USPS Offering $20,000 Retirement Incentive To Some Management Employees
PMG ANNOUNCES REDESIGNED POSTAL SERVICE
VOLUNTARY EARLY RETIREMENT, INCENTIVE PROGRAMS OFFERED
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
USPS: Preparing For Change – What Is A Voluntary Early Retirement Authority
USPS is expected to announce that it will offer Voluntary Early Retirement to select groups of postal employees on March 25, 2011.
PREPARING FOR CHANGE - VERA RULES OF THE ROAD
So what’s a VERA?
A “voluntary early retirement authority” (VERA) temporarily lowers age and service requirements for retirement. It’s an administrative tool USPS has used in the past as part of an overall redesign or restructuring.
The Postal Service must request approval for a VERA from the Office of Personnel Management (OPM) before making an offer of early retirement to its employees. OPM approval also will include a period of time during which the option will remain available.
Employees covered by the Civil Service Retirement System (CSRS) or the Federal Employee Retirement System are eligible for voluntary early retirement if they are at least 50 years of age with 20 years or more of service, or any age with at least 25 years of service. A minimum of 5 years must be creditable civilian — not military — service. Employees may use their time in the military to meet the balance of service required for eligibility.
CSRS employees must have been employed under CSRS for at least 1 out of the last 2 years, but the service need not be continuous. Eligibility criteria for all employees must be met by the VERA retirement effective date.
If the Postal Service announces a voluntary early retirement (VER), and if your position is covered in the group receiving the offer and you meet eligibility requirements, a VERA Offer Letter and Annuity Estimate will be mailed to your address of record. To receive notifications in a timely fashion, make sure USPS has your current mailing address on file.
You can change or update your address by clicking on “Change of Address” in the Employee Apps – Quick Links section at the center of the LiteBlue home page.
VERA-eligible employees who decide to accept an early retirement offer can apply by completing and submitting the required documents by the deadline specified in the Offer Letter. Eligible employees who decide not to accept the offer don’t have to do anything.
Click here for more information about VERA.
USPS 2011 Organizational Redesign FAQs
USPS has posted some frequently asked questions on its Human Resources website. Some of the questions and answers:
Note: An updated version of the 2011 Redesign FAQs will be posted on or soon after the March 25th announcement.
1. Why is the Postal Service going through an organizational redesign – are these changes necessary?
The shift to digital communications coupled with the recent recession resulted in the most dramatic drop in business in Postal Service history. Mail volume peaked at 213 billion pieces in 2006 and dropped to 170 billion last year. By 2020, volume is expected to drop to 150 billion. This business won’t come back.
To remain competitive, it’s critical that we adjust our workforce to match America’s changing mailing needs while continuing to fulfill our mission of keeping America connected and maintaining high levels of customer service. The new redesign will create a smaller, more efficient structure with the resources necessary to lead significant change.
2. Who does the 2011 organizational redesign affect?
The 2011 Redesign affects every administrative function within the Postal Service at Headquarters and in the Field.
3. Is there a way USPS can avoid position reductions and office closures?
Our business has changed and will continue to do so in the future. We must continually look for any means to be more efficient, streamline and reduce costs. This is the time when we must make significant changes to manage our current and future business.
4. Could we avoid making changes if Congress agreed to amend the annual retiree benefit $5.5 billion prepayment and/or give us immediate relief on the $75 billion overpayment?
No – issues that Congress needs to address are beyond our control and will not address all facets of our need to streamline for operational efficiency. Getting this money back is a short-term solution to a long-term issue. From 2006 to 2020, mail volume is expected to drop by 30 percent. 150 billion pieces of mail is still big business, but it’s a financial reality that we adjust our workforce to our workload.
5. What management actions are taking place to streamline the Postal Service?
On Jan. 7, PMG Donahoe announced the beginning of an organizational redesign that will help streamline the Postal Service. His announcement resulted in a 16 percent reduction in officer ranks and the impending closure of the Southeast Area office. All districts previously reporting to the Southeast Area now report to the Southwest Area office, with two exceptions: the Tennessee District reports to the Eastern Area and the Atlanta District reports to the Capital Metro Area.
