and delivering the mail.

The postal service also wants to increase postage rates, including raising the price of a First-Class Mail Forever stamp from 78 cents to 82 cents. USPS filed notice Friday with regulators, who still need to approve the changes.

The step taken by the Postal Board of Governors to forgo the pension payments is meant to preserve cash and liquidity due to the Postal Service's "ongoing, severe financial crisis," Postal Service Chief Financial Officer Luke Grossmann said in an internal message to USPS employees. Officials have warned the USPS is on course to run out of cash by around February 2027.

Please select this link to read the complete article from The Associated Press.