OPM Early Out Extension  Letter dated 9/9/03to USPS

Dear Mr. Donahoe:

Based on your request, the Office of Personnel Management (OPM) has determined that a major reorganization is occurring within the U.S. Postal Service  This letter authorizes the continuing use of voluntary early retirements under sections 8336(d)(2) and 8414(b)(J) of title 5, United States Code (U.S.C.), and sections 831.114 and 842.213 of title 5, Code of Federal Regulations (CFR). Your OPM authority number is now 2004-016, extending authority 2003-078,which OPM granted last June 13.

This authority applies to U.S. Postal Service employees within the following occupational series and levels:

These are the same categories of employees covered by OPM authority 2003-78.** As in that authority, the following are excluded:

(1) Employees who have not been continuously on the agency's rolls since at least 31 days before the date of your request, August 6, 2003;

(2) Employees serving under time-limited appointments; and

(3) Employees in receipt of a decision of involuntary separation for misconduct or unsatisfactory performance.

downsized version of OPM letter dated 9/9/03 as submitted by APWU to the District Court

"...the Postal Service has been attempting to renege on its agreement with the APWU since July, and it now appears that USPS management is acting in concert with OPM." Burrus Update 10/2/03

 USPS Letter to APWU regarding exclusion of employees from Early Outs - Postal Service's position: Early Out not appropriate for national arbitration.

**link added by postalreporter

 

 OPM EO Approval Letter to USPS (pdf) 6/13/03

Mr. Patrick L Donahoe

Chief Operating Officer and Executive Vice President

United States Postal Service

475 L’Enfant Plaza. SW.

Washington. DC 20260-0080

Dear Mr. Donahoe:

Based on your agency's request, the Office of Personnel Management (OPM) has determined that a need exists for a substantial reshaping of the workforce within the U.S. Postal Service (USPS) This letter authorizes the use of voluntary early retirements under sections 8336(d)(2) and 8414(b)(J) of title 5, United States Code (U.S.C.), and sections 831.114 and 842.213 of title 5, Code of Federal Regulations (CFR). Your OPM authority number is 2003-078.

As you have requested, this authority does not cover all employees of USPS. The following are excluded:

(1) Any employees who have not been continuously on the agency=s rolls since at least 31 days before the date of your request, January 23,2003;

(2) Any USPS employees who are not represented by the American Postal Workers Union;

(3) Employees serving under time-limited appointments; and

(4) Employees in receipt of a decision of involuntary separation for misconduct or unsatisfactory performance.

USPS may offer voluntary early retirements to its eligible employees from the date of approval through September 30, 2003, subject to the provisions, limitations, and instructions outlined in this letter and sections 831.114 and 842.213 of 5 CFR.

Instructions for Use of This VERA

You may determine the coverage of offers to eligible employees under this authority based on any  combination of organizational components, geographic areas, occupational series or 1evel,or other nonpersonal and objective factors. These offers may be established on your own initiative.

You may establish early retirement window periods during which early retirements may be offered. These window periods may be established for any duration covered by this authority. You may limit window periods only by an established opening and closing date or by receipt of a specified number of early retirement applications. The manner of the limitation must be announced to employees at the time of the initial offer. You may subsequently establish and publicize a revised closing date, or a revised number of applications, when a change in management’s need to offer voluntary early retirement has occurred. The revised closing date, or number of applications, may be applicable to the entire authority or only to employees in specific organizational unit(s), occupational series or level(s), or geographic area(s). The notice of the revised closing date or number of applications must be publicized in the same manner and to the same group(s) of employees as the original notice.

In granting this authority, OPM recognizes your need to offer voluntary early retirement to a specific group of employees within your organization for a specific period of time. You have not been delegated the authority to oversee any aspect of the voluntary early retirement program that is outside the scope of this delegation. We have granted this authority based on information concerning the number of excess employees in your agency, the number of employees eligible for voluntary early retirement, and the number of employees expected to exercise the early retirement option. You must use early retirements only to the extent necessary to achieve the changes in your workforce outlined in your request.

