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OPM Approves Postal Service Request For Voluntary Early Retirement Authority -Voluntary Early Retirement (VER) now must be offered to Maintenance and Motor Vehicle Craft employees in Level 6 positions and above, no later than July 1, 2005.  Employees covered by the IT/ASC agreement must be offered early retirement by July 1, 2005.  The offers to employees covered by the Operating Services agreements must be made in 2004. In addition to requiring management to seek OPM approval for the early-outs described above, the Dec. 19 agreement required management to permit voluntary early retirement to all eligible employees in Level 5 positions and below. The offer is to be made to such employees before Dec. 31, 2004. If operational needs require, however, the retirement date for Retail Clerks may be delayed, but to no later than July 1, 2005. 

 Part Time Flexible VER Offer

Management Timeline APWU MOA VER for RSC N – Accounting Service Centers (ASC)

Date

Events

Monday, April 19, 2004

Review draft implementation plan with ASC and CPM

Tuesday, May 11, 2004

Final version of implementation plan posted on SER web site

Friday. May 14, 2004

Listing of employees included in the SOI mailing is sent to VER Coordinators

Friday, May 14, 2004

Statement of Interest (SOI)/Annuity Estimate Mailing by Eagan IBSSC

Friday, June 11, 2004

End of SOI response period

Friday, June 11, 2004

HQ SER Collect/Forward SOI data

to

 

Thursday, June 24, 2004

 

Tuesday, June 15, 2004

OPF validation/RTR data entry period.  Send Disapproval Notice as soon as ineligibility is known.

to

 

Tuesday, July 06, 2004

 

Friday, July 09, 2004

Offer packages delivered to interested employees (includes Offer letter, Irrevocability statement, and retirement date)

Tuesday, July 13, 2004

VER window.  Employees submit/withdraw retirement applications.

to

 

Tuesday, August 17, 2004

 

Friday, July 23, 2004

Report to SER:  All VER offers made by finance number

Tuesday, August 17, 2004

Decision to retire is irrevocable for all VER effective dates.

Friday, August 20, 2004

Send Approval Notice

Tuesday, November 30, 2004

Early VER effective date for ASC

Saturday, April 30, 2005

Mid-range VER effective date for ASC

Thursday, June 30, 2005

Long range VER effective date for ASC

Some of the key dates associated with this VER offer for  RSC C, P, & K are:

GUIDELINES FOR PROCESSING VOLUNTARY EARLY (March 31, 2004)

RETIREMENT FOR EMPLOYEES COVERED BY THE DECEMBER 19, 2003 MEMORANDA OF AGREEMENT (MOA) 

 RSC C, P, & K

I.            VOLUNTARY EARLY RETIREMENT (VER) 

        The Postal Service has entered into agreement with the American Postal Workers Union (APWU), AFL-CIO to offer VER to employees covered by the December 19, 2003 Memoranda of Agreement.  The Postal Service has approval from the Office of Personnel Management under its Voluntary Early Retirement Authority to offer VER for these employees.  A list of these employees will be provided to Area and District Managers of Human Resources (HR) as soon as they become final.  These guidelines cover employees in Rate Schedule Codes (RSC) P, C, and K only.  There will be 4 possible VER effective dates for this VER offer.  They are:

·         July 31, 2004 will be referred to as the early date for full-time employees.  Assign this VER effective date to full-time employees who can be released because their positions are no longer necessary or internal replacements are ready now.

·         August 31, 2004 will be referred to as the early date for part-time employees.  Assign this VER effective date to part-time employees (Part Time Regulars and Part Time Flexibles) who can be released because their positions are no longer necessary or internal replacements are ready now.

·         December 31, 2004 will be referred to as the mid-range date.  Assign this VER effective date to employees who cannot be released by the early date because their position is still needed (for example, a retail clerk) but internal replacements must be prepared to assume the position responsibilities.

·         June 30, 2005 will be referred to as the long-range date.  Assign this VER effective date to employees who cannot be released by the early date or the mid-range date because their positions are still needed (for example, an Electronics Technician) but the time to prepare an internal replacement can take a year or more to assume the position responsibilities.

·         In addition, individual delayed effective dates may be necessary for those cases where deposit/redeposits are required to meet creditable service criteria, or a retirement plan code is erroneous.       

