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Preparing to Implement Voluntary Early Retirements,
Union Requests Information from Interested Employees
Burrus Update #4-03, March 10, 2003
The union and management are discussing procedures for offering voluntary early retirement to APWU-represented employees, despite the fact that the Office of Personnel Management has not yet responded to management's request for authority to do so. A favorable decision from OPM is expected within several weeks.
When approval is confirmed, notice will be provided to employees immediately. In the interim, it would be helpful to have an estimate of the number of employees who are considering voluntary early retirement, and the installations that would be affected.
The Collective Bargaining Agreement between the APWU and the USPS required management to seek authority to offer early retirement to all eligible APWU-represented employees. Management did so in a letter to OPM dated Jan. 23, 2003.
The early-out opportunities are likely to be phased in to coincide with management plans for plant consolidations. If OPM approves the Postal Service request for Voluntary Early Retirement Authority, the opportunities could be staggered over a period of six months or more, depending on where employees work.
Notwithstanding statements made by local or regional postal officials to the contrary, unless OPM disapproves the Postal Service request, the early outs will be offered to all APWU-represented employees nationwide.
To determine the number of interested employees by installation, it is requested that those APWU-represented employees who are eligible and are interested in voluntary early retirement (without a monetary incentive) go to the APWU Web site (www.apwu.org) and click on Early Retirement Opportunities in the vertical blue INDEX bar on the left side of the screen. After completing the requested information, simply click on Submit.
Not an Application
Supplying the information to the APWU will not represent an application for retirement. It is not a commitment to retire, but will simply provide the union with estimates that will be used in our discussions with management. Employees who do not meet the eligibility criteria for early retirement should not submit information, as their inclusion would skew the results and prevent an accurate analysis.
Please provide the information as soon as possible, and no later than March 25, 2003.
To be eligible for Voluntary Early Retirement, both CSRS employees and FERS employees must be at least 50 years old and have at least 20 years of federal service (including military service). Employees of any age, however, are eligible if they have at least 25 years of federal service.
The annuity payments for CSRS employees will be reduced by 2 percent for each year that they are younger than 55 at the time they retire. CSRS employees also must have at least five years of creditable service and must have been in a pay status for at least one of the two years immediately preceding their retirement. (This is known as the "one-out-of-two rule.")
For more information about eligibility requirements and the level of benefits available, check with your Human Resources department or click on the Early Outs Magazine Article link on the APWU Home Page on the Web.
Thank you.
William Burrus
President
