Retroactive Wage Increases for Recent Retirees

Several Local Union officers and representatives have asked questions concerning application of the NPMHU retroactive increases to employees who have retired since November 19, 2000. Under the recently ratified 2000 National Agreement, both the Postal Service and the U.S. Office of Personnel Management have obligations to these former employees.

The USPS obligation is to provide the retired employee with a check that reflects the earnings between November 18, 2000 and his or her date of retirement at the higher wage rate. The employee's hours during this period will be recalculated at the higher salary, and the employee will receive a check from the Postal Service to account for these hours being paid at a that higher salary.

The OPM obligation is to provide the retired employee with an upward adjustment in his or her annuity check, based on the impact on the high-three year salary calculation. The Postal Service will provide OPM with the details of the retroactive wage increase, and OPM will determine the new annuity. It is unclear exactly when the retiree will begin to receive the higher annuity, because OPM is not on the same timetable as the Postal Service, but the retiree should rest assured that the adjustment will be made. Individuals with questions about their new annuity amount may contact OPM directly at the following telephone numbers. In the Washington, DC area, 202-606-0500. Outside the Washington, DC area, 1-888-767-6738.