The United States Postal Service is trying to right the ship and is temporarily suspending employer contributions to the Federal Employees Retirement System annuities so it can pay workers and suppliers and continue delivering the mail.
The Associated Press reported that the Postal Board of Governors made the decision to stop the payments to make sure the agency has cash because of its “ongoing, severe financial crisis,” Chief Financial Officer Luke Grossmann told employees.
The payments equal about $400 million a month and would save about $2.5 billion this fiscal year, The New York Times reported. The USPS has lost $1.3 billion in the first quarter of the 2026 fiscal year. In 2024, it had net losses of $9.5 billion and $9 billion in 2025.
USPS officials said it could run out of money around February.
While the annuity contributions are stopping, the USPS will still send employees’ retirement contributions to the Office of Personnel Management, as well as Thrift Savings Plan contributions, including employer automatic and matching funds. It will also continue to pay into Social Security.
Current and future retirees will not be affected, Grossman said, according to the AP.
Brian Renfore, National Association of Letter Carriers president, supports the move, saying in a statement, “This move is necessitated by the Postal Service’s current financial situation, and is a direct result of continued inaction by Congress,” the Times reported.
“It is time for Congress to act on these common-sense policy changes to protect our jobs, retirements and the essential and reliable service we provide to every American,” Renfore continued.
In addition to stopping pension contributions, the agency has requested to raise the cost of First-Class Mail Forever stamps by four cents from 78 cents to 82 cents.
Postmaster General David Steiner had asked Congress to allow the price to be raised by 20 cents, according to the Times.
Federal regulators have to approve the rate hike.
The stamp price increase comes after the USPS put an 8% package surcharge that goes into effect this month, The New York Times reported.