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$15,000 Early Retirement Incentive Offer to Postal Employees
August 25, 2009
The United States Postal Service (USPS) announced it is offering $15,000 as
an early retirement buyout incentive to many employees in an effort to cut
costs at a time when the USPS is struggling financially -- possibly
experiencing losses of $7 billion by the end of fiscal year 2009.
FederalTimes.com reports: "Eligible employees who accept the offer by
Sept. 25 will be offered a $10,000 payment during the first three months of
fiscal 2010 -- between Oct. 1 and Dec. 31 -- and another $5,000 payment at the
start of fiscal 2011. The Postal Service is hoping 30,000 employees accept
the offer, which would mean a one-time cost to the Postal Service of up to $450
million. But postal managers say they expect to save $500 million in salary and
benefits costs next year alone."
Doing the Math to Make the Decision
Eligible postal employees considering the offer may want use a calculator (to determine if an early retirement decision is right for them) such as
the free 2009 CSRS/FERS Benefits Calculator and Retirement Planner
available here.
This calculator provides a 50-page report including analysis on CSRS
or FERS annuities, survivor benefits, Thrift Savings Plan, and
other benefits.
To review the August 25 letter from Postmaster General John E. Potter, go here:
https://liteblue.usps.gov/news/link/2009/nl_0825extra.pdf
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Overview - CSRS
