USPS Offering $20,000 Retirement Incentive To Some Management Employees



Postmaster General Pat Donahoe today announced a newly redesigned Postal Service, one that is better positioned for growth, reflects further alignment within the organization to achieve core business strategies and, when fully implemented by March, 2012, will eliminate almost $750 million in costs to the organization.

“Over the past 8 weeks, we have been taking a careful look at our internal structure — the way we position our people — and determining the best way to align the organization to succeed in a more competitive world,” said Donahoe. “We also have been making some tough but necessary decisions that will enable us to better meet the needs of our employees, our customers and the American public.”

Donahoe said a strong plan has been developed that will result in a leaner, less bureaucratic structure that creates greater efficiencies among managerial and administrative functions.

The announced redesign reduces administrative layers and achieves a 20 percent reduction in authorized administrative office complement and Postal Career Executive Service (PCES) positions.

Seven districts will be closing. A general announcement identifying the districts will be made March 24, after employees in those districts are notified.

Voluntary Early Retirement (VER) and financial incentive programs will be offered to eligible career non-bargaining employees in targeted groups at Headquarters, Headquarters-related Field Units, Area Offices and Customer Service District Offices (Administrative).

  • The incentive program is $20,000 and is offered on a first come, first-served basis to eligible employees who choose to leave on the May 31, 2011, effective date through a VER, optional retirement or voluntary resignation. The incentive will be paid in two equal payments of $10,000 distributed in November 2011 and November 2012.
  • To be eligible for the incentive, employees must begin the optional retirement process or submit voluntary resignation by the deadline of April 25, 2011. The same date, April 25, also is the irrevocability date for employees who accept the VER offer.
  • Disability retirements and Federal Transfers are not eligible for the incentive. Employees in a probationary status as of March 23, 2011, are not eligible.
  • Employees already in progress as of March 23, 2011, for optional retirement or voluntary resignation with a scheduled retirement or separation date on or before May 31, 2011, will be permitted to retire or separate on the scheduled date and be eligible for the incentive.
  • Further details of the VER and incentive programs will be available on the Organizational Change website.

Donahoe said employees will be given comprehensive information to help them make the best decisions about their future. “I know change can be challenging,” he said. “I thank all of our employees for their continued dedication and focus on continuing to provide high levels of customer service while the organizational redesign proceeds.”

Efforts in the coming weeks and months will help the Postal Service become a leaner, faster and smarter organization, Donahoe said. “The redesign will improve our financial situation, ensure that we are better able to compete for customers, and provide greater value and service to the American public.”

source: USPS Press Release

USPS Organization Changes FAQs 2011

18 thoughts on “USPS Offering $20,000 Retirement Incentive To Some Management Employees

  1. I have read that 30,000 employees will receive the $20,000 incentive offer, which includes executives (PCES) and attorneys. Do the math, $60 million. Why doesn’t HQ provide the public with the exact number and the type of employees being offered the VER, especially how many of the incentives will be offered to the PCES rank and attorneys.

    Why not just hand the affected PCES employees and HQ attorneys (approx 60 @ HQ) a pink slip and show them to the door. If these people are so qualified to run this organization they should have no trouble getting employment elsewhere. The incentive could be cost effective as an added incentive during a VER in the non-bargaining ranks, but to the PCES rank, NO, I don’t think so.

    Don’t forget you must figure in the PCES retirement relocation benefits. Oh yes…they will relocate retiring PCES employees anywhere in the US, including Hawaii and Alaska. Changes were made late last year to PCES relocation, saving money for the USPS; let’s let the GAO validate this. Perks include a home incentive sale capped at $10K, closing costs not to exceed $80K, they are paid for the closing costs on both the sale and purchase of the new home, loss on sale of home $115,500 max, plus generous other relocation benefits. The USPS also pays relocation for other employees as well, it’s not as generous as what the PCES employees receive and they don’t get the relocation benefits at retirement. If there is a savings in all this, when we it be realized? PCES should be excluded from the incentive, way too many perks now, what’s your thought?

    In reading what the senate and congress said about looking into the APWU proposed agreement…where are the savings??, maybe they should look into the incentives of this VER. By the way…where was the incentive two years ago when HQ closed 10 districts…Oh yeah…it didn’t include that many PCES employees.

    If anyone wants to see what the employees at HQ makes, look at APP.COM, look at the Jan 2011 stats, but note that these figures do not include the salary increases that took effect on Jan 15, 2011. The zip codes I found interesting were 20268, 20260, 22082, 22201, 22209 (sort by salary). Approximately 2,800 employees. These zips of course don’t include area or district offices that I can see by the employee job titles.

    Congress, Senate, and GOA…do your job, PLEASE! ASK FOR THE REAL FACTS and FIGURES

  2. Quote: “Another thing, if the Postal Service would get that $55 billion dollars pre-funded retiree money back, maybe all Postal employees could get a voluntarily early out offer!! Why aren’t the Republicans working hard to accomplish this task, since the Postal service have become so important lately!!”

