USPS Statement, White Papers And Talking Points On Legislative Proposals
USPS has published the following Statements, White Papers and Talking Points on eliminating layoff protection, administering its own retirement and health programs
While the Postal Service remains the cornerstone of a $1 trillion industry and will continue to be vital to the U.S. economy, the Postal Service will be insolvent next month due to significant declines in First-Class Mail volume, the effects of a Congressional mandate to prefund retiree health benefits and increases in network costs, wages and benefits. Read more
OPM Memo: Recredit of Sick Leave for Re-employed FERS Retirees
The following is a Memo released by the Office Of Personnel Management (OPM)
Recredit of Sick Leave for Re-employed FERS Annuitants Who Retire Between October 28, 2009, and December 31, 2013
The U.S. Office of Personnel Management has been asked whether employees covered by the Federal Employees Retirement System (FERS) who retire between October 28, 2009, and December 31, 2013, with 50 percent of their sick leave having been credited toward their FERS annuity computation, could have the remaining 50 percent of their sick leave recredited to their sick leave account if they return to Federal service as reemployed annuitants. The answer is yes. Agencies should recredit reemployed annuitants the 50 percent of sick leave that was not used in their FERS annuity computation. For employees who retire or die in service on or after January 1, 2014, all unused sick leave to the employees’ credit will be creditable for annuity computation purposes. Further, for FERS employees who retire on or after January 1, 2014, 100 percent of their sick leave will be used in the annuity computation, consequently, no sick leave will remain for recredit should the retirees later return to Federal service.
Agencies must take action to identify FERS employees who initially retired on or after October 28, 2009, and who have since returned to Federal service as reemployed annuitants, to ensure that the employees have received recredit of the 50 percent of sick leave that was not used in the computation of their annuities.
Background
Section 1901 of the National Defense Authorization Act for Fiscal Year 2010 (Public Law 111-84, October 28, 2009) amended 5 U.S.C. 8415 to provide that employees covered by FERS who retire on an immediate annuity, or die while in active employment leaving a survivor or survivors, between October 28, 2009 (the date of enactment of the statute), and December 31, 2013, will receive credit for 50 percent of their unused sick leave towards their total creditable service for annuity computation purposes.
Additional Information
For additional information, please refer to Benefits Administration Letter Number 11- 102, Guidance on National Defense Authorization Act for Fiscal Year 2010 Provisions on Sick Leave for FERS Retirees.
Agency Human Resources (HR) Directors may also contact their assigned OPM Human Capital Officers. Reemployed annuitants should contact their agency human resources or benefits offices for assistance.
From: Charles D. Grimes III
Acting Associate Director
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
OPM to Increase New Retirees Temporary Annuity Payments
Office of Personnel Management Director John Berry pledged Wednesday to increase new retirees’ interim annuity payments — even if it means some will temporarily be overpaid.
Currently, more than 38,000 recent retirees are receiving interim annuities — which are sometimes as low as half of what they are owed — for months while overwhelmed OPM employees calculate the correct amount.
Even when OPM has all necessary information on hand the day someone retires, that retiree usually gets about 90 percent of what he is owed. If the retiree’s employing agency sends incomplete information to OPM, or if there are other conditions that complicate the annuity calculation — such as if the retiree also receives a military pension, has excessive leave without pay or missing service, or worked part time for a portion of his career — that could lower the amount of the interim annuity while OPM straightens the file out.
Berry and Zielinski want OPM to not be as stingy when it calculates interim annuities, even if it means OPM overpays a few retirees. Berry said anyone who is overpaid will have to repay the balance to OPM.
The maximized interim payments will be a stopgap solution to lessen the burden on retirees while OPM figures out a more permanent way to eliminate the backlog. OPM plans to hire 40 new employees next year to help calculate annuities.
full story: Federal Times
Postmaster General John E. Potter To Retire Effective December 3, 2010
To Be Succeeded by Deputy Postmaster General Donahoe
October 25, 2010
WASHINGTON — After nearly 10 years as U.S. Postmaster General and CEO of the U.S. Postal Service, John E. Potter today announced that he will retire on Dec. 3, after 32 years of service.
The Governors of the Postal Service named Patrick R. Donahoe, currently Deputy Postmaster General and Chief Operating Officer, to succeed Potter.
A New York City native, Potter is credited with modernizing management, introducing long-term, strategic thinking necessary in a complex and changing marketplace, and transforming the Postal Service into a service-driven customer-focused and cost-sensitive organization.
Potter’s accomplishments include:
- Eliminating more than $20 billion in costs during the last 10 years, with cumulative savings of more than $50 billion.
- Building a leaner, more flexible workforce and increasing efficiency and productivity through technology and the expansion of automation in mail processing and delivery.
- Reducing career employment from 787,000 positions in 2001 to about 584,000 today through attrition, using strong and focused management practices.
- Leading the Postal Service and the nation through the anthrax terrorist attack following 9/11.
