A Letter To All Employees From PMG Jack Potter
While the Postal Service has had its share of challenges since the beginning of the current economic recession, I want to let you all know what an outstanding job you have done to meet those challenges. We have been very successful in implementing unprecedented cost-cutting and efficiency improvements in a relatively short time frame. We have also maintained high levels of end-to-end service performance and customer satisfaction during this period. You should take great pride in these achievements.
We have relied on natural attrition and the use of voluntary early retirement (VER) to reduce the size of our bargaining unit workforce. Unfortunately, we are projecting additional declines in mail volumes next year and therefore need to accelerate the pace of operational change to bring our costs in line with revenues.
We have an opportunity to improve efficiency in mail processing operations in plants and Post Offices around the country while maintaining very high levels of service. We met with the leadership of the American Postal Workers Union (APWU) and National Postal Mail Handlers Union (NPMHU) to discuss alternatives to achieve operational changes with the least amount of disruption to impacted employees. We concluded that a one-time cash retirement incentive was the best first step in the operational transition. The subsequent negotiated agreement creates an opportunity for select full-time employees to receive a $15,000 incentive to retire or resign. The $15,000 incentive will be paid in two installments, depending on retirement or separation date. Most employees will receive $10,000 in November 2009 and $5,000 approximately one year later.
With some exceptions, all full-time, part-time regular, and part-time flexible career employees who are represented by the APWU and the NPMHU, and who are eligible for optional or early retirement as of Oct. 31, 2009, will begin receiving annuity information at their home over the next few days. We hope as many of you as possible will take advantage of this opportunity. Although we don’t have the deep pockets to make a more generous offer, we believe this one-time incentive is a good value for those who are considering retirement.
Employees who receive this incentive offer will want to take the opportunity to consider their financial security and life beyond the Postal Service and consult with their family and friends. Those who accept the offer should know, as we all do, that even in retirement they will remain valued members of our extended Postal Service family.
This incentive offer is also an important step among the many we have been making recently as we seek to make structural changes in the way we do business. As an organization, we must continue to improve efficiencies and be responsive to a changing marketplace. Every employee plays a vital role. Your continued hard work and dedication to the Postal Service help inspire the confidence of our customers to choose the Postal Service as their preferred business partner and means of communication.
Thank you again for your continued dedication.
Jack Potter
Click here for more information on this one-time incentive.
Click here to view PMG letter.
NALC Charges USPS With Failure To Provide Mandatory Retirement Counseling For Latest VER Offer
The NALC has filed a national-level interpretive dispute with the Postal Service, charging it failed to provide mandatory retirement counseling prior to the June 19 irrevocable decision date for the latest Voluntary Early Retirement (VER) offer extended to letter carriers.
“A lot of our members did not get the help they needed to make a proper and informed decision about whether they should accept this latest earlyout,” said Executive Vice President Gary Mullins, who headed the union’s Contract Administration Unit when the agreement was reached.
Letter carriers who applied for the VER and requested retirement counseling but did not receive it prior to the deadline should get in touch with their region’s National Business Agent for more information.
“Our NBAs also need to hear from any carriers who withdrew their application for an early out because they couldn’t get counseling prior to the irrevocable date,” Mullins added.
Twice in the past year, the Office of Personnel Management approved Postal Service requests to offer earlyouts as a way to reduce operational costs by cutting from its payroll older, higher-paid workers who were close to retirement. The VER was extended to carriers who were at least 50 years old and had at least 20 years of service, or to carriers of any age with at least 25 years of service. There were no financial incentives to take either VER offer.
This national-level grievance only applies to letter carriers who were in line for the second VER with the June 19 deadline.
