Post office suspends retirement contributions
WASHINGTON (AP) — The financially troubled Postal Service is suspending its employer contribution to the federal employee retirement system.
The agency said Wednesday it was acting to conserve cash as it continues to lose money. It was $8 billion in the red last year because of the combined effects of the recession and the switch of much mail to the Internet. It faces the possibility of running short of money by the end of this fiscal year in September.
The post office pays $115 million every two weeks into the Federal Employee Retirement System. The post office said it will continue to forward employee contributions to the FERS account.