Postmasters Offered Early Retirements Ahead of RIFs

"...The Postal Service is offering buyouts and early retirement options to more than 3,000 postmasters before it proceeds with a reduction-in-force (RIF) in early 2015.

The agency has been working with employee groups for more than two years on its PostPlan, which would reduce the hours at many post offices by two, four or six hours a day and replace some postmasters with non-career employees or part-time career employees.

Postmasters will get up to $10,000 if they choose to resign or if they take an early or optional retirement option, according to documents emailed to employees by the Postal Service over the last few days. Those who take the incentives will leave the Postal Service Sept. 30, 2014.

The incentive payment will be paid out December 5, 2014..."

Read more at Federal Times

15K+ EAS Employees Eligible for Early Retirement

"...Some 15,600 U.S. Postal Service managers. supervisors and postmasters are getting notice this week that they qualify for the mail carrier’s latest early retirement  offer...

That figure (15,580, to be exact) represents about one-third of the 42,239 field EAS employees on the rolls as of last week. For the Postal Service as a whole, the ranks of the EAS workforce numbered 50,346, excluding the USPS inspector general’s office and the Postal Inspection Service..."

Read more at The Federal Times Blog

Early-out Offer Coming for Some at USPS

"...The U.S. Postal Service is poised to offer early retirement to thousands of executives, postmasters, and other managers, according to the National Association of Postal Supervisors (NAPS).

In a Wednesday notice on its website, NAPS said the offer will apply to all eligible members of the Postal Career Executive Service and all field employees paid under the agency’s Executive and Administrative Schedule (EAS), with the exception of headquarters staff. Among NAPS’ approximately 25,000 active members, more than half could qualify for an early-out, Louis Atkins, the association’s president, said in a Thursday interview.

Notification of eligible employees will begin Sept. 16, the association said, with the application period starting Sept. 20...."

Read more at Federal Times

USPS Retirement Under the Microscope

"...The U.S. Postal Service’s internal auditor is seeking private sector input on the best way to administer paid time off and retirement benefits, according to multiple online solicitations.

The USPS’ inspector general posted the requests on the FedBizOpps, asking for a supplier with “subject matter expertise” to develop a report that compares the Postal Service’s leave and paid holiday program and retirement benefits to those offered by “major private-sector companies.”

The reports will “reveal the ways in which the Postal Service could benefit from adopting the identified best practices” for its retirement and leave benefits programs, the inspector general said in the solicitations..."

Read more at GovExec.com

More Buyouts to Come for USPS Employees with 5-day Delivery

"...The Postal Service's decision to move to five-day-a-week delivery for first class mail means employees will see fewer overtime hours and another round of buyouts.

Postmaster General Patrick Donahoe said Wednesday the reduction in service would be the equivalent of 22,500 employees who would no longer be needed to process and deliver mail.

"Right now the Postal Service, we run in excess of 10 percent overtime, almost 12 percent and we've done this on purpose by not hiring and using attrition to take advantage of people leaving without having to resort to layoffs," said Donahoe during a press briefing in Washington. "We think by eliminating overtime and by looking at some of the flexibilities we have with the part-time workforce, and potentially working with the unions on some buyouts, we'll easily hit that."..."

Read more at FederalNewsRadio.com

USPS Buyouts Accepted by Thousands

"...In the face of ongoing financial struggles and an uncertain future, more than 25,000 workers at the United States Postal Service are accepting an early-retirement buyout offer, according to a spokesperson for the American Postal Workers Union.

Nearly all of the agency's employees are eligible for some form of buyout, and according to the American Postal Workers Union, there's no limit on the number of employees who can accept the offer in most divisions of the agency. For long-term full-time employees, the offer includes a $15,000 cash buyout and an early-retirement package, and eligible part-time employees will receive a pro-rated amount. Full-time employees were instructed to indicate their decision by Dec. 3 and be ready to leave by Jan. 31, while part-time employees have until January 4 to decide..."

Read more at CBS News

Projected USPS Pension Surplus Shrank

"...The cash-strapped U.S. Postal Service has less of a surplus in a pension fund than previously thought, the federal government told the agency late last month.

John Berry, the director of the Office of Personnel Management, said that the surplus in the Federal Employees Retirement Service had shrunk to $2.6 billion in 2012, down from almost $11 billion last year.

