Please find enclosed copies of the Mandatory Stand-Up Talk and FERS Action – Frequently Asked Questions/Talking Points (pdf) regarding the USPS Board of Governor’s decision to temporarily suspend the Postal Service’s employer contributions for Federal Employees Retirement System (FERS) annuities. The suspension is effective April 10.

According to the Postal Service, this action is necessary to conserve cash and preserve liquidity due to its ongoing, severe financial crisis in which the Postal Service could run out of cash as early as February 2027.

The Postal Service will continue to withhold employees’ contributions to FERS and will transmit those amounts to OPM. The Postal Service will also continue to transmit the employer automatic and matching contributions and employee contributions to the Thrift Savings Plan (TSP) and to Social Security.

The Postal Service states that there will be no immediate detrimental impact to current or future retirees when the normal FERS cost payments are temporarily withheld.  

Should you have any questions contact the Contract Administration Department.