USPSNEWS@WORK

National EXFC score hits 96 for first time

You did it - again. You gave it your best and you achieved a new record.

For quarter three, employees delivered the best overnight EXFC performance we've ever seen - an incredible 96%.

That's right - 96%! It takes a great team and a great team effort to accomplish something this extraordinary and USPS® couldn't have done it without you, PMG Jack Potter said.

"I am proud of every one of you. No matter what your job, no matter where you work, you played an important role in developing the best service team the Postal ServiceTM has ever had. And, as far as I'm concerned, you're the best service team in the business," said the PMG.

This remarkable achievement builds on 21 consecutive quarters of National EXFC scores above 93/94% and five consecutive quarters above 95%.

"We knew we would get to 96%," said Chief Operating Officer Pat Donahoe, "but we never thought we would get there this quickly. We did it by staying focused on the basics - collecting, processing, transporting and delivering the mail."

We're not only delivering mail for our customers, we're delivering dependability in our products, we're delivering confidence in our service - we're Delivering Results.

"On behalf of our customers I want to thank all of you for this incredible achievement," said Chief Marketing Officer Anita Bizzotto. "This is the kind of performance that gives customers a reason to stay in the mail. It will make a difference as we're out there building the business. Thanks for working hard for us, and for our customers."

First-Class Mail® delivery performance is measured by IBM's Business Consulting Services unit, using the External First-Class measurement system, or EXFC.

It provides an independent assessment of the time it takes a piece of First-Class Mail, once it's deposited into a collection box, to be delivered.

EXFC service performance scores are measured by testing 463 ZIP CodeTM areas selected on the basis of geography and volume density, from which 90% of First-Class Mail volume originates and 80% destinates. EXFC is not a systemwide measurement of all First-Class Mail performance.

Al Casey: USPS Governor and former PMG, who revised field reporting structure, dies at 84

Albert V. Casey, a governor of the Postal Service and the 67th postmaster general, died Saturday in Dallas at 84. Casey was appointed governor by President George W. Bush in August 2002.

As postmaster general in 1986, he was responsible for the restructuring that established the division structure. The 74 field divisions increased flexibility and accountability by pushing decision-making down within the organization. The division structure also put the customer in closer contact with management-level employees.

Casey is survived by his son, Peter, and his daughter, Judith. His wife, the former Eleanor Anne Welch, died in 1989.

Standard-Bearers: AFSM 100 is first USPS standardized operation

Automated Flat Sorting Machine (AFSM) 100 sites around the country are now standardized and certified - the first Postal Service operation to achieve the coveted status.

New York Metro Area has consistently led the nation in 2004 AFSM 100 operations with 2,109 pieces per hour through June 25.

All areas have shown significant improvement during the standardization effort. Over the past two years, performance has increased more than 29 percent in the New York Metro, Great Lakes, Southeast, Southwest and Pacific Areas. National performance increased almost 25 percent.

Performance and Field Operations Support, Processing Operations and area representatives worked together to make Louisville, KY, the first certified site in 2002. The last of the original 234 sites, Milwaukee, WI, was certified this month.

Our AFSM 100 sites are raising standards. Standardizing best practices is not only good business - it's a Transformation Plan strategy that's delivering results.

Performance plus: Service scores shine brightly in National Performance Assessment

Improving service! Indeed. It's part of the Delivering Results star and its point is shining even more brightly, according to the latest National Performance Assessment (NPA) scores. All service performance scores are doing better than targeted goals.

The NPA system rates nationwide performance in several categories. In the latest results, Express Mail and First-Class Mail overnight and three-day delivery each scored a 10, putting them in the high contributor category. Also in that category was the Occupational Safety and Health Administration illness and injury score. And Voice of the Employee scores keep getting better through the year as more employees get a chance to speak up about their workplace.

Overall, the nationwide NPA score was 8.90, reflecting revenue figures that more closely relate to original targets based on economic forecasts. When the nation's economy improved faster than expected, this gave a boost to previous NPA results. The latest scores reflect a settling economy, although the results are still above target.

Check out the current NPA scores on WebEIS.

And the Stevie goes to: USPS 2003 Annual Report wins American Business Award

You've heard of the Oscars, the Tonys and the Emmys - but if you're an American business, the award you want to win is the Stevie. And the Stevie Award winner for Best Annual Report was none other than - the Postal Service. The Stevie Awards were created to honor and generate public recognition of the efforts, accomplishments and positive contributions of companies and business people worldwide.

Accepting the award for the Postal Service was Corporate Financial Reporting Manager Jon Stratton. "Our goal was to make this report transparent and easy to understand. USPS sets the standard for financial reporting among federal agencies - winning the Stevie Award is a tribute to our organization."

Signing on for a safer tomorrow: USPS and APWU sign Voluntary Protection Programs agreement

"It's the responsibility of USPS management to provide safe working conditions in all present and future installations and to develop a safe working force, and of the American Postal Workers Union (APWU) to cooperate and assist management to live up to this responsibility."

So begins the Voluntary Protection Programs (VPP) agreement between USPS and the APWU signed yesterday by USPS Chief Operating Officer Pat Donahoe and APWU President William Burrus. The two met in the Ben Franklin Room at USPS Headquarters for the signing.

Under the agreement, management, labor and the Occupational Safety and Health Administration (OSHA) establish cooperative relationships at workplaces that have a comprehensive safety and health management system.

The Voluntary Protection Programs plan is designed to accomplish the following goals at participating worksites:

• Improve safety and health at the worksite so that USPS and APWU can work together to reduce accidents and injuries.

• Train USPS worksite managers, supervisors, APWU representatives and the local Joint Labor-Management Safety and Health Committee to make sure everyone understands the OSHA VPP process.

• Reduce the number and severity of job-related injuries and illnesses.

• Eliminate or reduce unsafe working conditions and practices.

