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Employees

NOTICE

2002 U.S. Savings Bonds Campaign Results

The 2002 U.S. Savings Bonds Campaign broke the record!

With a total of 13,701 new or increased savers, this year's campaign total exceeds last year's total of 10,130 new or increased savers. In addition to the standard Series EE Bonds, we offered the Series I Bonds. We started 4,994 new allotments for the Series I Bonds. These new Series I Bond allotments will become effective in Pay Period 24-02, which starts November 2, 2002, and will be reflected in your pay check on November 22.

Thank you for supporting the 2002 U.S. Savings Bonds Campaign.

- Information Technology Value,
Chief Technology Organization, 10-31-02

NOTICE

Receipt of U.S. Savings Bonds

Effective Pay Period 24, all U.S. savings bonds will be printed and mailed to Postal Service employees from a different location. Due to this change, the bonds initially will be printed and mailed one week later than usual, and every two weeks thereafter. This change will not affect the bond issue date or the interest the employee earns. All bonds will be mailed to employees in a security window envelope

bearing the G-10 penalty indicia with the following Postal Service return address:

EAGAN IT ASC
DISBURSING BRANCH
2825 LONE OAK PKWY
EAGAN MN 55121-9640

Any undeliverable bonds will continue to be returned to Eagan for processing.

- Corporate Accounting,
Finance, 10-31-02

POSTMASTERS/INSTALLATION HEADS AT LEVEL 13 AND BELOW POST OFFICES

Conducting Annual Safety and Health Inspections

Within the next 30 days, Safety Performance Management at Headquarters is mailing a package to Level 13 and below Post Offices that contains safety and health inspection checklists and instructions for completing an inspection. Instructions are provided in the cover letter included in the package. Postmasters/installation heads (PMs/IHs) at those offices, or their designees, must complete a safety and health inspection using the checklist within 30 days of receiving the package. These annual safety and health inspections are required by the Employee and Labor Relations Manual, part 824.

PMs/IHs must provide a copy of the inspection report to the employee representative(s), post a copy for employee review (ELM 824.426), and ensure abatement of all deficiencies in accordance with the instructions. PMs/IHs must also certify completion of the inspection to their servicing safety office. PMs/IHs in Level 13 or below Post Offices should contact their servicing safety office if they need technical or program assistance or if they do not receive the package that includes the inspection checklists and instructions.

- Safety Performance Management,
Employee Resource Management, 10-31-02

Flexible Spending Accounts Open Season

The 2002 open season for the Flexible Spending Account (FSA) program for career employees is scheduled for November 11 through December 22, 2002, 5:00 P.M. Central Time (CT). Enrollments made during this open season are effective January 1, 2003, for the 2003 plan year (January 1 through December 31, 2003).

FSAs allow employees to set aside a portion of their pre- tax earnings for certain types of out-of-pocket health care and dependent care expenses. The money withheld for FSAs is not subject to income, Medicare, or Social Security taxes. United Health Care administers the FSA program for the Postal Service.

The booklet FSA BK1, Flexible Spending Accounts (November 2002), provides a good overview of FSAs. The following information should assist local personnel offices in conducting this open season.

Use PostalEase to Enroll

To enroll in FSA during open season, employees have two options: (1) the PostalEase telephone system or (2) the PostalEase employee Web site.

To enroll by telephone: Call the PostalEase toll-free number at: 877-4PS-EASE (877-477-3273).

To enroll via the Intranet: Go to http://blue.usps.gov, click on Employee Self-Service, and then on PostalEase.

Note: PS Form 8200, Flexible Spending Account Enrollment Form, is obsolete. Discard PS Forms 8200 by recycling them.

Publicity

To publicize FSA open season, all offices must post the open season notice provided on page 5 on bulletin boards through December 22, 2002.