        Field HR and Operations will determine the VER effective date. Eligible employees identified in Section II who elect to take advantage of this VER offer will have one of the four retirement effective dates listed above. Employees in RSC N will be covered under separate guidelines with a separate timeline. 

II.          ELIGIBILITY/ANNUITY REQUIREMENTS 

A.          Age and Service Requirements 

                To be eligible to retire under this VER offer, the employee must meet one of the following age and service requirements: 

                Age is at least…                                      and Creditable Service* is at least… 

                50 as of March 1, 2004                             20 or more years as of February 29, 2004     

                        Any Age                                          25 or more years as of February 29, 2004

                                   

                Note: FERS employees, eligible for a reduced or postponed MRA+10 retirement, are eligible if they have at least 20 years of service. 

                *Creditable service requirement must include at least five years of creditable civilian service (career or non-career). 

B.              Covered Position Requirement 

                The employee is covered by the December 19, 2003 Memorandum of Agreement between the Postal Service and the APWU. 

Some affected positions require longer periods of training to prepare a replacement to assume those duties; therefore, if Operational needs require, employees in the following positions may be delayed until 2005 but not later than July 1, 2005:

·          Motor Vehicle employees Level 6 and above

·          Maintenance employees Level 6 and above

·          Retail Clerks 

The spreadsheets listing employees who are interested in VER will have a column titled "2004 VER."  If the employee must be allowed to take VER in 2004, this column will be updated with a "Y."  If the employee can be delayed until 2005 the column will be updated with an "N."  

C.              Excluded Employees 

·         Employees who are not covered by the December 19, 2003 Memoranda of Agreement.

·         Employees who have not been continuously on the agency’s rolls at least 31 days before the date of the request for VER authority

o        August 6, 2003 for:

§         clerks, motor vehicle in levels 5 and below

§         Maintenance in levels 5 and below.

o        February 26, 2004 for:

§         motor vehicle in levels 6 and above

§         maintenance in levels 6 and above

§         Operating Services

·         Employees serving in time-limited appointments

·         Employees in receipt of a decision of involuntary separation for misconduct or unsatisfactory performance. 

                Because of errors in personnel records, some employees may receive a Statement of Interest (SOI) package in error, see Section IV.  Conversely, some employees may not have been identified as eligible due to a classification error.  Personnel offices must correct the erroneous employee data and make a determination whether the employee meets the eligibility requirements for this VER offer.  If employees believe that they should have received an SOI but did not, the personnel office must provide a copy of the materials to the employees (see Attachments C, D, E, and F) so long as they are in the P, K, or C rate schedules. 

III.            EMPLOYEE IDENTIFICATION 

A.          Employee Listings       

        All career employees in RSC C, P, or K covered by the settlement agreement and who are covered by either the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS) (retirement plan codes 1, 5, 8 or A) and who meet the eligibility criteria in Section II.A have been identified based on current CMS data.  A listing of these eligible employees will be electronically transmitted to all area and district HR managers on April 07, 2004. 

B.          Employee Notification 

        All full-time employees identified on the electronic transmission referenced above will be mailed a SOI package on April 16 2004, to their home address of record, informing them of their eligibility for the VER offer. Part-time employee packages will be mailed on May 24, 2004. The package will be comprised of Attachments C and D, an annuity estimate, and a return envelope.  Any SOIs that cannot be delivered will be returned to the employees’ work location where their supervisor will hand deliver the SOI.  Approximately 8,100 employees have been identified as potentially eligible for this VER offer.  

C.          Employee Bulletin Board Notice 

                Attachment J is an employee bulletin board notice that must be posted on all employee bulletin boards during the combined VER window periods, April 09, 2004 through August 20, 2004. 

D.          SOI Respondents List 

Periodically, during the SOI response period, SER will distribute the SOI respondents list to facilitate the completion of RTR processing.  The SOI respondents list will be in the form of an MS Excel spreadsheet, and will include 3 worksheets.  Worksheet 1 (Employee Details) is a list of employees who submitted SOIs and are in covered positions/finance numbers.  Worksheet 2 (Ineligible) is a list of employees who are not eligible for this VER offer because they are NOT covered by this settlement agreement. Summary (Worksheet 3) is a summary of the Employee Details worksheet. 

