Employees (continued)

2003 Social Security and Medicare Tax Withholding

For 2003, the maximum limit on earnings for withholding in the Old-Age, Survivors, and Disability (OASDI) portion of the Social Security tax increases from $84,900 to $87,000. This is a $2,100 increase from the 2002 limit. The Social Security tax rate remains at 6.2 percent, resulting in a maximum Social Security tax of $5,394.00. This is a $130.20 increase from the 2002 limit of $5,263.80. There is still no limit on the amount of earnings subject to the Medicare portion of the tax rate. The Medicare tax rate applies to all taxable wages, and remains at 1.45 percent. The FICA tax rate, which is the combined Social Security tax rate of 6.2 percent and the Medicare tax rate of 1.45 percent, remains at 7.65 percent for 2003.

The information in the following table is effective January 1, 2003.

- Payroll Accounting,
Finance, 11-14-02

Form W-5 Renewal

Employees must renew Form W-5, Earned Income Credit Advance Payment Certificate, which allows eligible employees to receive advance payment of their earned income credit, for 2003. All certificates currently in effect expire at the end of the calendar year and must be renewed by submitting a new Form W-5 as soon as possible. Employees are responsible for timely submission of their Form W-5. The personnel office must receive the Form W-5 by no later than December 13, 2002 (Pay Period 26), to ensure that the information on the form is effective by the start of the calendar year. Please note that Internal Revenue Service (IRS) regulations specifically prohibit any retroactive changes or additions to the information submitted on the original Form W-5. Any changes, corrections, or additions to a Form W-5 require submission of a new form.

Reminder: Personnel offices are reminded that IRS regulations mandate that all employers submit copies of all Forms W-5 received from their employers. Personnel offices must mail one copy of Form W-5 in a separate envelope marked "PROCESSED W-5 FOR IRS" in the lower left-hand corner of the envelope to:

ATTN CONTROL SECTION
EAGAN ACCOUNTING SERVICE CENTER
2825 LONE OAK PARKWAY
EAGAN MN 55121-9611

Subsequently, the Control Section in Eagan will forward the forms to the IRS.

- Payroll Accounting,
Finance, 11-14-02

Penalty Overtime Exclusion

As referenced in Article 8, Sections 4 and 5, of the USPS-NALC and USPS-APWU national agreements, the December period (during which penalty overtime regulations are not applicable) consists of 4 consecutive service weeks. This year, the December period begins Pay Period 26-02 - Week 1 (November 30, 2002) - and ends Pay Period 01-03 - Week 2 (December 27, 2002).

- Labor Relations Policies and Programs,Labor Relations, 11-14-02

Christmas Pay Procedures for Rural Carriers

The 2002 Christmas period for rural carriers begins Saturday, December 7, 2002 (Week 2, Pay Period (PP) 26-02), and ends Friday, December 27, 2002 (PP 01-03). During this period, certain timekeeping and pay rules apply. Timekeepers, including postmasters, supervisors, and other employees responsible for rural carrier time and attendance recording, should become familiar with Article 9.2.K, Christmas Allowances and Procedures, of the 2000-2004 USPS/National Rural Letter Carriers' Association (NRLCA) Agreement.

This article describes the types of compensation to which rural carriers are entitled during the Christmas period. It also describes related timekeeping procedures and regulations for the Christmas period, as well as special rules that begin with the start of the Guarantee Year (November 2, 2002) and continue through the end of the Christmas period.

Exhibits are included to assist in completing PS Form 1314, Regular Rural Carrier Time Certificate, and PS Form 1314-A, Auxiliary Rural Carrier Time Certificate, during the Christmas period.

List of Exhibits

Exhibit 1 - Regular Carrier Works In Excess of Route's Evaluation

Exhibit 2 - Regular Carrier Not on Relief Day Work List Works Relief Day (Week 2) and Does Not Receive an X Day in Same Pay Period

Exhibit 3 - Regular Carrier Works Designated Holiday

Exhibit 4 - Regular Carrier Provides Christmas Assistance

Exhibit 5 - FLSA Code A Regular Carrier

Exhibit 6 - Designation 74 Works Designated Holiday

Exhibit 7 - Designation 74 Provides Christmas Assistance on Relief Day

Exhibit 8 - Replacement Carrier Provides Christmas Assistance on a Regular Route

Exhibit 9 - Replacement Carrier Provides Christmas Assistance on an Auxiliary Route

Exhibit 10 - Nonrural Employee Provides Christmas Assistance on Rural Route (EMA Only)

Exhibit 11 - Designation 79 Provides Christmas Assistance on Assigned Auxiliary Route

Overtime During the Christmas Period

Regular Carriers (DES 71) - FLSA B

Types of Overtime

During the Christmas period, regular rural carriers are eligible for two types of overtime - FLSA overtime and Christmas overtime:

FLSA Overtime

FLSA overtime is paid at all times of the year, not just during the Christmas period. Regular rural carriers are paid FLSA overtime under two circumstances:

a. Hours worked in excess of 12 hours in a day - If a carrier works more than 12 hours in a day, the amount over 12 is entered in the Daily Overtime block on PS Form 1314.

b. Hours worked in excess of 56 in a week - These hours are calculated automatically when the total weekly work hours are greater than 56, so no separate entries are required.

Christmas Overtime

Christmas overtime is paid only during the designated Christmas period. Regular rural carriers are paid Christmas overtime under two circumstances:

a. Christmas Assistance - This is assistance provided by the regular carrier on her or his relief day. Christmas assistance work hours are entered in the Xmas Assist Work Hours block on PS Form 1314.

b. Hours worked in excess of the route's evalua- tion - This is based on the total actual work hours for the week, not on individual days. For example, if a route has a daily evaluation of 9 hours and the regular carrier works 10 hours on 2 days and 8 hours on the other 3 days, no overtime would be paid. Even though the carrier exceeded the daily evaluation on 2 days of the week, he did not exceed the weekly evaluation. The weekly evaluation is 45 hours; the carrier worked 44 hours. (See Handbook F-21, Section 567, for overtime calculation when leave days are taken during the week and for routes with an evaluation of less than 40 hours.) These hours are calculated automatically, so no separate entries or calculations are required.