Local grievances that have been filed regarding retirement counseling for this latest VER are held in abeyance until the national-level dispute is resolved.
source: NALC
USPS FERS Annuity Estimates Fall Short
It came as no surprise to me that few postal employees accepted the latest voluntary early retirement offer, especially those under the new retirement system, FERS. The annuity estimates given to FERS eligibles between minimum retirement age (MRA) and age 62 omitted their FERS Special Retirement Supplement. It was a substantial amount to leave out–$1,000 per month in some cases! (see attached example)
The USPS VER website since July 2008 has been blunt: “HR Shared Service Center cannot verify whether employees are on the eligibility listing or discuss individual questions/concerns until application for early retirement is submitted and approved.” This contradicts OPM’s instructions on SF 3107, Application for Immediate Retirement: “If you have any questions, ask your employing office for assistance.” See also CSRS and FERS Handbook for Personnel and Payroll Offices, Chapter 40, Section 40A2; Chapter 1, Section 1C3.1-1.C; and Chapter 83, Part 2.II.F.
The USPS does not have an automated system to easily calculate the FERS Special Retirement Supplement. With 150,000 potential retirements this year, it was too time-consuming for the staff at HRSSC to calculate it manually for those eligible. The USPS should ask themselves, why aren’t they using modern computer techniques to estimate the FERS Special Retirement Supplement for each eligible in FERS between MRA and 62? Is it because they would prefer to do a RIF? If the FERS Special Retirement Supplement is too difficult for staff at HRSSC to calculate, what hope does the prospective FERS retiree have of estimating it themselves?
Don Cheney
Auburn WA
See previous blog entry: USPS FERS Annuity Estimates Are Too Low Between MRA and age 62
http://www.postalreporter.com/news/2009/06/14/usps-fers-annuity-estimates-are-too-low-between-mra-and-age-62/
CSRS and FERS Handbook for Personnel and Payroll Offices
http://www.opm.gov/retire/pubs/handbook/hod.htm
VER Offering for July 31, 2009 – “HRSSC Assistance”
https://liteblue.usps.gov/news/ver2008/effective_retirement_date_073109.htm
Fewer Than 2 Percent Of Postal Employees Take Latest Early Retirement Offer
From Federal Times
Fewer than 2 percent of U.S. Postal Service employees who were offered a chance at early retirement last month accepted the offer — far less than postal management expected. The Postal Service offered early retirement to 147,937 employees; they were required to make a decision by June 16, with their retirement beginning no later than July 31. Just 2,505 employees accepted the offer — about 1.7 percent.
That’s down slightly from the last round of early retirements, which concluded in February. About 2.3 percent of the 22,381 eligible employees accepted the offer.
And it’s well below what Postmaster General John Potter expected: In a March interview, Potter said he expected between 10,000 and 15,000 employees to accept the offer.
Full story: http://www.federaltimes.com/index.php?S=4174122
USPS Clarifies Some Early-Retirement Deadlines
APWU News
The Postal Service has informed the APWU that the deadline for eligible employees who wish to apply for Voluntary Early Retirement (VER) effective June 30 or July 31 is June 19. The USPS has also designated June 19 as the “irrevocable” date, by which employees who have applied for retirement but wish to withdraw their applications must do so.
Employees who wish to apply for VER effective May 31 must do so by May 15; the irrevocable date for May 31 retirements is May 15 as well.
An April 20 letter [PDF] to APWU President William Burrus noted that a previous correspondence contained the deadlines for May 31 retirements only
USPS: Organizational Changes And VERA Timelines Updated
ORGANIZATIONAL CHANGES AND VERA TIMELINES UPDATED
USPS has released an updated timetable for employees affected by the recently announced staffing reductions and district closings and for those who are considering the Postal Service’s voluntary early retirement (VER) offer.
The Postal Service has begun mailing notification to all VER-eligible employees. You should note that the VER application deadline and irrevocability date stated in the VER Offer packets have been changed. The new date is June 19. Correction letters will be mailed this week to all VER-eligible employees who received an annuity estimate and VER Offer packet.
The next key date on the RIF-avoidance front is April 28, when Phase 1 of the job posting process begins. On that date, eligible employees can begin applying for job vacancies within affected limited areas of competition.
Click here to review all key dates in the RIF organizational changes. Click here for the VER timeline on Blue. The VER timeline is also available on LiteBlue. Affected employees can use this information to help them through the process.
Meanwhile, USPS is urging employees interested in competing for upcoming district-wide vacancies, whether or not they’re impacted, to create or update a profile in the eCareer system as soon as possible.