- Creating a 10-year action plan that is a blueprint for necessary operational, legislative and regulatory changes to the current business model to ensure a viable Postal Service for decades to come.
Potter expressed his pride in the performance of the men and women of the Postal Service, saying its accomplishments resulted from the thousands of employees who dedicated themselves to meeting customer needs in a rapidly changing technological and communications environment.
“I fully appreciate their support in maintaining the tradition of trust that dates back to Benjamin Franklin and the founding of our nation,” Potter said. “It is our people that define our organization and it is their dedication and sense of purpose that drives our business.”
Louis J. Giuliano, Board of Governors chair, noted Potter’s many accomplishments in thanking the Postmaster General for his years of service.
“You have been a steadying and far-sighted leader throughout a period of dynamic change in America’s use of the mail and during times of economic uncertainty,” Giuliano said. “The hallmark of your success was your ability to build respectful relationships with all stakeholders, customers and employees that built a trusted level of credibility. We unreservedly regard your tenure as one of great accomplishment.”
Donahoe, currently Deputy Postmaster General, will become the 73rd Postmaster General in December. Potter credits Donahoe and his entire service team with regularly exceeding demanding performance goals and setting new records for on-time delivery and operational efficiency.
Donahoe began his career as a clerk in Pittsburgh in 1975, and in 2001, became responsible for all facets of mail operations, including processing delivery, retail, engineering, transportation and facilities. He has served in a variety of senior management positions in operations and human resources before becoming Deputy Postmaster General in 2005.
Giuliano cited Donahoe’s outstanding performance as one of the main reasons the Board chose Donahoe to build on the Postal Service’s achievements and lead the organization through a changing business environment.
“Pat and Jack have been a very effective team,” Giuliano said. “We’re very sorry to see Jack leave, but we’re grateful for the significant contributions his transformative approach to our organization and the nation it serves. We wish him nothing but the best in the future.”
Donahoe said he appreciated the confidence of the governors in naming him the next Postmaster General.
“It’s been an honor to serve with Jack,” Donahoe said. “Our challenge going forward is to implement the ambitious plan now in place to assure the continued viability of the Postal Service in fulfilling its mission of providing reliable, self-supporting, universal mail service to our nation. While we are confronted by challenges, I am confident we will succeed.”
The Postal Service receives no tax dollars for operating expenses, and relies on the sale of products and services to fund its operations.
Please click here for additional information and details on Potter’s Postal Service career
APWU: Advice Center Now Available for Retirees
Retirement decisions are among the most important — and daunting — that members can make. Now, navigating the paperwork and understanding retirement plans is easier, thanks to the APWU Retiree Advice Center.
Retired APWU members — or members who plan to retire in the near future — can now e-mail their retirement-related questions to RetireeAdviceCenter@apwu.org. The union’s expert team of retirement counselors will answer questions regarding military buy-back, disability retirement, Social Security, Medicare, part-time regular calculations, supplemental annuity, cost-of-living adjustments, reporting death claims, Windfall Elimination and Government Pension Offset, or any questions pertaining to retirement planning.
Members are also encouraged to visit the Retirees Department pages at www.apwu.org for updates on these issues.
Postal employees are encouraged to join the Retirees Department to stay in touch with co-workers and fellow retirees, and learn more about benefits and retirement issues. To do so, visit the Retirees Department pages for an enrollment form, or download it directly at www.apwu.org/dept/retiree/retjoinform.pdf.
USPS Adds New Self-Service Retirement Application For Postal Employees
As announced in March of this year, the Postal Service has added a new feature (eRetire) to LiteBlue which will provide employees the option of using self-service to begin the retirement process.
eRetire is a web-based system which allows employees to:
View an annuity estimate if they are within (5) years of retirement; Download a retirement packet or order a retirement packet to be mailed; Begin the retirement process by selecting the desired retirement date.
eRetire does not replace the option of contacting HRSSC to begin the retirement process or discussing individual questions with a specialist before or during the process.
Dead Tree Edition has been covering problems associated the USPS Retirement process
From Oct, 7, 2010 Postal Bulletin:
eRetire — A New Employee Application on LiteBlue
eRetire is the new employee self-service application that allows employees to plan for and initiate retirement activities online via LiteBlue — www.liteblue.usps.gov. (See also poster on page 41.)
WhoThe new self-service application is for two sets of eligible employees:
-Employees within 5 years of retirement eligibility.
-Employees who are currently eligible for retirement, and those within 180 days (6 months) of retirement eligibility.
Annuity estimates are only available through eRetire for full-time employees meeting the eligibility requirements noted above. Part-time employees and Postal Inspectors require a manual annuity estimate and must contact the HR Shared Services Center with a request for a manual estimate. A manual annuity estimate is mailed to the employee’s address of record within 14 days.
