The USPS has announced that it’s temporarily pausing FERS payments, starting April 10. For any USPS retirees or workers who are getting ready to retire, this sounds like scary news.
But here’s some reassurance – there will be no immediate impact on current or future retirees.
The USPS is pausing employer contributions, but all employee contributions and deductions will be the same. Your TSP contributions will also continue as normal.
Frequently Asked Questions
Does this affect my pension?
No – there won’t be any changes for current or future retirees. This pause reflects the poor financial state of the USPS, but it doesn’t mean your pension disappeared overnight.
Will retirees still get paid?
Yes! If you’ve already retired, you’ll keep getting checks as usual. That’s because your retirement checks are coming from the OPM, not the USPS.
Will my TSP be affected?
Your TSP is safe. TSP contributions won’t be touched, so you don’t have to worry about that going away.
Is this temporary?
This measure is meant to be temporary, but it’s worth thinking about the big picture. The USPS is seriously struggling, so this pause and other cost cutting measures might not be going away any time soon.
Why is the USPS doing this?
After losing billions of dollars over the years, the USPS is looking for ways to conserve cash. If they can’t get it under control, the agency may run out of money by the end of 2026.
What if I’m already struggling at work?
If all this stress and uncertainty is hitting you at a time when you’re already struggling at work because of a medical condition, it might be a good time to step back and weigh your options.
One way out of this is Federal Disability Retirement. It’s for injured and ill federal workers and it offers benefits that will protect your future:
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- Monthly paychecks
- Continued health and life insurance
- The option to work in the private sector
- Your pension keeps growing until age 62
You can learn more about Disability Retirement for USPS workers on this webinar.
So even though there’s no need to leave work immediately, this pause is a sign of some real financial instability. Disability Retirement could be one way out of that struggling system. Schedule a free consultation with us today to discuss your options.