According to OSHA, statistical evidence of the program's success is impressive. The average VPP worksite has a lost workday incidence rate 52 percent below the industry average. These sites typically do not start out with such low rates. Reductions in injuries and illnesses begin when the site commits to the VPP approach to safety and health management and the challenging VPP application process.

At present, USPS has 14 facilities in the VPP.

Main Street or Main Avenue: USPS patents Early Warning System

The Postal Service has been granted a patent for an Early Warning System (EWS) that gives mailers a heads-up about newly created streets and addresses.

Especially in high-growth areas, mailers face a time lag to get brand new addresses online - even if they're using an Address Information System (AIS) product. They get updates from USPS every 30 or 60 days, whichever they chose, but the continuous creation of new addresses means there are almost always updates pending.

That's where EWS comes in, by providing mailers weekly updates of all new streets.

EWS helps mailers not to enter wrong addresses by preventing an AIS product from trying to "correct" a valid new street name not in its database. The result: USPS avoids handling mail more than necessary or returning it to sender - ultimately, increasing customer satisfaction, improving service and reducing costs.

The EWS patent was awarded to the Postal Service Address Management team - the first one for Intelligent Mail and Address Quality.

Administrative Services

Directives and Forms Update

Effective immediately, Publication 223, Directives and Forms Catalog (June 1999), is revised. The tables below contain the document ID, edition date, title, PSN (Postal ServiceTM stock number), and the Postal Service and public supply source for all new, revised, and obsolete directives and forms. Use this article to keep Publication 223 current. Information on how to order directives and forms is available in chapter 1 of Publication 223.

Publication 223 is available electronically at www.usps.com/cpim/ftp/pubs/pub223.pdf.

New Directives

Management Instructions

Memorandums of Policy

New Forms

Revised Directives

Handbooks

Labels

Posters

Publications

Revised Forms

Obsolete Directives

Management Instructions

Publications

Obsolete Forms

- Policies and Procedures Information,
Public Affairs and Communications, 7-22-04

Customer Relations

Passport Services - Banner and Direct Mailpiece

Message Maker provides creative elements for field promotional materials that you can customize with local Post OfficeTM information. In your passport promotional campaign, you can use Message Maker to order the banner shown below. The banner, although not customizable, will let passersby know that your Post Office has passport service available. The direct mailpiece (shown on page 7) is customizable for local Post Office and passport information.

- Field Communications,
Public Affairs and Communications, 7-22-04

Domestic Mail

PUBLICATION 410 OBSOLETE

Combining Multiple Editions or Publications

Effective July 22, 2004, Publication 410, Combining More Than One Second-Class Publication, is obsolete. For current, comprehensive information about combining multiple editions or publications of Periodicals mail, see Domestic Mail Manual (DMM) M230, which we revised in its entirety in Postal Bulletin 22097 (3-6-03, pages 14-16).

For many mailers, combining publications or editions is an effective way to increase operational efficiencies while reducing production and postage costs. Mailers may prepare Periodicals publications as a combined mailing by merging copies either during production or after finished copies are produced in order to achieve the finest presort level possible or to reduce the per-piece charge.

- Mailing Standards,
Pricing and Classification, 7-22-04

DMM REVISION

General Mailability - Minimum and Maximum Size, Rectangular Shape

Effective August 5, 2004, Domestic Mail Manual (DMMTM) C010.1.0 is revised to clarify and reorganize the minimum size standards for general mailability, particularly those standards governing Customized MarketMailTM (CMM) pieces, keys, and identification devices.

Although CMM pieces are exempt from the general mailability standards that require a rectangular shape for pieces 1/4 inch thick or less, CMM pieces 1/4 inch thick or less are not exempt from the minimum height and length requirements of 3-1/2 inches high and 5 inches long.

This revision clarifies that the minimum height and length requirements apply to mailpieces 1/4 inch thick or less, except for keys and identification devices. The minimum thickness of 0.007 inch applies to all mailpieces, including CMM pieces, keys, and identification devices. Therefore, C010.1.5 is deleted and Exhibit 1.1 is revised to assert that all mailpieces are subject to the minimum thickness. C010.1.4 also is deleted, since restrictions referred to in 1.4 are mentioned previously.

C010.1.2 is clarified to state that the definition of "length" as the longest dimension pertains to parcels.

We will incorporate these revisions into the printed version of DMM 59 and into the monthly update of the online DMM available via Postal Explorer® at http://pe.usps.gov.

Domestic Mail Manual (DMM)

* * * * *

C Characteristics and Content

* * * * *

C000 General Information

C010 General Mailability Standards

1.0 MINIMUM AND MAXIMUM DIMENSIONS

1.1 Minimum

[Revise 1.1 by combining current 1.1a and 1.1b as new 1.1b and redesignating current 1.1c as new 1.1a to read as follows:]

For mailability, the following standards apply:

a. All mailpieces must be at least 0.007 inch thick.

b. All mailpieces (except keys and identification devices) that are 1/4 inch thick or less must be:

(1) At least 3-1/2 inches high and at least 5 inches long.

(2) Rectangular, with four square corners and parallel opposite sides (see Exhibit 1.1), unless prepared as Customized MarketMail under E660.

[Move Exhibit 1.1, which is currently at the bottom of the page, to come immediately after 1.1, and revise the parenthetical statement to read as follows:]

Exhibit 1.1 Minimum Dimensions, Pieces 1/4" Thick or Less

***(all mailpieces are subject to minimum thickness; keys and identification devices are not subject to minimum length and height)

1.2 Maximum

[Revise 1.2 by adding "For parcels" at the beginning of the third sentence and removing the reference to 1.3, so that 1.2 in its entirety reads as follows:]

No mailpiece may weigh more than 70 pounds. Except for Parcel Post, no mailpiece may measure more than 108 inches in length and girth combined. For parcels, length is the distance of the longest dimension and girth is the distance around the thickest part.

