An inspector general report has assessed options for addressing the Postal Service’s retirement funding shortfall–which it says “has driven up retirement-related expenses and contributed to billions in annual deficits”–involving increasing income to the fund or slowing the outgo.
That shortfall recently was calculated at some $104 billion, or about 70 percent of need, causing the USPS to stop making its contributions on behalf of employees under FERS—employees’ own contributions continue, however—to free up operating cash. “Over the past 10 years, retirement costs grew faster than other categories of spending. Pension-related expenses including normal costs and amortization costs totaled $10.3 billion in FY 2025, or 11.5 percent of total agency expenses,” the report said.
It said that even if the USPS makes all the required contributions over the next 20 years, it still would end up with an underfunded retirement system except in a best-case scenario
The point here seems to be that the issue can be fixed, but the larger issue not discussed is the USPS cannot meet its retirement obligations if it continues to withhold its share. Why this isn’t discussed is perplexing, as the total is currently in the billions. Even more perplexing is why the USPS doesn’t discuss it anymore and doesn’t even subtract it from the bottom line as if it doesn’t exist. Steiner and company have proven to be liars and crooks; the USPS may never recover from their incompetence.