USPS to Suspend Pension Contributions, Seeks 4-Cent Stamp Price Hike

Postal Service files notice with regulators to address ongoing financial crisis

Apr. 10, 2026 at 8:36am

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A high-end, photorealistic studio still-life photograph featuring a stack of USPS-branded envelopes and a vintage brass stamp dispenser, arranged elegantly on a clean, monochromatic seamless background. The objects are made from polished raw materials and clean geometric shapes, using sharp, dramatic studio lighting and deep shadows to represent the abstract corporate strategy and financial challenges facing the Postal Service.As the USPS grapples with its ongoing financial crisis, the suspension of pension contributions and proposed stamp price hike underscore the need for legislative reforms to ensure the long-term viability of the Postal Service.Chicago Today

The United States Postal Service (USPS) has announced plans to temporarily suspend its employer contributions to the Federal Employees Retirement System (FERS) annuities, allowing it to maintain operations and payroll. Additionally, the USPS is seeking to increase postage rates, including raising the price of a First-Class Mail Forever stamp from 78 cents to 82 cents.

Why it matters

The USPS is facing an ongoing financial crisis, with warnings that it could run out of cash by around February 2027. The suspension of pension contributions and the proposed rate hikes are intended to help preserve the Postal Service's liquidity and ensure it can continue delivering mail to the American public.

The details

The USPS filed notice with federal regulators on Friday to temporarily suspend its employer contributions to FERS annuities, a move that is meant to preserve cash and liquidity. While this will not immediately impact current and future retirees, it is seen as a necessary step to address the Postal Service's severe financial challenges. Additionally, the USPS is seeking to increase postage rates, including raising the price of a First-Class Mail Forever stamp by 4 cents, from 78 cents to 82 cents. These changes still require approval from regulators.

  • The USPS filed notice with regulators on Friday, April 10, 2026.
  • The suspension of employer contributions to FERS annuities will be effective starting Friday, April 10, 2026.
  • The USPS has warned that it could run out of cash by around February 2027.

The players

USPS

The United States Postal Service, the independent agency responsible for providing postal service in the United States.

Luke Grossmann

The Chief Financial Officer of the USPS, who announced the suspension of employer contributions to FERS annuities in an internal message to USPS employees.

Brian Renfroe

The president of the National Association of Letter Carriers, a union representing USPS employees, who commented on the temporary suspension of annuity payments.

David Steiner

The Postmaster General of the USPS, who has called for changes to the Postal Service's financial structure, including raising the $15 billion cap on borrowing to $34.5 billion.

Postal Regulatory Commission

The independent agency that regulates the USPS and must approve the proposed changes, including the temporary suspension of employer contributions to FERS annuities and the postage rate increases.

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What they’re saying

“The risk to the Postal Service and the American public from insufficient liquidity for postal operations dramatically outweighs any longer-term risk to the pension funds from not making the currently due payments.”

— Luke Grossmann, Chief Financial Officer, USPS

“Given a menu of options, none of which are overall positive, they would certainly prefer the Postal Service making a move like this as opposed to something that immediately impacts them or immediately impacts in a negative way the service that we provide to the American people.”

— Brian Renfroe, President, National Association of Letter Carriers

“That will buy us the time to make the fixes we need to make, and we can sail on down the road.”

— David Steiner, Postmaster General, USPS

What’s next

The Postal Regulatory Commission must approve the USPS's proposed changes, including the suspension of employer contributions to FERS annuities and the postage rate increases.

The takeaway

The USPS is taking drastic measures to address its ongoing financial crisis, including suspending pension contributions and seeking higher postage rates. These steps highlight the need for Congress to provide legislative relief and reforms to ensure the long-term sustainability of the Postal Service, which remains a vital part of the nation's infrastructure.