* * * * *

[Delete 1.4 and 1.5.]

* * * * *

- Mailing Standards,
Pricing and Classification, 7-22-04

DMM REVISION

Labeling List Changes

Effective July 22, 2004, Domestic Mail Manual (DMM) L001, L004, L007, L601, L602, L603, L605, L606, L802, and L803 are revised to reflect changes in mail processing operations. Mailers are encouraged to label according to these revised lists immediately, but must comply with these changes no later than October 3, 2004.

We will incorporate these revisions into the printed version of DMM Issue 59 and into the monthly update of the online DMM available via Postal Explorer® at http://pe.usps.gov.

Domestic Mail Manual (DMM)

* * * * *

L Labeling Lists

L000 General Use

L001 5-Digit Scheme-Periodicals Flats and Irregular Parcels, Standard Mail Flats, and BPM Flats

* * * * *

* * * * *

L004 3-Digit ZIP Code Prefix Groups-ADC Sortation

* * * * *

* * * * *

L007 5-Digit Scheme-Periodicals, Standard Mail, and BPM Flats in Bundles

* * * * *

* * * * *

L600 Standard Mail and Package Services

L601 BMCs

* * * * *

[Revise footnote two (2) to read as follows:]

² Except for mail prepared for destination entry rates, if the origin entry post office is in ZIP Code areas 800-820, 822-831, 835, 838-884, 889-978, or 980-999 and the destination post office is in ZIP Code areas 850, 852, 853, 855, 859, 860, 863, or 864, then the mail containers are labeled to the Los Angeles BMC rather than the Denver BMC as follows:

BMC LOS ANGELS CA 90901

* * * * *

L602 ASFs

* * * * *

* * * * *

L603 ADCs-Irregular Standard Mail Parcels

* * * * *

[Revise footnote two (2) to read as follows:]

² Except for mail prepared for destination entry rates, if the origin entry post office is in ZIP Code areas 800-820, 822-831, 835, 838-884, 889-978, or 980-999 and the destination post office is in ZIP Code areas 850, 852, 853, 855, 859, 860, 863, or 864, then the mail containers are labeled to the Los Angeles BMC rather than the Denver BMC as follows:

BMC LOS ANGELS CA 90901

* * * * *

L605 BMCs/ASFs-Nonmachinable Parcel Post BMC Presort and OBMC Presort

* * * * *

* * * * *

L606 5-Digit Scheme-Standard Mail and Package Services Parcels

* * * * *

* * * * *

L800 Automation Rate Mailings

* * * * *

L802 BMC/ASF Entry-Periodicals, Standard Mail, and Bound Printed Matter

* * * * *

* * * * *

L803 Non-BMC/ASF Entry-Periodicals, Standard Mail, and Bound Printed Matter

* * * * *

- Logistics,
Network Operations Management, 7-22-04

Employees

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 ServiceTM as of July 22, 2004.

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, 7-22-04

ELM REVISION

Collection of Postal Debts From Nonbargaining Unit Employees

Effective July 22, 2004, the Employee and Labor Relations Manual (ELM), section 452.4, Collection of Amounts Due Under Federal Benefits Program, is revised to incorporate the statutory provision in section 31001(h) of the Debt Collection Improvement Act of 1996, codified at 5 U.S.C. section 5514(a)(3), that excludes certain routine intra- agency adjustments of pay from the provisions of section 5514(a)(2).

We will incorporate these revisions into the next printed version of the ELM and also into the online version, which is available on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, click on PolicyNet.

• Click on Manuals.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

Employee and Labor Relations Manual (ELM)

* * * * *

4 Pay Administration

* * * * *

450 Collection of Postal Debts From Nonbargaining Unit Employees

* * * * *

452 Procedures Governing Administrative Salary Offsets

* * * * *

[Revise the title and text of section 452.4 to read as
follows:]

452.4 Exceptions to Procedures Found in Sections 452.2 and 452.3

a. The procedures governing the collection of postal debts contained in sections 452.2 and 452.3 do not apply to:

(1) Amounts to be collected which arose from the employee's election of coverage or change of coverage under a federal benefits program requiring periodic deductions from pay, and were accumulated over four pay periods or less;

(2) Routine intra-agency adjustments of pay that are attributable to clerical or administrative errors or delays in processing pay documents that have occurred within the four pay periods preceding the pay period in which the first adjustment is made, provided the individual is given notice in accordance with section 452.4(b); or

(3) Any adjustment that amounts to $50 or less, provided the individual is given notice in accordance with section 452.4(b).

b. At the time the first adjustment is made pursuant to section 452.4(a)(2) or (3), or as soon thereafter as practical, the individual must be provided written notice of the nature and the amount of the debt and adjustments and a point of contact for contesting collection.

* * * * *

- Labor Relations, 7-22-04

ELM REVISION

Recognition and Awards

Effective July 22, 2004, Employee and Labor Relations Manual (ELM) 470, "Incentive Awards and Service Recognition," is retitled "Recognition and Awards" and revised to provide greater flexibility in granting cash and noncash awards. The revisions include the following:

• Clarifying the definitions of Service Award, Informal Award, Formal Award, and Special Award, and identifying the employee group eligible for each award.

• Clarifying the definitions of noncash award, cash equivalent award, and cash award.

• Clarifying the tax implications of awards.

• Revising the budget limit for all awards to one half of one percent (0.005%) of the total end of fiscal year salary budget and directing that administration of this budgeted amount be on a performance cluster level.

• Revising the procedures for requesting 50-year service pins.

• Updating sample letters of appreciation.

• Updating eAWARDS payment procedures.

• Combining award categories, expanding the pool of employees eligible, and increasing the maximum dollar value of cash and cash equivalent awards that may be issued each fiscal year, as follows:

- Expanding eligibility for Informal Awards (previously limited to employees) to contractors.

