Alexandria, VA — In response to the United States Postal Service’s (USPS) decision to suspend its employer contributions to the Civil Service Retirement and Disability Fund (CSRDF) for the defined benefit portion of the Federal Employees Retirement System (FERS), effective April 10, 2026, NARFE National President William Shackelford issued the following statement:
“The U.S. Postal Service’s decision to suspend its contributions toward employee retirements is legally questionable—at best, detrimental to the future retirement security of its employees, premature given USPS does not face imminent insolvency, and only serves to delay when Congress must craft a solution to maintain USPS operations due to its financial situation.”
“Federal statute 5 U.S.C. § 8423 imposes a clear obligation to make employer contributions to CSRDF. It is not clear what legal authority the U.S. Postal Service Board of Governors is claiming to make this unilateral decision to ignore that obligation.”
“While this pause in payments does not provide any near-term threat to the timely payment of FERS annuities to postal or other federal retirees, it sets a dangerous precedent for the secure funding of postal and federal retiree pensions. Continued failure to pay employer contributions would create an unfunded liability for CSRDF that would need to be addressed in the future.”
“USPS is not projected to run out of cash until February 2027. That should sound the alarm to Congress to find a solution to ensure USPS remains solvent. But it does not justify this action at this time.”
“Congress must consider a financially viable path forward for USPS to maintain critical service to the American people while honoring commitments to postal retirees made in exchange for their service. They should start by extending USPS’ borrowing limit, which remains capped at the level set in 1990. NARFE is also open to a more balanced approach to the investment of health benefit funds and future contributions toward retirement – as long as pension payments remain guaranteed.”
Add your first comment to this post