You must notify OPM if; at any time, further use of voluntary early retirement will no longer accomplish the objectives stated in your request for authority. OPM may suspend or terminate an authority if OPM determines that your agency is no longer undergoing the substantial delayering, workforce reshaping, reorganization, reduction in force, or transfer of function that formed the basis for the approval of the authority. Also, OPM may suspend or terminate this authority if your agency is not operating its early retirement program in a manner consistent with applicable laws or regulatory requirements or if your agency is not complying with the reporting requirements provided in this approval letter.

If you find that you must limit voluntary early retirements among your employees, you may adopt any fair and objective methods and criteria for approving applications that you believe are necessary. Please ensure that agency managers or employees do not coerce employees who are eligible for voluntary early retirement.

Enclosure 1

 

Below is the sanitized version of the VERA regulations.

SUMMARY: The Office of Personnel Management (OPM) is issuing interim voluntary early retirement authority (VERA) regulations. These regulations implement the VERA provisions of the Homeland Security Act of 2002, which apply to most executive branch agencies. These interim regulations explain how an agency requests authority from OPM to offer voluntary early retirement to its employees.

DATES: These regulations are effective June 13, 2003. OPM will consider written comments if received no later than August 12, 2003.

SUPPLEMENTARY INFORMATION Section 1313(b) of the ``Homeland Security Act of 2002'' (Public Law 107-296, 116 Stat. 2135) provides agencies the option to offer voluntary early retirement when restructuring as well as when downsizing. Previously, voluntary early retirement was only available in downsizing situations.


    Subsection 1313(b)(1) of Public Law 107-296 covers employees under the Civil Service Retirement System (CSRS), and is codified in 5 U.S.C. 8336(d)(2). Section 831.114 is revised to implement the new voluntary
early retirement provisions under CSRS.


    Subsection 1313(b)(2) of Public Law 107-296 covers employees under the Federal Employees Retirement System (FERS), and is codified in 5 U.S.C. 8414(b)(1). Section 842.213 is revised to implement the new
voluntary early retirement provisions under FERS.


    The voluntary early retirement provisions are the same under CSRS and FERS. The revised regulations explain which employees are potentially eligible for voluntary early retirement, how an agency requests voluntary early retirement authority from OPM, and how the agency manages the voluntary early retirement authority after approval.

 

Under the interim regulations, an agency's human capital plan and/or voluntary separation incentive plan may be used to satisfy the requirements for requesting a voluntary early retirement authority if it contains the information required in the VERA regulations.

Subpart A--Administration and General Provisions

2. Section 831.114 is revised to read as follows:

Sec.  831.114  Voluntary early retirement-substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring.

    (a) A ``specific designee'' is defined as a senior officer or official within an agency who has been specifically designated to sign requests for voluntary early retirement authority for or in place of the head of the agency. Examples include the Chief Human Capital Officer or the Assistant Secretary for Administration.

    (b) 5 U.S.C. 8336(d)(2) covers both the basis for an agency's request for voluntary early retirement authority and OPM's subsequent determination concerning the request.

    (c) An agency's request for voluntary early retirement authority must be signed by the head of the agency or by a specific designee with that authority.

    (d) The request must contain the following information:
    (1) Identification of the agency or organizational unit(s) for which the agency requests the authority;

    (2) Reasons why the agency needs voluntary early retirement authority. This must include a detailed summary of the agency's personnel and/or budgetary situation that will result in an excess of personnel because of a substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping, consistent with agency human capital goals;

    (3) The date on which the agency expects to effect the substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping;

    (4) The time period during which the agency plans to offer voluntary early retirement;

    (5) The total number of non-temporary employees in the agency (or specified component(s));

    (6) The total number of non-temporary employees in the agency (or specified component(s)) who may be involuntarily separated, downgraded, transferred, or reassigned as a result of the substantial delayering,
reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping;

    (7) The total number of employees in the agency (or specified component(s)) who are eligible for voluntary early retirement;

    (8) An estimate of the total number of employees in the agency (or specified component(s)) who are expected to retire early during the period covered by the request for voluntary early retirement authority; and

    (9) A description of the types of personnel actions anticipated as a result of the agency's need for voluntary early retirement authority. (Examples include separations, transfers, reassignments, and downgradings.)