Direct Mailings to Employees

Headquarters (HQ) Compensation is coordinating FSA open season mailings to career employees at their mailing addresses of record. Employees receive a leaflet, three postcards, and an enrollment kit with an FSA brochure, a PostalEase FSA worksheet, and a withdrawal request form.

Undeliverable mailed kits are returned to the employing office of record. When an office receives a returned kit, the office should encourage the employee to update his or her mailing address. Employees with access to the Intranet Web job bidding may update their own mailing address. All other employees must submit an updated PS Form 1216, Employee's Current Mailing Address. PS Form 1216

may be ordered from the Material Distribution Center (MDC) as follows:

Touch Tone Order Entry: Call 800-332-0317, choose option 1, then 2.

Note: You must be registered to use TTOE. To register, call 800-332-0317, choose option 8, extension 2925, and follow the prompts to leave a message (wait 48 hours after registering before you place your first order).

E-mail: Complete PS Form 7380, MDC Supply Requisition (manually or by using F3Fill), and send it as an attachment to the e-mail address MDC Customer Service or to mcustome@email.usps.gov.

Mail: Mail a completed PS Form 7380 to the MDC at the following address:

SUPPLY REQUISITIONS
MATERIAL DISTRIBUTION CENTER
500 SW GARY ORMSBY DER
TOPEKA KS 66624-0702

The relevant ordering information for PS Form 1216, Employee's Current Mailing Address, is as follows:

PSN: 7530-02-000-7354
PSIN: PS 1216
Unit of Issue: EA
Quick Pick #: 118
Bulk Pack Quantity: 4,000
Price: $0.0171
Edition Date: 06/93

Eligibility

Participation in the FSA program is limited to career employees. To enroll, a career employee must have completed at least 26 full pay periods of postal career service during the current appointment by the end of pay period (PP) 26-2002 (December 13, 2002). A career employee who is in a leave without pay (LWOP) status that has lasted for more than eight consecutive full pay periods as of December 13, 2002, is not eligible to participate in the FSA program. However, an employee who is returning from uniformed military service may enroll even if he or she has exceeded the eight consecutive pay periods of LWOP.

Election Opportunities

Health Care FSA and Dependent Care FSA

Eligible career employees may elect to participate in one, or both, of two FSAs - the Health Care FSA and the Dependent Care FSA. Each FSA covers eligible expenses for services that are received during the employee's period of participation during 2003 plan year (January 1 through December 31, 2003). Employees who elect to participate must enroll via PostalEase no later than 5:00 P.M. CT on December 22, 2002. The brochure FSA BK1, Flexible Spending Accounts, that employees receive in the mail describes eligible and ineligible expenses and guidelines for estimating 2003 expenses.

FSA Open Season Contribution Levels

For the 2003 plan year, eligible career bargaining unit employees may elect to contribute up to $2,600 to the Health Care FSA. Career nonbargaining unit employees may elect to contribute up to $5,000 to the Health Care FSA. All eligible career employees may elect to contribute up to $5,000 to the Dependent Care FSA. Contributions are withheld in equal amounts through payroll deductions covering 26 pay periods (PP 01-2003 through PP 26-2003). The minimum annual contribution employees may make to either FSA is $130 ($5 per pay period).

Election Changes and Enrollment Processing

Participants may neither cancel enrollments nor change contribution levels during the plan year except following qualified life status changes, as explained in the brochure FSA BK1, Flexible Spending Accounts.

Open Season Materials

Direct Mailings to Career Employees

Each career employee receives the following items at his or her mailing address of record:

• Three publicity postcards:

- A postcard with instructions on how to obtain a PostalEase Personal Identification Number (PIN) (mailed in early November).

- A postcard with examples of typical FSA cost savings (mailed in late November).

- A postcard with a reminder of the closing date (mailed in mid-December).

• FSA LF1, Flexible Spending Accounts Overview and Tax Savings Estimator (September 2002). This leaflet outlines how FSAs work in a simple question-and- answer format and provides a tax-savings estimator.

