Questions & Answers about May 23 Retirement Incentive Payment

The APWU-negotiated Retirement Incentive Agreement signed on Sept. 28, 2012, awarded eligible employees two lump-sum payments totaling $15,000. The first installment of $10,000 (minus applicable taxes) was distributed on May 24, 2013. The final installment of $5,000 (minus applicable taxes) will be distributed on Friday, May 23, 2014.

APWU Retiree Director Judy Beard met with the USPS Shared Services representative, which resulted in the frequently asked questions and answers listed below.

What is the procedure for picking up checks?

Incentive payments will be mailed to the installation head of the duty station from which employees retired or separated. The incentive checks will be dated May 23, 2014, and will be mailed with the regular payroll and terminal leave checks generated for Pay Period 11-2014.

As an alternative to picking up their checks personally, former employees can provide a PS Form 3077 to the final employing office requesting to have the check mailed to the address provided by the employee on PS 3077 or to the address of record. PS Form 3077s must not be submitted to the Eagan Accounting Service Center. PS Form 3077s should be submitted to the duty station from which the employee retired.

Where should employees pick up their checks if the post office they retired from has closed?

If a facility has been closed or consolidated since the employee has separated, the incentive payment will be forward to the successor office. (When a finance number is deactivated, a successor office is identified. The successor office is responsible for the distribution of any payments. Successor offices and their district managers should ensure that communication occurs with employees that have separated. Employees may contact the Accounting Help Desk at 1-866-974-2733 to be informed where their successor office is located.)

As an alternative to picking up the check personally at the successor office, former employees may provide a PS Form 3077 to the successor office to have the check mailed to the address provided by the employee on PS 3077 or to the address of record. PS Form 3077s must not be submitted to the Eagan ASC.

What do employees need to pick up their checks?

Former employees should be prepared to show official ID.

If the post office where an employee last worked doesn’t have the check, or if the employee doesn’t receive it in the mail, what should the employee do?

If the former office (or a successor office) did not receive the check by payday, the former employee should contact the Accounting Help Desk at 1-866-974-2733 for assistance.

If the former employee completed a PS Form 3077 he or she should contact the former or successor office directly to assure that the check was handled as requested. If the former or successor office honored the Form 3077 and the former employee has not received the check in the mail after a reasonable period of time, the former or successor office should contact the Accounting Help Desk at 1-866-974-2733 on the employee’s behalf to report the lost check.

If a retiree filled out Form 3077, when will the check be mailed?

That decision is made by the former or successor office, to ensure the check is not received prior to the date of the check. Former employees should speak with their former supervisor or installation head to find out when the checks will be mailed.

If a retiree would like to use Form 3077 to request that the check be mailed, is it too late for the second incentive check?

That decision is made at the local level. The former employee should speak with his or her former supervisor or installation head to determine what arrangements can be made for incentive check distribution. As with the first installment of the incentive, former employees must make arrangements with their former office or successor office to determine how the second installment should be handled.  If the PS Form 3077 method is used, it must not be submitted to the Eagan ASC.

What deductions will be withheld from incentive payments?

The following deductions will be withheld from the payment(s):

• Federal Income Tax Withholding (at the IRS Supplemental rate of 25%)
• State Income Tax Withholding (if applicable)
• Medicare Tax
• Social Security Tax (applies only to FERS and CSRS Offset employees)
• Any legally mandated payment

How will my incentive payment be reported to the IRS?

Incentive payments will be reported via W-2 in each of the years paid.

“We encourage local and state officers, shop stewards and retiree chapter leaders to take the opportunity to once again thank retirees who enter the post office to pick up their checks for their years of support for the union,” Beard said. “This is a great opportunity to ask them to sign the application to join the Retirees Department to continue their union membership.”

Applications can be downloaded from the Retirees Department at www.apwu.org.  Completed applications should be mailed the APWU Retirees Department, 1300 L Street NW, Washington DC 20005.