USPS halts pension payments to avoid cash exhaustion by 2027

The U.S. Postal Service will save approximately $2.5 billion this fiscal year by pausing employer contributions for the defined benefit portion of the Federal Employees Retirement System. This move is part of a effort to conserve cash and preserve liquidity. The agency is prohibited by federal law from borrowing more than $15 billion and has reached that limit. Without significant changes, the Postal Service is set to run out of cash in 2027. The agency has filed notice with regulators to raise the price of a First-Class Mail Forever stamp from 78 cents to 82 cents.