Postal Service trouble and retirement contributions


Q. With all of the financial instability in the Postal Service right now, I am concerned that I will be able to draw retirement under FERS. I have 13 years with the USPS now and do not foresee being able to get a full 20 years, so I will be taking a short retirement. If the USPS goes bankrupt or is bought in a privatization move, what happens to the money I have been putting into FERS for retirement?  Would the FERS retirement money still be there should the USPS become insolvent or privatized?

My father worked for Kaiser Aluminum Corp. for 35 years. He retired and, eight years later, Kaiser went bankrupt and he lost his pension. Do you have any insight on this issue?

A. Your retirement contributions are safe. They aren’t in the hands of the U.S. Postal Service. Instead, they are in the Civil Service Retirement and Disability Fund, which is maintained by the Department of the Treasury.


About Author

Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to


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