Labor Relations Conference
from file name /LaborRelationsConferenceJul2003
2.ppt
Breakout Session A
Voluntary Early Retirement (VER)
Overview
Background
OPM Guidelines
VER Timeline/SOP
HQ, Area, and District
Roles/Duties
VER Document Review
Background
A provision in APWU National Agreement required USPS to request VER for
all APWU employees covered by agreement by February 2003
Request was submitted to OPM January 23, 2003
Homeland Security Act modified VER rules
OPM Guidelines
VER authority is based on business reasons
It is VOLUNTARY
Employees cannot be coerced to retire or not retire
Can be used for employees identified as being in positions :
in danger of separation as a result of a RIF or ToF
or
which are becoming excess to the agency's future ability to carry out
its mission effectively;
or
which can be a potential placement opportunity for those employees
who are being excessed.
Basic eligibility requirements
At least 20 years service and at least age 50
- or -
At least 25 years service regardless of age
VER Timeline/SOP
July 11
Implementation package sent to Area and field HR
July 15
SOI package mailed to approx 58,000 VER eligible employees covered by
the National Agreement
The bulletin board notice currently posted advises employees who did
believe they should have received an SOI package, but did not; to
request one from local personnel.
If they are in the P or C pay schedule provide them with an SOI
package
July 15 to August 26
Area Operations works on specific site complement plans
Assess impact, reshaping and staffing needs
Facility by facility analysis to determine:
Positions for VER offer
Number of VERs for approval for Oct 31 and subsequent retire dates
This data must be provided to HQ by September 15
August 5
End of SOI period
Deadline for SOI responses to be received at HQ
August 1 to August 19
HQ collects, logs, and categorizes SOI data
Categories of SOI data
(1) Levels 4, 5, and 6 in Clerk Craft in plants
(2) Levels 4, 5, and 6 in Clerk Craft within 50 miles of plants
(3) Other potential reassignment opportunities
(4) Ineligible
August 1 to August 19
HQ forwards SOI data to district HR with summary copies to Area HR
weekly
First installment will be August 1
Spreadsheet example
August 6 to September 24
OPF validation/RTR data entry period
Employees must
be in RTR before a VER offer can be
made
RTR data entry requires a review of the OPF by HR specialists who
have RTR training
Issuance of disapproval letters, where appropriate
Tracking in webCOINS
September 27
VER offer packages will be mailed to employees who have shown
interest and who are in category 1
VER offer packages will be mailed to FTR employees who have shown
interest and who are in category 2
PTF or PTR employees in category 2 will be mailed an offer package if
they can be replaced by the reassignment of another career employee
Category 3 employees will receive an offer package if they occupy
positions that are potential reassignments opportunities as defined by
operations or are in excess positions
Category 4 employees will not be sent a VER offer
September 27 to October 27
VER window period
Period of time when employees have a chance to decide on VER
Retirement applications must be submitted during this period
Retirement applications can be withdrawn during this period
The decision to retire is irrevocable after COB October 27
October 28
VER approval notice sent to employees
If the number of requests for VER exceeds the number required for the
facility/position, VER disapproval notice will be sent
Employees with the earliest retirement computation date up to the
number required will be granted VER
October 31
VER retirement effective date
HQ, Area, and District Roles/Duties
HQ
Develop implementation plan
Mail SOI packages
Log all SOI responses
Distribute SOI data to field
Report to senior management and OPM
Guidance to Area HR
Area
Coordinate implementation plan
Coordinate strategies for site specific complement plans
Monitor VER tracking
Provide guidance to districts
District
OPF validation (RTR)
VER tracking (webCOINS)
Work with Area on site specific complement plans
Prepare VER Offer package
Prepare disapproval letter
Provide group retirement counseling
Process Form 50 in accordance with OPM guidelines
Authority number and date
Documents
VER Offer package
Approval Letter
Acknowledgement Of Irrevocability of VER Decision
VER Disapproval Letter
Planning next steps
Supervisors Distribution Operations
Mailhandlers
return to table
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Agenda
Why are we doing
it?
Who are we
targeting?
