USPS plans for hiring freezes, early retirements as it continues to lose billions of dollars

"...organizational modifications include a management hiring freeze to “prepare for future changes” and a request for voluntary early retirement authority from the Office of Personnel Management. That authority allows an agency to temporarily lower the age and years of service requirements for retirement, with the goal of encouraging more employees that are on the cusp of retirement to make that transition..."    

This Article is From: www.federaltimes.com
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How much can the Postal Service offer as an early retirement incentive (VSIP)? Lump-sum payments up to $25,000 as an incentive to voluntarily separate

How much can the Postal Service offer in an early retirement incentive (VSIP)? $25,000

"...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), an agency may offer VSIP to employees who are in surplus positions or have skills that are no longer needed in the workforce who volunteer to separate by resignation, optional retirement, or by voluntary early retirement, if approved. By allowing employees to volunteer to leave the Government, agencies can minimize or avoid involuntary separations through the use of costly and disruptive reductions in force (RIFs). Agencies such as the Department of Defense that have been granted agency-specific VSIP authority are not required to seek OPM approval for their use of this option...."    

This Article is From: www.opm.gov
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USPS early retirement buyout incentive for mail handlers 2012

Mail Handlers to be offered retirement incentive

"...eligible Mail Handlers who choose to leave employment with the USPS on or before August 31, 2012 will each receive incentive payments totaling up to fifteen thousand dollars (for full-time employees). The MOU also provides a moratorium on excessing in all facilities until at least August 11, 2012 (unless excessing was already scheduled). ..."    

This Article is From: National Postal Mail Handlers Local 317 Read our latest posts! .

Postal Early Retirement Buyout Incentives Coming?

USPS shrinks workforce, changes pension

"...If the goal of 7,500 jobs is not reached through voluntary retirements, Donahoe might look at financial incentives for retirement. "We'll just have to work through it and see," he said. ..."    

This Article is From: www.federalnewsradio.com Read our latest posts! .

Another U.S. Postal Service early retirement incentive this year?

The big question from postal employees at or near retirement age is, will there be Another U.S. Postal Service early retirement incentive this year? Many employees feel that in these hard economic times they need to delay their retirement or not retire at all. The last three early retirement offers have failed to get the needed numbers of employees to retire. The last retirement offer provided a small monetary incentive, but it failed as well. A recent article from Bloomberg BusinessWeek.com, dated March 30, 2010, quotes the the deputy postmaster general as saying, 'We may not have to. It's a timing issue. The average age of postal employees is 53, and their retirement packages are already funded.' However, if you talk to a postal employee, their opinion tends to differ from this managerial position. Postal Employees, as well as most federal employees, are limited to a $25,000 VSIP if their agency decides to request a monetary incentive. 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. Many employees say it will take the $25,000 VSIP to get them to even consider retiring and many complain that the past 'early out' offers are made without enough prior announcement to permit employees to prepare for such a huge, life-altering decision. Employees would like to see the USPS make and announcement far enough in advance that they could investigate finding other employment or simply having an appropriate amount of time to discuss it with families. Additionally, with the APWU going into contract negotiations this year, employees say they have to at least wait until they see where the USPS will go with pay raises, benefits, and health insurance costs. If the USPS fights to further raise Health Insurance costs, many employees will be forced to continue working just to be able to afford insurance in retirement. If the past (last three offers) is any sign of the average USPS employee retiring any time soon ...it's just not going to happen without dangling several juicy carrots in front of them!

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Early Retirement Incentive ...other government entities

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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