Overtime Rate

The overtime rate paid to regular (FLSA Code B) carriers is 150% of the carrier's regular rate. The regular rate is determined by dividing the total compensation received for hours actually worked by the carrier since the beginning of the Guarantee Year (not including overtime), by the total number of hours worked since the beginning of the Guarantee Year (not including overtime). This overtime rate is used for both FLSA overtime and Christmas overtime.

Replacement Carriers

Replacement carriers (Designations 70, 73, 74, 75, 76, 77, 78, 79) are entitled only to FLSA overtime. For these employees, FLSA overtime is paid for hours worked in excess of 40 in a week.

Regular Carriers (DES 71) - FLSA A

Regular carriers whose FLSA code is A are paid for actual hours worked, not evaluated hours. They are paid overtime for hours in excess of 8 in a day, or 40 in a week. For FLSA Code A carriers, enter hours in excess of 8 in a day to the Daily Overtime block on PS Form 1314. Hours in excess of 40 in a week are calculated automatically by the system.

Auxiliary Route Carriers

Carriers serving any auxiliary route are compensated at the hourly rate for actual hours worked during both weeks of PP 26-02 and PP 01-03. During this period, carriers are not paid the evaluation of the route. Overtime is paid only when the carrier exceeds 40 hours for the week.

Christmas Assistance

Christmas assistance is additional service provided on a rural route during the Christmas period. For regular carriers, Christmas assistance applies only to assistance given by the carrier, on his/her relief day, while a replacement carrier carries the full route. For replacement carriers, it applies to any assistance provided on a regular or auxiliary route during the Christmas period. Christmas assistance is reported in the Xmas Assist Work Hours block on PS Form 1314 (for regular carriers) or PS Form 1314-A (for replacement carriers).

Regular carriers can perform Christmas assistance only on their relief day. Therefore, only regular carriers assigned to J or K routes may report Christmas assistance. Regular carriers assigned to route types H or M cannot perform Christmas assistance because these route types do not have a relief day. NOTE: There are no provisions for paying a regular carrier for performing service on a Sunday, on an actual holiday, or other than on the assigned route. These situations should be avoided.

Examples of Christmas assistance:

• A regular carrier comes in on his/her relief day and helps the replacement carrier case the route.

• A regular carrier comes in on his/her relief day and carries part of his/her regular route. (Replacement carrier is listed on PS Form 1314.)

• A replacement carrier carries part of a regular route due to heavy Christmas volume.

These are not examples of Christmas assistance:

• A regular carrier comes in on his/her relief day and carries his/her regular route.

• A regular carrier works 2 hours beyond the daily evaluation of his/her regular route.

• A regular carrier performs any work while assigned to an H or M route.

Time Card Blocks Used During the Christmas Period

PS Form 1314 - FLSA Code B Regular Carriers

1. Daily Overtime - For FLSA B carriers, this block is used ONLY to record when the carrier works more than 12.00 hours in a single day. (See Exhibit 5 for use of this block for FLSA Code A regular carriers. This block is not used for FLSA Code P.) Record the total amount of work hours in excess of 12 per day in this box. Include the amount of daily overtime in the Actual Weekly Hours block. For example, if the carrier works 10.00 hours each day, Monday through Wednesday, and works 12.50 on Thursday and 13.00 on Friday, the amount entered to the Daily Overtime block is 1.50 and the amount entered to the Actual Weekly Hours block is 55.50.

The Daily Overtime block is NOT used to record:

• Hours worked in excess of 56 in a week.

• Hours worked in excess of the route's evaluation.

• Hours worked when the carrier works his/her relief day.

• Additional hours worked by the carrier after completing his/her route (except for those that are over 12 hours for the day).

2. Xmas Assist Work Hours - For FLSA Code B regular carriers, this block is used ONLY when the carrier comes in on his/her relief day to provide assistance, not to carry his/her full route. A relief carrier must be listed on PS Form 1314 as the replacement carrier for that day. Do not include the amount of Xmas Assist Work Hours in the Actual Weekly Hours block.

The Xmas Assist Work Hours block is NOT used to record:

• Hours worked in excess of 56 in a week.

• Hours worked in excess of the route's evaluation.

• Hours worked when the carrier works his/her relief day and DACA Code R, 3, or 5 is entered on the PS Form 1314.

• Additional hours worked by the carrier after completing his/her route.

PS Form 1314-A - Replacement Carriers/Auxiliary Routes

1. Rt. No. - Use the chart below to determine which route number to enter on PS Form 1314-A when reporting Christmas assistance by replacement carriers or on auxiliary routes.

2. Xmas Assist Work Hours - This block is used whenever a replacement carrier provides Christmas assistance. Do not include the amount of Xmas Assist Work Hours in the Actual Weekly Work Hours block.

Work on Relief Days and Use of X Days

During the period from the beginning of the Guarantee Year (November 2, 2002) through the last day of the Christmas period (December 27, 2002) - which includes Pay Periods 24-02, 25-02, 26-02, and 01-03 - record relief days worked by regular rural carriers on PS Form 1314, as described below.

1. Carriers who work a relief day during this period and who are entitled to a future day off (X day) must be given that X day in the same pay period. Record DACA Code R or 3 on PS Form 1314 for the relief day that is worked, and DACA Code X on the day that is taken off. The Rural Time and Attendance Processing System (RTAPS) will not accept any PS Form 1314 that contains a DACA Code 3 or DACA Code R without a corresponding DACA Code X.

2. Record DACA Code 5 on PS Form 1314 for the relief day that is worked if an X day is not taken in the same pay period that the relief day is worked, or if the carrier is on the relief day work list and selects the option for 150% compensation. When DACA Code 5 is entered, the carrier does not receive an X day.

3. Carriers may not use any X days that were earned in previous pay periods during this period. RTAPS will not accept any PS Form 1314 that contains a DACA Code X without a corresponding DACA Code 3 or DACA Code R.

4. Carriers must have a sufficient balance of X days available in order to use an X day. Carriers with a negative X day balance cannot use any X days until the negative balance is erased.