Selecting the
volunteers
Tracking the
progress
Ensuring
coverage
Other impacts
Why are we doing it?
Down 41,484 in last 24 AP’s
FY 03 Impacts were approximately 16,000 Clerks
We have captured 10,500
FY 03 we still need 5,500
FY 04 Clerk Impacts in:
F-1 equal 8,000
F-4 equals 3,700
Current need 17,200 more Clerk attrition
Who are we targeting?
APWU F-1 Clerks
Distribution operations
APWU F-4 Clerks
Landing spots for F-1, excess and reshape
Mailhandlers
Excess and landing spots
Supervisors Distribution Operations
Less employees equal less supervision
Selecting the volunteers
This VERA is first of several VERAs
Develop and train on a standardized approach
Dry run to get it right for big push next year
Districts may run their own in the future
Tool: VERA Model
Identifies eligible employees
Flexible
Tracking the progress
OPM required reporting:
Quarterly Reports
Final Reports
Activity Summaries
Includes:
Number of VERs
RIF used (yes or no)
Other attrition and total separation
HQ SER prepares IF field does their part
VER Statement of Interest Received
Excess position within Plant
Excess position within 50 miles
Other Potential Reassignment Opportunity
Ineligible
VER Offer Package Mailed
Operational review has been completed
Employee meets eligibility requirements
Set sub-note for potential Retirement Date
VER Disapproved
Employee has submitted a SOI
Operational review completed
Can not be spared
Or employee is ineligible
Age/service
VER Application Received
Employee has submitted a retirement application
Processed, withdrawn or exceeds limit
Job of VER Approved Employee
Employee has been mailed a package
Set sub-note for potential Retirement Date
Ensuring coverage
Operations has determined excess numbers
Employees have been given packages with potential dates
Extract potential vacancies and determine reversion or
placement strategies
Potential Vacancies identified
Need a plan for duty assignments vacated by VER
Revert within time limits
Post if necessary
Withhold residuals
Reassign excess into withheld
Use casuals or TE’s to cover short term
Other Impacts
Future Impacts:
PARS, APPS, etc.
Will need to provide Impact Statements
Closing
First of several VERA
Opportunity to reduce impact and reshape
Must standardize the process and tracking
If field properly documents activities, quarterly
reporting minimized
Joint effort HR and Operations
Find a way to say YES!
Questions and Answers
RESHAPING THE WORKFORCE
John R. Mularski
July 30 – 31, 2003
Labor Relations Conference
Managing complement is a key driver for our financial performance
Future changes require that we put in place a sound complement
management process now
Labor Relations Conference
Why VER? - Why Now?
Tool to Reshape
conversion)
Complement Challenges FY 2003 and Beyond
Option that encourages voluntary movement
Assessing Approximate Potential :
conversion)
Who meets the age and service requirements for VER?
58,000 APWU employees
8,400 NPMHU
7,600 supervisors
Purpose of Meeting
Greater use and understanding of tools that are available
Making data driven decisions
Better Planning
Exploiting Attrition
Context and History
Historical ability to manage growth
Less success in static or downturn environment
Complement growth, freeze, more growth cycle
Sustained period of complement management
Total Career On Rolls
Repositioning Tools & Techniques
We’ve Come A Long Way……..
FY 02 Complement Reduction
22,954
FY 03, YTD (AP 11) Complement Reduction
18,007
OVER 40,000!
Repositioning Tools & Techniques
No "magic pill"
No "secret formula"
Instead………
Combination of ALL the tools and ALL the techniques!
Repositioning Tools & Techniques
How Was It Achieved?