- Expanding eligibility for Spot Awards (previously limited to EAS and PCES career employees) to all career employees and increasing the fiscal year award limit to $3,000.

- Expanding the eligibility for Team, Vice President, and Postmaster General Awards (previously limited to EAS and PCES career employees) to all career employees and maintaining the fiscal year limits of $2,000, $5,000, and $10,000, respectively.

- Discontinuing the use of the Special Achievement Award, Meritorious Service Award, Distinguished Service Award, Exceptional Performance Award, and Bargaining Unit Non-Cash Tangible Award categories, previously subject to fiscal year limits of $500, $2,000, $3,500, $7,500, and $500, respectively.

We will incorporate these revisions into the next printed version of the ELM and also into the online version, available on the Postal ServiceTM PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, click on PolicyNet.

• Click on Manuals.

(The direct URL for the Postal Service PolicyNet is http://blue.usps.gov/cpim.)

It is also available on the Postal Service Internet:

• Go to www.usps.com.

• Click on About USPS & News, then Forms & Publications, then Postal Periodicals and Publications, and then Manuals.

Employee and Labor Relations Manual (ELM)

* * * * *

4 Pay Administration

* * * * *

[Revise the title and text of 470 to read as follows:]

470 Recognition and Awards

471 Overview

471.1 Policy

The Recognition and Awards Program is intended to recognize employees who have achieved outstanding performance, have superior competence, or have performed some other significant accomplishment. The program is not intended to provide incentives to employees to meet predetermined goals. The program has been broadly designed to ensure that the recognition and award needs of all organizations and functional areas are met and provides awards ranging from a letter of appreciation to $10,000 in cash.

Recognition falls into five broad categories: (a) Certificates of Appreciation; (b) Service Awards, for which noncash recognition items, such as Service Award Pins, Service Award Certificates, and the Benjamin Franklin Award plaque are awarded; (c) Informal Awards, for which noncash gift items valued at less than $50 are awarded; (d) Formal Awards, for which cash and cash-equivalent items valued at up to $3,000 are awarded; and (e) Special Awards, including Team Awards, Vice President Awards, and Postmaster General Awards, for which cash and cash equivalent items up to $10,000 are awarded.

A summary description of service recognition and incentive awards is contained in exhibit 471.1.

Exhibit 471.1
Service Recognition and Incentive Awards

471.2 Management Control

Postal managers must use appropriate review and control procedures to identify individual performance, programs, or operational areas of superior work. Managers must ensure that related actions, such as performance evaluations, are fully considered to maintain compatibility between awards and other relevant factors. It is the responsibility of all levels of management to ensure that all employees are treated fairly and equitably and to provide a workplace environment characterized by recognition and celebration of business success. Vice presidents, district managers, senior and lead plant managers, and the Headquarters vice president of Employee Resource Management periodically audit the awards process.

471.3 Awards

471.31 Noncash

Noncash awards include the following:

a. Recognition items, such as pins, certificates, and plaques.

b. Gift items, such as mugs, clothing, event tickets, and gift certificates redeemable only for merchandise.

The market value of noncash awards should be less than $50.

471.32 Cash and Cash Equivalent

Cash awards are issued in the form of checks by the Eagan Accounting Service Center (ASC). Cash equivalent awards are issued in the form of a "gift check" or similar item that can be immediately converted to cash.

All cash awards and cash equivalent awards, regardless of value, are considered ordinary income and are subject to income tax withholding and involuntary deductions.

471.4 Budgeting Considerations

The award budget for an organization to cover informal noncash and formal cash and cash equivalent awards should be equal to at least 1/2 percent of aggregate salaries paid and should not exceed 1 percent of the aggregate salaries paid at the beginning of the fiscal year.

471.5 Privacy Act Considerations

Award records contain personal information; therefore, such records must be handled and disclosed only as stipulated in the Privacy Act and implementing instructions (see Handbook AS-353, Guide to Privacy and the Freedom of Information Act). Records of cash awards received by employees are maintained in the privacy system USPS 120.070, Personnel Records - General Personnel Folder (Official Personnel Folders and Records Related Thereto). Records of achievement awards are maintained in USPS 120.100, Personnel Records - Performance Awards System Records.

471.6 Presentation Ceremonies

Whenever possible, installation heads should (a) coordinate publicity with public information personnel and (b) provide an appropriate ceremony for each award in the presence of the employee's managers and co-workers.

471.7 Documenting Awards

Awards are documented by a permanent record filed in the recipient's official personnel folder.

472 Certificate of Appreciation

472.1 Overview

Characteristics of this award are as follows:

472.2 Purpose

The Certificate of Appreciation provides postmasters and other installation heads a way to recognize and commend customers, contract employees, and noncareer and career employees for their contributions to the improvement of the Postal Service.

472.3 Description

The Certificate of Appreciation, a noncash recognition award, is a printed certificate that has a Postal Service corporate signature and has "Certificate of Appreciation" printed at the top. A commendatory letter may accompany the Certificate of Appreciation at the discretion of the approving official.

The certificate and, if included, letter of commendation are presented in a blue leatherette folder.

472.4 Eligibility

Customers, contract employees, and noncareer and career employees are eligible to receive the Certificate of Appreciation.

472.5 Basis

The Certificate of Appreciation may be issued for noteworthy assistance to the Postal Service. Examples of such contributions are:

a. Reflecting credit on the Postal Service through civic service and humanitarian endeavors.

b. Participating significantly in Postal Service programs such as Savings Bond drives, Combined Federal Campaigns, and blood donor drives.

c. Performing exceptionally in one or more important job projects.

d. Meeting unusual demands on one's own initiative, along with regularly assigned duties, during unplanned absences of associates.

e. Improving public relations or sustaining good public relations in unusual circumstances.

f. Enabling the unit to meet unanticipated demands by performance of unusual duties for short periods.

g. Demonstrating unusual courage or competence in an emergency.

h. Improving service through actions that Postal Service management feels are significant.

