The NPMHU and the USPS have reached an agreement on the terms of a One Time Retirement Incentive. The parties have agreed that the Postal Service will make lump sum incentive payments totaling $15,000 (less applicable taxes and deductions) to eligible full-time career employees who choose optional retirement or retirement pursuant to a Voluntary Early Retirement (VER). Part-time career employees shall be eligible for a prorated amount based on their paid hours. The January 13, 2025 Memorandum of Understanding (MOU), which sets forth the terms of this agreement, is available at npmhu.org.

Eligible employees will be sent a hard-copy notification to their home address on record via First-Class Mail on or around January 31, 2025.

Mail Handlers must indicate on or before March 7, 2025, their intent to participate in the incentive program. The Employer will establish the manner in which that intention needs to be submitted. Other terms include:

• Eligibility for optional or VER retirement, with incentive, will be based exclusively on an April 30, 2025, effective date.
• Effective on the date of this MOU, eligible employees who had a previously scheduled retirement date that is earlier than April 30, 2025, may retire on their scheduled date and receive the incentive.
• Effective on the date of this MOU, eligible employees who had a previously scheduled date that is later than April 30, 2025, must change their date to April 30, 2025, and meet retirement eligibility on that date, in order to receive the incentive.
• All retirement counseling will be conducted via phone in group sessions not to exceed 10 retirees no later than March 7, 2025. Any employee seeking additional assistance after participating in a group session will be accommodated on an individual basis.
• Employees who indicate they are taking a VER under the terms of this MOU and wish to revoke their decision must do so on or before March 7, 2025, which is the irrevocable date provided in the written offer letter. Exceptions will only be granted by mutual agreement of the parties at the National level. In the event a VER group counseling appointment is not available for an employee who met the conditions identified above, the employee may withdraw their VER application in writing by close of business April 18, 2025.

The Voluntary Early Retirement offer applies to Mail Handlers covered under both the Civil Service Retirement System (CSRS) and the Federal Employees Retirement System (FERS). To be eligible to retire under a Voluntary Early Retirement, there are minimum age and service requirements. More specifically, to be eligible the employee must:

• At least age 50 with at least 20 years of creditable Federal service, OR
• Any age with at least 25 years creditable Federal service.
• An employee must have at least 5 years of creditable civilian service to be eligible for an early voluntary retirement.

Under the terms of the Memorandum of Understanding, eligible Mail Handlers who choose to leave employment with the USPS through optional retirement or pursuant to the VER will receive incentive payments totaling up to fifteen thousand dollars (for full-time employees). The fifteen thousand dollars incentive for eligible full-time career employees will be paid as follows:

• $10,000 on August 15, 2025
• $5,000 on August 28, 2026

Part-time flexible and part-time regular Mail Handlers shall receive incentive payments that are prorated based on the number of hours paid in the twenty-six pay periods prior to the effective date of their retirement.

Please understand that none of the information in this Update should be considered as official retirement advice, and the NPMHU National Office is neither recommending retirement nor assuming any responsibility for decisions that you may make about your retirement from the USPS. We recognize that retirement from the Postal Service is a very personal decision, based on each individual’s own finances and circumstances. Therefore, the National Office cannot provide individual retirement advice.