IV.        VERIFYING ELIGIBILITY THROUGH THE RTR SYSTEM 

                Eligible full-time employees interested in taking advantage of the VER offer must submit their SOI forms to Headquarters, Selection, Evaluation, and Recognition (SER), postmarked no later than May 14, 2004.  The due date for part-time employees is June 14, 2004. (See comparative timeline Attachment B). SER will verify that the employees are covered by this VER offer. 

                Throughout the combined SOI response period, April 16, 2004 through June 14, 2004, SER will electronically forward, on a weekly basis or more often as the volume dictates, the listings outlined above, in Section III.D, to each district HR manager with copies to area HR managers.        

        Personnel offices are responsible for ensuring that employees meet the age and service requirements for this VER offer as specified in Section II.A of these guidelines. You must remember that RTR determines what the record should be, and if a retirement plan code error is found, deeper review is needed.  An employee should NOT be declared ineligible due to RTR results until after HQ Compensation is notified of the error and the district is advised of appropriate action. Although our ultimate goal is to have all employee records in RTR as soon as possible, ONLY THOSE EMPLOYEES WHO SUBMIT AN SOI FORM must have their retirement plan codes and retirement computation dates in CMS verified IMMEDIATELY through the RTR system (see SOP 2, Establishing an RTR Record).       

        Errors in Retirement Computation Dates (RCD) must be corrected immediately in CMS and a determination made as to whether the employee still meets the creditable service requirement for this VER offer [see SOP 21, Correcting Retirement Computation Date (RCD) Errors (NOA 882)].  Errors in retirement plan code must be reported to HQ [see SOP19, Correcting Retirement Plan Code Errors (NOA 008 and NOA 803)].  Employees must be advised of any corrections made to their personnel records. 

        Personnel offices are reminded that employees legally attain a given age on the day before their birthday. (See Compensation Letter 92-020.)   Under this VER offer, employees must meet the eligibility requirements on or before February 29, 2004; therefore, based on the ‘birthday rule’, employees whose 50TH birthday falls on March 1, 2004, would be eligible for this VER offer. 

V.          PROCESSING VER REQUESTS               

A.          VER Effective Date Determination 

                        After verification through RTR that an employee meets the eligibility requirements, field HR and Operations must determine the appropriate VER effective date (see Section I above).  Personnel offices must send the VER Offer Letter (Attachment G) to all eligible employees who submitted an SOI and who are covered by the settlement agreement.  

        B.     Responding to Employee SOI Requests 

Personnel offices must advise employees, in writing, concerning the status of their SOI requests. 

1.           VER Eligible Employees 

        Personnel offices must send the VER Offer Letter (Attachment G) to all eligible employees who submitted an SOI and who are covered by the settlement agreement. A VER offer package will be prepared and mailed to eligible full-time employees no later than June 08, 2004 and to eligible part-time employees no later than July 16, 2004.   The VER offer package includes:         

·         VER Offer Letter (Attachment G)

·         Acknowledgement of Irrevocability of Voluntary Early Retirement Decision (Attachment H)

·         Retirement History screen print or the Retirement Plan Correction Report from RTR

·         Retirement Application (SF 2801 for CSRS employees or SF 3107 for FERS employees) 

        Certain sections of the VER offer letter must be completed prior to mailing.       

2.           Approval Notice 

After the close of the VER window period, each VER eligible employee who submitted an application for retirement will be sent an Approval Notice.   

3.           Ineligible Employees 

                        Employees who submitted an SOI, and who do not meet the eligibility requirements in Section II.A, or who are not covered by the settlement agreement, must be notified using Attachment I, VER Disapproval Letter as soon as local personnel becomes aware of the information. 

Ineligible employees identified by Eagan or OPM must NOT be returned to the rolls until HQ Compensation is notified and instructions are provided. It is mandatory that Headquarters be notified before any action is taken for these employees. 

