updated 9/15/03

Table of Contents

(VER) AND OTHER WORKFORCE RESHAPING LEGAL ISSUES web format or  download PDF file

RESHAPING THE WORKFORCE web format or  download PDF file| Excessing Questions & Answers

REPOSITIONING THE WORKFORCE web format or  download PDF file
Anthony Vegliante August 18, 2003 Letter Re: Voluntary Early Retirement

Use of Voluntary Early Retirement- Patrick Donahue Letter

Voluntary Early Out Packet (Thanks to Don Cheney)

Letter from Gerald S Sanchez Manager, Human Resources Pacific Area Office

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note: some redundant language was omitted from the FAQs below

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.