USPS Expands Its Cash Conservation Initiatives

WASHINGTON, DC—July 1, 2011—As a follow-up to the dire financial situation that has forced the U.S. Postal Service to suspend the biweekly payments of its contribution to the Federal Employee Retirement System (FERS), the Postal Service is moving forward with two new cash conservation initiatives effective July 1, 2011. They are:

1) Suspension of discretionary awards for FY 2011.

2) Freezing of Postal Service officer and executive compensation as it relates to the Postal Service’s pay-for-performance program.

The award program for employee recognition and incentive awards is suspended until further notice and applies to all Executive Administrative Schedule (EAS)—administrative and managerial positions—and Postal Career Executive Service (PCES)—senior managers. This prohibits awarding cash, cash equivalent and non-cash tangible items intended for employee recognition. Employees represented by unions will still be eligible to receive awards as outlined in their agreements.

In addition, officer and executive compensation, as it relates to the Postal Service’s pay-for-performance program, will be frozen until further notice.

Despite significant cost reductions in areas within its control, and even with the emergency FERS action, the Postal Service needs Congress to enact legislation that would do the following to return the Postal Service to financial stability:

  • Eliminate the current mandates requiring retiree health benefit pre-payments.
  • Return Civil Service Retirement System and FERS overpayments to the Postal Service.
  • Give the Postal Service the authority to determine the frequency of mail delivery.

About the U.S. Postal Service
A self-supporting government enterprise, the U.S. Postal Service is the only delivery service that reaches every address in the nation, 150 million residences, businesses and Post Office Boxes. The Postal Service receives no tax dollars for operating expenses, and relies on the sale of postage, products and services to fund its operations. We’re everywhere so you can be anywhere: With 32,000 retail locations and the most frequently visited website in the federal government,, the Postal Service has annual revenue of more than $67 billion and delivers nearly 40 percent of the world’s mail. If it were a private sector company, the U.S. Postal Service would rank 29th in the 2010 Fortune 500. Black Enterprise and Hispanic Business magazines ranked the Postal Service as a leader in workforce diversity. The Postal Service has been named the Most Trusted Government Agency six consecutive years and the sixth Most Trusted Business in the nation by the Ponemon Institute.

Source: USPS.

  • Rob

    In the "About the U.S. Postal Service" section the USPS evidently forgot to mention that they lost 9 billion dollars last year while at the same time remaining a "self-supporting government enterprise". That little blurb no doubt got lost in the mail.

  • Cannoli

    What bonus’s? Ninety nine per cent went to postmasters, assistant postmasters and supervisors. The donkeys that actually delivered th mail had the supervisors on their backs, telling them to cut across lawns and to finger through the mail while walking, something that we old time carriers weren’t allowed to do. Try reading while you are walking outside. Most supervisors never carried mail as they were clerks and I really can’t see how they could tell you how to do your job. Our postmaster and supervisors got their share of bonus’ while the carriers got letters of appreciation.

  • Johney

    The postal service is also trying to close as many rural post offices as possible, denying rural Americans the same service of city dwellers. And although many rural post offices are losing money, so are many of the big city offices. This is rank discrimination against rural Americans who will now have to spend lots of money on gasoline just to get to a post office. Many older people depend on their post offices in these small communities.

  • Howard

    What would happen if we had two postal services, both empowered to deliver to all the addresses? Then it would be a real business with competition to drive innovation. The bureaucrats will say there would be duplication of effort (govenment-speak for "competition".) If it carries 40% of the world’s mail, there must be many postal services much smaller than the USPS, so there should still be enough scale for economy.

    Just wondering.