    (e) OPM will evaluate a request for voluntary early retirement based on:

    (1) A specific request to OPM from the agency for voluntary early retirement authority;

    (2) A voluntary separation incentive payment implementation plan, as discussed in part 576, subpart A, of this chapter, which must outline the intended use of the incentive payments and voluntary early retirement; or

    (3) The agency's human capital plan, which must outline its intended use of voluntary separation incentive payments and voluntary early retirement authority, and the changes in organizational structure it expects to make as the result of projected separations and early retirements.

    (f) Regardless of the method used, the request must include all of the information required by paragraph (d) of this section.
    (g) OPM may approve an agency's request for voluntary early retirement authority to cover the entire period of the substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping described by the agency, or the initial portion of that period with a requirement for subsequent information and justification if the period covers multiple years.

    (h) After OPM approves an agency's request, the agency must immediately notify OPM of any subsequent changes in the conditions that served as the basis for the approval of the voluntary early retirement authority. Depending upon the circumstances involved, OPM will modify the authority as necessary to better suit the agency's needs.

    (i) The agency may limit voluntary early retirement offers based on:

    (1) An established opening and closing date that is announced to employees at the time of the offer; or

    (2) The acceptance of a specified number of applications for voluntary early retirement, provided that, at the time of the offer, the agency notified employees that it retained the right to limit the number of voluntary early retirements.

    (j) Within the timeframe specified for its approved VERA, the agency may subsequently establish a new or revised closing date, or reduce or increase the number of early retirement applications it will accept, if management's downsizing and/or reshaping needs change. If the agency issues a revised closing date, or a revised number of applications to be accepted, the new date or number of applications must be announced to the same group of employees included in the original announcement. If the agency issues a new window period with a new closing date, or a new instance of a specific number of applications to be accepted, the new window period or number of applications to be accepted may be announced to a different group of employees as long as they are covered by the approved VERA. [[Page 35272]]

    (k) An employee who separates from the service voluntarily after completing 25 years of service, or becoming age 50 and completing 20 years of service, is entitled to an annuity if, on the date of separation, the employee:
    (1) Is serving in a position covered by a voluntary early retirement offer; and

    (2) Meets the conditions covered in 5 U.S.C. 8336(d)(2).

    (l) Agencies are responsible for ensuring that employees are not coerced into voluntary early retirement. If an agency finds any instances of coercion, it must take appropriate corrective action.

    (m) An agency may not offer or process voluntary early retirements beyond the stated expiration date of a VERA or offer early retirements to employees who are not within the scope of the VERA approved by OPM.

    (n) OPM may terminate a voluntary early retirement authority if it determines that the agency is no longer undergoing the condition(s) that formed the basis for its approval.

    (o) OPM may amend, limit, or terminate a voluntary early retirement authority to ensure that voluntary early retirement authority regulations are being properly followed.

    (p) Agencies must provide OPM with interim and final reports for each voluntary early retirement authority, as covered in OPM's approval letter to the agency. OPM may suspend or cancel a voluntary early retirement authority if the agency is not in compliance with the reporting requirements or reporting schedule specified in OPM's voluntary early retirement authority approval letter.

    (q) The terms, conditions, and procedures in this section do not apply to the General Accounting Office.

PART 842--FEDERAL EMPLOYEES RETIREMENT SYSTEM--BASIC ANNUITY

Subpart B--Eligibility

4. Section 842.213 is revised to read as follows:


Sec.  842.213  Voluntary early retirement-substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring.

    (a) A ``specific designee'' is defined as a senior officer or official within an agency who has been specifically designated to sign requests for voluntary early retirement authority for or in place of the head of the agency. Examples include the Chief Human Capital Officer or the Assistant Secretary for Administration.

    (b) 5 U.S.C. 8414(b)(1)(B) covers both the basis for an agency's request for voluntary early retirement authority and OPM's subsequent determination concerning the request.

    (c) An agency's request for voluntary early retirement authority must be signed by the head of the agency or by a specific designee with that authority.

