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As you may have heard, the Postal Service announced on June 22 that it is suspending its bi-weekly contributions to the Office of Personnel Management (OPM) for Federal Employees Retirement System (FERS) benefits. The Service’s reason for doing so is its FERS account has a recognized surplus of $6.9 billion and it needs to preserve its cash for operational costs.
I want to clarify something: Employee contributions to FERS will continue, as will the employer contributions.
The USPS and OPM disagree about whether the Postal Service can satisfy its bi-weekly FERS obligations with the surplus pension funds. The two agencies are waiting for the Department of Justice to make a ruling on the matter.
However, as I indicated earlier this week, this action by the Postal Service to use the postal surplus in FERS to meet its payroll obligations to FERS does not directly affect NALC members because OPM has agreed to continue to award service credit under FERS.
This decision by the USPS continues to underscore the issue at hand: Congress needs to act to return the Postal Service’s surplus in both FERS and the Civil Service Retirement System (CSRS). Giving the USPS access to its own money would provide it much needed financial relief.
For more information and to read my official statement, please click this link.
Fredric V. Rolando, President
National Association of Letter Carriers
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