USPS pauses pension payments to maintain operations and requests postage hike

Sat, 11 Apr 2026 11:01:00 +0200

The U.S. Postal Service announced it will temporarily suspend its employer contributions to the Federal Employees Retirement System annuities to preserve cash flow and continue operations, including payroll and supplier payments. This step comes amid what USPS describes as a severe financial crisis, with projections indicating the agency could run out of cash by February 2027. Despite the suspension, current and future retirees will not face immediate impacts. Employees’ retirement contributions to the federal Office of Personnel Management and Thrift Savings Plan contributions, including employer matching, will continue, as will Social Security contributions. Additionally, USPS has requested approval from regulators to raise postage rates, increasing the price of a First-Class Mail Forever stamp from 78 cents to 82 cents, along with adjustments to postcards and international letters. The Postal Regulatory Commission has granted a temporary multi-year waiver, allowing USPS to redirect