Christmas Period Timekeeping Instructions

A. FLSA B Regular Rural Carriers

1. Work on Relief Day - Only regular carriers on J or K routes have an assigned relief day. Any work performed by a regular on his/her relief day must be reported in one of the following ways:

a. Regular carries entire route - If the carrier reports on the relief day and cases and carries the assigned route (as is done on a scheduled day), enter DACA Code R, 3, or 5 (as appropriate) on PS Form 1314 for that day. If the carrier is due an X day for working the relief day (i.e., DACA Code R or 3 is entered), this X day must be granted in the same pay period. If the X day is not granted within the same pay period, DACA Code 5 must be entered on PS Form 1314.

b. Christmas assistance - If a relief carrier carries the assigned route and the regular carrier provides assistance on the relief day, record the hours worked by the regular as Xmas Assist Work Hours. If additional Equipment Maintenance Allowance (EMA) is due for work performed on the relief day, enter the mileage traveled in whole miles in the Route Deviation block for the appropriate week.

2. Work on Designated Holiday - If Wednesday, December 25, is a regular carrier's scheduled relief day, Tuesday, December 24, is the employee's designated holiday. If a regular carrier is assigned to work the designated holiday, the regular must work the full day. Regular carriers may not provide Christmas assistance on their designated holiday.

When the regular carrier works the designated holiday:

a. Enter DACA Code V in the Tuesday, Week 2 block on PS Form 1314.

b. Include the hours worked on the designated holiday with all other work hours for that week in the Actual Weekly Work Hours block.

c. The carrier is compensated at one and one half times the daily rate of pay (in addition to Holiday Leave) for working the designated Christmas holiday. The carrier is not entitled to a future day off (X day).

B. FLSA Code A Regular Carriers

Regular carriers (FLSA Code A) are paid at the regular rate for all hours worked up to 8 per day and 40 per week, and at the overtime rate for all hours worked in excess of 8 per day or 40 hours per week. FLSA Code A employees are not entitled to any X days, as they are paid for working the relief day.

1. Report total hours worked for the week in Actual Weekly Hours.

2. If the carrier worked more than 8.00 hours in a day, enter total hours worked in excess of 8 for that day in the Daily Overtime block.

3. If the carrier worked on a scheduled relief day, enter R on the day the carrier worked the relief day and include the hours worked in Actual Weekly Hours. The employee is not entitled to a future X day.

4. If the carrier worked on a designated holiday, enter V on the day the carrier worked the designated holiday and include the hours worked in Actual Weekly Hours. The employee is not entitled to a future X day.

C. Auxiliary Route Carriers

Carriers serving any auxiliary route are compensated at the hourly rate for actual hours worked during Week 2 of PP 26-02 and both weeks of PP 01-03. During this period, carriers are not paid the evaluation of the route. The only changes to standard timekeeping procedures for auxiliary routes are when a Designation (Des) 79 provides Christmas assistance on the assigned auxiliary route. (See Section E.2)

D. Replacement Carriers Assigned to Vacant Regular Routes (Designations 72/74)

1. Designation 72

a. FLSA B - Procedures are the same as for Des 71 (Regular Carrier), FLSA B.

b. FLSA A - Procedures are the same as for Des 71 (Regular Carrier), FLSA A.

2. Designation 74

Work on relief day or holiday:

a. Carrier worked scheduled relief day:

(1) Enter R on the day the carrier worked the relief day.

(2) Include the hours worked in Actual Weekly Work Hours. The employee is NOT entitled to a future X day.

b. Carrier worked designated holiday:

(1) Do not enter a V on the day worked. Leave blank.

(2) Include the work hours in the Actual Weekly Work Hours block.

(3) Enter the relief day (J or K day) in the block for the actual holiday (Wednesday).

(4) Replacement carrier data is not needed to crossfoot PS Form 1314 for the holiday.

c. Carrier provided Christmas assistance on relief day:

(1) Enter the Christmas auxiliary assistance time on PS Form 1314 in the Xmas Assist Work Hours block.

(2) Do not include these hours in the Actual Weekly Work Hours block.

(3) Enter J or K in the appropriate block on PS Form 1314 if the replacement carrier worked a full day on the route.

E. Replacement Rural Carriers Serving as Christmas Auxiliary Assistants

All replacement carriers serving as Christmas auxiliary assistants are compensated at their regular rate for actual hours worked up to 40 per week, and at the FLSA overtime rate for actual hours worked in excess of 40.

1. Christmas assistance on a regular route:

a. Manually prepare PS Form 1314-A for each carrier that provides Christmas assistance.

b. Do not enter more than one carrier on each PS Form 1314-A.

c. Submit a separate certificate for each regular route on which the carrier provides assistance.

d. Report the Christmas assistance hours in the appropriate Week 1 and/or Week 2 Xmas Assist Work Hours block.

e. Enter EMA hours, trips, and miles in the appropriate Week 1 and/or Week 2 EMA blocks.

2. Christmas assistance on an auxiliary route:

a. Assigned carrier (Des 79) provided Christmas assistance on assigned auxiliary route:

(1) Enter N in the appropriate block in the No Service section of the carrier's PS Form 1314-A for the assigned route.

(2) Record hours worked in the Xmas Assist Work Hours block. Only enter Christmas assistance when the rural carrier associate works his/her Des 79 position.

(3) Include EMA hours and miles (not trips) in the total for the appropriate week. Trips may not exceed the number of days worked in the No Service blocks.

(4) A replacement carrier is required to crossfoot the card.

b. Replacement carrier (Designations 70, 73, 74, 75, 76, 78) provided Christmas assistance on auxiliary route:

(1) Manually prepare PS Form 1314-A. Enter route number A998. Use this route type and number for overburdened service or Christmas assistance on auxiliary routes only.

(2) Report the Christmas assistance hours in the appropriate Week 1 and/or Week 2 Xmas Assist Work Hours block.

(3) Enter EMA hours, trips, and miles (if applicable) in the appropriate Week 1 and/or Week 2 EMA blocks.

(4) If Christmas assistance is performed on two or more auxiliary routes in the same pay period, combine all work hours and EMA data on one manually prepared PS Form 1314-A.

F. Postal Employees (Other Than Rural) Serving as Christmas Auxiliary Assistants

Postal Service employees (other than Des 7X) who provided Christmas assistance on rural routes are compensated at their regular rate of pay for actual time worked. Include all work hours using their normal Time and Attendance System (Manual Timecards or TACS).