Complement Coordinators
Complement Review Committees
Managed Conversions
Managed Hiring
WebCoins
Reassignment Plans
Learned From Others
Repositioning Tools & Techniques
Additional Reshaping Tool
(VERA)
Voluntary Early Retirement Authority
Provides for voluntary employee movement
Provides complement optimization flexibility
Complement challenges remain in FY 03 and beyond
Staffing & Scheduling Issues
conversion)
Repositioning and Reshaping within Labor Contract provisions
Managing the conversion process
Managing the hiring process
Reassignments
Legal Issues
conversion)
Legal obligations under voluntary early retirement authority
Avoiding challenges resulting from failure to follow VERA
procedures
Complement Management Tools
(conversion)
VERA Tracking
VERA Modeling
AIR (Automated Impact Report)
Repositioning Tools & Techniques
Recap
VERA SOP/Timeline/Rules
conversion)
VERA Modeling
conversion)
Staffing & Scheduling Issues
conversion)
Repositioning Legal Issues
note: some redundant language was
omitted from the FAQs below |
Reduction-in-Force (RIF) Frequently Asked
Questions
(July 10, 2003)
1. When are RIFs
necessary?
RIF procedures are required when there is an
organization or staffing change AND at least one employee will be demoted
or separated.
2. What is RIF avoidance and how does it differ
from a RIF?
RIF Avoidance and RIF are components of the
organization change process (i.e., reorganizations, restructuring, and
downsizing). RIF Avoidance is a period of time that begins after the
change is approved and the manager meets/notifies the employees of the
change. During the RIF avoidance period, management helps employees
identify vacant authorized positions for which the affected employees can
apply. The RIF avoidance period ends when all employees find placement
opportunities or with the issuance of the Specific RIF Notice, whichever
comes first.
3. What happens if I have salary protection from a
previous organization/staffing change?
If you are not a
preference eligible and are reassigned to a lower level as a result of a
RIF situation in your function, you will retain your current salary level
for only two years. (See ELM 415.2 and 415.31).
4. Does a RIF
include all career employees?
No, RIFs are limited to
competitive areas where the organization/staffing change meets the
criteria for invoking RIF procedures. The most current listing of
competitive areas is found in the Postal Bulletin.
5.
What is a competitive area?
Competitive areas are
organizational units under separate management authority within which
preference eligible employees compete during a RIF.
6. How will
I know if my competitive area will conduct a RIF?
After the
proposed organization/staffing change is approved, your manager will
provide you with the details of the change. This information will
include:
- identifying the elimination of work,
- identifying the positions that are likely to be affected,
- providing the new organization and staffing information,
- indicating whether RIF procedures are necessary, and
- identifying important milestones and dates.
7. If I get
separated in a RIF, can I get called back?
Employees separated
by RIF procedures can request to be placed on the Reinstatement List for 2
years. The Reinstatement List is valid for vacancies for which they are
qualified at or below the grade level at the time of separation within 50
miles of the competitive area from which they were separated.
8.
Will early retirement be available for all or some employees in
competitive areas conducting a RIF?
The Office of Personnel
Management (OPM) approves use of Voluntary Early Retirement (VER) Authority
in accordance with individual and specific requests in order to assist
agencies with downsizing and reorganization. The approval designates those
employees who occupy impacted positions, or non-impacted positions that can
potentially serve as placement opportunities for impacted employees.
9.
Will there be any type of incentives offered?
There are no
plans to offer any incentives to employees to take early
retirement.
10. I am a nonbargaining unit employee at the top of
my grade. If I voluntarily request a reassignment to a lower level
position in RIF avoidance, and I get 2 years of salary protection, am I
still eligible to receive a lump sum merit payment?
Assuming
your salary at the end of the fiscal year is above the maximum salary
range for your position, you would be eligible to receive a lump sum merit
during the 2 years of salary protection.
11. If an impacted
employee voluntarily or involuntarily is placed into a Postmaster
position, does the 1-year lock-in for Postmaster appointments apply? Or
can the impacted employee apply for other positions that may subsequently
become vacant?
The 1-year lock-in for Postmaster appointments
still applies. Area Vice Presidents can make exceptions to the 1 year
lock-in period in hardship cases, or when a compelling business need
exists.
12. What relocation benefits are available during RIF
avoidance? If employee requests downgrade to a position outside commuting
distance, does he/she get applicable relocation benefits?
Paid
relocation benefits are based on whether or not the employee is considered
under the competitive or noncompetitive process.