• Enrollment kit that includes the following items:

- FSA BK1, Flexible Spending Accounts (November 2002), a brochure explaining plan policies and provisions.

- The FSA PostalEase worksheet.

- FSA1, Flexible Spending Accounts (FSA) Withdrawal Request (September 2002). This form is used to request to withdraw funds from an FSA for payment of eligible expenses for services received during the period of participation.

Extra Supplies of Materials

By the beginning of the open season, HQ Compensation coordinates the distribution of extra supplies of the leaflet, enrollment kit, and copies of the worksheet and withdrawal request form to Human Resources at district offices, area offices, processing and distribution centers, bulk mail centers, airport mail centers, remote encoding centers, the Office of Inspector General, Inspection Service divisions, Headquarters, and selected Headquarters field units.

Additional copies of the following FSA items will be available from the MDC but not until the distribution of extra supplies has been completed. The relevant ordering information follows.

Flexible Spending Accounts Overview and Tax Savings Estimator

PSN: FSA LF1
PSN: 7610-04-000-5138
Unit of Issue: Each
Quick Pick #: None
Bulk Pack Quantity: 1,800
Price: No cost
Edition Date: 11/02

Flexible Spending Accounts

PSN: FSA BK1
PSIN: 7530-02-000-9910
Unit of Issue: Each
Quick Pick #: None
Bulk Pack Quantity: 300
Price: No cost
Edition Date: 11/02

Flexible Spending Accounts (FSA) Withdrawal Request

PSN: FSA1
PSIN: 7530-02-000-9911
Unit of Issue: Each
Quick Pick #: None
Bulk Pack Quantity: 2,275
Price: No cost
Edition Date: 09/02

Responsibilities of Personnel Offices

Personnel offices are responsible for the following tasks:

Respond to employee inquiries about eligibility.

Determine the participant's eligibility to enroll or to change contribution levels during the plan year based on the participant's qualified life status changes.

Offices are reminded of the following points:

Offices may refer to PostalEase Update 2001-03 (June 4, 2001) for instructions on processing FSA elections in cases of belated election or administrative error; these instructions are found at http://blue.usps.gov/hrisp/hris/updates/postalease/2001/.

PostalEase reminds employees to include health care expenses for dependents in the Health Care FSA contribution amount, and not in the Dependent Care FSA. Although the brochure and worksheet advise employees of this provision, some employees did not properly follow this distinction in past open seasons.

PostalEase also reminds employees of the Internal Revenue Service (IRS) annual limits on the Dependent Care FSA contribution - $5,000 for a family and $2,500 for a married employee filing a separate return. These limits are explained fully in the brochure FSA BK1, Flexible Spending Accounts.

Offices do not process Form FSA1, Flexible Spending Accounts (FSA) Withdrawal Request. Participants are responsible for mailing Form FSA1 directly to the FSA Customer Service Center at its Duluth, Minnesota, address given on FSA 1.

Offices must not provide tax advice. Offices must refer employees with tax questions to their tax advisors or to the IRS toll-free information line at 800-TAX-1040 (800-829-1040). In addition, a section of the brochure FSA BK1, Flexible Spending Accounts, presents certain tax information related to FSAs.

Refer employees with questions about the FSA program to the FSA toll-free hotline given below.

FSA Customer Service Center Toll-Free Hotline

For inquiries about FSAs, employees should call the FSA Customer Service Center's toll-free hotline at 800-842-2026. Following enrollment, participants may use the hotline to:

Make account inquiries.

Discuss expenses that are eligible for payment through the FSA program.

Obtain other plan information.

The FSA Customer Service Center also provides a Telecommunications Device for the Deaf (TDD) line at 866-649-4869. The FSA Customer Service Center encourages employees using the TDD line to place an advance call to the toll-free hotline.

