Employees (Continued)

e. New York City, NY; Kansas City, MO; Detroit, MI; St. Louis, MO; and Madison County, KY, are the only localities that allow income deferral for TSP. Box 18, "Local wages, tips, etc.," will be reduced by the amount of employee TSP contributions only if New York City, NY; Kansas City, MO; Detroit, MI; St. Louis MO; or Madison County, KY, are indicated in Box 20, "Locality name."

Employee Business Expense (EBE)

Equipment maintenance allowance (EMA), carrier drive- out, vehicle hire, supervisor vehicle usage, and special delivery are all considered employee expenses. Box 32, "Employee business expense," will contain the nontaxable (not the total) EBE amount, while Box 33, "Taxable Employee business expense," will contain the taxable EBE amount. The taxable amount shown in Box 33 will also be included in Box 1, "Wages, tips, other compensation."

Flexible Spending Account

The amount contributed to an employee's FSA for health care will be included in Box 40, "FSA health care." The amount contributed to dependent care will be included in Box 10, "FSA Dependent care benefits." Both have been deducted from Box 1, "Wages, tips, other compensation."

Health Benefit Pretax

The amount contributed for health benefit premiums are considered pretax unless the employee declined the pretax benefit. The health benefit pretax amount is shown in Box 37, "Pre-tax health benefits," and has been deducted from Box 1, "Wages, tips, other compensation."

State/Territory Gross Wages

The amount in Box 16, "State wages, tips, etc.," will equal Box 1 with the following exceptions: New Jersey, Pennsylvania*, and Puerto Rico do not allow income deferral. Therefore, the employee TSP, FSA, and health benefit pretax contributions are not deducted from their state gross.

* Pennsylvania law was changed in 1997 to allow income deferral for FSAHC and health benefit pretax. Therefore, only these two amounts will be deducted from Pennsylvania state gross.

Pennsylvania is the only state that does not require the imputed income life insurance to be added into the state gross.

Annuity Protection Program

Form W-2s are issued to former employees who receive payments from the Postal Service under the Annuity Protection Program. Any questions regarding these Form W-2s should be directed to:

PAYROLL BENEFITS BRANCH
EAGAN ACCOUNTING SERVICE CENTER
2825 LONE OAK PKWY
EAGAN MN 55121-9621

Relocation Payments

Relocation wages are reported in Box 39, "Relocation gross," on the Form W-2.

Relocation gross is reduced by the excludable reportable amount reported in Box 12a or 12b before it is added to Box 1, "Wages, tips, other compensation."

Excludable reportable wages are reported in Box 12a or 12b with a code "P." Letter code "P" is explained on the reverse side of Form W-2 in "Notice to Employee."

4. Obtaining Duplicate Forms

To obtain duplicate forms employees may call the Accounting Help Desk at 866-974-2733. All requests must include:

1. Employee's name.

2. Current mailing address.

3. Social Security number.

4. Name of office where employed (or where previously employed if not a current Postal Service employee).

5. Year(s) requested.

6. Employee's signature.

* If unsuccessful requesting duplicate Form W-2s from the DDE/DDR site, duplicates can also be requested in writing from:

FINANCIAL REPORTING SECTION (W 2S)
EAGAN ACCOUNTING SERVICE CENTER
2825 LONE OAK PKWY
EAGAN MN 55121-9617

Form W-2c, Corrected Wage and Tax Statement

1. General Form W-2c Information

The Postal Service uses Form W-2c, Corrected Wage and Tax Statement, to correct errors previously filed on a Form W-2. The Form W-2c will only report the corrections and should be used in conjunction with the original Form W-2 issued when filing taxes and/or other related information.

2. Requesting a Form W-2c

All requests for a Form W-2c must be submitted in writing. The request must include:

1. Employee's name.

2. Current mailing address.

3. Social Security number.

4. Name of office where employed (or where previously employed if not a current Postal Service employee).

5. Year(s) requested.

6. Reason for request.

7. Employee's signature.

3. Obtaining Duplicate W-2c Forms

All requests for a duplicate W-2c must be submitted in writing. The request must include:

1. Employee's name.

2. Current mailing address.

3. Social Security number.

4. Name of office where employed (or where previously employed if not a current Postal Service employee).

5. Year(s) request.

6. Employee's signature.

IRS Forms 1099

Depending on your specific circumstances, up to three different IRS Forms 1099 may be issued to you. They are:

• IRS Form 1099-MISC, Miscellaneous Income

• IRS Form 1099-R, Distributions from Pensions, Annuities, Retirement or Profit Sharing Plans, IRAs, Insurance Contracts, etc.