Nonrural employees are entitled to EMA payment if a personal vehicle is used. Prepare PS Form 1314-A as follows: (Do not prepare PS Form 1314-A if a government vehicle is provided.)

1. Report the hours worked on the rural routes on PS Form 1230-C, Time Card.

2. Manually prepare PS Form 1314-A for EMA compensation.

3. Complete indicative data at the top of the certificate. Use Des 99/0, actual route type and number, FLSA Code P, and correct employee and pay period information.

4. Enter EMA hours, trips, and miles in the appropriate Week 1 and/or Week 2 EMA blocks.

Important Items to Remember: Rural Carrier Christmas Pay Procedures

• Hours entered in the Daily Overtime block are always included in Actual Weekly Hours.

• Hours entered in the Xmas Assist Work Hours block are not included in Actual Weekly Hours.

• Carriers on auxiliary routes are paid for actual hours worked, not the route's evaluation, during the Christmas period.

• An X day cannot be entered on a time card unless there is a corresponding R or 3 day in the same pay period and the carrier's X day balance is zero or greater.

• If a regular carrier works his/her relief day and carries his/her assigned route, this is not reported as Christmas assistance.

• Regular carriers may only work on their assigned route.

• Regular carriers may not work on an actual holiday (December 25th or January 1st).

Exhibit 1. REGULAR CARRIER WORKS IN EXCESS OF ROUTE'S EVALUATION

1. Regular carrier is assigned to a 45-hour evaluated route (Daily evaluation = 9.00 hours).

2. Carrier works 45.28 hours in Week 1, and 38.08 hours in Week 2 as follows:

3. Carrier will be paid Christmas overtime for 0.28 hours in Week 1, and 2.08 hours in Week 2, based on hours worked over the route's evaluated hours.

4. No manual computation for Christmas overtime is necessary. This is automatically computed. No entries are made to the Daily Overtime block.

Exhibit 2. REGULAR CARRIER NOT ON RELIEF DAY WORK LIST WORKS RELIEF DAY (WEEK 2) AND DOES NOT RECEIVE AN X DAY IN THE SAME PAY PERIOD

1. Regular carrier is required to work the second relief day of Pay Period 26. Carrier does not get an X day in the same pay period.

2. Enter DACA Code 5 on the relief day (Saturday) of Week 2.

3. Carrier is paid 150% of a day's evaluation for working the relief day and does not receive a future X day.

Exhibit 3. REGULAR CARRIER WORKS DESIGNATED HOLIDAY

1. Regular carrier's relief day is Wednesday. Carrier works the designated holiday on Tuesday, December 24th.

2. Enter V on Tuesday of Week 2.

3. Include hours worked on the designated holiday in Actual Weekly Hours.

4. Carrier is not entitled to an X day for working the holiday.

5. No manual computation for Christmas overtime is necessary. This is automatically computed. Do not enter Christmas overtime in the Daily Overtime block.

6. Carrier will receive 150% of one day's evaluation for working the designated Christmas holiday. NOTE: Regular rural carriers cannot work on Wednesday, December 25th.

Exhibit 4. REGULAR CARRIER PROVIDES CHRISTMAS ASSISTANCE

1. Carrier works 7 hours of Christmas assistance on the relief day Wednesday of Week 2 and uses a personal vehicle for 25 miles.

2. Enter 7 hours in Xmas Assist Work Hours. Do not include in the total work hours for the week on PS Form 1314.

3. Enter the 25 miles traveled on the relief day in whole miles in the Route Dev. block.

4. No manual computation for Christmas overtime is necessary. This is automatically computed. Do not enter Christmas overtime in the Daily Overtime block.

Exhibit 5. FLSA CODE A REGULAR CARRIER

1. A regular carrier whose FLSA code is A is paid by the hour. Overtime is paid for all hours over 8 in a day or 40 in a week.

2. Carrier works 8.32 hours on Tuesday of Week 1. Enter 0.32 hours in the Daily Overtime block.

3. Carrier works relief day (Saturday) in Week 1. Include these hours in Actual Weekly Hours. Carrier is paid for these hours, so no X day is due.

4. Carrier works 39.88 total hours in Week 1.

5. Carrier works Christmas assistance (6 hours) on the relief day on the second Saturday. Record the Christmas assistance time in the Xmas Assist Work Hours block. Do not add to the Actual Weekly Work Hours. Overtime will be paid only if the carrier exceeds 40 hours for the week.

6. No manual computation for Christmas overtime is necessary. This is automatically computed. Carrier will receive 0.32 hours of overtime in Week 1, and 1.08 hours of overtime (35.08 + 06.00 = 41.08 hours) in Week 2.

Exhibit 6. DESIGNATION 74 WORKS DESIGNATED HOLIDAY

1. A rural carrier associate (RCA) is assigned to a vacant regular J route, with a relief day on Wednesday of Week 2.

2. Carrier works the designated Christmas holiday on Tuesday, December 24th.

3. Do not enter V or H for working the Christmas holiday. Designation 74s are not entitled to holiday leave pay. Tuesday is a regular workday.

4. Include hours worked on Tuesday of Week 2 in Actual Weekly Hours.

5. Replacement carrier is not needed to crossfoot the card for the second week.

Exhibit 7. DESIGNATION 74 PROVIDES CHRISTMAS ASSISTANCE ON RELIEF DAY

1. The RCA is assigned to a vacant regular K route, with a relief day of Saturday.

2. On the first Saturday, the Des 74 carrier provides Christmas assistance for 7 hours. The replacement carrier works the route the entire day.

3. Enter K for the first Saturday.

4. Enter 7.00 hours in the Xmas Assist Work Hours block. Do not include these hours in the Actual Weekly Hours block.

5. Carrier will be paid 3.52 hours overtime (36.52 + 7.00 = 43.52).

6. Enter appropriate information for relief carrier in bottom section of time certificate.

Exhibit 8. REPLACEMENT CARRIER PROVIDES CHRISTMAS ASSISTANCE ON A REGULAR ROUTE

1. Regular carrier on Route K001 carries his/her route on regularly scheduled day.

2. Replacement carrier provides Christmas assistance on Route K001 for 3.25 hours on Tuesday, Week 1; 6.75 hours on Friday, Week 1; and 4.50 hours on Saturday, Week 2.