C.     Group Retirement Counseling Sessions 

                Because of the potential interest in the VER offer, personnel offices must conduct a series of group retirement counseling sessions during the VER window period.  Eligible employees, who are provided a VER offer letter, must be notified of scheduled sessions at the time they are given their offer letter.  Employees must be encouraged to review the information provided in their SOI package prior to attending the counseling sessions and to bring their annuity estimates and RTR service history worksheets with them when attending the sessions.  These sessions must be structured along the lines of that provided in EL-502, CSRS Retirement Guide, and include information  for FERS employees, including the reduction and postponement options for MRA+10, FERS annuity supplement, etc. 

                During these sessions, it must be emphasized that CSRS employees who retire under this VER offer will have their annuities reduced by two percent (2%) for each year (or one-sixth of one percent for each full month) they are under the age of 55.  This reduction also applies to the frozen CSRS component for those employees who transferred to FERS.  There is no reduction to the FERS portion of the annuity for those who transferred, or to a FERS annuity without a frozen CSRS component, regardless of the employee’s age. 

                        At a minimum, personnel offices must cover the eligibility requirements for the VER offer, creditable service including civilian and military service, reduction for early retirement, Social Security benefits including the impact of the Windfall Elimination and Public Pension Offset provisions, and the impact of Social Security benefits on CSRS Offset employees, health and life insurance, thrift savings plan, and the process for submitting retirement applications under the VER. 

                D.     Processing Retirement Applications 

                        Upon receipt of a completed retirement application (SF 2801 for CSRS employees or SF 3107 for FERS employees) and the Acknowledgement of Irrevocability of Voluntary Early Retirement Decision (Attachment H), personnel offices must follow the instructions and processing steps outlined in SOP 42, Counseling for and Processing an Optional Retirement (NOA 302).  Since the employee’s eligibility has already been determined through the RTR system, personnel offices must begin with item 6 of SOP 42.  Keep in mind that certain materials and information may have already been provided to and/or received from the eligible employee and that the employee’s retirement effective date has been predetermined.                               

E.     Processing Personnel Actions 

See CMS Update 2003-39 (Attachment M) for instructions for processing personnel actions.  For this VER offer, the OPM Authority Numbers and dates are: 

Clerks and Motor Vehicle and Maintenance in levels 5 and below 

· CSRS

o        5 USC 8336(d)(2)

o        OPM authority 2003-090

o        July 15, 2003 

· FERS

o        5 USC Chapter 84

o        OPM authority 2003-090

o        July 15, 2003 

Motor Vehicle and Maintenance in levels 6 and above, Operating Services bargaining unit 

· CSRS

o        5 USC 8336(d)(2)

o        OPM authority 2004-075

o        February 26, 2004 

· FERS

o        5 USC Chapter 84

o        OPM authority 2004-075

o        February 26, 2004

F.          Reporting Requirements 

WebCOINS will be used to report VER information to OPM and senior management.

Each District must update WebCOINS with employee VER notes data using the following schedule: 

VER ACTIVITY

Full time

Part time

VER PACKAGE MAILED (EMP) note by 

This note is attached when the offer letter is sent to the employee.  The subnote date of 04/30/2004 box should be checked.

  Jun 18 2004

Jul 30 2004

VER APPLICATION REC’D (EMP) note by

§         This note is attached when the application for retirement is received back from the employee and the employee will be allowed to retire.  The subnote PROCESSED box should be checked

Withdrawal of an approved application by COB on:

§         Withdrawn box should be checked

Jul 14 2004

 

 

 

 

Jul 12 2004

Aug 24 2004

 

 

 

 

Aug 20 2004

VER DISAPPROVED (EMP) note by

§         This note is attached when an application is received from an employee, but the number of employees requesting the VER exceeds the maximum allowable number.  The subnote OPERATIONAL NEEDS box should be checked.  For the unlikely event that an application is received from an ineligible employee, the subnote DID NOT MEET AGE/SERVICE REQUIREMENTS box should be checked.

 

Jul 31 2004

Aug 31 2004

JOB OF VER APPROVED EMPL. (JOB) note (District Optional)

This note is attached when the application for retirement is received back from the employee and the employee will be allowed to retire. It will allow for tracking the position of the VER employee after the employee retires.

Jul 31 2004

Aug 31 2004

 Questions regarding WebCOINS updating should be directed to your Area Complement Coordinator.

