The USPS is suspending contributions to employee pensions as it warns of a 'pending liquidity crisis'

"The risk to the Postal Service and the American public from insufficient liquidity for postal operations dramatically outweighs any longer-term risk to the pension funds from not making the currently due payments."

"Legislative action is desperately needed to return the Postal Service to profitability."

"Without action, USPS might not be able to deliver mail starting in early 2027."

The US Postal Service is suspending pension payments to the Federal Employees Retirement System to alleviate financial strain, anticipating a liquidity crisis by February 2027. This decision aims to save $2.5 billion in the current fiscal year. USPS reported a $9 billion loss last fiscal year and warned that without intervention, mail delivery could cease in early 2027. While the suspension won't impact current employees or retirees immediately, USPS emphasizes the need for legislative action to restore profitability.

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