Postal News Blog--June 22, 2011 - The Postal Service announced on June 22 that it is suspending its bi-weekly contributions to the Office of Personnel Management (OPM) for Federal Employees Retirement System (FERS) benefits (11.7% of basic pay), because its FERS account within the government-wide pension plan has a large surplus, and because it would like to preserve its cash reserves in the face of worsening economic conditions. Earlier this year, the Postmaster General announced that the USPS would not be able to make the $5.5 billion retiree health pre-funding payment scheduled for Sept. 30, 2011, and called on Congress to enact postal reform to avert a funding crisis that will occur when the USPS exhausts its $15 billion debt limit early next year.
The Postal Service has informed the NALC that employee contributions to FERS (0.8 percent of pay) will continue. However, it also told the union that the USPS and OPM disagree about whether the Postal Service can satisfy its bi-weekly FERS obligations with the surplus pension funds. The two agencies have agreed to ask the Department of Justice to decide the matter, and to continue to award service credit under FERS. Read more!
The Postal Service has informed the NALC that employee contributions to FERS (0.8 percent of pay) will continue. However, it also told the union that the USPS and OPM disagree about whether the Postal Service can satisfy its bi-weekly FERS obligations with the surplus pension funds. The two agencies have agreed to ask the Department of Justice to decide the matter, and to continue to award service credit under FERS. Read more!
