The Postal Service yesterday provided information about several new proposals being explored. These would help the Postal Service meet the serious financial challenges the organization faces.
Postmaster General Pat Donahoe has received feedback from employees and managers expressing some concern that when the Postal Service becomes insolvent in October it would not be able to meet payroll.
The Postal Service has taken steps to ensure that the organization can meet payroll. For example, it was for this very reason that the Postal Service announced last month, that contributions to the annuity portion of the Federal Employees Retirement System (FERS) were suspended. This was done specifically to conserve cash and preserve liquidity, in large part to honor the Postal Service’s commitment to meet payroll.
The Postal Service has a FERS account surplus valued at $6.9 billion. Funds freed from this obligation — which will not affect employee contributions or their retirement benefits — will help the Postal Service meet its payroll needs.
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