CSRS & FERS Disability Retirement: VER, the Economy, & Decisions to Make

The news coming out on the Voluntary Early Retirement offer for Postal employees has not been very positive.  My information has been gathered from multiple sources:  Official Statements from the U.S. Postal Service; “insider information” from Postal employees; various newspaper accounts and website information.  Recent statements from the APWU President, of course, sheds further light on the matter.  Mr. Burrus warns (wisely, in my opinion) that, in this “uncertain economy, there is no reason to make a hasty decision.”  That is certainly true.  The loss of potential future income over a period of years or decades should be considered; the one sector of the economy which seems to be expanding at an alarming pace is the Federal government, and if the Federal government is unwilling to let AIG and banks fail, then surely it will not allow the Postal Service to self-destruct.  Now, with respect to Federal and Postal employees who must, because of medical conditions which impact his or her ability to perform the essential elements of one’s job, a decision to file for disability retirement benefits is a pragmatic one:  either disability retirement, or risk being terminated because of the continuing decline in performance and ability to complete the essential elements of the position.  An offer of a VER without financial incentives — taking into account what an individual will lose in benefits, pay increases, etc. over the next decade or two — is not a very attractive offer.  Any such VER should be considered carefully.  On the other hand, disability retirement is a different matter:  It is a pragmatic decision to accept the fact that one has a medical condition such that you cannot perform the particular kind of job you hold, anymore.  It is a decision that it may be the right time to “move on” — bad economy or not.

Sincerely,

Robert R. McGill, Esquire

CSRS & FERS Disability Disability Retirement: Interaction with VER, A Continuing Dialogue

I sincerely hope that the proposed VERs which will be issued in the next couple of weeks will be economically viable and rewarding for those who qualify.  I say this because the primary criteria proposed for qualification involves those who are at least 50 years of age with at least 20 years of service, or any age with at least 25 years of service.  Anyone who has dedicated his or her life for a minimum of 20 years deserves something comparable to “full retirement” benefits.  My suspicions are raised, however, only because the motivating factor behind the offer is to target employees in specific locations where reductions in force or restructuring will be taking place — i.e., from the Post Office’s perspective, those places where greater “efficiency” can be obtained, at the cost of a person’s lifetime dedication and service to the Federal Government.  I realize that Adam Smith’s economic truth will always be at play — that self-interest leads to unintended consequences which, in a capitalist system, results in collateral benefits of employment, wide economic impact, etc.  But just make sure that, just as the Post Office is looking after its own interest first, that each Postal employee looks after his or her own interest, similarly — first.  Look at the VER carefully.  Compare it to disability retirement benefits carefully — not only in terms of “today’s” dollar value, but also into the future.

Sincerely,

Robert R. McGill, Esquire

OPM Disability Retirement: Interaction with Upcoming Postal VER

High pressure sales always need to be met with a pause, a breath, and a moment of reflection.  This is not to attempt to splash any cold water upon the impending Voluntary Early Retirement packets which will be “in the mail” shortly (April 6 – 10, 2009 is the projected date of mailing out VER offer packets to all VER eligible employees).  For some employees, this may be the best and most rewarding route.  My concern is a simple one, with a long history of truth from the great source of all truths:  “If it is too good to be true, then…”   The short window of opportunity within which a decision must be made (all VER eligible employees must decide whether to apply for retirement during the period of April 10 -May 15, 2009; the actual required documents to apply for the VER must be postmarked by May 15, 2009) is short; this is a serious decision, and must be considered carefully.  Some people will decide that the comparison to disability retirement benefits is great enough to consider filing for VER first, obtaining it, then filing for disability retirement benefits within 1 year therafter.  That would be fine, but there are certain steps (creating a “paper trail”) which should be taken if this 1 – 2 – Step is going to be considered.  In any event, the bottom-line consideration must always be:  Is it in the best interest of my future?  Is it the most I can get?  Is it comparable to disability retirement benefits?  Will I think it was the best decision to make 10, 15, 20 years from now (for example, remember that the years in which a person is on disability retirement counts as years in service for recalculation purposes at age 62).  All in all, any decision that has such a small window of consideration must be scrutinized carefully.

Sincerely,

Robert R. McGill, Esquire