USPS Pauses Retirement Contributions to Stay Afloat

0:00The U.S. Postal Service just announced its pausing its employer contributions to federal employee retirement annuities to save cash and keep operations. Running smooth. This move by the Postal Board of Governors kicks in today and helps cover payroll, supplier bills, and mail delivery amid a deep financial crunch. Officials say they're on track to run out of money by February 2027 without changes. They've pulled this before back in 2011 during another crisis, and right now, current and future retirees won't feel the hit immediately. The Postal Service is still sending employee retirement contributions to the office of personal management, plus full thrift savings plan matches, and social security employer shares. Chief financial officer, Luke Grossman, told staff the liquidity risks to daily operations outweigh any long-term pension delays. National Association of Letter Carriers, President Brian Renfrow, called it far from perfect but better than cuts that would hurt members or service. Right away, nearly all career postal workers are under this federal retirement system.

1:04Losses hit $9.5 billion last fiscal year and $9 billion this year, even with revenue up a bit from new shipping options. Postmaster General David Steiner is pushing Congress to lift the old barring cap and let them hike stamp prices to cover costs, and by time for fixes, advocacy groups that keep us posted, want limits on raid jumps to once a year, plus guarantees for six-day male delivery and more oversight on changes. The Postal Service is fighting to stay solvent while serving everyone from consumers to businesses. That's the story for today. I, Canada News Today, Driven by AI