472.6 Responsibility

472.61 Headquarters and Headquarters-Related Units

The manager of Corporate Personnel Operations administers the program for Headquarters and Headquarters-related units.

472.62 Areas, Districts, and Plants

Area vice presidents, district managers, and senior or lead plant managers administer the program in their organization units.

472.7 Approval Authority

472.71 Headquarters and Headquarters-Related Units

PCES executives may approve the Certificate of Appreciation for customers, noncareer Postal Service employees, and contract employees.

472.72 Areas

The area vice president may approve a Certificate of Appreciation recommended for customers, noncareer Postal Service employees, and contract employees.

472.73 Field

Postmasters and installation heads may approve the Certificate of Appreciation to suit local needs.

472.8 Ordering Certificates

Certificates and folders may be ordered by personnel offices under the following item numbers:

472.9 Presenting Awards

The Certificate of Appreciation is presented by the immediate supervisor or higher official with appropriate ceremony and publicity in the presence of top officials and co-workers, preferably at the employee's work site.

473 Service Awards

473.1 Overview

Characteristics of this award are as follows:

473.2 Service Award Pin

473.21 Description

The Service Award Pin, a noncash recognition award given at milestone years, consists of an emblem pin and a letter of appreciation issued in recognition of government service. The letter of appreciation for an employee with 25, 30, 35, 40, or 45 years of service is signed by the installation or functional organization head. The letter of appreciation for an employee with 50 years of service is signed by the postmaster general.

The letter of appreciation is presented in a blue leatherette folder.

473.22 Basis

The Service Award Pin is presented to career employees who have completed 25, 30, 35, 40, 45, or 50 years of creditable service to the government. All federal and military service is creditable.

473.23 Responsibility

473.231 Headquarters

The manager of Corporate Personnel Operations is responsible for the administration of the program for Headquarters and Headquarters-related units.

473.232 Areas

The area vice president is responsible for the administration of the program for personnel on area rolls and employees reporting directly to the area office. The area vice president is also responsible for administration of 50-year service pin awards for eligible employees within the area.

473.233 Districts and Plants

District managers are responsible for the administration of the program for district and plant employees.

473.234 Inspection Service

The chief postal inspector is responsible for the administration of the program for Inspection Service employees.

473.24 Providing Lists of Eligible Employees

Officials at the Eagan ASC furnish a printout prior to each quarter listing all employees whose retirement computation date indicates sufficient government service to receive the Service Award Pin. The printouts are provided to the officials who are responsible for administration of the program.

Note: To determine an individual's eligibility for the Service Award Pin, federal civilian and military service that is not creditable for retirement purposes must be added to service indicated by the retirement compensation date.

473.25 Ordering Pins

Pins and folders may be requisitioned from the Material Distribution Center under the following item numbers:

473.26 Preparing Letters of Appreciation

For an employee with 25, 30, 35, 40, or 45 years of service, the responsible installation or functional organization head prepares a letter of appreciation appropriate to accompany the Service Award Pin. See exhibit 473.27a for a general example of a letter that can be modified.

For an employee with 50 or more years of service, the responsible vice president or district Human Resources manager drafts a suggested letter appropriate to accompany the Service Award Pin and forwards it by electronic mail, headed "Fifty- Year Retirement," to the Office of the Postmaster General. See exhibit 473.27b for a general example of a letter that can be modified.

473.27 Presenting Awards

The Service Award Pin, except that for 50 years, is presented by the installation or functional organization head, with appropriate ceremony and publicity, in the presence of top officials and co-workers. Responsibility for presenting 50-year pins remains with the vice president, who may delegate the responsibility.

Exhibit 473.27a
Sample Letter of Appreciation - Employee With 25, 30, 35, 40, or 45 Years of Service
To be signed by the installation or functional organization head.

®

[__date__]

[__name__]
[__street address__]
[__city, state, ZIP Code__]

Dear [__name__]:

It gives me a great deal of pleasure to present this Service Award Pin in recognition of your [__number of__] years of federal employment.

The Postal Service owes a great deal to the loyalty and dedication of its employees, and I am happy to commend you for your many contributions throughout the years toward improved Postal Service operations.

[__If desired, personal information can be inserted here.__]

I wish to extend my warm personal greetings and the hope that you will accept this pin as a symbol of my deep appreciation for a career of commendable service.

Sincerely,

[__signature__]

[__name__]

Exhibit 473.27b
Sample Letter of Appreciation - Employee With 50 Years of Service
To be signed by the postmaster general.

®

[__date__]

[__name__]
[__street address__]
[__city, state, ZIP Code__]

Dear [__name__]:

It is a privilege for me to present this Service Award Pin to recognize your completion of 50 years of government service.

A career spanning a half century is certainly indicative of a unique dedication to duty and to country. The attainment of this career milestone places you in an elite group. Few employees inside or outside of the Postal Service ever attain this distinction. It is an accomplishment of which you should be proud, and one which deserves the admiration of your fellow employees and your community as well.

I am happy to thank you, on behalf of the Postal Service, for your many years of dedicated service and to commend you personally on the attainment of this major career landmark.

Sincerely,

[__signature__]

[__name__]

473.3 Service Award Certificate

473.31 Description

The Service Award Certificate, a noncash recognition item, is a printed certificate that has a Postal Service corporate signature and has "Service Award" printed at the top. A certificate presented at the time of retirement also states: "Given . . . on this occasion of your retirement." A certificate given to the next of kin of an employee who dies states: "Given posthumously . . . ."

Retirees with 25, 30, 35, 40, or 45 years of service receive a certificate and a letter of appreciation signed by the installation or functional organization head. Retirees with 50 or more years of service receive a certificate and a letter of appreciation signed by the postmaster general.

