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Post Office latest institution to cut retirement contributions

06/22/11

The world of the Internet has not only allowed individuals to communicate faster and cheaper, it has given them a way to avoid buying stamps. Gone are the days when mailing bills and packages was an everyday occurrence.

A large portion of the world's population uses online banking to pay the majority of their bills and online shopping has eliminated the need for shipping packages through the U.S. Post Office in many cases.

As a result, one of the country's oldest job provider finds itself in deep financial trouble. The Post Office has announced it is suspending employer contributions to the Federal Employee Retirement System, according to the Associated Press. This reduction in additional financial support may lead many employees to explore other investment options such as annuities and universal life insurance policies that they may not have anticipated needing.

The move is said to be temporary, but it was unclear how long it would last, the media outlet reports. The Postal Service cut staff by 110,000 over the last four years and reduced costs by $12 billion. It is also considering eliminating Saturday delivery service. An additional 7,500 jobs are expected to be cut at the beginning of the year, according to the Washington Post. 

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