The U.S. Postal Service (USPS) is suspending its $115 million defined benefits (DB) contributions to the Federal Employees Retirement System (FERS) to preserve liquidity through the rest of its fiscal year, Pensions & Investments reports. The $6.9 billion USPS said that it had overpaid in contributions to date. The service will continue its employee contributions to FERS and its $264 billion Thrift Savings Plan, both in Washington. The Postal Service is expecting to save about $800 million by the September 30 close of its 2011 fiscal year. USPS’ finances have been affected by prefunding mandates for retiree health care, including a $5.5 billion payment due in September as well as the FERS contributions.
Click here for the story from Pensions & Investments.
Click here for additional coverage from Direct Marketing News.
