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 target=_blank>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

target=_blank>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