OPM has announced an agreement with USPS to seek a resolution to the legal issues surrounding a recent USPS decision to suspend employer payments into the FERS retirement account.
USPS – which has warned of late it will soon begin defaulting on payments to the federal government — announced that it would suspend FERS employer contributions in light of an estimated $6.9 billion FERS account surplus in order to free about $800 in the current fiscal year.
"We will continue to transmit to OPM employees’ contributions to FERS and also will continue to transmit employer automatic and matching contributions and employee contributions to the Thrift Savings Plan," said USPS chief HR officer and executive VP.
OPM and USPS have submitted a request for legal opinion to the Justice Department’s Office of Legal Counsel.
Said OPM: "Our aim is to protect the Postal Service employees to the greatest extent possible under the law. We have thus determined that while these issues are pending with OLC, we will be able to continue to give employees who retire credit for service rendered after the Postal Service ceases making FERS annuity contributions on June 24."
USPS has reportedly agreed to make the FERS annuity contributions that it is now stopping if OLC disagrees with its position.
