While the USPS attempts to reduce employee numbers without benefit or cash incentives, other government organizations provide a more appealing offer. In one example, the State of New Jersey offers (2008) an Early Retirement Incentive (ERI) with Paid New Jersey Health Benefits Program (SHBP) post-retirement medical benefits, additional years of service (an additional 5.45% of final average salary), and $500 per month for 24 months after retirement, paid separately from the retirement allowance. Now that's a State that appreciates their employees ...and of course the $136 million in immediate budget savings, and more savings in future years. If one singular State can reap such huge benefit, how much would the Postal Service save in a similar early retirement offer?
Of course, no one can fault the USPS for FIRST attempting to reduce numbers without benefit or monetary incentives, as it makes sense to first try to take the cheaper way out ...no matter how unsuccessful that will be. However, there will be a few that will take the Voluntary Early Retirement without incentive, and that will produce an economic benefit to the USPS. The big question is, "when will the USPS offer a VSIP to truly entice individuals to retire that were not already considering retirement?" Some speculate they will not offer a cash or benefit incentive at all, while some realize that will be the only way to reduce numbers substantially. Let's wait and see how well this non-incentive offer pans out.
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