In a perverse way, the problems that OPM is having in processing retirement claims in a timely fashion creates a perverse incentive to accept an early retirement incentive. As FedSmith.com reports, the Office of Personnel Management is taking 117 days to get final retirement payments right. The first $10,000 payment of the retirement incentive can cover a big chuck of the delayed payment of the full pension checks due over the four month delay.
Addendum:
The comments to this post show clearly that the incentive payment will likely come after OPM completes the review process. So it does not give Postal Retirees cash up front that would compensate for the delay. However, in the future other agencies and the Postal Service should take into consideration the delays in OPM actions on retirement in structure the timing of incentive payments to ensure that those who retire early can use the incentive payment to cover the delayed pension payments which are paid in a lump sum when the final retirement determination is set.
Monday, April 25, 2011
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5 comments:
How does that work if you don't get the payment until 11/11/11???
Each eligible full-time employee will receive an initial incentive payment of $10,000 on November 11, 2011 (less required deductions and withholdings). The remaining $10,000 balance will be payable on approximately November 9, 2012 (less required deductions and withholdings).
Let's. all remember Mr. Robinson works for the post office, and not the employees. Upper mgmt. won't take the early out because 20 grand is no incentive when you make six figures. They will claim their hands are tied and RIF the other four or five thousand craft employees...
Steve, dist clk MD
Steve,
I neither work for or have any financial relationship with the Postal Service. All opinions are my own and definately do not represent the views of management.
The PO's National Reassessment Process started this whole mess in 2006 when over 100,000 workers were laid off due to their on the job injuries. The PO wanted them off the books to become the problem of OPM and OWCP, who were and are unable to handle the volume. Still having financial troubles, the PO wants to rid itself of even more craft employees. Thousands and thousands of employees will be left without pay. It's a huge pressure cooker waiting to explode. It's time to stop the top brass from pampering themselves. Stop PFP's. Stop allowing the PMG to earn more than the Vice President. Stop the greed and bring our service back.
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