3. On each of these days, the replacement carrier spends 3 hours on the street and travels 40 miles each day (in his/her own vehicle).

4. Prepare PS Form 1314-A using the actual route number (K001) on which service was performed.

5. Enter 10.00 hours in the Xmas Assist Work Hours block for Week 1, and 4.50 hours for Week 2. Do not include these hours in Actual Weekly Work Hours.

6. Enter EMA data in the appropriate Equipment Allowance blocks.

7. Do not enter any information to the bottom (relief carrier) section of the card.

8. If the replacement carrier provides Christmas assistance on more than one regular route, complete a separate PS Form 1314-A for each route on which Christmas assistance is provided.

Exhibit 9. REPLACEMENT CARRIER PROVIDES CHRISTMAS ASSISTANCE ON AN AUXILIARY ROUTE

1. Replacement carrier provides 3.00 hours Christmas assistance on Route A003 on Monday, Week 1; 1.25 hours Christmas assistance on Route A009 on Thursday, Week 1; and 2.50 hours Christmas assistance on Route A003 on Saturday, Week 2. All hours are worked in the office, except 1 hour on the street on Saturday, Week 2 (10 miles).

2. Prepare one PS Form 1314-A using route number A998 for all Christmas assistance hours on auxiliary routes.

3. Enter hours worked in the Xmas Assist Work Hours block. Do not include in Actual Weekly Work Hours.

4. Enter EMA data in the appropriate Equipment Allowance blocks.

Exhibit 10. NONRURAL EMPLOYEE PROVIDES CHRISTMAS ASSISTANCE ON RURAL ROUTE (EMA ONLY)

1. Clerk works as a Christmas auxiliary assistant on Route J029 and provides her or his own vehicle.

2. Complete PS Form 1314-A, using Des Code 99 and the route number of the regular route. (Use A998 if assistance is provided on an auxiliary route.)

3. Enter the hours, trips, and miles in the Equipment Allowance blocks.

4. Do not enter any Actual Weekly Work Hours or Xmas Assist Work Hours. Work hours for nonrural employees are paid using their regular timekeeping system (e.g., manual timecards, TACS).

5. If Christmas assistance is provided on more than one regular route, complete a separate PS Form 1314-A for each employee and for each route on which they provide Christmas assistance.

6. If Christmas assistance is provided on more than one auxiliary route, combine the EMA data and enter the totals on one PS Form 1314-A using route number A998.

Exhibit 11. DESIGNATION 79 PROVIDES CHRISTMAS ASSISTANCE ON ASSIGNED AUXILLIARY ROUTE

1. Des 79 assigned to route A005 carried a regular route on Saturday, Week 2 and another replacement carrier worked on Saturday. Enter an N in the DACA block.

2. Des 79 provided 1.5 hours Christmas assistance on route A005 on Saturday, Week 2.

3. Des 79 took 4 hours of annual leave on Monday, Week 2.

4. Enter hours worked (1.5) in the Xmas Assist Work Hours block. Do not include in Actual Weekly Work Hours.

5. Enter the replacement carrier that carried route A005 on Saturday and Monday on the bottom of PS Form 1314-A.

- Payroll Accounting, Finance, 11-14-02

2002 to 2003 Leave Year - Annual Leave Carryover

The Postal Service 2002 leave year ends on January 10, 2003. The 2003 leave year begins on January 11, 2003. The maximum amount of annual leave that employees may carry over from 2002 into the 2003 leave year appears below.

Care is to be exercised to ensure that employees are not required to forfeit annual leave. As of January 11, 2003, no provisions exist for employees to carry over annual leave in excess of the applicable carryover maximums.

Employees should coordinate with their supervisors to schedule any excess leave before January 11, 2003.

Maximum Carryover Hours Into the 2003 Leave Year*

Employees Eligible for the Annual Leave Exchange Program

Employees who are eligible for the Annual Leave Exchange Program will be notified in November.

For those employees eligible, an election to exchange annual leave during the November 15 to December 15, 2002, open season is not an election to exchange any of the employee's current leave balance. The election is to exchange leave that would otherwise be earned in leave year 2003.

All Postal Service Employees

Note: Leave earned or accumulated in the 2002 leave year in excess of the carryover limits stated above will be lost if not used before January 11, 2003.

* Employees who, on January 1, 1953, had more accumulated leave to their credit than the amounts provided above and who have maintained balances in excess of those amounts may carry over the balance they have maintained.

** PCES executives impacted by organizational change/reduction-in-force are subject to RIF policy.

- Compensation, Employee Resource Management, 11-14-02

PLEASE POST ON ALL BULLETIN BOARDS.

NOTICE TO ALL EMPLOYEES

THRIFT SAVINGS PLAN FACT SHEET

Percentage returns released November 5, 2002, by the Federal Retirement Thrift Investment Board

*Rates of return for May (inception of S and I Funds) through December 2001.

Future performance of the funds will vary and may be significantly different from the returns shown above. See the Summary of the Thrift Savings Plan for detailed information about the funds and their investment risks. The monthly returns of the TSP Funds represent net earnings for the month after deduction of accrued administrative expenses and, except for the G Fund, after deduction of trading costs and accrued investment management fees as well. The returns for the four indexes shown do not include any of these deductions.

* Implemented May 2001.

Please post on bulletin boards. Discard/recycle all previous notices.

Finance

DISTRICTS MIGRATING FROM SFAS TO SAFR

SAFR Unit Maintenance Application

Premigration

Before migrating to Standard Accounting for Retail (SAFR) and Shared Services/Accounting, district accounting offices (DAOs) must verify and update, if necessary, the information in the Standard Field Accounting System (SFAS) unit maintenance file. To update the information without affecting the accounting operation, DAOs will use a Web-based tool called the SAFR Unit Maintenance Application (SUMA). SUMA is a commercial off-the-shelf product that refers to units as "stores" and is available online at http://sea.usps.gov/safr. Prior to the scheduled migration, each DAO's SFAS unit maintenance file will be downloaded into SUMA. DAOs must verify each field in each store/unit record for accuracy. In addition, the DAOs must verify new data elements required by the SAFR application(s), for example, the applicable district finance manager's phone number. Detailed instructions are provided on the SUMA Web site.

