Story perspectives

USPS Suspends FERS Contributions Amid $9 Billion Losses

4/9/2026

Summary

Story summary

The U.S. Postal Service (USPS) will suspend contributions to the Federal Employees Retirement System (FERS) to conserve cash, while aiming to save about $2.5 billion by year end.
Postmaster General David Steiner of the U.S. Postal Service warns the agency could run out of funds within 12 months.
Employee contributions to FERS will continue, while USPS considers higher stamp prices and fewer delivery days after reporting $9 billion in losses in 2025.

History

Historical Context

The U.S. Postal Reorganization Act, signed by President Richard Nixon on August 12, 1970, transformed the Post Office Department into the independent U.S. Postal Service (USPS) effective July 1, 1971, following a significant postal strike. Despite gaining collective bargaining rights, the USPS has struggled financially, reporting $9 billion in losses in 2025, prompting measures like suspending retirement contributions.

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Story summary

The U.S. Postal Service (USPS) will suspend contributions to the Federal Employees Retirement System (FERS) to conserve cash, while aiming to save about $2.5 billion by year end.
Postmaster General David Steiner of the U.S. Postal Service warns the agency could run out of funds within 12 months.
Employee contributions to FERS will continue, while USPS considers higher stamp prices and fewer delivery days after reporting $9 billion in losses in 2025.

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