- Compensation,
Employee Resource Management, 10-31-02

Flexible Spending Accounts (FSA)
Open Season

FSA Policy Changes Additional 3 months for FSA Customer Service Center to receive claims - deadline is September 30, 2004, for 2003 plan year.

FSA Customer Service Center now located in Duluth, Minnesota.

See all changes described on page 12 of the FSA brochure FSA BK1, Flexible Spending Accounts.

Enrollment Career employees must use the PostalEASE enrollment system if they wish to enroll in FSAs for 2003 during the FSA open season.

Call toll free: 877-4PS-EASE (877-477-3273).

Should you have any trouble using PostalEASE, or if you are unable to use the telephone because you are deaf, hard of hearing, or have another medical reason, contact your local personnel office.

USPS Personal Identification To use PostalEASE, enter your Social Security Number and USPS Personal

Number (PIN) Identification Number (PIN). If you don't know your USPS PIN, call PostalEASE and, when prompted to enter your PIN, simply pause, and the system provides an option to have your PIN mailed to your address of record the next business day.

When November 11 through 5:00 P.M. Central Time on December 22, 2002.

Eligibility Career employees only - noncareer employees are not eligible.

Plan Information Leaflet and brochure with PostalEASE FSA worksheet included mailed to all career employees.

If material is not received by November 29, 2002, contact local personnel office.

Effective Date FSA open season enrollments become effective January 1, 2003.

Questions Hotline for FSA questions: 800-842-2026.

TDD line for hearing impaired: 866-649-4869. Advance call to hotline encouraged.

PLEASE POST ON ALL BULLETIN BOARDS THROUGH DECEMBER 22, 2002.

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Annual Leave Exchange Option

The Annual Leave Exchange Program provides an option for eligible employees to receive a lump sum payment in exchange for a portion of the annual leave that would otherwise be advanced at the beginning of the 2003 leave year.

Note: Annual leave earned and accumulated through the 2002 leave year, which ends January 10, 2003, cannot be exchanged for cash.

Eligible Employees

Employees eligible for the Annual Leave Exchange Program include the following:

• Career nonbargaining employees from Rate Schedule Codes (RSCs) E, F, J, S, and U who have an annual leave balance of at least 160 hours at the end of the leave year.

• Bargaining employees from the following RSCs who have an annual leave balance of at least 440 hours at the end of the leave year and have used less than 75 hours of sick leave during the leave year:

- National Postal Mail Handlers Union - RSC M.

- International Association of Machinists - RSC T.

- American Postal Workers Union, AFL-CIO - RSCs C, N, and P.

- Operating Services Division Agreement - RSC K.

- Fraternal Order of Police, National Labor Council, USPS No. 2 - RSC Y.

Letter Soon Mailed to Eligible Employees

The Eagan Accounting Service Center will mail a letter providing details of the eligibility criteria and instructions for using PostalEase to make annual leave exchange elections to eligible employees at their address of record during November 2002. Undeliverable letters will be returned to the personnel office, which should ensure that they are forwarded to the employee's work location along with PS Form 1216, Employee's Current Mailing Address. (Employees with access to Web job bidding on the Intranet should make address changes via the Web. Other employees should return completed PS Form 1216 to the local personnel office.)

PostalEase Elections

Employees who meet the eligibility criteria and want to exercise this option must use PostalEase to make elections. Employees must complete their entries to PostalEase by midnight, Central Time, December 15, 2002, for the election to be considered timely.

Employees who are unable to use PostalEase to complete their elections should contact their local personnel office prior to December 15, 2002, for assistance.

We will not distribute forms for this election period.

Payment by Lump Sum

Payment under the Annual Leave Exchange Program will be a lump sum calculated on the employee's base salary as of the first day of the 2003 leave year (January 11, 2003). Paychecks dated January 31, 2003, will include the 2003 lump sum payment.

- Compensation, Employee Resource Management, 10-31-02

PLEASE POST ON ALL BULLETIN BOARDS THROUGH DECEMBER 15, 2002.

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