The United States Postal Service (USPS) recently made the decision to suspend their employer contributions toward the Federal Employee Retirement System (FERS) program. This action comes as a precautionary measure to ensure they can continue funding current USPS employees. 

While this action does not provide any near-term threat to the timely payment of FERS annuities to postal or other federal retirees, it sets a dangerous precedent for the secure funding of postal and federal retiree pensions. Continued failure to pay employer contributions would create an unfunded liability for the Civil Service Retirement and Disability Fund (CSDRF) that would need to be addressed in the future.

NARFE is urging Congress to demand USPS pay its employer contributions into CSRDF for its FERS retirees. Congress must find a financially viable path forward for USPS to maintain critical service to the American people while honoring commitments to postal retirees made in exchange for their service. NARFE suggests that Congress extend USPS’ borrowing limit, which remains capped at the level set in 1990, but is also open to a more balanced approach to the investment of health benefit funds and future contributions toward retirement – as long as pension payments remain guaranteed.

Please use the sample letter below to urge your members of Congress to pass laws that address USPS’ financial difficulties.