• IRS Form 1099-INT, Interest Income

1. Form 1099-MISC

Form 1099-MISC originates from all three accounting service centers (ASCs). Please determine the nature of the payments and contact the appropriate office/ASC.

2. Form 1099-R

This year, both the Office of Personnel Management (OPM) and the Eagan Accounting Service Center are sending out Form 1099-R. Eagan sends them for Annuity Protection Program checks, and OPM sends them for monthly annuity checks. The originating agency should be listed on the Form 1099-R. Try to determine which agency made the payments before making the inquiry.

3. Form 1099-INT

Form 1099-INT is used to report interest payments that were the result of employment related settlements against the Postal Service.

- Payroll Accounting,
Finance, 12-25-03

NOTICE

RIF Competitive Areas for the Postal Service

The Office of Personnel Management requires agencies covered by reduction-in-force (RIF) procedures to establish Competitive Areas and to publish them for their employees. Competitive Areas are organizational units under separate management authority within which preference-eligible employees compete during a RIF. Listed below are the Competitive Areas for the Postal Service TM as of December 25, 2003.

¹ The units located in the Washington, DC, commute area are part of the parent national Headquarters organization Competitive Area.

- Selection, Evaluation, and Recognition,
Employee Resource Management, 12-25-03

2004 Social Security and Medicare Tax Withholding

For 2004, the maximum limit on earnings for withholding in the Old-Age, Survivors, and Disability (OASDI) portion of the Social Security tax increases from $87,000 to $87,900. This is a $900 increase from the 2003 limit. The Social Security tax rate remains at 6.2 percent, resulting in a maximum Social Security tax of $5,449.80. This is a $55.80 increase from the 2002 limit of $5,394.00. 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 2004.

The information in the following table is effective January 1, 2004.

- Payroll Accounting,
Finance, 12-25-03

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 2004. 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.

Note: This article is normally published earlier in the calendar year to coincide with the federal publication of the new earned income credit information. However, the publication of that information has been delayed. Because of this delay, personnel offices must receive the Form W-5 by no later than January 4, 2004, which is the beginning of the second week of Pay Period 02-04, to ensure that the information on the form will be effective as soon as possible in the new calendar year.

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 (1) employees are responsible for timely submission of their Form W-5 and (2) IRS regulations mandate that all employers submit copies of all Forms W-5 received from their employees. 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 the following address:

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

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

- Payroll Accounting,
Finance, 12-25-03

Form W-4 Completion for Calendar Year 2004

Internal Revenue Service (IRS) regulations permit employees who anticipate no federal tax liability for 2004 to continue to claim total exemption from federal tax withholding provided they owed no federal taxes for 2003. These regulations also require that a new Form W-4, Employee's Withholding Allowance Certificate, be submitted every calendar year. Because of PostalEase, employees no longer need to file a hard copy Form W-4.

IRS filing requirements concerning Form W-4s are met by calling the PostalEase toll-free number at 877-477-3273. Follow the Form W-4 instructions provided by PostalEase, and your form will be updated for calendar year 2004.

Any employee currently in an exempt status who does not use PostalEase to submit a new Form W-4 to claim a continuation of his or her exempt status will be converted to a taxable status, effective Pay Period (PP) 05-04. For exempt information on a Form W-4 to remain effective into the next year, the IRS requires completion, submission, and acceptance of the form no later than February 6, 2004. Since February 6 falls within PP-05, the new information on the Form W-4s must be entered into PostalEase by no later than Friday, February 6, 2004. Any employee who claimed exempt status for 2003 who does not update in PostalEase will have federal taxes withheld at the rate that would normally be applicable to a single employee with no dependent allowances. Employees with a current exempt status (as of PP 26-03) will receive printed messages on their earnings statement during PP 02-04 and 03-04 reminding them that a new Form W-4 is required.

Reminder: Personnel offices should not provide tax advice to employees about completing Form W-4s. Additionally, since all employees must now use PostalEase to update their Form W-4s, the practice of sending certain hard copies of the forms to the Eagan Accounting Service Center was discontinued last year. The IRS will be notified electronically of all employees who claim more than 10 withholding allowances and/or total exemption from withholding.

- Payroll Accounting,
Finance, 12-25-03

Finance

NEW AND OBSOLETE MANAGEMENT INSTRUCTIONS

Advance Payments

Management Instruction (MI) FM-610-2003-1, Advance Payments, is now available on the Postal Service TM PolicyNet Web site; go to http://blue.usps.gov; click on More References, then MIs.

This MI replaces MI FM-610-96-1, also titled Advance Payments.

The new MI differs from the obsolete MI as follows:

• Change in approval process. The vice president of Controller/Finance must approve requests in excess of $1 million. Approvals for other levels of spending are unchanged.

