USPS to suspend pension contributions, seeks 4-cent stamp price hike

[BumRushDaShow]

Source: AP

Updated 3:44 PM EDT, April 9, 2026


The U.S. Postal Service said Thursday it has informed federal budget officials it will temporarily suspend its employer contributions to Federal Employees Retirement System annuities, allowing it to keep making payroll, paying suppliers and delivering the mail.

The Postal Service also wants to increase postage rates, including raising the price of a First-Class Mail Forever stamp from 78 cents to 82 cents. USPS filed notice Friday with regulators, who still need to approve the changes.

The step taken by the Postal Board of Governors to forgo the pension payments is meant to preserve cash and liquidity due to the Postal Service’s “ongoing, severe financial crisis,” Postal Service Chief Financial Officer Luke Grossmann said in an internal message to USPS employees. Officials have warned the USPS is on course to run out of cash by around February 2027.

Despite the suspension of employer contributions, effective Friday, current and future retirees will not be immediately impacted, Grossman said.

Read more: https://apnews.com/article/mail-usps-pensions-financial-crisis-da601e2b88f3420898757dbdb09fa518

[James48]

1. $4.25 gasoline doesn't help .

Trump causes damage to the Post Office.

It’s what the GOP does. Destroys everything great about America.

By the way- Mail is still a bargain at .82 cents. Now pay your employees retirement contribution.

[CousinIT]

2. It's being systematically destroyed in preparation for privatization or elimination.

This is a CHOICE - it has been DEFUNDED.

[MichMan]

11. Explain how it was defunded when it doesn't get any taxpayer subsidies?

Unlike many government agencies, the United States Postal Service (USPS) does not receive direct taxpayer funding for operating expenses. Government appropriations are limited to specific purposes, such as the Postal Service Health Benefits (PSHB) Program.

The Fiscal Year 2025 budget request for the PSHB Program includes a continuation of the 2024 appropriation increase. These funds are specifically allocated for the operation of the PSHB program, managed within the Office of Personnel Management’s Trust Fund Transfers.

A proposed legislative measure aims to secure future funding for the PSHB program’s eligibility determination and enrollment systems beyond FY 2025. These government appropriations are designated for postal retirees’ healthcare benefits and do not represent subsidies for the USPS’s general operating costs.

https://govfacts.org/government/federal/independent-executive/usps/how-usps-stays-afloat-funding-facts-simplified/

[TexasBushwhacker]

3. Enough with the nickel and diming every year

Sending a letter coast to coast for the cost of a single stamp is STILL a bargain, considerably lower than other countries. Raise it to $1. Contribute to the pension fund. Adequately staff post offices.

The US has the cheapest postage among 31 countries.

https://www.google.com/search?q=first+class+postage+by+country&oq=first+class+postage+by+country&gs_lcrp=EgZjaHJvbWUyBggAEEUYOTIICAEQABgWGB4yCAgCEAAYFhgeMg0IAxAAGIYDGIAEGIoFMg0IBBAAGIYDGIAEGIoFMg0IBRAAGIYDGIAEGIoFMg0IBhAAGIYDGIAEGIoFMgoIBxAAGIAEGKIEMgoICBAAGIAEGKIEMgoICRAAGIAEGKIEMgoIChAAGIAEGKIE0gEJMTk5NzJqMGo0qAIOsAIB8QVAsHL5kGogLA&client=ms-android-google&sourceid=chrome-mobile&ie=UTF-8#lfId=ChxjMe

[Jacson6]

4. I get 3 letters a week and have Amazon PKG deliver once a week.

In Denmark they got rid of the mail delivery service. I could see the USA having once a week delivery to each address. The Internet has replaced the mail delivery service for most correspondence. IMHO.

[BumRushDaShow]

6. "The Internet has replaced the mail delivery service for most correspondence. IMHO."

In Denmark they got rid of the mail delivery service.

Not in a gigantic country like the U.S., with huge rural areas and mountainous areas where there is little or no access to "internet" service or even cable or cell service.



That was an early focus of the term "RFD" = "Rural Free Delivery" - with the promise to deliver mail to every address in the U.S.

There was even the old "Andy Griffith Show" spinoff called "Mayberry R.F.D."

That's why the early push and fuss about Muskrat's "Starlink" being used for those areas. And then he went rogue.

[Dixiegrrrl]

9. Interestingly, in our rural area, Starlink is the only satellite service we could get.

Which is another reason why we dropped tv in favour of phone based internet.
Turned out to be a much better option than tv ever was.

[Bengus81]

5. STOP delivering mail on Saturdays and save billions

Who cares if junk shit hits the box on Sat or Monday??

[twodogsbarking]

7. When I was a child the stamps were four cents.

[PatrickforB]

8. All under the expert hand of DeJoy! He has financial interests in privatization of the USPS dontcha know! n/t

[BumRushDaShow]

10. He left last year but the damage is done.

[MichMan]

12. DeJoy resigned a year ago n/t