Ranking Member Elijah E. Cummings and Stephen F. Lynch, Ranking Member of the Subcommittee on Federal Workforce, U.S. Postal Service and Labor Policy, issued the following statement on the U.S. Postal Service's decision to suspend its employer's contributions for the defined benefit portion of the Federal Employees Retirement System (FERS).
"Today, the Postal Service announced its intention of suspending its payments to the Federal Employees Retirement System (FERS) to address its budgetary shortfalls. This emergency measure only underscores the immediacy of the agency's financial situation and the need for legislative action. Given the seriousness of this matter, we urge the Department of Justice to take a swift but thorough examination of this proposed move and, additionally, we ask that the Postal Service ensure that any decision will not adversely impact its current retirees or active employees. While a suspension of FERS payments may help now, the Postal Service will be unlikely to regain financial stability absent legislative action. H.R. 1351 would correct the Postal Service's overpayment to the federal government of both its Civil Service Retirement System and Federal Employee Retirement System obligations, which is collectively in the range of $60 to $80 billion, providing the Postal Service with an opportunity to find long-term solutions. In light of today's announcement, we call on our Republican colleagues on the Oversight Committee to give this legislation prompt consideration."