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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Give more incentives for employees to retire, says Sen. Carper

Senator thinks USPS should encourage retirement

"...Sen. Carper suggested that Congress give the Postal Service the means to "give more incentives for employees to retire."..."    

This Article is From: yourpostalblog.blogspot.com
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Postal Voluntary Early Retirement Offer Again?

Take a look at the FederalSoup forum (page 38) for the latest "early out retirement offer rumor" ...this one claims a July 2010 announcement. Additionally, the individual claims that the PMG was at their plant and spoke of it, along with other interesting information found in the post. Take a look!    

Rumor

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

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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What is a VSIP?

VSIP is an acronym for Voluntary Separation Incentive Payment. Sometimes a VSIP is called a buyout

"...Under VSIP, agencies may pay up to $25,000, or an amount equal to the amount of severance pay an employee would be entitled to receive, whichever is less...."    

Source: postal-edaily.blogspot.com

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