What
For employees within 5 years of retirement:
-Full-time employees within 5 years of their retirement eligibility date will be able to immediately view online and print their annuity estimate(s) based on effective retirement dates of:
a. Employee’s retirement eligibility date.
b. Employee’s retirement eligibility date plus 6 months.
c. Employee’s retirement eligibility date plus 1 year.
For employees who are currently eligible for retirement, or are within 180 days (6 months) of retirement eligibility:
-Immediately view/print their annuity estimate based on retirement effect dates of:
a. The beginning of the next month (or, from the employee’s retirement eligibility date, if the employee is not yet eligible but is within 180 days (6 months) of retirement eligibility).
b. The beginning of the next month, plus 6 months.
c. The beginning of the next month, plus 1 year.
-Enter a future effective date. Employees must be within 180 days (6 months) of retirement eligibility and may enter a custom date, which cannot be more than 180 days (6 months) from the date the request is made in eRetire. An annuity estimate for the custom date indicated will be available to view/print within 24 hours of the request.
-Download and print or order a Retirement Application Package. Employees may print retirement application forms directly from LiteBlue through eRetire or order the retirement application package for receipt within 7–10 days of the initial request date.
-Schedule a Retirement Counseling Session. Employees can schedule a group retirement information-sharing session or individual session by selecting an appointment date range no sooner than 90 days (3 months) prior to their retirement eligibility date. The system displays available appointment dates and time slots for the individual to choose.
Where
Employees have three options to access eRetire:
1. On LiteBlue, go to the Employee Apps — Quick Links carousel at the center of the home page and choose eRetire.
2. Click the My HR tab at the top navigation bar of LiteBlue and then the Find Employee Apps section. Choose eRetire from the Employee Apps options.
3. Click the Employee Apps button at the bottom of every My HR page. Choose eRetire from the Employee Apps options.
Note: Employees need their Employee ID and USPS PIN numbers to log on to LiteBlue.
When
eRetire is available now.
Postal Retirees Not Paid – Get Busy Signal When Calling OPM Toll-Free Number
Many APWU members who retired in October have reported that they still have not received regular annuity checks. We also have heard that many retirees receive a busy signal every time they call the Office of Personnel Management (OPM) on the agency’s toll-free number.
This is an intolerable situation, and I have met with OPM officials several times in an effort to resolve these problems. I will continue meeting with OPM to resolve our members’ complaints. Currently, issues are being addressed on an individual basis. Please contact my office if you are experiencing a problem obtaining information about retirement and need assistance.
In a February letter to John Berry, OPM Director, Sen. Barbara Mikulski (D-MD) sharply criticized OPM’s “delayed efforts to modernize their retirement information system.” These delays have inconvenienced APWU retirees for years.
Mikulski also addressed complaints about the “length of time required to calculate service credit deposits and re-deposits, COLAs, and court-ordered benefits.” She noted that 132,000 federal employees that have complained about lack of access to information that they need to plan for retirement. “In a time of strained family budgets, federal employees retirees need certainty and reliable information; this cannot be a casual endeavor for your office,” she wrote.
APWU Retirees Department
USPS VER Offer Package Is In The Mail
As reported earlier USPS is offering early out retirement to employees in selected offices. Below is a snippet of the VER offer in the mail or received by some employees:
The U.S. Postal Service has received approval from the U.S. Office of Personnel Management (OPM) under its Voluntary Early Retirement Authority (VERA) to offer Voluntary Early Retirement (VER) to career EAS and specifically identified bargaining career employees in the San Francisco and Bay Valley districts facilities, including plants and post offices. You are receiving the enclosed package because you have been identified to be VER eligible.
In addition to the enclosed package, you will also receive an annuity estimate, which will be mailed on or about April 9, 2010. This annuity estimate is based upon a June 30, 2010, retirement date. Please review the information in the annuity estimate along with the information provided in this package carefully before making your decision to elect to accept the VER offer.
IMPORTANT: These documents must be postmarked no later than 8:30 PM ET on Friday, May
21, 2010.
Early Retirement Rumors: Again, APWU Says: Don’t Go!
Burrus Update
Rumors about Voluntary Early Retirement offers are once again circulating throughout the Postal Service, and employees are evaluating the possibilities.
Let me state plainly:
* There have been no discussions with postal management about offering new monetary incentives as an enticement for retiring.
* If incentives are contemplated at some future date, the law says they must be negotiated with the union.
* Any rumor that monetary incentives are under consideration is false.
In recent years the Postal Service has offered Voluntary Early Retirements (VERs) — without monetary incentives — without the union’s involvement. Management may do so again in the future.
The APWU has challenged these VER offers in the appropriate forums. As we noted in grievances protesting non-incentive VERs, the National Agreement requires the payment of severance pay to employees who voluntarily terminate their employment through early retirement.
We await final disposition of the dispute. In the meantime, it is very likely that postal management will pursue further reductions in the employee complement through Voluntary Early Retirement offers.
The union repeats the advice we offered regarding prior VERs without incentives: Don’t Go!
William Burrus
President