• Added requirement. All software maintenance fees expected to be paid in the following fiscal year must be submitted to the manger of Accounting each August.

- National Accounting,
Finance, 12-25-03

NOTICE AVAILABLE ONLINE

Notice 25, Monthly Planning Schedule, Fiscal Year 2004

Notice 25, Monthly Planning Schedule, Fiscal Year 2004, is available on the Postal Service TM PolicyNet Web site; go to http://blue.usps.gov; click on More References, then Notices. It is also available on the Finance Web site; go to http://blue.usps.gov; click on Finance, then scroll down on the left side of the screen to "Calendars & Events."

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

- National Accounting,
Finance, 12-25-03

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 2003 (September 7, 2002, through September 30, 2003). 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 TM 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 January 26, 2004 - 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 February 16, 2004 - Lead Plant and District Managers

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

By March 8, 2004 - District Human Resources Managers and Headquarters Field Unit Managers

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

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

- Personnel Operations Support,
Employee Resource Management, 12-25-03

International Mail

ICM UPDATES

International Customized Mail

We have combined ICM updates into one Postal Bulletin article to save space and paper. 7 ICM updates appear here.

On November 14, 2003, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated August 7, 2002. The Agreement was published on page 31 of Postal Bulletin 22083 (8-22-02). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: August 7, 2002, through August 20, 2004.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On November 14, 2002, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated October 31, 2002. The Agreement was published on page 51 of Postal Bulletin 22090 (11-28-02). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: October 31, 2002, through November 13, 2006.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On November 25, 2003, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated December 3, 2002. The Agreement was published on page 72 of Postal Bulletin 22092 (12-26-02). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: December 17, 2002, through December 16, 2004.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On December 3, 2003, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated January 29, 2003. The Agreement was published on page 60 of Postal Bulletin 22096 (2-20-03). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: February 12, 2003, through February 11, 2006.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On December 3, 2003, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated January 29, 2003. The Agreement was published on page 60 of Postal Bulletin 22096 (2-20-03). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: February 12, 2003, through February 11, 2006.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On December 3, 2003, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated December 17, 2002. The Agreement was published on page 42 of Postal Bulletin 22096 (2-20-03). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: December 31, 2002, through December 30, 2005.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

On December 3, 2003, the Postal Service TM amended an International Customized Mail (ICM) Service Agreement dated January 29, 2002. The Agreement was published on page 62 of Postal Bulletin 22096 (2-20-03). The Amendment modifies the term of the Agreement. In accordance with International Mail Manual (IMM) 297.4, the Postal Service previously announced entering into an International Customized Mail Service Agreement with this qualifying mailer and now makes public the following information regarding this Amendment:

a. Term: February 12, 2002, through February 11, 2005.

b. Type of mail: All other provisions of the Agreement shall remain in force.

c. Destination countries: All other provisions of the Agreement shall remain in force.

d. Service provided by the Postal Service: All other provisions of the Agreement shall remain in force.

e. Minimum volume commitments: All other provisions of the Agreement shall remain in force.

f. Worksharing: All other provisions of the Agreement shall remain in force.

g. Rates: All other provisions of the Agreement shall remain in force.

- Pricing Strategy,
Pricing and Classification, 12-25-03

Philately

STAMP ANNOUNCEMENT 03-37

Snowy Egret Definitive Stamp

The Postal Service TM will issue a 37-cent Snowy Egret definitive stamp (Item 672600) in a pressure-sensitive adhesive (PSA) convertible booklet of 20 on January 30, 2004, in Norfolk, Virginia. The stamp, designed by Carl T. Herrman, Carlsbad, California, goes on sale nationwide January 31, 2004.

The Snowy Egret stamp features artist Nancy Stahl's rendering of a snowy egret, which is considered one of the most beautiful American birds. The stamp art, based on photographs, depicts the head and upper body of a snowy egret against a blue background.

This stamp was issued in a coil of 100 on October 24, 2003, in New York, New York.

How to Order the First Day of Issue Postmark

Customers have 30 days to obtain the first day of issue postmark by mail. They may purchase new stamps at their local Post Office TM, by telephone at 800-STAMP-24, and at the Postal Store Web site at www.usps.com/shop. They should affix the stamps to envelopes of their choice, address the envelopes (to themselves or others), and place them in a larger envelope addressed to:

SNOWY EGRET DEFINITIVE BOOKLET FDOI
POSTMASTER
2600 ELTHAM AVE STE 109
NORFOLK0 VA 23513-2504

After applying the first day of issue postmark, the Postal Service will return the envelopes through the mail. There is no charge for the postmark. All orders must be postmarked by February 29, 2004.