The Postmaster General, the Executive Leadership Team and Area and HQ Vice Presidents are currently examining the existing organizational structure, recommending how USPS can be realigned to better match resources to workload. Officers are working with their PCES managers to design a more efficient organization.
6. When will the new organizational structure be announced?
USPS will announce its new, reorganized structure on March 25 along with District closures. If applicable, information about a voluntary early retirement (VER) and/or reduction-in-force (RIF) will also be part of the information provided at that time. Your management team will provide information about specific changes to your organization and will communicate directly with all employees at that time. There will be numerous national and local announcements during this time detailing changes and options for employees.
7. Will there be an incentive offered with the VER?
Plans for a VER offering as well as any possible incentive have not been solidified but all new information will be announced with the new organizational structure, posted on this website and communicated through various internal messaging channels.
8. Is USPS offering a VER before a RIF?
Information on the sequence and process for any potential VER and/or RIF activities will come with the March 25 announcement. Depending on the new structure, it is possible a RIF will occur.
9. What happens AFTER the announcement and how will the redesign continue to be implemented?
After the new organizational structure is announced, additional information regarding possible RIF and VER activities will be available via various internal messaging vehicles, including the Organizational Changes website. In the event of RIF and/or VER, guidance, timelines and assistance will be provided, once those processes have been solidified. We will continue to provide as much information as possible in the weeks and months following the March announcement so employees can make informed decisions.
10. How and when will I learn if the USPS 2011 Redesign affects my work location?
Your management team will deliver information about the new organization and how it affects employees when the new organizational structure is announced at the end of March.
11. Will there be fewer jobs – is there a targeted number of position reductions?
These actions are the beginning of a much larger process that will involve every level of the organization to include closing an additional 10 districts and eliminating about 7,500 positions. If applicable, RIF and VER processes may be initiated by the end of this fiscal quarter. We will provide as much information as we can and will be as transparent as possible about goals and objectives throughout this time.
12. How is this different from prior efforts – particularly, the 1992 restructuring?
The 2011 Redesign is different as we have unprecedented changes in our business. Reduced mail volume, coupled with the unique burden of prefunding retiree health benefits is creating enormous financial pressure on the Postal Service. These pressures have created a situation the Postal Service hasn’t faced before – the need to adjust its entire infrastructure at every level.
Unlike the 1992 restructuring or any prior efforts, there will not be an across-the-board percentage job cut throughout the organization. The cuts will eliminate duplicative positions and positions that do not focus on our four key strategies:
* Strengthening the business-to-consumer channel
* Improving the customer experience
* Competing for the package business
* Becoming a leaner, faster, smarter organization
That said, some functions may see fewer cuts than others.
13. Would it be prudent to explore my options from a retirement perspective?
This decision is entirely up to each individual employee. It’s always a good idea to review all options, including retirement. Eligible employees can immediately view and/or print an annuity estimate as well as begin the retirement process and schedule a retirement information session through eRetire.
14. Change is often difficult for many people. What is the Postal Service doing to provide support?
The USPS Employee Assistance Program (EAP) offers assessment, referral, short-term counseling, and work/life consultation for postal employees and their families. The EAP is designed to assist in the identification and resolution of personal, family, and workplace concerns. Among other things, the EAP can help you with: work stress, coping with change, family issues, relationship problems, anxiety, depression, grief/loss, anger management, elder care, financial concerns, parenting issues, or substance abuse.
Employees need to know that the EAP is not just for crisis situations, it is a life management tool. Call the EAP when you need a new perspective on things or when you need help identifying your options and making informed choices. Remember, the EAP counselor will help you clarify the problem, identify options, and make a plan.
15. How should I prepare for the 2011 Redesign?
There are several steps employees can take now to prepare for future changes:
a. Make sure your mailing address, electronic personnel folder and eCareer profile are up to date.
b. Read all upcoming articles on 2011 Redesign efforts via News LINK and other internal messaging venues.
c. Check the Organizational Changes website on LiteBlue for 2011 Redesign updates.
