Temporary suspension of USPS FERS contributions

[Brots9999]

USPS suspends contributions to pension plan to delay running out of cash | Federal News Network

Postmaster General David Steiner warned lawmakers that USPS will run on of cash in less than 12 months, if it continued to pay its bills on time.

federalnewsnetwork.com

Weeeeee.

 

[Jjf133]

Nice that we still have to contribute, but they don’t?

 

[Voglio-il mio]

Well then, they will more than likely "suspend" the agency automatic 1% as well as the matching and 50% matching contributions to employees TSP accounts.

This is in the Article!

USPS is only withholding its employer contributions to FERS, and will continue to provide OPM with employees’ own contributions to FERS, as well as all regularly scheduled payments to the Thrift Savings Plan, a 401(k)-style retirement savings and investment plan available to all federal employees.

 

[Jjf133]

Well then, they will more than likely "suspend" the agency automatic 1% as well as the matching and 50% matching contributions to employees TSP accounts.

Lovely

 

[Jjf133]

This is in the Article!

USPS is only withholding its employer contributions to FERS, and will continue to provide OPM with employees’ own contributions to FERS, as well as all regularly scheduled payments to the Thrift Savings Plan, a 401(k)-style retirement savings and investment plan available to all federal employees.

Yes I still have to pay my 4.4% while they skip out on their by weekly payments.

 

[hockey94]

I am sure this move is really going to help morale. IF, they resume the FERS payment, how long will take to figure out what is owed to the employees. Another, clusterf&*k, on the horizon !

 

[Jjf133]

if they are doing away with Fers then at least give me the money back that I’ve been contributing and let me put it into TSP.

 

[Voglio-il mio]

Nice that we still have to contribute, but they don’t?

This isn't the 1st time this has happened and was resolve last time per Article this way.

USPS previously suspended its employer contributions to FERS in June 2011 to retain as much cash as possible during another acute period of financial stress. That suspension, however, only lasted for several months, and USPS resumed biweekly payments and paid back what it owed OPM.

So hopefully once USPS has a better financial position it will be resolved the same way!

 

[neciat]

This is in the Article!

USPS is only withholding its employer contributions to FERS, and will continue to provide OPM with employees’ own contributions to FERS, as well as all regularly scheduled payments to the Thrift Savings Plan, a 401(k)-style retirement savings and investment plan available to all federal employees.

Thanks !! I deleted my totally inaccurate post. I flew right over that part. Thanks again !!!!

 

[Voglio-il mio]

I am sure this move is really going to help morale. IF, they resume the FERS payment, how long will take to figure out what is owed to the employees. Another, clusterf&*k, on the horizon !

It doent affect your paycheck! It only affects USPS's portion of what is being paid to OPM towards your retirement employer contributions to FERS.

 

[hockey94]

It doent affect your paycheck! It only affects USPS's portion of what is being paid to OPM towards your retirement employer contributions to FERS.

Correct. Your retirement $$$ will be shorted until the PO gets an infusion of $$$.

 

[Jjf133]

This is starting to sound like what’s going to happen to social security. I contribute a bunch of money over my lifetime and will get nothing in return.

 

[justacarrier]

In the end, as has been already stated this has happened before with no serious problems. One thing to keep in mind also is that the PO is WAY over paid into the federal retirement systems. This is primarily on the CSRS front but even in FERS they are high up in the 80% to 90% range which is well above the 60% to 75% that most agencies are at and considered adequately funded. This has been an ongoing issue the PO has tried to address with Congress for years, being considerably over funded.

 

[hockey94]

In the end, as has been already stated this has happened before with no serious problems. One thing to keep in mind also is that the PO is WAY over paid into the federal retirement systems. This is primarily on the CSRS front but even in FERS they are high up in the 80% to 90% range which is well above the 60% to 75% that most agencies are at and considered adequately funded. This has been an ongoing issue the PO has tried to address with Congress for years, being considerably over funded.

Maybe i am not understanding. FERS is well funded, the PO is “temporarily” diverting FERS $$$ into mgts pocket ?

 

[pomastercontrolsmyfreedom]

So are they still contributing the match or not?

 

[justacarrier]

Maybe i am not understanding. FERS is well funded, the PO is “temporarily” diverting FERS $$$ into mgts pocket ?

They are diverting the funds into the "cash" fund that pays employees. If you remember back when there were shutdowns and they used TSP funds to "continue funding" parts of the government. It's really just moving numbers around on a balance sheet. As long as this is not a protracted halt of the funds (year or more) it should have no real effect on any employee.

 

[justacarrier]

So are they still contributing the match or not?

Not anything to do with TSP so there is no match. This is the PO part of your FERS deposits.

 

[Gotrope]

This is in the Article!

USPS is only withholding its employer contributions to FERS, and will continue to provide OPM with employees’ own contributions to FERS, as well as all regularly scheduled payments to the Thrift Savings Plan, a 401(k)-style retirement savings and investment plan available to all federal employees.

That's because if they stop TSP contributions - it's a financial nightmare. You can't makeup market share on contributions not made. You can retro pay fers without penalty due to the formula and fixed govt Interest rate.

 

[Gotrope]

I am sure this move is really going to help morale. IF, they resume the FERS payment, how long will take to figure out what is owed to the employees. Another, clusterf&*k, on the horizon !

It's a fixed formula owed to fers. No real struggle to figure it out. Way bigger issue to affect TSP numbers. That's why they seldom touch that account. Also, it's why few retro payments truly account for tsp matching and lots of gain.

 

[DB.Cooper]

They are diverting the funds into the "cash" fund that pays employees. If you remember back when there were shutdowns and they used TSP funds to "continue funding" parts of the government. It's really just moving numbers around on a balance sheet. As long as this is not a protracted halt of the funds (year or more) it should have no real effect on any employee.

I've always thought the USPS loved to play games with employees money... I mean they got the shell games, the bait and switch game, and RRECS is really a combo of many of their fave games, of which the good ole hide the salami game is really the one they're the best at, and enjoy playing the most....