Tag: USPS retirement

What the PMG’s Statement Means for US – And Why WE Must Act

The Postmaster General’s recent statement lays out a clear picture of where the Postal Service stands and where it could be headed. According to the statement, USPS is facing serious financial challenges, with declining mail volume and rising obligations. It warns that without changes, the Postal Service could run out of cash within 12 months.

To address this, three paths were presented: do nothing and risk running out of money, make major cuts to service and operations, or implement financial and structural changes to reduce costs and improve revenue. Each of these paths carries real consequences for postal workers and the communities we serve.

For workers, the statement confirms that changes are already happening. Over the past four years, USPS has reduced its workforce by tens of thousands of employees and cut millions of work hours. The statement also makes clear that additional measures such as reducing delivery days, closing post offices, and cutting operations are being considered as options. These types of actions directly impact staffing levels, job opportunities, and workload across the Postal Service.

The statement also identifies retirement obligations, health benefits, and other long-term commitments as major financial pressures. These are described as part of the cost challenges facing USPS. This means that the very benefits we have earned through years of service are being viewed as expenses that need to be addressed as part of the financial plan.

At the same time, the statement emphasizes the need for USPS to operate in a more financially driven way, focusing on matching costs to revenue, improving efficiency, and generating sustained income. This approach shifts the focus toward running the Postal Service more like a business, where financial performance becomes a central priority.

The statement also presents options that include reducing delivery frequency, closing facilities, and raising prices. These are described as serious actions that would have a direct impact on service to the public. These types of changes would affect every community that depends on the Postal Service, especially rural areas, small businesses, and those who rely on consistent and affordable mail delivery.

What this means is simple. The future of the Postal Service is being shaped right now through decisions about cost, service, and structure. Those decisions directly affect our jobs, our benefits, our retirement, and the service we provide to the American people.

WE have been here before. WE have faced major challenges and changes to the Postal Service, and WE have stood together to protect it. That same unity is needed now.

WE must stay informed.
WE must stay engaged in our Local.
WE must attend our union meetings, rallies, and all union functions to stay informed and build strength together.
WE must speak to our co-workers, our families, and our communities about what is at stake.
WE must make our voices heard with those making these decisions.

This is about protecting our jobs, our benefits, and the public service that belongs to the American people.

WE are the Postal Service. And together, WE will stand up, show up, and protect it.

TO READ THE PMG’s STATEMENT, CLICK HERE –> Statement of PMG & CEO_3.17.2026 TO DOWNLOAD IT

Roth TSP Changes in 2026

Postal employees rely on the Thrift Savings Plan as a cornerstone of retirement security. A recent TSP update outlines important clarifications and upcoming changes to Roth TSP accounts that will begin in January 2026. Understanding these changes now is critical so employees can make informed decisions and avoid costly mistakes later.

The TSP update makes clear that Roth TSP and Roth IRAs are not the same. Roth TSP is a retirement account available only through federal employment and exists inside the Thrift Savings Plan. A Roth IRA is a separate individual retirement account opened outside the TSP through a private financial institution. They are governed by different rules under different sections of the tax code, and confusing the two can lead to incorrect guidance when planning for retirement.

Both Roth TSP and Roth IRAs share some similarities. Contributions are made with after tax dollars, meaning taxes are paid before the money goes into the account. Qualified withdrawals of contributions are tax free, and investment earnings can also be withdrawn tax free if IRS requirements are met. Those requirements include meeting the five year rule and being at least age 59½, permanently disabled, or deceased. Neither account requires mandatory minimum distributions during the participant’s lifetime, although beneficiary rules differ.

The differences between the two accounts are significant and directly affect postal employees. Roth TSP contributions can only be made through payroll deductions while employed in a TSP eligible position. Roth IRA contributions can be made from any earned income. Contribution limits are also much higher in the TSP. For 2026, the elective deferral limit for TSP is $24,500, which applies to the combined total of traditional and Roth employee contributions, with additional catch up contributions allowed for eligible participants. Roth IRA contribution limits are lower, set at $7,500 for 2026, or $8,600 for those age 50 or older.

There are no income limits for contributing to Roth TSP, while Roth IRA contributions may be restricted based on income and filing status. Roth TSP contributions may be matched up to 5 percent for eligible FERS employees, although matching contributions always go into the traditional TSP balance, even when the employee contributes to Roth. Roth IRAs do not offer any employer matching contributions.

The update also outlines important changes taking effect in 2026. Beginning January 1, 2026, certain participants will be required to make catch up contributions as Roth contributions. In addition, Roth in plan conversions will become available starting January 28, 2026, allowing eligible participants to convert traditional TSP balances to Roth TSP within their account.

Another key distinction involves rollovers and withdrawal rules. Roth TSP balances can be rolled over into a Roth IRA, but Roth IRAs cannot be rolled into the TSP. When withdrawing from Roth TSP, distributions include both contributions and earnings in proportion to the account balance. Roth IRA withdrawals follow different ordering rules, which can affect tax treatment.

The TSP emphasizes that participants should rely on official TSP resources when making decisions and be cautious about informal advice. While the TSP does not provide financial advice, understanding the rules that apply specifically to the TSP is essential. Employees may also wish to consult a qualified tax or financial advisor when evaluating how these changes affect their retirement planning.

Staying informed is part of protecting your future. Postal employees should review their TSP elections, understand how Roth changes may apply to them in 2026, and share accurate information with coworkers so everyone can plan wisely.