Example 1 -
Employee volunteers for equal or lower grade and is selected and
considered under the competitive process(along with the competitive
applications), all relocation benefits as outlined in the F-15
Travel/Relocation handbook are paid by the Postal
Service.
Example 2 - Employee volunteers for equal or lower
grade and is considered under the noncompetitive process (no competitive
applications considered), relocation benefits may be paid based on
management's discretion.
For more information on relocation
benefits refer to Publication 164, Q & A’s Compensation, Relocation
Benefits, and Reinstatement.
13. Where can I find more detailed information about RIF
procedures?
Please visit (http://www.usps.com/cpim/ftp/manuals/elm/elmc4/elm410.pdf)
14.
I understand a postal spouse of a RIF-impacted employee will be given
consideration under the "normal" transfer process. Will this include
consideration for jobs that have been frozen for RIF-impacted employees?
(Example: non-impacted spouse is EAS-20 Postmaster. Will she be considered
for frozen jobs level 18+?)
The trailing spouse will be
considered for jobs after it has been determined that the job cannot be
filled by a RIF-impacted employee. They will not receive priority
consideration over the RIF-impacted employee.
15. Once a postal
employee has a RIF letter, are they eligible to apply for job
opportunities in other federal agencies under ICTAP (Interagency Career
Transition Assistance Plan)? The job announcements sometimes contain the
following statement:
"Interagency Career Transition Assistance
Plan (ICTAP) eligibles: Current or former employees displaced from other
agencies. Individuals seeking ICTAP eligibility must submit a copy of
their Reduction in Force (RIF) separation notice (Notification Letter or
SF50) and a copy of their most recent performance
rating."
Postal Service employees are excluded from using the
ICTAP program. This is explained in a booklet on the OPM web site at www.opm.gov/ctap/html/egct.htm.
The name of the booklet is "The Employees Guide to Career Transition". See
page 13, question 31.
However, Corporate Personnel strongly
recommends submitting a cover memo to any application submitted for the
federal government stating that you have been verbally informed that your
job has been eliminated and providing the RIF effective
date.
16. At 53 & 23 years of service I would be eligible
for VERA. However if I choose to take my chances by not taking VERA, and
then the RIF period ends without me getting a job, would I be able to
immediately begin drawing my reduced (for age & service years)
annuity? Or would it be deferred until I reach some age criteria?
A: Based on your years of service 23, and your age 53, if you
elect not to take the VER, and you are not placed in a job prior to the
RIF effective date, you would be eligible for an immediate annuity under
the discontinued service retirement process. You are not required to wait
until age 62.
17. I work for an impacted unit and have a VERA
question. I meet the age requirement and have 27 years of service, is
there a 2% penalty for every year of service under 30 years.
No. The 2% penalty that you’ve referenced is applied to reduce
a person’s early retirement annuity by 2% for each year that he or she is
under the age of 55 at the time of his or her retirement. A person
eligible for retirement under the Voluntary Early Retirement Authority and
who retires at age 53, for example, would have his or her retirement
annuity reduced by 4%, regardless of his or her years of service. The
retirement annuity will be computed based upon 27 years of service minus
the percentage reduction for being under the age of 55.
18. It
is my understanding that "Veterans Preference" does not apply to
RIF-impacted job opportunities that are currently being posted. Is this
correct?
That is correct. Preference is given to veterans
during a RIF, but there is no preference when applying for vacancies in
non-RIF or RIF-avoidance circumstances.
19. If a nonbargaining
unit employee voluntarily accepts a lower level position with the 2 year
salary protection, will their salary go to the lower level if they are not
at the maximum of that lower level position? How is the salary calculated
after 2 years?
ELM 415.15 Protected Salary states:
An
employee assigned to a lower grade position whose salary does not fall
within the salary range of the lower grade position has this salary
retained for a period not to exceed 2 years (104 weeks) as a protected
salary. During this 2-year period, the employee may receive merit lump
sums based on his or her protected salary and the policies applicable to
employees at or above the maximum. If the protected salary exceeds the
maximum salary for the lower grade at the end of the 2-year period, the
protected salary is terminated, and the salary is automatically reduced to
the maximum salary of the lower grade position. An employee assigned to a
lower grade position whose current salary falls within the salary range of
the lower grade position has this salary continued, and no salary
retention is applicable. Future salary increases, and merit lump sums are
determined in accordance with the policies applicable to the lower grade
position.
