In a March 13 letter to congress, Postmaster General Louis DeJoy agreed to cut 10,000 United States Postal Service workers and billions of dollars by April 18. DeJoy has outlined that Voluntary Early Retirement (VERA) will be used to hit this reduction. VERA was offered by USPS as early as January – now there’s an exact number of employees expected to leave.
As a reminder, VERA allows agencies to offer early retirement to employees who are at least 50 with at least 20 years creditable service, or any age with at least 25 years creditable service.
This retirement option is usually offered ahead of involuntary cuts in the form of RIFs or layoffs, so it’s possible that’s next for USPS workers.
If you’re worried about your job and the quickly changing federal government, here’s 4 options to consider.
1. Accept the VERA offer.
If you’ve reached the right age to accept a VERA offer, this could be a decent option. This offer would allow you to retire right away and start getting your annuity payments. You’d be able to keep your health and life insurance but there are certain stipulations and drawbacks to this option.
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- To keep health and life insurance you must’ve been enrolled for at least 5 consecutive years and retire without a break in service.
- Also, you’ll stop gaining years of service which will lower your long-term payments.
2. Consider Federal Disability Retirement.
Another option is to apply for Federal Disability Retirement. This benefit will allow you to retire early at any age if you meet the qualifications and requirements. You must have:
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- At least 18 months under FERS
- An injury or illness that prevents you from doing at least one part of your job.
For more information about Federal Disability Retirement check out our step-by-step guide or watch our USPS webinar. After approval, this benefit would protect your long-term future by:
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- Giving you monthly paychecks
- Letting you keep your health and life insurance
- Continuing to grow your years of service
- Letting you get another job in the private sector
3. Pursue both VERA and Disability Retirement.
If you aren’t sure if you should accept VERA or Federal Disability Retirement, it’s sometimes possible to accept both. Each VERA offer is a little different and sometimes explicitly says you can’t do both. That’s why it’s so important to read through offers carefully and seeking advice before moving forward with any action. If you want to learn more, read more on our VERA FAQ blog or give us a call to talk through your specific options.
4. Request a transfer.
If you’re worried about your job security, but you like working in the federal government, you could request a transfer to a more secure position. Also, if you have higher seniority, you may be able to “bump” to a lower ranking role or return to a lower-grade position you held in the past. This could help protect you if a Reduction in Force (RIF) or widespread layoff is introduced in the USPS in the future. Please note that transferring to another position could impact an application for Federal Disability Retirement.
We understand things are changing quickly, so we created a regularly updated guide to federal changes and a federal changes webinar so you can stay informed.
And if you’ve still got questions, one of our experienced consultants can help you have a clear picture of the best plan for your future. Call us today for a free consultation!
