Federal Retirement August Update

"...If you are just back — whether from an exotic vacation or an economical stay at home — welcome. You haven’t missed much. It won’t take long to bring you up to speed. So here it goes:

- With two months to go in the cost-of-living adjustment countdown, federal-military-Social Security retirees are looking at a very, very small COLA in January. The exact amount won’t be announced until mid-October. As of today, it stands at 0.23 percent.

- No new word on buyouts or early retirement offers.

- After four years in the works, the phased retirement program is up and running, in some places..."

Read more at FederalNewsRadio.com

Making Early Retirement a Reality

"...The economy today is much different from that of our grandparents’ time. People are no longer retiring at the age of 65, nor are many people capable of retiring that early. The cost of living and healthcare expenses have risen, and Social Security benefits are decreasing. The average retirement age is 62, and the average number of years people spend in retirement before passing away is 18..."

Read more at FedSmith.com

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

A Look at Federal Buyouts

"...Federal buyouts come in many flavors. If you work for most federal agencies there is the take-it- or-leave it, one-size-fits-all $25,000 buyout. You agree to take regular or early retirement, and you get a lump-sum payment minus deductions. Depending on your salary, state taxes and deductions the final payment works out to around $18,000, more or less..."

Read more at FederalNewsRadio.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

Tips to Prepare for Early Retirement

"...there are times when you have to cram planning into a year or less — for example, if you are given an opportunity to retire early or offered a buyout. Even a little time wisely spent can produce a big payoff. So, here’s my “to do” list for you...."

Read more at FederalTimes.com

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

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

USPS to Cut 28,000 Via Buyout Incentives

"...The U.S. Postal Service will trim 5,000 jobs by closing or consolidating 48 mail-processing plants over the next three months.

The closures, scheduled for July and August, will be the first of three waves of cutbacks intended to slash 28,000 jobs and reduce the mail-processing network from 461 plants to 232 by 2014...Postal officials expect to handle all 28,000 job cuts through attrition...

The sweeteners include both voluntary early retirement incentives, as well as $15,000 buyouts payable in two installments this year and next year, according to Postal Service documents released by the office of Rep. Elijah Cummings of Maryland, the top Democrat on the House committee that oversees the Postal Service

"

Read more at FederalTimes.com

How to Calculate Your SRS Benefit

"...some employees covered by the Federal Employees Retirement System are scratching their heads trying to calculate a unique feature of FERS: the special retirement supplement (SRS).

The SRS approximates the Social Security benefit you earned while covered by FERS. It’s intended to supplement the FERS annuity and bridge the gap between retirement and age 62, when you’ll be eligible to receive a Social Security benefit. It ends at age 62, whether or not you apply for a Social Security benefit..."

Read more at FederalTimes.com

Air Force offering 3rd round of buyouts

"...The Air Force is hoping the third time will be the charm in its efforts to trim its civilian workforce, announcing Friday a third round of buyouts and early retirements.

The service plans to begin offering Voluntary Early Retirements and Voluntary Separation Incentive Payments beginning May 1. Applications will be due by May 14 and those approved will need to leave by Aug. 31.

The Air Force is under a mandate to keep civilian staffing at 2010 levels as part of a fiscal-year 2012 civilian workforce restructuring..."

Read more at FederalNewsRadio.com

USPS Early Retirement announcement scenarios

"...As Senator Susan Collins’ speech on the Senate floor indicated, the Postal Service’s announcements that it is going ahead with its network optimization plan shortly after the moratorium expires on May 15th has created some significant political blowback. While this has not changed the Postal Service’s public statements on network optimization, the Postal Service has its network support staff developing staffing plans for a range of scenarios based on how the political winds blow..."

Read more at Courier Express and Postal Observer

USPS buyouts, early retirement offers expected

"...USPS officials have acknowledged they are considering a voluntary early retirement program. But Louis Atkins, president of the National Association of Postal Supervisors, said Friday that he expected the agency to offer buyouts and early retirements within the next month to bargaining unit and white-collar employees.
In general, Atkins said, the offers will be restricted to employees working in processing plants, post offices or other positions..."

Read more at federaltimes.com

For Federal Retirees Timing is Everything!

"...For some raise-starved feds, timing is everything. And retirement is looking better all the time. Especially if a $25,000 buyout is part of the deal...

The fact that oil prices are climbing... has some long-time workers thinking maybe its time to retire. This is especially true for feds in the 11 agencies that are currently offering buyouts and early-outs. If inflation spikes this summer and fall, it could easily produce a 2013 COLA larger than any pay raise feds may get. So what to do?..."

Read more at federalnewsradio.com

Considering Retirement: Advice from a Federal Retiree

"...These are scary times for many Federal employees, particularly for those who are contemplating retirement in the near future...

My advice would be not to follow in my footsteps. I opted for early retirement with a buyout and a two-year lead time, primarily for the purpose of joining a close friend in a consulting and training enterprise. The problem was that I wasn’t really sure I wanted to retire, even with the buyout..."

Read more at fedsmith.com

USPS eyeing buyouts, early retirements again

"...The U.S. Postal Service may resort to early retirements and buyout offers as a way to slash its staff by 66,000 employees this year and another 51,000 next year. Combined, the planned cuts over the next two years amount to more than one-fifth the agency's workforce.

Office of Personnel Management Director John Berry said last week that Postmaster General Patrick Donahoe alerted him a week earlier that USPS could offer both early retirement and buyout incentives to encourage employees to leave..."

Read more at federaltimes.com

Buyout or keep working?

"...Buyouts. Career feds anywhere near retirement eligibility can rival Indiana Jones in their determination, skill and daring in hunting this treasure.

But, in reality, buyout offers are more like “Let’s Make A Deal” than “Raiders of the Lost Ark.”...

Obviously, if you were ready to retire anyway, retiring with an extra cash payment is a nice bonus. Retirement with an extra $17,000 — don’t forget that you’ll owe taxes on that $25,000 Voluntary Separation Incentive Payment — in your pocket is clearly worth more than the same retirement plan without the extra money.

However, it can be a much tougher decision, if accepting the buyout requires you to retire significantly earlier than you had otherwise planned"

Read more at federaltimes.com

Voluntary Separation Incentive Payments (VSIP)

"...The Voluntary Separation Incentive Payment Authority, also known as buyout authority, allows agencies that are downsizing or restructuring to offer employees lump-sum payments up to $25,000 as an incentive to voluntarily separate. When authorized by the Office of Personnel Management (OPM)..." Read more at opm.gov