For those outside of the Postal Service, only those dates on which current Postal employees will leave employment matter. These are the dates that the Postal Service begins experiencing cost savings from either early retirements or RIF's. These dates are:
- May 31, 2011 - effective retirement date for individuals taking VERA or retirement incentives
- September 9, 2011 - last separation date for RIF although some will separate earlier
The Postal Service will save 1/4 of a year's compensation from everyone who retires this fiscal year while the incentive will not show up on the income statement until fiscal years 2012 and 2013. Savings for those who are RIF'ed is limited to one month of FY 2011 salary. Some individuals who are RIF'ed may face separation before that date but it is not clear at this point how many.
RIF's have other costs associated with unemployment insurance and possibly severance payments. I have read the civil service RIF rules but find them confusing so I am not sure how provision for separation payments would apply to Postal Service employees. With a September 9th separation date, it is likely that most of the costs of a RIF would occur in FY 2012.