Eligible employees can apply for vacancies online at http://ecareer.usps.gov from any postal and non-postal computer. You’ll need your 8-digit Employee Identification Number and Personal Identification Number (PIN) if you log on from a non-postal computer. If you’ve forgotten your PIN, follow the prompts on LiteBlue to reset
source: USPS News Link Extra
USPS Fails To Notify APWU About VERA
APWU News
USPS Releases VERA Info, Fails to Notify Union
Although the Postal Service has failed to provide official notice to the union as of March 27, management has posted information about Voluntary Early Retirement (VER) on its employee Web site, LiteBlue.
According to the posting, VER will be offered to all eligible employees except Electronic Technicians (ET), Maintenance Mechanics, Mail Processing Equipment (MPE) Mechanics, and Part-Time Postmasters.
To be eligible, employees must be 50 years of age with 20 years of creditable federal service or any age with 25 years of creditable federal service. Eligibility requirements must be met by the effective retirement date of the VERA, July 31, 2009.
Click here for A VER timeline.
“I am extremely disappointed that the Postal Service neglected to give official notice of this information to the APWU,” said President William Burrus. “This is a violation of management’s obligation under the Collective Bargaining Agreement.
“In addition,” he said, “in this era of financial uncertainty, when the USPS management is asking employees for cooperation and understanding, management must set an example. Unfortunately, they failed to do so.
“Retirement is a personal matter,” the APWU president noted, “and the union defers to the decisions of eligible employees. However, the APWU continues to challenge the Postal Service’s authority to offer VER without including severance pay.”
NALC: Early Retirement Offer With No Incentives Will Cover City Carriers
From National Association of Letter Carriers (NALC)
The Postal Service has informed President Young that city letter carriers will be included in its new Voluntary Early Retirement offer. The timing for VER applications and deadline for action has not been set, but it will have the same terms as the 2008 “early out” program, Young said. That means there will be no financial incentives, and annuities will be reduced for those who take the offer. Other details are pending. See The Postal Record report on last year’s VER here, and the initial USPS announcement here.
League Of Postmasters: Postal Early Outs Again?
From National League of Postmasters:
The VER for Postmasters, supervisors, and field EAS will be completed in just about two weeks. Approximately 2000 of these managers took advantage of this golden opportunity to leave the Postal Service early enough to build a new life with a pension to back up their dreams and plans. They’ve left a big hole and it will take some time to fill it. The sooner we get to filling supervisor and Postmaster Positions, the better. There is a strong rumor out there that there will be another VER coming soon. At this point it is just that, a rumor, but I wouldn’t be surprised if the Postal Service, in an effort to continue downsizing in response to reduced volumes, announces another VER. In a related area, the Postal Service has indicated that it would like to fill vacancies within 60 days of their announcement. This is a positive step; the trick will be to get the jobs announced in a timely manner! All the more important for Postmaster, PMRs and supervisors looking to promotion to have their profiles up and ready to go once the announcements for the jobs they have been eyeing come open.
see remainder of message from League of Postmasters President Charles Mapa
USPS Data On Postal Employees Approved For VER
VOLUNTARY EARLY RETIREMENT
The Postal Service has released additional details on the voluntary early retirement (VER) offer recently authorized by the Office of Personnel Management (OPM) for USPS employees in clerk, mail handler, supervisor of distribution operations, and supervisor of customer services positions.
The offer is open to employees in positions that meet the OPM conditions and who are at least 50 years of age with 20 years of creditable federal service or any age with 25 years of creditable federal service.
VER Group 1 includes clerks, mail handlers and initial level supervisors of mail processing and customer service. The group has 72,000 eligible employees. The application deadline was Sept. 30. USPS has approved the applications of 3,685 employees, whose retirement date is Dec. 31, 2008.
VER Group 2 includes headquarters and headquarters-related employees, as well as rural and letters carriers. This group has 67,000 eligible employees. The applications deadline was Nov. 21. USPS has approved the applications of 4,049 employees, and their retirement date is Feb. 28, 2009.
Finally, VER Group 3 consists of field EAS and Postmasters — 17,000 eligible employees. The application deadline for this group is Feb. 9, 2009. Their retirement date is March 31, 2009.
Source: USPS