USPS Continues Cash Conservation Initiatives

WASHINGTON, DC—As a follow-up to the suspension of biweekly payments of its contribution to the Federal Employee Retirement System (FERS) in light of its fiscal crisis, the U.S. Postal Service is moving forward with two new cash conservation initiatives that took effect July 1. They are the suspension of discretionary awards for FY 2011 and the 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 (administrative and managerial positions) and Postal Career Executive Service (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.

The USPS is asking Congress to enact legislation that would allegedly return the Postal Service to financial stability. These measures include eliminating the current mandates requiring retiree health benefit pre-payments; returning Civil Service Retirement System and FERS overpayments to the Postal Service; and giving the Postal Service authority to determine the frequency of mail delivery.