USPS Cancels Executive Bonuses

The U.S. Postal Service has decided not to pay out bonuses and performance awards to more than 62,000 executives, officers and administrative employees, citing growing financial constraints.

Federal Times reports that USPS set aside $7 million for such payments this fiscal year but has canceled them in light of growing deficits. The agency anticipates $8 billion in losses by Sept. 30 and late last month announced plans to suspend payments to its Federal Employees Retirement System account.

According to the report, the awards were intended to bring compensation in line with the private sector and boost the salaries of employees who already had hit the top of their pay scale. Clerks, mail handlers and other workers covered by union agreements still will receive scheduled payments, however.