The certificate and the letter of appreciation that accompanies it are presented in a blue leatherette folder.

473.32 Basis

473.321 Retirement

The Service Award Certificate at retirement recognizes employees who retire (a) under the optional provisions of retirement law, (b) due to disability, or (c) under mandatory retirement for postal inspectors.

473.322 Death

To honor employees with 5 or more years of creditable service who die while still employed, the Service Award Certificate is presented posthumously to the nearest relative. Creditable service is defined as service that qualifies for retirement under the procedures for the Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS).

473.33 Responsibility

473.331 Headquarters

The manager of Corporate Personnel Operations is responsible for preparing certificates and letters for Headquarters and Headquarters-related unit employees and for submitting requests to the postmaster general for certificates and letters for Headquarters and Headquarters-related retirees with 50 or more years of service.

473.332 Areas

The area vice president is responsible for preparing certificates and letters for area employees in the area office and for submitting requests to the Office of the Postmaster General for certificates and letters for area office retirees with 50 or more years of service.

473.333 Field

District managers are responsible for the administration of the service award program for field employees and for submitting requests to the Office of the Postmaster General for certificates and letters for field retirees with 50 or more years of service.

473.34 Ordering Certificates

Certificates and folders may be requisitioned from the Material Distribution Center under the following item numbers:

473.35 Preparing Letters of Appreciation

473.351 Retiring Employees

For an employee with 25, 30, 35, 40, or 45 years of service, the responsible installation or functional organization head prepares a letter of appreciation appropriate to accompany the Service Award Certificate. See exhibit 473.351a for a general example of a letter that can be modified.

For an employee with 50 or more years of service, the responsible installation or functional organization head drafts a suggested letter appropriate to accompany the Service Award Certificate and forwards it by electronic mail, headed "Fifty-Year Retirement," to the Office of the Postmaster General for signature. See exhibit 473.351b for a general example of a letter that can be modified.

473.352 Deceased Employees

A letter appropriate to accompany the posthumous Service Award Certificate may be best drafted by those close to the deceased at the request of the responsible installation or functional organization head.

473.36 Presenting Awards

473.361 Retirement Award Certificates

Whenever possible, installation heads coordinate publicity with public information personnel and provide an appropriate ceremony for each award in the presence of the employee's managers, co-workers, and family. Only under unusual circumstances should the award be mailed.

473.362 Posthumous Award Certificates

Presentation of posthumous awards must be tailored to the wishes of the family, as follows:

a. The nearest relative should be contacted by district Human Resources personnel to determine whether the recipient prefers to have the certificate presented formally or taken to the .

b. At a formal ceremony, attendance should be limited to a few close friends and co-workers of the deceased.

c. When delivery to the is preferred, the management representative should consider having some close friends of the deceased accompany him or her.

d. District Human Resources personnel should mail the Service Award Certificate only as a last resort, making certain that the award is carefully and securely wrapped before mailing.

Exhibit 473.351a
Sample Letter of Appreciation - Retiring Employee With Less Than 50 Years of Service
To be signed by the installation or functional organization head.

®

[__date__]

[__name__]
[__street address__]
[__city, state, ZIP Code__]

Dear [__name__]:

It gives me a great deal of pleasure to present this Service Award Certificate in commemoration of your [__number of__] years of service. The good reputation the Postal Service enjoys is built on the loyal service of people like you, and I am happy to commend you for your contribution to our efforts for a better Postal Service.

I wish to extend my warm personal greetings and the hope that you will accept this certificate as a symbol of my deep appreciation for a career of commendable service. Best wishes for many years of happy retirement.

Sincerely,

[__signature__]

[__name__]

Exhibit 473.351b
Sample Letter of Appreciation - Retiring Employee With 50 or More Years of Service
To be signed by the postmaster general.

®

[__date__]

[__name__]
[__street address__]
[__city, state, ZIP Code__]

Dear [__name__]:

It gives me a great deal of pleasure to present this Service Award Certificate in recognition of your [__number of __] years with the U.S. Postal Service.

The Postal Service owes a great deal to the loyalty and dedication of its employees, and I am happy to commend you for your many contributions throughout the years toward improved Postal Service operations. I wish to extend my warm personal greetings and the hope that you will accept this certificate as a symbol of my deep appreciation for a career of commendable service.

[__If desired, personal information can be inserted here.__]

Sincerely,

[__signature__]

[__name__]

473.4 Benjamin Franklin Award

473.41 Description

The Benjamin Franklin Award, the highest award given by the Postal Service, is a plaque showing a bust of Benjamin Franklin and a canceled 1847 issue of a 5-cent Benjamin Franklin stamp. An engraved metal plate is attached to the plaque.

473.42 Eligibility

The postmaster general designates those to be honored. Recommendations may not be made to him.

473.43 Basis

This award is reserved for employees serving in highly responsible Postal Service positions who meet either of the following criteria:

a. Accomplishments having a unique impact on major Postal Service programs.

b. Accomplishments effecting an unusually significant improvement in service to the public or in general operations.

473.44 Approval Authority

The postmaster general alone approves this award.

474 Informal Award

474.1 Overview

Characteristics of this award are as follows:

474.2 Purpose

The Informal Award is a quick and simple method to recognize employees and contractors who regularly perform duties beyond what is normally expected of them or who have performed a specific exceptional task or action.

474.3 Description

The Informal Award, a noncash gift item of less than $50 value, is a mug, clothing, event tickets, gift certificate redeemable only for merchandise, or similar item.

474.4 Eligibility

All employees and contractors are eligible to receive the Informal Award.

474.5 Basis

The basis for this award is an employee contribution (sustained performance or achievement). The employee must:

a. Consistently perform regular duties in an exemplary manner.

b. Accomplish a specific act beyond the normal duties.

474.6 Approval Authority

The immediate supervisor is the approving official for the Informal Award.

