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APWU and USPS Negotiate Retirement Incentive

APWU, USPS Negotiate Retirement Incentive
Employees to Receive $15,000 in Two Installments

NOTE: At the end of this article you can read what USPS News Link reported.

The APWU has negotiated a retirement incentive agreement that awards eligible full-time career employees a $15,000 payment in two installments, President Cliff Guffey has announced. The first installment will be $10,000; the second will be $5,000.

“Our goal was to achieve an incentive for members who are ready to end their postal careers; to ensure that no groups of employees are excluded, and to lessen the hardships of excessing for those who remain,” Guffey said. “This agreement accomplishes those objectives.”

Who’s Covered

The incentive will be offered to eligible full-time employees who terminate their service through retirement, early retirement, or voluntary separation. Eligible part-time employees will receive a prorated amount.

Most full-time employees will have a separation date of Jan. 31, 2013. To allow sufficient time to provide accurate retirement estimates, part-time employees and employees occupying Non-Traditional Full-Time (NTFT) assignments of less than 40 hours per week will have a separation date of Feb. 28, 2013. Employees in Accounting Services position of the Information Technology/Accounting Services (IT/ASC) bargaining unit also will have a separation date of Feb. 28.

The $10,000 payment will be made on May 24, 2013; the $5,000 payment will be made on May 23, 2014.

Employees who had a previously scheduled retirement date earlier than Jan. 31, 2013, may retire on their scheduled date and receive the incentive. Employees who had a previously scheduled retirement date after Jan. 31, 2013, must change their date to Jan. 31, 2013, and meet retirement eligibility on that date in order to receive the incentive.

To qualify for early retirement, employees must have at least 20 years of service and be 50 years of age or must have 25 years of service at any age. (For employees in the Civil Service Retirement System, the annuity is reduced 2 percent for each year workers are under age 55.) Eligibility will be based on a Jan. 31, 2013, effective date. Eligible employees who do not qualify for regular or early retirement but wish to receive the incentive may resign.

Not covered by the agreement are employees who were in a probationary status on the date of separation; employees who were issued a Notice of Removal or Letter of Decision as of the effective date; employees who separate via disability retirement, and employees who separate via transfer to another federal agency.

There will be no limit on the number of employees who may accept the offer, except for employees working in Accounting Services positions in the IT/ASC bargaining unit: No more than 30 employees may accept the offer in the Eagan MN ASC; no more than 10 employees may accept the offer in the San Mateo CA ASC, and no more than 20 in the St. Louis ASC.

Next Steps

Full-time employees must indicate their intent to accept the incentive offer on or before Dec. 3, 2012. Employees taking voluntary early retirement who wish to revoke their decision by must do so by Dec. 3, 2012. The deadline for part-time employees and those in NTFT assignments is Jan. 4, 2013.

Retirement counseling will be conducted via phone in group sessions not to exceed 10 retirees. Employees requesting additional help after participating in a group session will be accommodated on an individual basis.

Under the agreement, where the number of employees accepting the incentive impairs operational efficiency, the USPS may post the duty assignments of employees accepting the offer any time after Dec. 3, 2012, to be filled no sooner than vacating employees’ separation date. If temporary staffing is still needed, Postal Support Employees (PSEs) may replace career employees who accept the incentive for a period not to exceed 90 days from the effective date of the voluntary separation. There can be no involuntary reassignment from an installation while the district PSE cap is exceeded.

USPS News Link Article

USPS offers retirement opportunity to APWU employees
Offer includes a financial incentive

USPS is offering a Voluntary Early Retirement (VER) and Special Incentive Offer to employees represented by the American Postal Workers Union (APWU). Eligible APWU employees who want to leave under the VER — as well as APWU employees who have reached their minimum retirement age and service requirements, and those who wish to voluntarily resign — are eligible for this special cash incentive.

Major provisions are as follows:

  • All career employees covered by the USPS-APWU National Agreement are eligible for the incentive offer, with a few exceptions that are detailed in the agreement.
  • The total incentive amount for full-time APWU bargaining unit employees is $15,000. Eligible participating APWU employees will receive an initial incentive payment of $10,000 on May 24, 2013 (less required deductions and withholdings). USPS will pay the remaining $5,000 on or about May 23, 2014 (less required deductions and withholdings).
  • The incentive program is available to eligible full-time employees and non-traditional full-time employees scheduled 40 or more hours who notify USPS on or before Dec. 3, 2012 of their intent to participate in the VER, optional retirement, or who voluntarily resign and separate effective Jan. 31, 2013.
  • Part-time career employees also are eligible for an incentive based on a prorated schedule and will have a separation date of Feb. 28, 2013. These employees have until Jan. 4, 2013 to notify the Postal Service they intend to take advantage of the offer.

All eligible APWU employees will receive an offer letter and additional information from the Postal Service the week of Oct. 10. The letter and information will be mailed to the employee’s home address of record.

Details of the Special Incentive Offer and general VER guidelines will be posted as Frequently Asked Questions on the Workforce Connection website on LiteBlue.

7 Responses to APWU and USPS Negotiate Retirement Incentive

  1. JLR

    October 2, 2012 at 7:24 am

    “I’m Out of here!”

  2. frank

    October 2, 2012 at 10:14 am

    Does anyone know if you only have 27 years,
    do you forfeit the ss supplement?

  3. Allen

    October 3, 2012 at 7:39 am

    I retired with an effective date of sept 28 2012 . I believe this was the day the Vera was agreed upon. Am I eligible for the Vera?

  4. Strhuntrss

    October 3, 2012 at 3:28 pm

    How old are you? I had 27 years and am under FERS when our vera was offered and I am under my minimum retirement age (52). I am eligle for the ss supplement. But I will not be able to receive it until I turn 56, my minimum retirement age (MRA) (has to do with the year you were born). They will automatically send it to me at that time. IF you are at your minimum retirement age(MRA) usually age 55-57 depending on your year of birth. AND you are under FERS you will receive the ss supplement. If you are Civil Service then you are not eligible for the ss supplement. In order to be eligible for the vera you have to be age 50 with at least 20 years, or any age with 25 years of credible service.

  5. Stan Ploar

    October 6, 2012 at 4:32 am

    From what I read, yes if you put in for retirement and it is still pending you can redo it under the early out. The other question, if you have 27 years you can get the SS Supplement if an early out is offered if you are 56 or over. You would get 27/40 of whatever you would get from SS at 62 years of age, which would be around 70%. If you are under 56 then as the other poster said you wouldn’t start getting the SS Supplement until you were 56.

  6. Larry

    October 9, 2012 at 7:59 am

    @Allen (10/3/2012)
    I called Shared Services and they said anyone with retired date 9/28/2012 is to be included in the incentive. So, according to them, yes you are eligible. You should receive something in the mail this week. The reason I called them is because I retired the same date as you and thought I was to early. When I read your post, it made me wonder, so I called.

  7. Karen Turner

    December 1, 2012 at 2:23 am

    I have 17 years service, I am 52. What is going to happen to my retirement when postplan is effective in 2014? Am i going to get anything at all? Will I get what I have put in TSP? What are my options?

    Karen – PEN cannot answer USPS questions regarding your concerns.

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