OPM Approves Postal Service Request
For Voluntary Early Retirement Authority

Burrus Update #5-04, March 5, 2004

The Office of Personnel Management (OPM) has approved the Postal Service's request to offer voluntary early retirement to eligible APWU-represented employees in those categories that management had excluded from last year's early outs.

Consistent with a Memorandum of Agreement between the USPS and the APWU signed Dec. 19, 2003, the Postal Service requested authority from OPM to offer early retirement to eligible Maintenance and Motor Vehicle Craft employees in Level 6 positions and above, as well as employees covered by the IT/ASC and Operating Services agreements.

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.

Employees are advised that management will establish the effective date of retirements. Members are encouraged to carefully weigh the opportunity to retire against the substantial reduction in income they may face as a result of reduced annuities.

OPM's approval brings us one step closer to ending a bitter dispute that began with the December 2002 contract extension. As part of the contract extension agreement, the union and management agreed that the Postal Service would offer early retirement to all eligible APWU-represented employees.

The Postal Service's initial request to OPM for VER authority did not exclude any categories of employees. However, after receiving OPM approval, the Postal Service failed to offer early outs to some groups of employees. The APWU opposed the exclusions and initiated court action and a contract dispute. The Dec. 19, 2003, agreement resolved the dispute.

William Burrus
President

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