How to Order First Day Covers

Stamp Fulfillment Services also offers first day covers for new stamp issues and Postal Service stationery items postmarked with the official first day of issue cancellation. Each item has an individual catalog number and is offered in the quarterly USA Philatelic catalog. Customers may request a free catalog by telephoning 800-STAMP-24 or writing to:

INFORMATION FULFILLMENT
DEPT 6270
US POSTAL SERVICE
PO BOX 219014
KANSAS CITY MO 64121-9014

First day covers remain on sale for at least 1 year after the stamp's issuance.

Philatelic Products

There are no philatelic products for this stamp issue.

Distribution: Item 672600, $7.40 Snowy Egret PSA Convertible Booklet of 20

Stamp distribution offices (SDOs) will receive two automatic distributions of this convertible booklet of 20 self-adhesive definitive stamps. Wave 1 distribution of approximately one-half the standard automatic distribution quantity for a 20-stamp booklet will complete shipment December 18, 2003.

Wave 2 distribution, also approximately one-half the standard automatic distribution quantity for a 20-stamp booklet, will complete shipment March 5, 2004. Distribution quantities are rounded up to the nearest master carton size (4,000 booklets).

Initial Supply to Post Offices

From their initial automatic distribution, SDOs will make a subsequent automatic distribution to Post Offices for one- half of their standard automatic distribution quantities using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute this definitive stamp booklet to Post Offices before January 26, 2004.

Philatelic Requirement

SDOs will not receive a separate quantity of this definitive booklet for their authorized philatelic centers. Philatelic centers must be supplied their quantities from the initial automatic distribution made to SDOs.

Additional Supply

Post Offices requiring additional Item 672600 must requisition them from their designated SDO using PS Form 17. SDOs requiring additional booklets must order them from the appropriate accountable paper depository (APD) using PS Form 17.

For fulfilling supplemental orders from SDOs, the Chicago, Memphis, and New York APDs will each receive 1,060,000 additional booklets; the San Francisco APD will receive 800,000 additional booklets; and the Denver APD will receive 488,000 additional booklets. These supplemental quantities will be provided to APDs in both Wave 1 and Wave 2 of distribution.

- Stamp Services,
Government Relations, 12-25-03

STAMP ANNOUNCEMENT 03-38

Prepaid Priority Mail Flat Rate Stamped Envelope

The Postal Service TM will issue a new version of the Priority Mail® flat rate envelope (Item 212110) on December 29, 2003, in Washington, DC. The new product is an accountable item and features the $3.85 Jefferson Memorial stamp image printed directly on the envelope along with standard Priority Mail graphics. The prepaid envelope seeks to enhance customer convenience, improving access to USPS® services by saving time and simplifying transactions.

The Jefferson Memorial stamp, which was designed by Derry Noyes of Washington, DC, and photographed by Carol Highsmith, Takoma Park, Maryland, originally went on sale July 30, 2002. The stamp will continue to be sold via all current outlets.

Note: the prepaid envelope will not be available in Post OfficesTM at this time, but only via the Postal Store Web site at www.usps.com/shop, by telephone at 800-STAMP-24, and via the USPS Inside Sales team.

How to Order the First Day of Issue Postmark

Customers can order envelopes with the first day of issue postmark at a cost of $4.23 each. They can purchase the envelopes by telephone at 800-STAMP-24, at the Postal Store Web site at www.usps.com/shop, or by mail.

After applying the first day of issue postmark, the Postal Service will fulfill the envelopes through the mail.

Orders by mail should be sent to:

STAMP FULFILLMENT SERVICES
8300 NE UNDERGROUND DR PILLAR 210
KANSAS CITY MO 64144-0001

Philatelic Products

There is no philatelic product for this stamped envelope.

Distribution: Item 212110, $3.85 Prepaid Priority Mail Flat Rate Stamped Envelope

Stamp distribution offices will not receive quantities of this item at this time.

Initial Supply to Post Offices

Post Offices will not receive the prepaid envelope item at this time. However, there are plans to offer prepaid envelopes via Post Offices at a later date.

Philatelic Requirement

Philatelic centers will not receive this item at this time, but will be notified separately of future plans.

Sales Policy

Initially, envelopes will be available only via the Postal Store Web site at www.usps.com/shop, by telephone at 800-STAMP-24, and via the USPS Inside Sales team. Post Offices will be notified of any distribution plans at a later time.

- Stamp Services,
Government Relations, 12-25-03

Breast Cancer Research Semipostal Stamps Withdrawn From Regular Sale and From Sale at Philatelic Centers - Statutory Authority Will Expire December 31

Effective close of business December 31, 2003, all Post OfficesTM, stations, branches, postal stores, contract postal units, vending outlets, and authorized philatelic centers must withdraw from sale the Breast Cancer Research semipostal stamps and products listed below. They must withdraw stamps and stock items from the retail counters, return them to the unit reserve, and hold them until we send further instructions. Also, all offices should remove any visible Breast Cancer Research semipostal stamp stock on display.