 G.         Eagan IBSSC Reporting Requirements 

All retirement cases must be sent to the Eagan IBSSC no later than 10 days after the retirement effective date: 

Retirement Effective date

Deadline to submit Retirement Package to Eagan

Early date for full time employees July 31, 2004

August 10, 2004

Early date for part time employees August 31, 2004

September 10, 2004

Mid-range date  December 31, 2004

January 10, 2005

Long range date  June 30, 2005

July 11, 2005

      

H.          Employees on Active Military Duty 

Employees who are on active military duty will receive the SOI package at their home address of record.  Some employees are stationed locally and will be able to participate in this process as if they were in a pay status.  Others will not be able to participate because of their military obligations.  When these employees return to work, they must be notified of any VER offers that would have covered them, and provide them 30 calendar days to accept the offer, even if the agency’s VER authority has expired.  If they accept the offer, the VER effective date will be the last day of the month of the offer acceptance.

                                     * * * NOTICE * * * 
Voluntary Early Retirement (VER) Offer for Employees covered by the December 19, 2003 Memoranda of Agreement between the American Postal Workers Union, AFL-CIO (APWU) and the US Postal Service
 
The Postal Service will be undergoing substantial restructuring, reshaping, and repositioning of its bargaining-unit workforce in the coming months.  The purpose of the VER offer is to minimize the number of employees potentially affected by involuntary reassignments under the appropriate national agreement articles.  This VER offer is limited to employees covered by the December 19, 2003 Memoranda of Agreement between the APWU and the US Postal Service. 


Eligible employees will receive a package including a ‘Statement of Interest’ form that must be completed to indicate their interest in the early retirement offer.  Packages for full-time employees will be mailed beginning April 16, 2004.   


The Statement of Interest form must be completed and returned to the address provided in the package.  It must be postmarked no later than: 

·         May 14, 2004 for full-time employees 


If you meet these basic eligibility requirements and do not receive your package by April 20, 2004 (full-time) or June 04, 2004 (part-time) please contact your local personnel office. 
Age and Service Requirements as of February 29, 2004

o        Age 50 as of March 1, 2004 with 20 years or more of service* or
o        Any age with 25 years or more of service* or
o        FERS employees eligible for a reduced or postponed MRA+10** retirement with at least 20 years of creditable service


*Creditable service must include at least five years of civilian service (career or non-career)
**Minimum Retirement Age plus 10  
VER Eligible Position Requirement
 
o        You are covered by the December 19, 2003 Memoranda of Agreement between the U S Postal Service and the American Postal Workers Union, AFL-CIO
o        You are in rate schedule code (RSC) C, P or K 
  
PLEASE POST ON ALL EMPLOYEE BULLETIN BOARDS APRIL 16, 2004
THROUGH COB AUGUST 20, 2004       

Statement of Interest for Voluntary Early Retirement

Full-Time Employee 

If you are covered by the December 19, 2003 Memoranda of Agreement between the U. S. Postal Service and the American Postal Workers Union, AFL-CIO, meet the eligibility requirements below, and wish to indicate your interest in considering voluntary early retirement (VER), you should complete and return this form postmarked no later than May 7, 2004, in the enclosed postage paid envelope to: 

VER Statement of Interest

Selection Evaluation Recognition

475 L’Enfant Plaza, Room 9671

Washington DC 20260-4250 

I understand this statement of interest: 

·           Is not a commitment to file for VER.

·           Is not an application for VER.

·           Will result in my personnel office validating my age and service for VER eligibility. 

·           Will generate a VER offer package if I meet the eligibility requirements.  This offer will include an annuity estimate, a service history report, the Acknowledgement of Irrevocability form, and an application for VER.

·           May result in retirement effective dates of July 31, 2004, or December 31, 2004, or June 30, 2005 with final determination to be based on operational needs.  

I believe I meet the following eligibility requirements for VER: 

·          I was age 50 or older as of March 1, 2004 with at least 20 years of creditable service* as of February 29, 2004.  

or 

·          I have at least 25 years of creditable service* as of February 29, 2004.  Note:  

or 

·           I am a FERS employee, eligible for a reduced or postponed MRA+10** retirement, and have at least 20 years of creditable service as of February 29, 2004. 

* Creditable service must include at least five years of creditable civilian career and non-career service. 

Military service is also creditable once the five-year creditable civilian service requirement has been met. 