20. Is it necessary for to complete the KSA portion of
the Form 991? The normal procedure for lateral or downgrade only requires
submission of the first two pages and a narrative?
Normally,
for laterals or downgrades, employees are only required to complete the
first 2 pages of the PS Form 991. However, it may be to your advantage to
respond to each KSA because you are competing with other RIF-impacted
employees..
21. Do I have to complete a Form 991 and address the
KSAs when applying for a position that has the same occupation code and
title?
See above answer. Same occupation codes are the same as
laterals. While the procedures for applying for a lateral reassignment
require the submission of pages 1 and 2 of the PS Form 991, it may be to
your advantage to respond to the KSAs of the position especially since you
are competing with other impacted employees.
24. When the
competitive area is closing, do preference eligibles receive indefinite
saved grade and saved salary?
Preference eligible employees who
request a voluntary reassignment to lower level during the RIF avoidance
phase receive two years protected salary. See ELM 415.15
25. Are
veterans offered any different benefits/placement if they are unable to
find a job during the RIF period?
In competitive areas that are
being eliminated, there will be no positions available for preference
eligible employees or non-preference eligible employees. Positions within
that competitive area will be abolished on the RIF effective date and any
employees (preference eligibles and non-preference eligibles) who have not
successfully found another position within the Postal Service by that date
will be separated.
26. Can management involuntarily direct
preference eligibles to lower level positions?
There are four
ways in which employees can be assigned to lower level
positions:
By RIF procedures
Voluntary request by the
employee
For cause
Reclassification of a
position
27. When does the clock begin running for preference
eligibles for the 30 day MSPB appeals? Does it begin with the RIF letter,
the RIF Impact notice, or the RIF Avoidance notice?
The 30
calendar-day period for filing an appeal with the Merit Systems Protection
Board commences on the effective day of the RIF. Information regarding the
appeals process is provided with the Specific RIF Notice issued 60 days
prior to the RIF effective date.
28. As a disabled veteran, will
I retain my salary and grade indefinitely if I go to another
agency?
No. It is up to you and the receiving agency to
negotiate the salary at that agency. The salary retention policies are
afforded by the Postal Service only while employed by the Postal Service.
When employment with the Postal Service is severed for 1 workday or more,
salary retention terminates.
28. Do preference eligibles receive
indefinite saved grade and saved salary?
Preference eligible
employees who are demoted as a result of a RIF receive two years saved
grade and veterans preference retained salary under RIF. See ELM section
415.12 and 415.14 for more information. Preference eligible employees who
request a voluntary reassignment to lower level during the RIF avoidance
phase receive two years protected salary. See ELM 415.15.
29.
Are veterans offered any different benefits/placement if they are unable
to find a job during the RIF period?
Preference eligible
employees receive preference during the initial phase of the RIF process
for jobs within a competitive area that is undergoing an organizational
change. However, in competitive areas that are being eliminated, all jobs
are abolished and any employee (preference eligible and non-preference
eligible) who has not successfully found another position within the
Postal Service by the RIF effective date will be separated.
30.
If I am RIFed, what happens to my outstanding TSP
loan?
Employee remains with the USPS in a lower grade level. No
change would occur with the amount of the TSP loan payments or the length
of the loan unless the employee needs to reduce the payments. He or she
could then request a one-time reamortization of their loan. However, the
rules for minimum and maximum repayment periods still
apply.
Employee transfers to another Federal agency. No change
would occur with the amount of the TSP loan payments or the length of the
loan. The employee must inform his or her new personnel office of the TSP
loan and ask the office to continue the TSP loan payments. Of the new
payroll office does not begin allotments promptly loan payments will be
missed with possible significant adverse tax consequences to the
employee.