Postmigration

Once districts have migrated to SAFR and Shared Services/Accounting, the district finance manager will be responsible for updating and maintaining unit maintenance files in SUMA. Before a new store/unit can be activated, the following must occur at least two weeks in advance:

• Establish the new store/unit in SAFR using SUMA.

• Notify the Eagan Shared Service Center using the existing e-mail address: Sfas New Unit ID-Eagan, MN.

Do not conduct inventory transactions for new stores/units until the store/unit has been established in the SAFR system.

- Revenue and Field Accounting,
Finance, 11-14-02

NOTICE AVAILABLE ONLINE

Notice 25, Postal Accounting Period Planning Schedule, Postal Fiscal Year 2003

Notice 25, Postal Accounting Period Planning Schedule, Postal Fiscal Year 2003, dated April 2002, is available online. Go to the Postal Service PolicyNet Web site at http://blue.usps.gov/cpim; click on Notices.

We will not print/distribute hard copies of Notice 25.

- Corporate Accounting,
Finance, 11-14-02

Annual Vending Machine Income Report Due Soon

A summary of vending machine income sharing and other activities related to the Randolph-Sheppard Act Amendments of 1974 is required for fiscal year 2002 (September 8, 2001, through September 30, 2002). This report (see page 25) complies with an annual request from the Department of Education and Handbook EL-602, Food Service Operations, 441.3.

The report covers proceeds and/or commissions of every Postal Service installation with even a single coin-operated vending machine (stamp machines excepted) selling snacks, drinks, food, or tobacco. Postmasters, installation heads, lead plant and district managers, and district Human Resources and Headquarters field unit managers must prepare or consolidate and send reports as described below by the dates shown.

By December 13, 2002 - All Postmasters and Installation Heads

Send final reports to the processing and distribution lead plant or Customer Service and Sales district level manager. Postmasters must send consolidated reports to appropriate managers (see format for reporting vending machine income provided) including proceeds and/or commissions from vending machines at their branches and stations.

By January 3, 2003 - Lead Plant and District Managers

Consolidate reports by state and forward them to district Human Resources managers.

By January 24, 2003 - District Human Resources Managers and Headquarters Field Unit Managers

Send consolidated reports, summarized by state, to this address:

ANNUAL VENDING INCOME REPORT
MANAGER PERSONNEL OPERATIONS SUPPORT
US POSTAL SERVICE
475 L'ENFANT PLZ SW RM 1831
WASHINGTON DC 20260-4261

- Personnel Operations Support,
Employee Resource Management, 11-14-02

International Mail

ICM UPDATES

International Customized Mail

We have combined ICM updates into one Postal Bulletin article to save space and paper. Three ICM updates appear here.

On October 22, 2002, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: November 5, 2002, through November 4, 2003.

b. Type of mail: Global Express MailTM (EMS). Every item must conform to the mailing requirements set forth in the IMM for EMS.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to transport EMS to international destinations for delivery by the appropriate authorities.

e. Minimum volume commitments: The Mailer has agreed to meet an annualized minimum commitment of 600 pieces of EMS.

f. Worksharing: The Mailer has agreed to:

1. Comply with the terms and conditions for mailing EMS as set forth in the IMM.

2. Pay postage for EMS by means of a dedicated Express Mail Corporate Account (EMCA) in accordance with the EMCA requirements set forth in the Domestic Mail Manual (DMM).

g. Rates: The Mailer has agreed to pay postage at a rate discounted at eight (8) percent off nondiscounted published rates in effect on the date of mailing in accordance with Exhibit 1.

Exhibit 1

On October 22, 2002, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: November 5, 2002, through November 4, 2003.

b. Type of mail: Global Express MailTM (EMS). Every item must conform to the mailing requirements set forth in the IMM for EMS.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to transport EMS to international destinations for delivery by the appropriate authorities.

e. Minimum volume commitments: The Mailer has agreed to meet an annualized minimum commitment of $20,000 in postage for EMS.

f. Worksharing: The Mailer has agreed to:

1. Comply with the terms and conditions for mailing EMS as set forth in the IMM.

2. Pay postage for EMS by means of a dedicated Express Mail Corporate Account (EMCA) in accordance with the EMCA requirements set forth in the Domestic Mail Manual (DMM).

g. Rates: The Mailer has agreed to pay postage at a rate discounted at ten (10) percent off nondiscounted published rates in effect on the date of mailing in accordance with Exhibit 1.

Exhibit 1

On October 22, 2002, the Postal Service entered into an International Customized Mail (ICM) Service Agreement with a Qualifying Mailer. In accordance with International Mail Manual (IMM) 297.4, the Postal Service now makes public the following information concerning the Agreement:

a. Term: November 5, 2002, through November 4, 2005.

b. Type of mail: Global Express MailTM (EMS). Every item must conform to the mailing requirements set forth in the IMM for EMS.

c. Destination countries: Worldwide.

d. Service provided by the Postal Service: The Postal Service has agreed to transport EMS to international destinations for delivery by the appropriate authorities.

e. Minimum volume commitments: The Mailer has agreed to meet an annualized minimum commitment of 600 pieces of EMS or $12,000 in postage for EMS.

f. Worksharing: The Mailer has agreed to:

1. Comply with the terms and conditions for mailing EMS as set forth in the IMM.

2. Pay postage for EMS by means of a dedicated Express Mail Corporate Account (EMCA) in accordance with the EMCA requirements set forth in the Domestic Mail Manual (DMM).

g. Rates: The Mailer has agreed to pay postage at a rate discounted at eight (8) percent off nondiscounted published rates in effect on the date of mailing in accordance with Exhibit 1.

Exhibit 1

- International Business, 11-14-02

Philately

Pictorial Cancellations Announcement

As a community service, the Postal Service offers pictorial cancellations to commemorate local events celebrated in communities throughout the nation. A list of events for which pictorial cancellations are authorized appears below. If available, the sponsor of the pictorial cancellation appears in italics under the date. Also provided, as space permits, are illustrations of those cancellations that were reproducible and available at press time.