** Minimum retirement age plus ten years creditable service.  

I am interested in VER and would like my eligibility to be validated.  I understand that this VER opportunity does not include any incentive payments (“buyout”).

 

Please print legibly

 

Employee SSN:  _________________________

Or

Employee ID (can be found on your pay stub): _________________________

 

Employee Name:  ________________________

 

Signature:  _________________________

 

Date:  ___________________

ACKNOWLEDGMENT OF IRREVOCABILITY OF VOLUNTARY EARLY RETIREMENT DECISION FULL-TIME EMPLOYEE 

I have applied for voluntary early retirement (VER) offered by the Postal Service under the Voluntary Early Retirement Authority (“VERA”) granted by the Office of Personnel Management. 

I understand that the Postal Service is relying on my decision to retire in developing its complement management plans. 

I understand that the effective date of my retirement will be (enter date).

I understand that my decision to retire will become IRREVOCABLE at 5:00 PM on July 12, 2004, the closing date of the VER window period. 

I understand that this means that I may withdraw my retirement application by submitting a letter or fax, signed and dated, to (enter name, mailing address/location, fax number), which must be RECEIVED no later than 5:00 PM on July 12, 2004, in order for my withdrawal to be effective. 

I understand that any letter or fax received after 5:00 PM on July 12, 2004, will not be effective to withdraw my retirement application.   

Date:  ____________, 200____                     ________________________________ 

Signature 

Name: __________________________ 

Employee SSN:  _________________________

Or

Employee ID (can be found on your pay stub): _________________________  

 (DATE)

 Part-Time Employee Name and

Address

 

SUBJECT:  Voluntary Early Retirement Offer (VER) 

The Postal Service will be undergoing substantial restructuring, reshaping, and repositioning of its workforce in the coming months.  The Postal Service has entered into agreement with the American Postal Workers Union, AFL-CIO (APWU) to offer VER to employees covered by the December 19, 2003 Memoranda of Agreement.  This VER offer covers only those employees covered by the agreement.  The purpose of this VER offer is to minimize the number of employees potentially affected by involuntary reassignments.   

Based on the submission of your Statement of Interest (SOI) form for voluntary early retirement (VER), you have been found eligible for this VER offer.  To take advantage of this offer, you must complete and return the attached 1) Acknowledgment of Irrevocability of Voluntary Early Retirement Decision and 2) Application for Immediate Retirement (attached SF 2801 for CSRS employees or SF 3107 for FERS employees).  These documents must be returned to your servicing personnel office no later than 5:00 PM on August 20, 2004.  If you elect to take advantage of this VER offer, your retirement effective date, based on operational needs and memoranda of agreement, will be (enter date).   

Since the Postal Service will rely on your decision to retire in developing its complement management plans, your decision to retire will become IRREVOCABLE at 5:00 PM on

August 20, 2004, the closing date of the VER window period.  This means that you cannot withdraw your retirement application after 5:00 PM on August 20, 2004.  You may withdraw your retirement application prior to this time and date by submitting written notification by letter or fax, signed and dated, to (enter name, mailing address/location and the fax number of the person who will accept withdrawals).  Once again, in order to withdraw your retirement application, your withdrawal request must be RECEIVED prior to 5:00 PM on August 20, 2004. 

If you are covered by the Civil Service Retirement System (CSRS) and under age 55, your annuity estimate reflects a 2 percent reduction for each year (or 1/6 of 1 percent for each month) under age 55.  If you are covered by the Federal Employees Retirement System (FERS) with a CSRS frozen component and under age 55, only the CSRS portion of your annuity is reduced by 2 percent for each year under age 55.  There is no reduction to the FERS component of the annuity.  Please review the annuity estimate that was enclosed in the SOI mailing.  Attached is a Retirement Thrift RIF (RTR) system Service History report showing your creditable service.   

Please take into consideration all the information provided so you will be in a position to make an informed decision.  Your personnel office will be providing additional retirement information through group retirement counseling sessions.  Remember that in order to take advantage of the VER offer, you must submit your retirement application and acknowledgment of irrevocability to your servicing personnel office no later than 5:00 PM on August 20, 2004. 

Questions regarding this VER offer should be addressed to: (Identify two human resources personnel)  

Manager, Human Resources 

Enclosures