    (d) The request must contain the following information:
    (1) Identification of the agency or organizational unit(s) for which the agency requests the authority;
    (2) Reasons why the agency needs voluntary early retirement authority. This must include a detailed summary of the agency's personnel and/or budgetary situation that will result in an excess of personnel because of a substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping, consistent with agency human capital goals;
    (3) The date on which the agency expects to effect the substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping;
    (4) The time period during which the agency plans to offer voluntary early retirement;
    (5) The total number of non-temporary employees in the agency (or specified component(s));
    (6) The total number of non-temporary employees in the agency (or specified component(s)) who may be involuntarily separated, downgraded, transferred, or reassigned as a result of the substantial delayering,
reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping;
    (7) The total number of employees in the agency (or specified component(s)) who are eligible for voluntary early retirement;
    (8) An estimate of the total number of employees in the agency (or specified component(s)) who are expected to retire early during the period covered by the request for voluntary early retirement authority; and
    (9) A description of the types of personnel actions anticipated as a result of the agency's need for voluntary early retirement authority. (Examples include separations, transfers, reassignments, and downgradings.)

    (e) OPM will evaluate a request for voluntary early retirement based on:
    (1) A specific request to OPM from the agency for voluntary early retirement authority;
    (2) A voluntary separation incentive payment implementation plan, as discussed in part 576, subpart A, of this chapter, which must outline the intended use of the incentive payments and voluntary early retirement; or
    (3) The agency's human capital plan, which must outline its intended use of voluntary separation incentive payments and voluntary early retirement authority, and the changes in organizational structure it expects to make as the result of projected separations and early retirements.

    (f) Regardless of the method used, the request must include all of the information required by paragraph (d) of this section.

    (g) OPM may approve an agency's request for voluntary early retirement authority to cover the entire period of the substantial delayering, reorganization, reduction in force, transfer of function, or other workforce restructuring or reshaping described by the agency, or the initial portion of that period with a requirement for subsequent
information and justification if the period crosses multiple years.

    (h) After OPM approves an agency's request, the agency must immediately notify OPM of any subsequent changes in the conditions that served as the basis for the approval of the voluntary early retirement authority.
Depending upon the circumstances involved, OPM will modify the authority as necessary to better suit the agency's needs. [[Page 35273]]

    (i) The agency may limit voluntary early retirement offers based on:
    (1) An established opening and closing date that is announced to employees at the time of the offer; or
    (2) The acceptance of a specified number of applications for voluntary early retirement, provided that, at the time of the offer, the agency notified employees that it retained the right to limit the number of voluntary early retirements

    (j) Within the timeframe specified for its approved VERA, the agency may subsequently establish a new or revised closing date, or reduce or increase the number of early retirement applications it will accept, if management's downsizing and/or reshaping needs change. If the agency issues a revised closing date, or a revised number of applications to be accepted, the new date or number of applications must be announced to the same group of employees included in the original announcement. If the agency issues a new window period with a
new closing date, or a new instance of a specific number of applications to be accepted, the new window period or number of applications to be accepted may be announced to a different group of employees as long as they are covered by the approved VERA.

    (k) An employee who separates from the service voluntarily after completing 25 years of service, or becoming age 50 and completing 20 years of service, is entitled to an annuity if, on the date of separation, the employee:
    (1) Is serving in a position covered by a voluntary early retirement offer; and
    (2) Meets the conditions covered in 5 U.S.C. 8414(b)(1)(B).

    (l) Agencies are responsible for ensuring that employees are not coerced into voluntary early retirement. If an agency finds any instances of coercion, it must take appropriate corrective action.

    (m) An agency may not offer or process voluntary early retirements beyond the stated expiration date of a VERA or offer early retirements to employees who are not within the scope of the VERA approved by OPM.

    (n) OPM may terminate a voluntary early retirement authority if it determines that the agency is no longer undergoing the condition(s) that formed the basis for its approval.

    (o) OPM may amend, limit, or terminate a voluntary early retirement authority to ensure that voluntary early retirement authority regulations are being properly followed.

    (p) Agencies must provide OPM with interim and final reports for each voluntary early retirement authority, as covered in OPM's approval letter to the agency. OPM may suspend or cancel a voluntary early retirement authority if the agency is not in compliance with the reporting requirements or reporting schedule specified in OPM's
voluntary early retirement authority approval letter.

    (q) The terms, conditions, and procedures in this section do not apply to the General Accounting Office.

    (r) The authority to VERA to restructure the workforce terminates June 14, 2004.

[FR Doc. 03-14970 Filed 6-10-03; 4:46 pm]

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