USPS to suspend pension contributions, seeks 4-cent stamp price hike
Source: AP
Updated 3:44 PM EDT, April 9, 2026
The U.S. Postal Service said Thursday it has informed federal budget officials it will temporarily suspend its employer contributions to Federal Employees Retirement System annuities, allowing it to keep making payroll, paying suppliers and delivering the mail.
The Postal Service also wants to increase postage rates, including raising the price of a First-Class Mail Forever stamp from 78 cents to 82 cents. USPS filed notice Friday with regulators, who still need to approve the changes.
The step taken by the Postal Board of Governors to forgo the pension payments is meant to preserve cash and liquidity due to the Postal Services ongoing, severe financial crisis, Postal Service Chief Financial Officer Luke Grossmann said in an internal message to USPS employees. Officials have warned the USPS is on course to run out of cash by around February 2027.
Despite the suspension of employer contributions, effective Friday, current and future retirees will not be immediately impacted, Grossman said.
Read more: https://apnews.com/article/mail-usps-pensions-financial-crisis-da601e2b88f3420898757dbdb09fa518
James48
(5,230 posts)Trump causes damage to the Post Office.
Its what the GOP does. Destroys everything great about America.
By the way- Mail is still a bargain at .82 cents. Now pay your employees retirement contribution.
Old Crank
(7,125 posts)Tossed out the half finished electrification plans.
summer_in_TX
(4,184 posts)That is the source of their financial problems. No other agency has that requirement. It seems likely that is part of a Republican plan to ruin it and replace it with a for profit model for delivery of mail and packages.
The corporate world would like to have all the data the USPS has too.
CousinIT
(12,565 posts)This is a CHOICE - it has been DEFUNDED.
MichMan
(17,185 posts)The Fiscal Year 2025 budget request for the PSHB Program includes a continuation of the 2024 appropriation increase. These funds are specifically allocated for the operation of the PSHB program, managed within the Office of Personnel Managements Trust Fund Transfers.
A proposed legislative measure aims to secure future funding for the PSHB programs eligibility determination and enrollment systems beyond FY 2025. These government appropriations are designated for postal retirees healthcare benefits and do not represent subsidies for the USPSs general operating costs.
https://govfacts.org/government/federal/independent-executive/usps/how-usps-stays-afloat-funding-facts-simplified/
Old Crank
(7,125 posts)Is essentially defunding it.
MichMan
(17,185 posts)The Postal Reorganization Act was passed in 1970 in the House 360-24 & also in the Senate 57-7 and signed by President Nixon.
Besides making the USPS an independent agency, it also did allow for postal employees to be represented by unions and engage in collective bargaining.
TexasBushwhacker
(21,209 posts)Sending a letter coast to coast for the cost of a single stamp is STILL a bargain, considerably lower than other countries. Raise it to $1. Contribute to the pension fund. Adequately staff post offices.
The US has the cheapest postage among 31 countries.
https://www.google.com/search?q=first+class+postage+by+country&oq=first+class+postage+by+country&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIICAEQABgWGB4yCAgCEAAYFhgeMg0IAxAAGIYDGIAEGIoFMg0IBBAAGIYDGIAEGIoFMg0IBRAAGIYDGIAEGIoFMg0IBhAAGIYDGIAEGIoFMgoIBxAAGIAEGKIEMgoICBAAGIAEGKIEMgoICRAAGIAEGKIEMgoIChAAGIAEGKIE0gEJMTk5NzJqMGo0qAIOsAIB8QVAsHL5kGogLA&client=ms-android-google&sourceid=chrome-mobile&ie=UTF-8#lfId=ChxjMe
Jacson6
(2,037 posts)In Denmark they got rid of the mail delivery service. I could see the USA having once a week delivery to each address. The Internet has replaced the mail delivery service for most correspondence. IMHO.
BumRushDaShow
(170,185 posts)Not in a gigantic country like the U.S., with huge rural areas and mountainous areas where there is little or no access to "internet" service or even cable or cell service.

That was an early focus of the term "RFD" = "Rural Free Delivery" - with the promise to deliver mail to every address in the U.S.
There was even the old "Andy Griffith Show" spinoff called "Mayberry R.F.D."
That's why the early push and fuss about Muskrat's "Starlink" being used for those areas. And then he went rogue.
Dixiegrrrl
(213 posts)Which is another reason why we dropped tv in favour of phone based internet.
Turned out to be a much better option than tv ever was.
Bengus81
(10,188 posts)Who cares if junk shit hits the box on Sat or Monday??
twodogsbarking
(18,877 posts)PatrickforB
(15,441 posts)BumRushDaShow
(170,185 posts)MichMan
(17,185 posts)PatrickforB
(15,441 posts)cstanleytech
(28,495 posts)summer_in_TX
(4,184 posts)to pre-fund all employees retirements had the USPS losing millions each year.