475 Formal Awards

475.1 Overview

Characteristics of this award are as follows:

475.2 Spot Award

475.21 Purpose

The Spot Award is to provide immediate recognition for a specific action or achievement beyond what is normally expected of an employee. It is not to be used as an incentive for preestablished goals or objectives. The spot award may be used to recognize a wide range of performance or actions.

475.22 Description

The Spot Award, a one-time cash or cash equivalent award (i.e., a check issued by the Eagan ASC or a "gift check" or similar item that can be immediately converted to cash), is valued at up to $3,000. It is presented along with a certificate that has a Postal Service corporate signature and has "Spot Award" printed at the top.

The certificate may be presented in a blue leatherette folder.

The Spot Award is considered ordinary income for tax purposes (see 471.32).

475.23 Eligibility

All career employees are eligible to receive the Spot Award.

475.24 Basis

The basis for this award is an employee contribution (sustained performance, achievement, invention, special act, or service) that exceeds usual work requirements. (See 475.342 for comparison with Quality Step Increase.) The employee must:

a. Exceed requirements in one or more important job elements for 12 months or more.

b. Devise new or improved methods that save manpower, space, materials, equipment, or other cost items.

c. Contribute to outstanding economy, efficiency, added income, or measurably improved service to the public.

d. Break production records or inspire others to improve quantity and quality of work.

e. Risk life or personal safety in an act of heroism.

f. Maintain work schedule in absence of supervisor or meet unusual demands of higher level duties on one's own initiative.

475.25 Approval Authority

475.251 Headquarters and Headquarters-Related Units

Appropriate officers may approve awards up to the maximum for eligible Headquarters or Headquarters-related unit employees.

475.252 Areas

Approval authority at the area level is as follows:

a. Area vice presidents may approve awards up to the maximum for eligible area office employees.

b. Inspection Service Operations Support Group managers may approve awards up to the maximum for eligible Inspection Service employees under their jurisdiction.

475.253 Field

Installation heads, district managers, and senior plant managers may approve awards up to the maximum for eligible employees under their jurisdiction.

475.26 Recommending an Award

Recommendation for an award originates with the immediate supervisor or person with knowledge of the employee or group contribution. The recommendation is initiated promptly but no later than 1 year after the date of the achievement, act, or period covering the performance. The nominee is not advised of the recommendation. The recommending official reviews the employee's job description, assigned duties, and performance requirements and decides to what degree the contribution exceeds average requirements by:

a. Measuring amount of savings or degree of improvement effected in relation to job responsibilities. (Savings alone cannot be used to determine an award. Higher level employees are expected to effect more significant improvements and benefits than are employees at lower levels.)

b. Deciding the extent of contribution and benefits outside employee's immediate installation.

c. Considering the degree of ingenuity, magnitude of accomplishment, and noncash benefits represented by the contribution.

475.27 Evaluating and Approving the Award

Management evaluates the recommendation, decides if an award is warranted, and approves the recognition through normal channels.

When the accomplishment fails to meet the outlined criteria, a brief written explanation is sent to the person who made the recommendation.

475.28 Processing the Award

The official who is recommending the Spot Award initiates the request for an award by following the procedures in the eAward system.

475.29 Ordering Certificates

Certificates can be printed through the eAwards system. Folders may be ordered from the Material Distribution Center under the following item number:

475.3 Quality Step Increase Award

475.31 Description

The Quality Step Increase (QSI) is an increase in basic pay that recognizes sustained high-quality performance. The total dollar benefit usually exceeds that of a one-time cash award and is granted only when the performance level is likely to continue.

475.32 Eligibility

All career bargaining unit employees are eligible to receive the QSI. An employee cannot receive more than one QSI in any 52-week period.

475.33 Basis

High-quality performance can be determined only after a thorough review of the position requirements, duties, and responsibilities. Consideration must be given to the quality and quantity of work, demonstrated professional and technical knowledge, manual skills, and other evidence of superior competence. Performance criteria include the following:

a. The most important function of the job is being performed in a manner that substantially exceeds normal requirements.

b. Another function of the job is being performed in a manner that is better than satisfactory.

c. A specific job was sustained at a high level during the preceding year and gives promise of continuing.

475.34 Comparisons

475.341 Comparison to Regular Within-Grade Increases

A QSI requires exceptional authorization by management and is always in addition to regular pay adjustments (such as general increases, cost of living adjustments, and/or regular within-grade increases) required by the labor contracts. Any employee below the highest step is eligible to receive a QSI.

A bargaining unit employee cannot receive more than one QSI in any 52-week period (see ELM 475.32). A QSI, once filed on PS Form 1727, Award Recommendation/Authorization, may result in an advancement of either one or two steps, as determined by the procedure described below. The QSI may also change the due date for advancement to the next higher step.

The step and next step date for the QSI action are determined as follows:

a. If the number of weeks served before the QSI is greater than the number of weeks that would be required to progress from the QSI step to the next step, the employee is actually advanced two steps as the result of the QSI. The next step date is then set to allow for a complete waiting period following the QSI.

Example: Before the QSI, Joseph completed 38 weeks in step I in RSC M. The labor contract requires 34 weeks to progress from step J to K. Because the time served in step I is greater than the time required to progress from step J to K, Joseph is given an additional step and placed directly into step K as the result of the QSI. He then must wait the full contractual period (34 weeks) before he reaches the next step, step L.

b. If the number of weeks served before the QSI is less than or equal to the number of weeks required to progress from the QSI step to the next step, the employee is advanced only a single step. The next step date is then determined by subtracting the waiting period weeks required by the labor contract to progress from the QSI step to the next step by the weeks already served before the QSI.