Berry told Postmaster General Patrick Donahoe, in a letter obtained by The Hill, that a drop in long-term interest rates was the main cause for the decline in the surplus.

The Postal Service, which is bleeding millions of dollars a day, has been hoping to use the FERS surplus to help stabilize its financial situation. USPS has also defaulted on two separate prepayments for retiree healthcare this year, and has incurred steep losses for years..."

Read more at The Hill's On The Money

No New Buyouts Planned for Postal Service

"...After three separate buyouts in 2012, the U.S. Postal Service says it has no plans for any new offers in the foreseeable future.

"Right now, we have all our plans in place," Anthony Vegliante, the agency's chief human resources officer, told Federal News Radio. "So I don't see anything other than to focus on completing, making the transition, and getting our employees in the right place."

...said he expects the number of buyouts taken by Postal Service employees to total 23,000 - 27,000 by the end of January."

Read more at FederalNewsRadio.com

The Necessity of Postal Reform

"...Postal overpayments into the Federal Employees Retirement System total some $13 billion. Returning this money to the Postal Service would allow it to fund a large-enough number of early-retirement incentives to enable the necessary reduction in its stubbornly high — 80 percent — and no-longer-affordable personnel costs, as well as for other uses, such as paying down its debt to the Treasury...

it is essential to reform the devastating retiree health care prepayments that the Postal Service must make. These prepayments are the source of the agency’s $11.1 billion in defaults over the past two months, and a major contributor to its precarious financial condition overall. The payments set by Congress are too high, and the Postal Service cannot meet them. Congress should stretch the payments out over 40 years instead of the 10 years under current law. The Senate made this a centerpiece of its postal reform legislation, and the House should follow suit..."

Read more at Federal Times

USPS Has Reached Debt Limit

"...The cash-strapped U.S. Postal Service has reached its $15 billion debt limit as capped by Congress and is barred from borrowing more.

The Postal Service hit the cap on Sept. 28, a spokesman confirmed, reinforcing the fact that its cash reserves are running dangerously low.

To run its business, the Postal Service can only borrow money from the U.S. Treasury, as opposed to private banks. Congress has barred the Treasury from lending it more than $15 billion at one time..."

Read more at cnn.com

USPS Offers Buyouts to Employees with APWU

"...The U.S. Postal Service is offering $15,000 buyouts to virtually all full-time clerks, mechanics, drivers and other career employees represented by the American Postal Workers Union.

The buyouts, which are coupled with an early retirement package for longer-serving workers, will be paid in two installments: $10,000 on May 24 of next year; and $5,000 on May 23, 2014, the union and Postal Service said in separate announcements Monday.

Full-time employees must decide by Dec. 3 whether to accept the offer and agree to leave by Jan. 31 unless they are scheduled to retire before then..."

Read more at Federal Times

Default Nears for USPS Retirees Health Benefits

"...For the second time in as many months, the cash-strapped U.S. Postal Service says it will default on a required payment to fund future postal retirees' health benefits. The default on the $5.6 billion, due Sept. 30, will not affect mail delivery or current employees' pay and benefits, the postal service said...."

Read more at FederalNewsRadio.com

USPS Considers Stopping FERS Payments

"...U.S. Postal Service executives are considering suspending contributions to the Federal Employees Retirement System because the agency may run out of cash, a new inspector general’s report says. The IG said the agency could face a $100 million cash gap in mid-October, when it is supposed to reimburse the Labor Department $1.4 billion for workers’ compensation costs. The Postal Service tried to suspend contributions to FERS last year on the grounds that the agency had a $7 billion surplus with FERS, but it backed down after the Justice Department refused to sanction the move. The news of the Postal Service’s cash problems came shortly before it failed to make a legally required $5.5 billion payment for future retiree health care..."

Read more at Federal Times

Almost 3,800 Postmasters Take Buyouts To Retire Early

"...Last Tuesday marked another bittersweet milestone in the U.S. Postal Service's seemingly endless downsizing campaign as almost 3,800 postmasters walked out the door. A few hundred more could follow them by the end of next month, according to USPS figures released today at FedLine's request...

