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Benefits November 16, 2011
USPS to Resume Retirement Payments in December
November 16, 2011 (PLANSPONSOR.com) – The U.S. Postal Service (USPS) will resume payments to its Federal Employees Retirement System (FERS) account in December, after it suspended payments this summer, reports Government Executive.
Reported by Tara Cantore
USPS CFO Joe Corbett said the agency has enough cash on hand to resume contributions in early December and pay out the amount that was withheld, which was approximately $1 billion.
Although payments to FERS will resume in December, the 2011 fiscal year for the USPS was not bright, with a net loss of $5.1 billion. According to the USPS, the year-end loss would have been approximately $10.6 billion had it not been for the passage of legislation that postponed a congressionally mandated payment of $5.5 billion to pre-fund retiree health benefits.
For more information, see Postal Service Wants to Withdraw from Federal Retirement Plan and USPS On Brink of Default on Payment to Pre-Fund Retiree Health Benefits.