People attending these local events may obtain the cancellation in person at the temporary Post Office station established there. Those who cannot attend the event, but who wish to obtain the cancellation, may submit a mail order request. Pictorial cancellations are available only for the dates indicated, and requests must be postmarked no later than 30 days following the requested pictorial cancellation date.

All requests must include a stamped envelope or postcard bearing at least the minimum First-Class Mail® postage. Items submitted for cancellation may not include postage issued after the date of the requested cancellation. Such items will be returned unserviced.

Customers wishing to obtain a cancellation should affix stamps to any envelope or postcard of their choice, address the envelope or postcard to themselves or others,insert a card of postcard thickness in envelopes for sturdiness, and tuck in the flap. Place the envelope or postcard in a larger envelope and address it to: PICTORIAL CANCELLATIONS, followed by the NAME OF THE STATION,ADDRESS, CITY, STATE, ZIP + 4 CODE, exactly as listed below (using all capitals and no punctuation, except thehyphen in the ZIP + 4 code).

Customers can also send stamped envelopes and postcards without addresses for cancellation, as long as they supply a larger envelope with adequate postage and their return address. After applying the pictorial cancellation, the Postal Service returns the items (with or without addresses) under addressed protective cover.

- Stamp Services,
Government Relations and Public Policy, 11-14-02

Special Cancellation Die Hubs

Postmasters and plant managers who have any of the special cancellation die hubs listed below may use them for the periods designated. At the end of the period, these die hubs must be withdrawn and stored. Postmasters and plant managers who do not have these special die hubs may not request them from the sponsors.

USPS to Track Commercial Air Carrier Performance

Nov. 6

Beginning next spring, USPS will require airline transportation carriers to scan mail from the time they receive it until it's turned over to the Postal Service. With tracking in place, USPS will be in a better position to determine if it's getting the biggest bang for its buck. The Postal Service is negotiating a new contract with commercial air carriers that includes these tracking enhancements. The contract - scheduled to begin in May 2003 - will include incentives based on contractor pricing, contractor performance measurements and adjustments to mail assignments.

The announcement followed Board of Governors approval to fund the technology, the second phase of its Surface Air Support System.

USPS Could Hold Rates Until 2006

Nov. 5

Some good financial news may help USPS keep postage rates stable until 2006, two years longer than anticipated. PMG Jack Potter told the Board of Governors that USPS has met much more of its financial obligation to the Civil Service Retirement System than the government thought, thanks to a new analysis by the Office of Personnel Management (OPM). Federal legislation will be required to implement the results of this new analysis, but the findings have the potential to allow USPS to hold postage rates at their current level until 2006. "All these positive financial outcomes for our ratepayers depend on statutory change," said Potter. He indicated that OPM has drafted such legislation, and OPM, the Office of Management and Budget and the Department of the Treasury have offered their support to brief lawmakers on Capitol Hill.

These new findings will have no impact on current postal employee retirement contributions, nor on future benefits. There will be no effect on current CSRS postal retiree annuities. Potter also told the Board that the improved financial picture will allow management to focus more on the long-term health of the postal system. "I remain committed to the Postal Service's Transformation Plan," he said, including the promise "to take $5 billion out of our operating expenses through 2006, over and above the savings we expect to realize by implementing the legislative changes connected with our CSRS funding."

Service Continues at Record Levels

Nov. 5

USPS continues to achieve record-breaking delivery scores for First-Class Mail in the nation's metropolitan areas. Consumer Advocate Francia Smith told the board of governors that First-Class Mail was delivered on time an average 94% of the time during the last quarter of Fiscal Year 2002. This is the second consecutive quarter First- Class Mail has met this benchmark nationwide.

North Dakota, South Dakota, central Illinois and San Jose, CA, each achieved on-time delivery performance scores of 96%. An additional 28 performance clusters had on-time delivery scores of 95%. Smith also noted that the most recent Gallup survey shows 93% of households nationwide reported having a positive view of the Postal Service. This is the fourth consecutive quarter in which ratings of overall performance have reached 93%.

POS ONE Speeds Service

Nov. 5

POS ONE is more than just a state-of-the-art cash register system for USPS. The system is expected to reduce customer waiting time at counters by 10% on average, while providing a fully integrated network for accounting, marketing, payroll and sales. Point-of-sale - POS ONE - retail terminals will be deployed at Post Offices that bring in more than 90% of retail revenue. Once deployment is completed by mid-2005, there will be 63,588 POS ONE terminals at 15,015 Post Offices. More than 10,000 Post Offices already use this technology, accounting for 74% of walk-in revenue.

"POS ONE plays a major role in reaching our goals of improving customer service and ensuring that our employees have the tools they need to efficiently and easily provide postal services to our customers," said Henry Pankey, VP for Delivery and Retail. "Retail associates receive consistent information on a daily basis to keep them up-to- date on corporate direction, promotions, and new product and service offerings, as well as keeping them abreast of immediate changes in policies. POS ONE eliminates the need for a separate machine to process credit and debit card authorizations."

Parcel Select Offers "Early Bird" Hours

Oct. 29

Package customers who take advantage of "early bird" Parcel Select Destination Delivery Unit acceptance hours will find that many locations will provide same-day or next- day delivery. "Parcel Select mailers asked and we responded," said Chief Operating Officer Pat Donahoe. "They wanted early-bird hours, and we wanted their business, so we opened at five in the morning." Large postal facilities that serve 6,000 or more ZIP Codes have expanded hours, and customers can find postal facility drop-off locations on- line at www.usps.com.

Parcel Select service allows high-volume shippers to earn discounts by bypassing processing operations to enter parcels into the mail stream as close as possible to the delivery Post Office. Early-bird hours benefit the mailers because it allows the mail to be introduced into the system earlier. "Many of the packages dropped during our early- bird hours will be delivered the same day, with the rest the next day," Donahoe said.

Post Offices

REMINDER

Retrieval of Plastic Label Holders

We have been notified that Postal Service facility opening units (LDC 010) are not saving the plastic label holders used to close and address plastic sacks destinating at their locations. We have also noted that the national inventory of plastic label holders has fallen far below the inventory levels of sacks on which they are used.