Absolutely no sales of the Breast Cancer Research semipostal stamps and products listed below are permitted at retail counters and outlets after December 31, 2003. The items listed below are also withdrawn from sale at Stamp Fulfillment Services (SFS) and the Online Postal Store.

Currently, legislation is pending in Congress to reauthorize the Breast Cancer Research semipostal stamps for an additional two years. If that legislation is enacted, we will notify you if or when the Breast Cancer Research semipostal stamps will be returned for sale.

Retail associates should use the following message when speaking with customers regarding the Breast Cancer Research semipostal stamp:

The Congressional authorization for the Postal Service's sale of the Breast Cancer Research semipostal stamp expired on December 31st, so we had to stop selling the stamp. If Congress restores the authorization, we will begin selling the stamp again.

- Stamp Services,
Government Relations, 12-25-03

Semipostal Counter Card Instructions

The New Year '04 drive period begins December 27, 2003, and runs through March 31, 2004. Retail employees in all units are reminded to display all the new point-of- purchase (POP) elements according to the planograms included in the POP kits. Despite the moratorium on the sale of the Breast Cancer Research semipostal stamp effective close of business December 31, 2003, the semipostal stamps counter card already on display on retail counters in postal retail units (except Kit 1 offices) should remain on display until further notice. This element depicts all three semipostal stamps: Breast Cancer Research, Heroes of 2001, and Stop Family Violence.

- Retail Planning and Development,
Service and Market Development, 12-25-03

Self Service Vending Instructions

Effective immediately, SSPC technicians and personnel who service vending machines must, at their next regular servicing, remove all Breast Cancer Research semipostal stamps (Item 367200). The task must be completed by close of business, December 31, 2003.

• This action is necessary because this is the last sales date authorized by legislation. Therefore, by existing law the Postal Service cannot sell this stamp beyond December 31, 2003.

• On or before December 31, when servicing machines containing the Breast Cancer Research semipostal stamp, vending servicing personnel must remove these stamps and secure them within their individual vending unit subaccount established for each vending machine. These stamps will remain within this accountability until we provide future disposition instructions. For further information, reference Handbook PO-102, Self Service Vending Operational and Marketing Program, Chapter 5, Financial Control

• Replace the Breast Cancer Research semipostal stamp with either the Heroes of 2001 semipostal stamp (Item 367400) or the Stop Family Violence semipostal stamp (Item 367500). Depending on the choice of the replacement product, insert the corresponding product identifier in the product selection window.

- Self Service and Access Management,
Delivery and Retail, 12-25-03

Stamp Stock Items Withdrawn From Regular Sale and From Sale at Philatelic Centers

Effective close-of-business December 31, 2003, all Post OfficesTM, stations, branches, postal stores, vending outlets, and authorized philatelic centers must (1) withdraw the stamp stock items and products listed below and their related vending and store-prepared stamp items from sale and (2) prepare them for destruction. Submit items to destruction sites according to local established procedures, under the guidelines in Handbook F-1, Post Office Accounting Procedures, subchapter 45, Destroying Stamp Stock.

Do not permit sales of the stamp stock items, products, and their related vending and store-prepared stamp items listed below at retail counters and outlets after December 31, 2003, unless otherwise instructed. Items listed are also withdrawn from sale at Stamp Fulfillment Services (SFS).

Exceptions: Stamp items listed below are off sale at SFS effective December 31, 2003. However, they will remain on general sale until further notice.

- Stamp Services,
Government Relations, 12-25-03

Pictorial Cancellations Announcement

As a community service, the Postal Service TM 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 OfficeTM 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 the hyphen 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.

The following cancellation has been extended for 30 days.

November 25, 2003

Sra. Ana S. Toro Vda. De Fourquet

ESCUELA DE LA COMUNIDAD SEGUNDO RUIZ BELVIS STATION

POSTMASTER

PICTORIAL CANCELLATION COORDINATOR

CARIBBEAN DISTRICT

585 AVE FD ROOSEVELT STE 223

SAN JUAN PR 00936-9996

- Stamp Services,
Government Relations, 12-25-03

Post Offices

2003 IRS Tax Packages

On December 26, 2003, contract mailers for the Internal Revenue Service (IRS) will begin mailing approximately 60 million tax-related items for tax year 2003. The total includes approximately 34 million individual tax packages. The remaining quantity of approximately 26 million items will consist of pamphlets that promote electronic filing. Each year, the IRS reduces the number of individual tax packages it mails as more taxpayers transition from filing paper tax returns to filing electronically.

