04/14/2026
🚨USPS Suspends FERS Payments; DOJ Asked To Review 🚨
The U.S. Postal Service has temporarily suspended its employer contributions to the Federal Employees Retirement System (FERS), effective April 10, citing the need to preserve cash amid ongoing financial pressure.
The move, which pauses approximately $200 million in biweekly payments—roughly $2.5 billion annually—is now under legal review. The Department of Justice has been asked to determine whether USPS has the authority to suspend these required contributions.
According to USPS, the decision is intended to maintain liquidity and ensure continued operations, including payroll and mail delivery, as the agency faces the possibility of running out of cash as early as 2027.
USPS states there is no immediate impact on employees or retirees:
* Employee FERS deductions continue as normal
* Thrift Savings Plan (TSP) contributions and matching remain unchanged
* Service credit toward retirement is unaffected
However, the broader implications remain uncertain. If the DOJ determines the suspension is not legally permissible, USPS could be required to repay missed contributions.
The decision highlights ongoing financial challenges and may increase pressure for congressional action, including potential changes to borrowing authority and retirement funding policies.
*In my personal opinion this is a path to remove pensions and make labor weaker as a whole. Federal benefits are known to be some of the best. Making federal benefits worse can have a cascading effect on labor and continue to lead the path to privatization.
Sources:
USPS internal FERS FAQ (April 2026); FedWeek reporting
https://www.fedweek.com/federal-managers-daily-report/doj-to-weigh-in-on-usps-decision-to-suspend-payments-into-fers-account/