Plastic label holders are reusable and must not be thrown away. Do not intentionally remove them from the draw tapes of sacks on which they are attached. After emptying each plastic sack, remove the label from the label holder, and prepare the sack/label holder combination for return to the serving Mail Transport Equipment (MTE) service center.

Consolidate separated label holders from their sacks for return to the MTE service center, along with the sacks. Please contact your serving area mail transport equipment specialist (AMTES) for more site-specific shipping information.

Following is a list of AMTESs and their contact information.

- Mail Transport Equipment,
Network Operations Management, 11-14-02

Retail

Supply Management

UPDATE

USPS Official Licensed Product Manufacturers and Distributors

The following list contains all current USPS Official Licensed Product manufacturers and distributors. Changes and additions are in bold. Employees may use this information to purchase products for personal use or as premiums and giveaway items. These products are not for resale.

Product for Postal Service retail stores are available through the Official Licensed Retail Product (OLRP) program. For more information regarding the OLRP program, please contact your area or district retail manager.

USPS Promotional Products

Apparel and Jewelry

Posters and Enlargements

Toys and Games

Commercial Novelty

- Licensing,
Public Affairs and Communications, 11-14-02

NOTICE

Heroes of 2001 Merchandise for Sale

Use of the Heroes of 2001 stamp image remains highly restricted. The Postal Service has been granted the right to use the image on limited merchandise, such as mugs, key chains, pins, framed art, that has undergone product review by the Postal Service and the other rights holders: The Record (Bergen County, NJ) and the firefighters who are featured in the photograph.

These products may be used as giveaway items for employees and customers and for resale at Postal Service events.

You can order Heroes of 2001 products using authorized Postal Service purchasing methods from the following list of official licensees. Only the companies listed below have been authorized to use this restricted image within their grant of rights; therefore, purchase products only from the list of licensed vendors below.

If you have questions on pricing, quantity, or any other purchasing information, please contact the vendors listed below.

- Licensing, Public Affairs and Communications, 11-14-02

New Excess Item Catalog Available to eBuy Users

National Supply Management Programs has recently deployed a new Excess Item Catalog and added it to the eBuy catalog menu. The primary purpose of this catalog is to promote the redistribution of excess assets. The catalog is available to 26,000 eBuy users and district Material Management specialist (DMMSs) who can list and use excess assets as needed. All items listed in this catalog are free; however, transportation costs may be required.

The DMMSs will play a key role in this process by coor- dinating the inclusion of all district excess assets, and promoting the redistribution in lieu of new acquisitions. Material Logistics Bulletin MLB-PP-02-014, dated 10/25/02, titled "New Excess Item Catalog (EIC) in eBuy Purchasing System," provides instructions for accessing eBuy and the new catalog. Material Logistics Bulletins are available at the following URL (all lower case) address: http://blue.usps.gov/purchase/material/mlb/mlbindex.htm.

All DMMSs are required to take the online Web-based training and, once they complete it, they will have the skills necessary to effectively manage local excess. Access the Web-based training as follows:

1. From Internet Explorer (V.50 or higher), go to the blue page at http://blue.usps.gov and type "ebuy" in the address line and then hit the Return key. (The direct URL is http://ebuy.usps.gov/jsp/co/Login.jsp; note that this URL is case sensitive.)

2. At the top of the eBuy logon page, click on Training.

3. When the "Welcome to eBuy Training" page becomes available, click on USPS Excess Items Course.

4. Once you have completed the course, you are encouraged to begin listing excess equipment into the system.

In compliance with Postal Service policy, all eBuy users should use excess as their first source of supply.

- Supplies Material Management,
Supply Management, 11-14-02

I.M.P.A.C. CREDIT CARD HOLDERS

I.M.P.A.C. VISA Payment Process

Under established monthly electronic billing and payment procedures, on the 18th of the month, U.S. Bank sends one consolidated electronic invoice to the San Mateo Accounting Service Center (ASC) covering all Postal Service I.M.P.A.C. VISA card purchases. In turn, the ASC issues one consolidated electronic payment to U.S. Bank.

The card holder and the credit card approving official verify invoices using procedures described in Chapter 4 of Handbook AS-709, Credit Card Policies and Procedures for Local Buying. At the end of each billing cycle (18th of the month), U.S. Bank will mail each card holder a "Statement of Account" reflecting the individual card holder's transactions for the billing cycle. When a card holder receives this monthly statement from U.S. Bank, the transactions are already included in the monthly electronic billing to the San Mateo ASC. Do not send checks or money orders to U.S. Bank, the ASC, or to Headquarters Finance Department. The statement is for reconciliation purposes only.

Personal Charges on the Government I.M.P.A.C. VISA Card

Do not use the government I.M.P.A.C. VISA card for personal purchases under any circumstances. If you are a card holder, and use the card for a personal purchase, you must contact the merchant immediately and ask them to debit your personal credit card and credit the government I.M.P.A.C. card. If this is impossible, write a check payable to the U.S. Postal Service and send it, with a letter of explanation, to the Disbursing Officer at the Eagan ASC at:

EAGAN ACCOUNTING SERVICE CENTER
US POSTAL SERVICE
2825 LOAN OAK PKWY
EAGAN MN 55121-9611

Notify your credit card accounting official and agency program coordinator of the error and corrective action taken.

- National Supply Management Programs,
Supply Management, 11-14-02

Postal Bulletin Distribution

The GPO distributes the Postal Bulletin for the Postal Service to all postal facilities except classified stations and branches, contract postal units, and detached mail units, which receive copies from their administrative post office. The Postal Bulletin is also available online at http://www.usps.com (click on Info, then Postal Periodicals and Publications).

If your postal facility has access to cc:Mail, you may send a request for a new subscription order, an address and/or quantity change, or a subscription query to the cc:Mail address POSTAL BULLETIN. If you are using another email product, you can use the Internet emailaddress pbulleti@email.usps.gov.

If you do not have access to email, you may complete the order form and mail it to:

ATTN POSTAL BULLETIN
US POSTAL SERVICE
475 L'ENFANT PLZ SW RM 5540
WASHINGTON DC 20260-5540

Either way you send it, please include the "PO0"subscription number from your address label.