April President’s Report
by Colby Fontinel
As I’m writing this, we are all aware of the doom and gloom the media is portraying about the USPS. I did some research to shed some light on the current situation, and how it would affect us working, and our retirees.
I pulled this from a news source. We all know how the news is portrayed.
The United States Postal Service is trying to right the ship and is temporarily suspending employer contributions to the Federal Employees Retirement System annuities, so it can pay workers and suppliers and continue delivering the mail.
While the annuity contributions are stopping, the USPS will still send employees’ retirement contributions to the Office of Personnel Management, as well as Thrift Savings Plan contributions, including employer automatic and matching funds. It will also continue to pay into Social Security.
Current and future retirees will not be affected, Grossman said, according to the AP.
Brian Renfore, National Association of Letter Carriers president, supports the move, saying in a statement, “This move is necessitated by the Postal Service’s current financial situation, and is a direct result of continued inaction by Congress,” the Times reported.
“It is time for Congress to act on these common-sense policy changes to protect our jobs, retirements and the essential and reliable service we provide to every American,” Renfroe continued.
In addition to stopping pension contributions, the agency has requested to raise the cost of First-Class Mail Forever stamps by four cents from 78 cents to 82 cents.
Postmaster General David Steiner had asked Congress to allow the price to be raised by 20 cents, according to the Times.
Federal regulators have to approve the rate hike.
The stamp price increase comes after the USPS put an 8% package surcharge that goes into effect this month, The New York Times reported.
Also the rumors on social media, cutting Saturday delivery, getting rid of lower management, are just that, RUMORS. I’m sure there will be a substantial amount of other changes in the works. What I have done with USPS news like this, for the past 22 years, is just sit back and enjoy the ride. I’ll believe it when I see it.
This action has happened in the past as well. 2011 the USPS suspended pension contributions to the federal employee’s retirement system, due to a cash crisis.
So, keep an eye on your TSP and make sure that they are still doing the match. Keep an eye on social security on your check stub, to make sure USPS is still putting it in.
If any new information comes up, I will be transparent as possible, and update as soon as I hear anything.
Branch 203
President
Colby Fontinel