All mail should be entered by mid-January 2003. Postage will be paid through IRS Permit Imprint Number G-48. Tax packages for Alaska, Hawaii, and Puerto Rico will be mailed using Priority Mail® drop shipment.

Acceptance Offices

Contract mailers for the IRS will prepare tax packages for mailing at the Standard Mail Enhanced Carrier Route rates. Acceptance office employees must verify that mailings meet all preparation and marking requirements in the Domestic Mail Manual (DMM).

Contract mailers will deliver the mail to plants according to scheduled appointment dates recorded in the Drop Shipment Appointment System (DSAS) and will also provide PS Form 8125, Plant-Verified Drop Shipment (PVDS) Verification and Clearance. Plant personnel must verify trailer contents with mailer information recorded on PS Form 8125. Acceptance office employees must verify that tax package mailings are prepared according to the presort requirements for Enhanced Carrier Route Standard Mail. Acceptance office employees must weigh and verify mailings unless the Rates and Classification Service Center (RCSC) serving the Post OfficeTM of mailing authorizes an optional procedure for that contract mailer. The contract mailer must provide supporting paperwork for the optional procedure at the time of mailing. This verification ensures that the rates and piece counts reported on the postage statements are accurate and that the IRS has paid the correct postage.

Destination Offices

Crossdock Pallets: Bulk Mail Centers (BMCs) and Processing and Distribution Centers (P&DCs) will receive pallets labeled to 5-digit, 3-digit, and sectional center facility (SCF) destinations. Keep the pallets intact and dispatch them to the appropriate destination.

BMC Working Pallets: Upon receiving working pallets, Operations employees will break open the pallets for distribution of the contents. The destination for each package, sack, or tray is on the label. Dispatch the packages, sacks, and trays to the destination facilities for distribution to the delivery units.

Delivery

Deliver tax packages upon receipt.

Errors and Irregularities

Delivery office personnel should be alert to errors in preparation and marking requirements. When carrier route presort errors exceed the 5 percent allowance, deliver the mail and use established reporting procedures to report errors to the following address:

ATTN IRS FORMS TAX PACKAGE 2003
MANAGER REVENUE AND FIELD ACCOUNTING
US POSTAL SERVICE
475 L'ENFANT PLZ SW RM 8831
WASHINGTON DC 20260-5242

Undeliverable Tax Packages

Carriers and markup clerks must pay particular attention to Packages 1040 and 1040A-2 with ancillary service endorsements. These two types of packages are the only ones eligible for forwarding or return services. If such pieces are undeliverable as addressed, send them to the CFS unit (normal procedure), where they will be handled as specified in DMM F010.5.0 and DMM Exhibit F010.5.3. The CFS unit must return these packages to the IRS at the return address printed on the package.

Treat all other undeliverable forms as waste - do not place them in Postal Service TM lobbies for any reason.

- Capital Metro Sales, 12-25-03

Retail

HANDBOOK PO-102 REVISION

Machine Servicing Frequency Changes

Effective December 25, 2003, the column heading of "Servicing Frequency per Month" in Exhibit 451.2, Standard Servicing Frequencies, is revised to provide a succession of servicing periods with no overlap. The automated workload analysis available on the Vending Equipment and Services System (VESS) Web site at vess.usps.gov, click Workload Analysis, already incorporates this change in its calculations.

We will incorporate this revision into the next printed edition of Handbook PO-102 and into the online version of the handbook available on the Postal Service TM PolicyNet Web site at http://blue.usps.gov; click on More References, then HBKs.

Handbook PO-102, Self Service Vending Operational and Marketing Program

* * * * *

4 Servicing Self Service Vending Equipment

* * * * *

45 Workload

451 Determining Frequencies

* * * * *

Exhibit 451.2 Standard Servicing Frequencies

[Revise the number ranges of the columns in Exhibit 451.2 to read as follows:]

* * * * *

- Self Service and Access Management,
Delivery and Retail, 12-25-03

RETAIL ASSOCIATES

Keep the Mail Safe

All employees have a role to play in ensuring the safety and security of the mail. Retail associates play an especially important role because they have the unique opportunity of face-to-face interaction with our customers.

Ask the HAZMAT Question!

To maximize the benefit of the interaction between retail associates and customers, retail associates must ask the HAZMAT question, "Does your article contain anything liquid, fragile, perishable, or potentially hazardous?"

By asking customers this question, our retail associates can determine if the contents of an article are mailable. The consequences of not asking the question are clear. Many times we find hazardous materials after they leak in the mailstream, potentially causing injuries to our employees or damage to our equipment. Nonmailable HAZMAT must be kept out of the mailstream, and mailable HAZMAT must be properly labeled, packaged, and isolated in the mailstream. Retail associates are the first line of defense in this effort.

