What It Means to Postal Workers That USPS Is Relying on Employee Retirement Funds to Operate

The U.S. Postal Service financial crisis is no longer a future concern — it’s happening now.

Testifying before Congress in June, Postmaster General and Postal Service CEO David Steiner said the agency is running out of cash, deferring retirement obligations and relying on temporary financial maneuvers to continue providing service.

Those maneuvers include borrowing from employees’ retirement funds, a move that should stop every postal worker in their tracks.

When Steiner says the agency is borrowing from those funds to stay afloat, he doesn’t mean individual Thrift Savings Plan (TSP) accounts are being raided or that earned pensions have vanished.

However, it does mean the Postal Service is using deferred employer retirement obligations as a cash-management tool, which can impact every postal employee trying to make informed decisions about retirement, benefits, income and long-term security.

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