    Question: Where did that money come from? Answer: Overcharging the customers to make the payments. The money does not belong to the USPS, it belongs to the customer.


  4. geezzzz—one can only wonder where this twenty thousand dollar cash offer suddenly came from. perhaps its the overpayment of the pension money they wont give up ????

  5. This makes perfect sense in that many of these managers are no longer needed as the tentative APWU contract takes their much of their work and gives it to the Clerks.

  6. We have managers here in springfield mass that are detailed to details making $
    100k’s a year. Isn’t that correct Jerry C. Celeste P. ,Wayno Hoppock.. There is so much details amongst Management here in Springfield Mass that all the $100k + managers will keep their jobs or get promoted.

  7. dont forget that just less than two years ago they offered the employees out with $15,000, so you should have left then. I did and never regretted it. Stress Free and have a job i like doing part time and drawing retirement

  8. Thanks to my “friends” at the BOG I recieved a retirement package
    of $5.5m , all while the USPS cried “we’re broke”.
    So, where did the USPS come up with the money ($20k) for a management
    incentive ?

    Now it’s time for ALL APWU members to pay for these incentives by voteing
    YES ! for a contract that gives them NO raises until 2012 with NO back pay
    and NO COLAS until 2013.

    Hope INFLATION does not drive you and your families to the poorhouse.

    God how I love Beef Wellington !

    Good luck, you’ll need it – see ya suckas !

  9. Rip off !. to all APWU members, if the craft is not offered a VER, and you have your ballot for the APWU CBA, vote no !, management will get a bonus, severance package, the Craft will get the Shaft !, hear that Guffball Goofy APWU Rat President !

  10. Why not play the “bait and swtich” game with the managers as done in previous VER offers? The FACTS are that in the first VER offers to employees Potter stated “as much as our employees deserve an incentive the USPS just can not afford it”. Then shortly after thousands retired they suddenly come up with a $15K incentive. Now after LOSING BILLIONS they can offer $20K right up front??
    Why NOT LIE…. Like you did before?????? And more importantly, where is this money suddenly coming from???

  11. Years added??!! Maybe you should stick to the facts! “Years added” can’t happen without Congress changing the law.

  12. Just a couple simple questions…
    Didn’t the clerks (LABOR) get two lump $$$$$ payments when they got their most recent buy out?
    Also, didn’t the clerks (LABOR) get added years of service on their buyout?
    We should ALL stick to facts, not personal attacks.

  13. Not ALL managers get to take their holidays with their families. In my office (I am a Postmaster), I got the “privilege” to work both my Christmas and New Year’s holidays–and I did not get the advantage of the craft employees in being paid extra for it. I have had my office reduced from 4 clerks to 1 and my hours are averaging 10 per day. During December, due to the NRP and an extended SL of my clerk, I worked that month on the window by myself without lunch. So, folks, do not think that ALL managers have a cake walk. Some of us actually do work. And, catch the heat from below and above. We are micromanaged by middle management who haven’t a clue as to what it is to work in an EAS 18 office. My office is in the DUO process and will have my carriers relocated to another office, meaning a reduction in the grade of my office. In a sense, this will be a blessing as it means some of the reports that I have to make will no longer be a part of my responsibility. I have over 32 years of service plus a year of SL and will seriously look at any offer made due to my being in a RIF category. I guess we will know by the end of the week as to what the offers will be. IF they offer a good one, then, I will surely tell them adios! The FUN is gone!

  14. Notice how they are PLAYING HIDE THE BANANA with the PHRASE “AUTHORIZED


    For those UNSCHOOLED with the vernacular of THE MANAGEMENT SLUGS, this
    means that all those PENCIL SHEET LISTS OF THE “DREAM” COMPLEMENT will now become written in stone and all of the “VACANCIES” that were never filled will be counted as “EXCESSED EMPLOYEES”.

    They really needed to collapse 15 to 20 “DISTRICTS” and streamline the rest.

    This is TOKENISM done solely for SHOW.

    Way to go USPS….you had the OPPORTUNITY to do some REAL MANAGEMENT


  16. Another perk for management, nothing for the real working employees in the fields. The workers who work all hours and days in the week. The ones whose away from their families on holidays, while administrative employees are at home celebrarting with their families. The ones who are compensated bonuses every year. Union workers never have received a bonus, turkey or ham during the festive seasons. This just goes to show who really is respected Postal workers!!

    Another thing, if the Postal Service would get that $55 billion dollars pre-funded retiree money back, maybe all Postal employees could get a voluntarily early out offer!! Why aren’t the Republicans working hard to accomplish this task, since the Postal service have become so important lately!!

  17. In addition to the $20k buyout to these non-Union, white collar employees,
    wait until they get special bonuses and generous severance pay under
    other financial accounting schemes concocted by Postmaster Donahoe and his cronies

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