Examine Parcels for HAZMAT Markings!

In addition to asking the HAZMAT question, retail associates must examine all sides of a parcel to check for HAZMAT markings. A parcel bearing HAZMAT markings may not be reused to mail other items - the customer must entirely remove or completely obliterate such markings prior to mailing. If customers present reused parcels with unobliterated markings, retail associates should encourage them to repackage their items by using our free packaging supplies or by purchasing packaging materials.

Retail associates must refuse to accept any material that does not meet the Domestic Mail Manual C023 requirements for mailing. They must refer any customers unhappy with this decision to their supervisor or their rates and classification service center for a mailability ruling.

- Aviation Mail Security,
Network Operations Management, 12-25-03

Supply Management

Bulk Quantities of Rubber Bands Now Available on eBuy

Do you need to purchase bulk quantities of rubber bands for your facility? If so, there's a new way you can order 50-pound cases of #64 rubber bands.

Supply Management and Information Technology are pleased to announce that the same great Alliance Rubber Company product you have used for years is now available on eBuy.

Effective December 10, Postal Service TM employees with Intranet access can order cases of #64 rubber bands on eBuy. Whether you need just one 50-pound case or several pallets, they are available on eBuy and easier than ever to order. See Material Logistics Bulletin (MLB) MLB-CO-04-002 at http://blue.usps.gov/purchase/material/mlbframes.htm for more information about this mandatory source contract. For more details, you can also visit the Office Products & Utilities CMC's website at http://blue.usps.gov/purchase/material/pmsc/windsor.

Please check out the new Alliance Rubber Company catalog on eBuy and place your orders for bulk quantities against this mandatory contract today!

To obtain an eBuy logon ID and password, you should contact your district or area eBuy representative. If you have access to the Postal Service Intranet, you can obtain an eBuy logon ID and password as follows:

From Internet Explorer (version 5.0 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/jsp/co/Login.jsp; note that this URL is case sensitive).

If you don't have access to eBuy, you can still use the touch tone order entry (TTOE) system. You should continue ordering with PSN 7510-01-368-3495 for your bulk needs and you will continue to receive the highest quality #64 rubber bands available - until you receive access to eBuy, of course.

Also remember, when you buy from Alliance Rubber Company, you are buying from a small, woman-owned business.

- SCM Strategies,
Supply Management, 12-25-03

Multifunctional Peripherals (MFP)

Two new national strategic contracts have recently been awarded for purchasing MFPs. Effective November 10, 2003, Hewlett-Packard (HP) and Lexmark began providing four different models of MFPs.

MFPs have the capability of printing, copying, scanning, and faxing documents.

HP will supply stand-alone MFPs for offices that need one computer connected to one MFP device. The HP stand-alone MFPs are expense items.

Lexmark will provide workgroup/network MFPs for offices that need several computers connected to one or several MFP devices through a local area network (LAN) connection. The Lexmark workgroup/network MFPs are capital items, and requests for these devices must have capital budget approval.

Please note: Use the Ricoh copier contract for stand- alone copiers that will not require networking capability.

Lexmark will conduct site surveys on an as-needed basis to assist in determining workgroup requirements within large facilities or functions. We will provide full details and ordering instructions in a future Material Logistics Bulletin (MLB). MLBs can be found at http://blue.usps.gov/purchase/root/smoframes.htm.

Contract numbers are:

• Hewlett-Packard: 1AOSEQ-04-Q-0714

• Lexmark: 1AOSEQ-04-Q-0740

If you have questions or require technical information, you may contact the suppliers beginning December 15, 2003, at the following toll-free numbers:

• Hewlett-Packard: 800-896-8699, Option 2

• Lexmark: 800-444-7881

- SCM Strategies,
Supply Management, 12-25-03

Submitting Orders to the Material Distribution Center

Effective December 25, 2003, all Post OfficesTM ordering from the Material Distribution Center (MDC) must use electronic ordering methods to submit orders. If you are a Visual Maintenance Activity Reporting and Scheduling (VMARS)-capable office, please use VMARS to the maximum extent possible when submitting orders. If you are not a VMARS-capable office, please use touch tone order entry (TTOE) to the maximum extent possible for your future ordering needs. To use TTOE, call 800-332-0317, option 2.

Note: You must be registered to use TTOE. To register, call 800-332-0317, option 1, extension 2925, and follow the prompts to leave a message. (Wait 48 hours after registering before placing your first order.) If you need additional assistance, please contact Materials Customer Service at 800-332-0317, option 4, option 1, option 4. You can also obtain complete TTOE ordering instructions and Quick Pick number listings by visiting our Web site at http://blue.usps.gov/purchase/material/download.htm, and click on Other Files.

