Sunday, October 31, 2010

For Postal Service Retirements, Slow Going Ahead

Here's some bad news for both the U.S. Postal Service and postal employees who are eyeing retirement: The federal agency that has caused months of delays in processing retirement applications and issuing benefits checks isn't going to clean up its act any time soon.

The Office of Personnel Management's Retirement and Benefits Office "characterized by lengthy delays in processing claims, might not get much better any time soon," writes Tammy Flanagan of the National Institute of Transition Planning, in a recent Government Executive article. The agency has hired additional employees to work on the backload of claims and eventually hopes to modernize its paper-based processing system.

OPM officials acknowledge that the agency "still processes retirement claims in 2010 much the same way it did in 1920," Flanagan writes.

Downsizing the workforce through attrition, mostly retirements, is a major part of the Postal Service's plan to fix its finances. But the cumbersome process of getting accurate benefits estimates and timely payments deters retirement-eligible employees from calling it quits.

Postal Service retirees report that OPM was overwhelmed by USPS's early-retirement programs last year, with some waiting six months or longer to receive their first payments. (If a private business did that to its retirees, someone would probably end up in jail.)

Such waits have been common since at least the 1980s, Flanagan indicates. Her advice: Employees should save up annual leave in the year they retire so that they will get a lump-sum payment upon quitting that will see them through until the retirement checks start coming.

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9 comments:

Anonymous said...

IT IS REALLY SAD THAT AN ORGANIZATION AS LARGE AS THE USPS HAS SUCH AN OUTDATED SYSTEM IN A NUMBER OF AREAS, NOT JUST RETIREMENT BENEFITS AREA. WHEN WILL THEY GET SOME QUALIFIED MANAGEMENT IN THE SYSTEM THAT CAN HELP EMPLOYEES WITH THEIR NEEDS, NOT DISCOURAGE THEM. IT HAS BEEN PROVEN BY SUCCESSFUL COMPANIES THAT TAKING CARE OF THEIR EMPLOYEES WILL RESULT IN VERY SATISFIED CUSTOMERS WHICH SHOWS A NICE PROFIT FOR THE COMPANY. GET YOUR ACT TOGETHER, USPS.

Anonymous said...

I am so tired of hearing people say that the PO has trimmed it's workforce through attrition, mostly retirement. That is not the whole truth. 100,000 injured employees were walked off their jobs since 2006. No work available. Many were forced to take DISABILITY retirement against their own wishes. Potter and Donahoe want all career employees out so they can hire temps and pay them peanuts. Even the supervisors and postmasters will be replaced with trainees that will never make official supervisors. Reporters need to dig deeper and get the full story from the lying postal fat cats. Their only interest is their own pockets.

Anonymous said...

"IT IS REALLY SAD THAT AN ORGANIZATION AS LARGE AS THE USPS HAS SUCH AN OUTDATED SYSTEM IN A NUMBER OF AREAS, NOT JUST RETIREMENT...".

the post office has NOTHING to do with OPM processing the retirement paperwork!!!!

dipshxx

Anonymous said...

Wow, can you guys read? It is OPMs retirement system that is outdated. I spoke to someone who worked at OPM, they told me the packages they receive from the USPS are among the best from any federal agency.

Robert Hock said...

(If a private business did that to its retirees, someone would probably end up in jail.)

I got to say I disagree with you here! All a private business needs to do is file bankruptcy and drop their legacy costs. Big business does this all the time! Then those who were on retirement that lose their benefits from the company who filed bankruptcy go on entitlement programs such as the PBGC!

Then The Party’s of Big business call for an end to entailment programs and the company is safe but the little guy is a he has always been a tool, just unusable any more! If someone has gone to jail for it please post their name because I just don’t believe it!

Anonymous said...

I took early retirement from the post office almost two years ago. At that time I thought that OPM was a well run efficient operation. What Happened???

Anonymous said...

Though I could retire, I find It comical that OPM/USPS managerial operations is soooo screwed up it cannot even use simple addition to process its retirees.
This is so typical of the USPS. And why should we believe their other totals? This is what happens when your entire Management process is based on the Leadership being found rom the rolls of the most lazy, EEO, Affirmative Action, and craft workers who couldn't cut it.

Anonymous said...

Hey, dipshxx, the PO everything to do with the backlog of paperwork from making injured employees file for disability retirement. People hear nothing for weeks at a time and are understandably upset. Put yourself in their shoes, or study up on reading comprehension.

Anonymous said...

I retired on 1/31/2010. I was courteous enough to inform supervision six months beforehand so they could fill the vacancy. As thanksgiving, not a single supervisor came to my retirement party which was held in the swingroom. Not a word from the station manager, Laura L., who decided to leave on some special assignment. This clearly illustrates the fact that management does not appreciate fine letter carrier's and their sacrificial work. O.P.M. took five full months to complete their paperwork before I received my full monthly annuity payments! The current processing system must be overhauled/updated.