16. What options do I have if my office closes or my job function is consolidated?
While some employees may see no change to their role, others will face significant organizational changes and office closings. When the new organizational announcements occur, each employee should evaluate his/her role and/or options. Please review the Organizational Changes website on LiteBlue and watch for related articles in News Link that provide guidance on preparing for change.
USPS Early Out Retirement Information 2011?
Filed under: early out, postal, postal news, usps, ver, vera
Last month PMG Patrick Donahoe mentioned that early out retirements and RIFs were coming by March 2011. The following is unverified information floating around the internet:
from a NAPS AVP:
OPM approved United States Postal Service VERA and Retirement Processing for 80,000 eligible Civil Service and Federal Employee Retirement Service employees. With roll out of Area EAS 8% staff reductions and later District EAS 8% staff reductions, VERA will be available for applying on or after March 2011. Effective drop date of VERA is July 2011, August 2011, September 2011, and October 2011. The drop month is determined by your work location and reduction in force notification. VERA will be available for PCES, EAS and Craft employees in “targeted” areas. No “buy out” authorized for USPS.
- Third round of Station, Branch, Finance Station closures due out in FY 2011.
- First announcement of Associate Post Office closures due out in FY 2011.
- First announcement of Processing and Distribution Center closures due out in FY 2011.
- Four Districts will be consolidated in FY 2011.
- Congressional opposition is expected due to loss of local tax base; contract jobs (many in maintenance), and local constituents.
via Federal Soup
USPS To Offer Early Retirement
PMG Pat Donahoe has announced a new senior management structure representing a flatter, leaner organization with the flexibility to more quickly adapt to coming changes.
Donahoe also said:
“The Executive Leadership Team and I have worked collaboratively with many others to create a smaller, more efficient structure that will empower senior executives with authority and provide the resources necessary to lead significant change.”
There are organizations that do not continue under the structure announced today and the total number of officer positions has been reduced by six. The structure establishes a small number of new positions, and reflects changed reporting relationships.
Donahoe said the changes provide a more integrated focus toward accomplishing the key USPS strategic goals of strengthening the business-to-consumer channel; improving the customer experience; competing for the package business; and becoming a leaner, faster and smarter organization. The PMG and Executive Leadership Team have been working since early December to develop the structure.
“Today’s actions and announcements are the beginning of a much larger process that will involve every organization within the Postal Service,” said Donahoe.
“As we continue our restructuring, we anticipate that a reduction in force (RIF) and a voluntary early retirement (VER) process will be initiated by the end of this fiscal quarter,” said Donahoe. “We will provide as much information as we can and will be as transparent as possible about goals and objectives throughout this time.”
Donahoe said he understands that changes like those announced today are difficult for many people. “I thank all employees for continuing to do a great job delivering for America,” he said. “It’s imperative that we all help the Postal Service continue its evolution as a forward-thinking, fast-acting company capable of providing quality products and services for customers — and a welcoming, diverse, professional work place.”
A full organizational chart will be shared within the next few months, according to Donahoe, and he committed to employees to keep all levels of the organization informed as the Postal Service moves forward.
USPS National Field Maintenance Restructure VER- December 31, 2010
The Postal Service has approval from the Office of Personnel Management (OPM) to offer voluntary early retirement to eligible EAS Field Maintenance employees nationwide.
Automation and technological advances coupled with mail volume reductions has the Postal Service continuing to look for ways to voluntarily reduce its workforce while maintaining excellent customer service.
This offer is open to employees in those positions who 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.
Please Note: The age and years of service criteria must be met by the effective retirement date of this VER December 31, 2010. If you don’t meet the criteria by December 31, 2010, you are not eligible for voluntary early retirement.
The Postal Service sent a notice back in September 2010. Eligible employees had until November 5, 2010 to send his/her retirement application or withdraw.
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