Tuesday, January 24, 2017

Why isn't the Postal Service utilizing Voluntary Early Retirement Authority to reduce costs?

Why is the Postal Service not utilizing Voluntary Early Retirement Authority to reduce costs?

The USPS has extremely high numbers of employees eligible for retirement. The employees that are eligible tend to be the highest-earners at the peak of their careers. The Postal Service could clearly utilize the OPM Voluntary Early Retirement Authority (VERA) to reduce the number of the higher income earning senior employees while at the same time employing and retaining lower earning workers. It is agreed that the VERA program buyout limit is antiquated at the paltry sum of $25,000, but the Postal Service could do the same as many federal agencies and raise the amount temporarily to $40,000 for craft employees. It is odd that postal leadership has not pounced on such a positive means of drastically lowering wage cost while at the same time permitting senior employees the opportunity to retire with dignity and respect.   

Reference: postalbriefing.blogspot.com

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