TTOE provides you with information on each ordered item. This helps reduce ordering errors regarding unit of measure or issue increment matters. It also provides you with a nine-digit order number, the total number of items ordered, and the total approximate cost.

Electronic ordering methods save the U.S. Postal Service® money, process orders faster, and promote the transition to a paperless environment. Once your order is electronically transmitted and accepted, it is processed and sent to the MDC warehouse for fulfillment the next working day.

We know there are order exceptions such as special handling instructions, alternate shipping addresses, standing orders, and so on, and - in those instances - the MDC will continue to accept paper requisitions. However, these types of orders will be monitored and we will work with those offices to promote electronic order entry.

- SCM Strategies,
Supply Management, 12-25-03

Postal Voyager Fleet Card - Delinquent Site Reconciliation Reporting Now Operational in WebEIS

Postal Voyager Fleet Card Purchases

Purchases of fuel and repairs made with the Postal Voyager Fleet Card involve a "pay and chase" method: Postal Service TM employees initiate purchases at the point of sale and - for the most part - without pre-authorization. Once the sale is reported in the eFleet card system, each manager verifies that the sale information is legitimate and follows up to correct any reported discrepancies. Although the vast majority of transactions is entirely legitimate, fraud and abuse are still possible. More significantly, incidents of "credit card cloning" and fraudulent purchases by third parties have occurred.

Left unnoticed and unchecked, these criminal abuses can proliferate and spread throughout the system, costing the Postal Service millions of dollars. This is why regular review of transactions and reconciliation are absolutely essential to preventing abuse or fraudulent use of the data contained on the credit cards. Postmasters and managers must monitor credit card transactions on a routine basis and research and resolve questionable transactions promptly. Immediately dispute and report to Voyager any transactions that you cannot validate. Also report any evidence of fraudulent activity to the Office of Inspector General.

The eFCS tracking system

The Intranet-based eFleetCard System (eFCS) - which highlights potentially questionable transactions on an exception basis - allows postmasters and managers to accomplish the monitoring, transaction validation, and reporting identified above. Perform reconciliation at least once a month, and resolve disputed transactions within 60 days of purchase.

To ensure that this activity is happening on a regular basis, Voyager reconciliation indicators have been added to WebEIS. To access these indicators, go to the WebEIS page (http://webeis.usps.gov/), select Finance; select Delinquent Voyager Reconciliation; select the sub-folder eFleetCardReconciliation; select eFleet Card Reconciliation. The following information is available with drill-down capability to the finance number level:

• Total dollars transacted

• Total dollar value of unreconciled transactions

• Percent of dollars unreconciled

• Total number of transactions

• Total number of unreconciled transactions

• Percentage of unreconciled transactions

• Number and identification of delinquent finance numbers

Data for a given month is not incorporated to the WebEIS indicators until 60 days after the close of that month to accommodate normal reconciliation activity. After 60 days, invoices not marked as reconciled in eFCS are considered delinquent and rolled up into the WebEIS indicators. The challenge is a simple one: to reduce and eliminate the possibility of fraud in each and every finance number. Remember, if your finance numbers are listed in this report, you have charges you have not reconciled and you have the potential for waste, fraud, and abuse.

- SCM Strategies,
Supply Management, 12-25-03

NEW PM ISSUE

Purchasing Manual Issue 3

Effective December 25, 2003, Purchasing Manual (PM) Issue 3 is available on the Internet; go to www.usps.com; click on About USPS & News, then Forms & Publications, then Browse All Periodicals & Publications, and then Manuals. It is also available on the Postal Service TM PolicyNet Web site; go to http://blue.usps.gov; click on More References, then Manuals.

The revised manual contains a number of significant policy changes, changes in organization names and managerial titles and authorities, and all other administrative changes made to the Purchasing Manual since January 31, 2002.

Pending the update of purchasing support systems for consistency with the new policies in Purchasing Manual Issue 3, purchasing organizations may adopt the policies and procedures contained in Issue 3, or continue to follow the policies and procedures contained in Purchasing Manual Issue 2. If a purchasing organization adopts Issue 3 policies and procedures for any category or categories of purchases, it must use those policies and procedures consistently for that category or categories, and may not revert to previous policies and procedures. Contracting officers must ensure that solicitations and other purchasing documents make prospective offerors fully aware of the authority (Issue 3 or Issue 2, as revised through April 18, 2002) pursuant to which a purchase is made.

We will announce the end of this transition period in a future issue of the Postal Bulletin.

- Supply Management Infrastructure,
Supply Management, 12-25-03