Yesterday, USPS said it’s suspending the employer’s contributions for the defined benefit portion of the Federal Employees Retirement System (FERS).
The reason? To conserve cash, to pay creditors and employees.
The payment is about $115 million every payday and should free up about $800 between now and the end of the year. It doesn't affect matching funds or the 1 percent automatic payment to TSP.
The Postal Service has a surplus of $6.9 billion in payments to FERS.
What do you think? Should we quit paying the money until we have caught up? Is this a smart move? Other thoughts? Comment here.