To encourage postmasters to leave, the Postal Service has adopted a carrot-and-stick approach: On the one hand, offering $20,000 buyouts and an early retirement package; on the other, warning of possible reductions-in-force for postmasters still on the job after September 2014..."

Here’s where things stand, according to

Read more at federaltimes.com

USPS to Default on Retiree Healthcare Benefits

"...The U.S. Postal Service said it would default on a required annual payment of $5.5 billion into a retiree healthcare benefits fund if Congress doesn't act...

Lawmakers likely won't take any action soon, the Journal said. The Senate has passed legislation to overhaul the agency, but the House says it doesn't expect to take up its own proposal until after August..."

Read more at UPI.com

7,400 Postal Employees May Accept Buyout Offers

"...Thousands of postmasters and full-time mail handlers have taken the first step toward accepting buyout and early retirement offers from the U.S. Postal Service, as the agency attempts to reduce its ranks through attrition to restore it to solvency.

According to USPS spokesman Mark Saunders, as many as 7,400 postmasters and full-time mail carriers signed up for the offers by the July 2 deadline. While these employees can still change their minds, USPS estimates between 3,800 and 4,200 postmasters will take the $20,000 buyout incentive available to them, and 2,800 to 3,200 full-time mail handlers are expected to take a $15,000 buyout...

Full-time career employees who take the buyout will receive half their payment at the end of 2012 and the other half in 2013..."

Read more at GovExec.com

USPS Retirement Incentive Offer Update

"...The purpose of this article is to clear up any confusion in the field regarding the “irrevocability dates” relative to the May 22, 2012 Memorandum of Understanding (MOU) regarding the One-Time Retirement Incentive offer for Mail Handlers. While there are some limitations and exclusions, there are essentially three (3) categories of Mail Handlers who are eligible to participate under the terms of the MOU, and who might qualify to receive the retirement incentive payments: 1) Mail Handlers who are eligible for optional retirement (those who have satisfied the normal requirements to qualify for retirement under either CSRS or FERS); 2) Mail Handlers who have not yet satisfied the requirements for optional retirement, but who have fulfilled the Voluntary Early Retirement (VER) requirements outlined in the MOU; and 3) those Mail Handlers who have not yet satisfied the requirements for either optional or Voluntary Early Retirement, but who are nevertheless eligible to receive the incentive payments if they elect to resign their Mail Handler position..."

Read more at the National Postal Mail Handlers Union

Early Outs And Buyouts Explanation

"...employees at some agencies, including the U.S. Postal Service, are weighing whether to accept offers of early outs or buyouts. There are two flexibilities agencies can use to reduce the disruption of downsizing: the Voluntary Early Retirement Authority (VERA) and the Voluntary Separation Incentive Payment (VSIP)...

To qualify for early retirement, Civil Service Retirement System or Federal Employees Retirement System employees must be at least age 50 with 20 years of service or any age with 25 years of service. For both CSRS and FERS, the early-out annuity, like a regular annuity, will be based on a formula that includes your high-three, which is the average of your highest three consecutive years of salary, and your years and full months of creditable service...."

Read more at FederalTimes.com

USPS Offers Part-Time Work To Retirement Eligible Postmasters

"...The U.S. Postal Service is encouraging retirement-eligible postmasters to apply for part-time work at reduced-hours post offices, the agency announced Friday.

Postmasters who are eligible for retirement -- including those who meet the requirements under USPS’ current voluntary early retirement program -- can apply to become postmaster relief employees and work reduced hours as noncareer employees. Postmaster relief employees, or PMRs, will be paid $11.76 per hour and can still receive annuity payments from their former, full-time roles. Their annuities will not increase under the program, however..."

Read more at GovExec.com

USPS Offering $15,000 Buyouts to Handlers

"...It’s official: The U.S. Postal Service is dangling more employee buyouts.

The buyouts, available to most mail handlers, will amount to $15,000 total, payable in separate $7,500 installments this December and December 2013, according to a Thursday bulletin on a Postal Service web site. With a few exceptions, all career employees covered by the Postal Service’s national agreement with the National Postal Mail Handlers Union are eligible, the bulletin says. Full-time employees wanting to sign up must do so by July 2, and agree to leave or retire by Aug. 31..."

Read more at The Federal Times Blog