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The United States Postal Service recently announced that it will immediately suspend payment of the employer portion of the contributions for all Federal Employee Retirement System (FERS) retirements. The Civil Service Retirement System (CSRS) was not included in the announcement and will not be affected. The situation is still developing and we will continue to update the OPM website as information becomes available.
Current USPS retirees and employees who retired before June 3, 2011, will not be impacted by this announcement and there will be no negative impact on future postal employees’ retirement. While the matter is under consideration, it is our hope that the issue will be resolved as quickly as the law allows.
OPM has issued a statement regarding this issue which can be found on our web-site. The link to the statement is: http://www.opm.gov/news/statement-by-us-office-of-personnel-management-on-postal-services-decision-to-suspend-fers-annuity-contributions,1674.aspx
Due to the devastating fires and floods in the west, OPM has dedicated a telephone line to receive calls so our retirees and their families who are affected can get instant assistance for reissuing checks, changing addresses, and in cases of death, adjustments to annuity payments. If you are one of our clients and are affected by the natural disasters, please call 202-606-8142 so the appropriate arrangements can be made to handle your situation as quickly as possible. You may also contact us via email at email@example.com or via phone at 888-767-6738.
As widely reported in the news, our government has reached its debt limit. U.S. Treasury Secretary Geithner has since declared a “debt issuance suspension period” for the Civil Service Retirement and Disability Fund (which funds our retirees). By law this allows the Treasury to redeem (or cash out) a portion of existing Treasury securities held by the fund. The same law also requires that the government repay the fund with interest.
Bottom line: This action will not affect CSRS and FERS annuity payments to retirees. All payments will continue as normal and on schedule.
Thank you for your time. I hope you find this information useful and we look forward to providing you more information in the future.
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