Employee separates from the USPS. The terms of the TSP
loan include a requirement that the employee repay the loan in full,
including interest, when they leave Federal service. After the employee
leaves the USPS, he or she will be sent a notice with instructions to
repay the loan.
The TSP Booklet TSPBK04 – Loan Program dated
January 2002, section VI, explains "Taxable Loan Distributions" in detail.
The booklet is available from the TSP web site at http://www.tsp.gov/forms/tspbk04.pdf.
31.
If a preference eligible does not apply for any position and a RIF occurs,
will he/she have bump and retreat rights to a position within three grades
given to a non-preference eligible?
The RIF regulations
relative to the bump and retreat rights do not apply when a competitive
area is being eliminated. All positions are abolished and any employee
(preference eligible and non-preference eligible) who has not been
successfully placed in a position elsewhere in the Postal Service will be
separated on the RIF effective date.
32. Regarding job postings,
are we limited to applying for new job that are laterals and are no more
than three grades below?
During the RIF avoidance period,
affected employees may voluntarily request consideration for vacant
positions at the same grade level or lower level, for which they believe
they meet the qualifications. Voluntary requests for downgrades are not
limited to positions that are three grades below that of the RIF impacted
employee. If you are found to be qualified and selected, you would be
eligible to receive salary protection for two years.
33. Lets
say someone elects $5,000 health care FSA contribution in November with
the intent of staying in the Postal Service. Come January they incur
$5,000 in medical expenses and receive reimbursement from FSA for the
whole $5,000. What would the financial consequences be if they are unable
to get a job?
Your situation is covered in Q&A 37, on page 22
of the Publication 164, "Q & A’s, Compensation Relocation Benefits, and
Reinstatement"
34. I am a reservist. If I am activated for 30 days in one
year, how will I be able to apply for current postings when on active
duty? Upon my return, I know the Postal Service must place me in a
position similar to the one I vacated. Like my colleagues, I want to be
able to select the type of work and work location, if possible. Can you
provide me with some information or refer me to a source where this info
can be found?
Our policy for nonbargaining employees is that
you can submit completed Forms 991 for specific position description to
human resources reflecting the desired positions and locations. Human
resources will activate the application where appropriate as soon as the
desired position of location has a vacancy. Reservists who are
RIF-impacted can access the web site for job opportunities from remote
locations.
35. How long will USPS employees have federal
status after resigning from or being RIFed from federal employment? Does
that mean that within that time period, we as former federal employees are
eligible to apply to any agency that requests "status
candidates"?
In accordance with section 1006 of title 39,
United States Code, since July 1, 1071, Postal Service employees serve
under excepted appointments. They do not acquire competitive status or
noncompetitive reinstatement eligibility for competitive service jobs in
other agencies. However, by law, an agency may give a noncompetitive
appointment (transfer) to an employee of the Postal Career Service who
meets all the following conditions:
a. The employee’s Postal
Service appointment has not time limit; and
b. Immediately before
appointment in the competitive service, the employee served in the Postal
Career Service for at least 30 months on a substantially full-time basis
or for at least 520 hours if employed less than full-time; and
c.
the employee meets the qualification standard for the position;
and
d. The employee will be appointed to the competitive service
with no break in service from Postal Service employment.
36. If
a RIF-impacted employee signs up for FSA contributions and then transfers
to another Federal Agency, will the withholdings continue and will they be
able to continue filing claims?
The Flexible Spending Accounts
(FSA) program is specific to the Postal Service. You cannot continue it at
a Federal agency. See Publication 164, Question and Answer 37 for more
information.
37. Using the formula for severance pay, I would be
eligible for about 27 weeks of severance pay. This is based on my current
18+ years of service. If involuntarily separated, would these 27 weeks be
included in my service time for CSRS annuity calculations when I get old
enough to collect?
In addition to credit for specific allowable
periods of civilian and/or military service, credit for retirement
computation purposes is given only for periods of time between an
employee’s appointment and separation from the Postal Service. Since
severance pay is an allowance for employees who are involuntarily
separated not for cause from the Postal Service (in accordance with the
provisions of ELM 435), the period of time covered for severance pay is
NOT creditable for retirement purposes.
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