This doesn’t bode well for USPS pensioners. Once on a motorcycle ride in the Napa wine country, I stopped for a break to get a beverage and snack at a small store and chatted with another motorcyclist doing the same. He was enjoying his last days of retirement, as the airline company he worked a career with changed ownership after bankruptcy, and he was losing his pension and would have to get a job. When someone else controls your retirement money, can you really depend on it? And as we’re heading into a severe financial collapse and reset, will existing pension funds still be able to pay retirees? I have a previous post about how the federal government doesn’t include certain unfunded obligations in the national debt, because they consider them non-binding (would make the debt over 4x the current $39 trillion). Included in that is Social Security and pensions…
The Postal Service had previously warned Congress that without reforms to the pension funding and stamp prices, it could run out of cash in less than a year.
By Kevin Killough
A cash shortfall has led the U.S. Postal Service to suspend employer pension contributions starting Friday.
The decision impacts the Federal Employees Retirement System, Fox News reported.
The Postal Service had previously warned Congress it could run out of cash in less than a year unless various reforms, including changes to pension funding and stamp prices, were enacted.
The suspension will free up $2.5 billion in the current fiscal year.
The service says it generally receives no tax dollars for operating expenses and relies on the sale of postage, products and services to fund its operations.