Example: Before the QSI, Joseph completed 22 weeks in step I in RSC M. The labor contract requires 34 weeks to progress from step J to step K. Because the time served in step I is less than the time required to progress from step J to K, Joseph is advanced just a single step, to step J, as the result of the QSI. The next step is determined by taking the waiting period required between steps J and K (34 weeks) and subtracting from it the weeks served in step I before the QSI (22 weeks). The next step, to step K, occurs 12 weeks after the QSI (34 weeks - 22 weeks = 12 weeks).

475.342 Comparison to Spot Awards

The standards for a QSI and a Spot Award are similar. Employee performance is evaluated according to the conditions required under both awards to see which is more appropriate (see 475.24 and 475.33). The primary difference is that the QSI changes the employee's base salary, while the Spot Award is a one-time, lump-sum, cash award. The Spot Award may be preferable when (a) the employee is at the top of the grade or (b) group recognition is desired.

475.35 Approval Authority

475.351 Headquarters and Headquarters-Related Units

Appropriate officers may approve QSIs for eligible employees.

475.352 Areas, Districts, and Plants

Area vice presidents and district managers may approve QSIs for eligible employees under their jurisdiction.

475.36 Recommending an Award

Normally, the employee's supervisor initiates the recommendation for a QSI; however, such recommendations may be initiated by others with the supervisor's concurrence.

475.37 Initiating Documentation

The official who is recommending the QSI award initiates the request through his or her local personnel office by filing a PS Form 1727, Award Recommendation/Authorization.

475.38 Initiating a Personnel Action

When the award is approved, the employee's personnel office completes PS Form 50, Notification of Personnel Action. The personnel action is effective the first day of the first pay period beginning on or after the approval date of the award.

476 Special Awards

476.1 Overview

Characteristics of this award are as follows:

476.2 Team Award

476.21 Purpose

The Team Award is to reward superior team contribution or achievement deserving of systemwide recognition.

476.22 Description

The Team Award, a one-time cash or cash equivalent award (i.e., a check issued by the Eagan ASC or a "gift check" or similar item that can be immediately converted to cash), is valued at a minimum of $50 and is not to exceed $3,000.

The amount of the award should be commensurate with the magnitude of the team achievement.

The Team Award is considered ordinary income for tax purposes (see 471.32).

476.23 Eligibility

All career bargaining and nonbargaining unit employees are eligible for Team Awards.

476.24 Award Limits Ceilings

An employee may receive up to $3,000 in cash Team Awards in a fiscal year (independent of Spot Award dollar amounts).

476.25 Approval Authority

Vice presidents must approve these awards and are responsible for establishing administrative procedures for issuing these awards within their respective organizations.

476.26 Processing the Award

The official who is recommending the Team Award initiates the request for an award by following the procedures in the eAward system.

476.3 Vice President Award

476.31 Purpose

The Vice President Award is a cash payment to acknowledge and reward superior individual contribution or achievement that is deserving of systemwide recognition. It is intended to recognize contributions not encompassed by basic salary, merit salary adjustments, or formal pay for performance programs.

476.32 Description

The Vice President Award, a one-time cash award (i.e., a check issued by the Eagan ASC) is valued at up to $5,000.

The amount of an award should be commensurate with the magnitude of the effort or achievement.

The Vice President Award is considered ordinary income for tax purposes (see 471.32).

476.33 Eligibility

All career bargaining and nonbargaining unit employees are eligible for Vice President Awards.

476.34 Approval Authority

Vice presidents must approve these awards and are responsible for establishing administrative procedures for issuing this award within their respective organizations.

476.35 Processing the Award

The official who is recommending the Vice President Award initiates the request for an award by following the procedures in the eAward system.

476.4 Postmaster General Award

476.41 Purpose

The Postmaster General Award is a cash payment to acknowledge and reward superior individual contribution or achievement that deserves systemwide recognition. It is intended to recognize contributions not encompassed by basic salary, merit salary adjustments, or formal pay for performance programs.

476.42 Description

The Postmaster General Award, a one-time cash award (i.e., a check issued by the Eagan ASC), is valued at up to $10,000.

The amount of the Postmaster General Award should be commensurate with the magnitude of the effort or achievement.

The Postmaster General Award is considered ordinary income for tax purposes (see 471.32).

476.43 Eligibility

All career bargaining and nonbargaining unit employees are eligible for the Postmaster General Award.

476.44 Approval

The postmaster general, management committee members, or senior vice presidents must approve these awards and are responsible for establishing administrative procedures for issuing these awards within their respective organizations.

476.45 Processing the Award

The recommending official initiates the Postmaster General Award through the eAwards system.

* * * * *

- Compensation,
Employee Resource Management, 7-22-04

REVISED FORM

PS Form 1727, Award Recommendation/Authorization (Quality Step Increase)

PS Form 1727, Award Recommendation/Authorization (Quality Step Increase), is revised to reflect that all awards, except for the quality step increase, are now processed through eAwards on the Postal ServiceTM Intranet at https://eawards.usps.gov. PS Form 1727 now is intended only for documenting and authorizing a quality step increase, which the local personnel office then processes via the Complement Management System and by generating a PS Form 50, Notification of Personnel Action.

See pages - of this Postal Bulletin for a copy of PS Form 1727. You can print the form from the Postal Service PolicyNet Web site:

• Go to http://blue.usps.gov.

• Under "Essential Links" in the left-hand column, click on References.

• Under "References" in the right-hand column, click on PolicyNet.

• Click on Forms.

(The direct URL for the Postal Service PolicyNet Web site is http://blue.usps.gov/cpim.)

You can also order PS Form 1727 from the Material Distribution Center (MDC) by using touch tone order entry (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.)

Use the following information to order PS Form 1727:

PSIN: PS 1727
PSN: 7530-02-000-7173
Unit of Measure: SE
Minimum Order Quantity: 1
Quick Pick Number: N/A
Bulk Pack Quantity: 1,000
Price: $0.1965

- Compensation,
Employee Resource Management, 7-22-04

(Employees section continues)