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Employees

ELM REVISION

Policies for Salary Assignment in Nonbargaining Unit Positions

Effective October 14, 2004, Employee and Labor Relations Manual (ELM) 410, Pay Administration Policy for Nonbargaining Unit Employees, is revised to update policies for salary assignment for new appointments (ELM 412), promotion (ELM 413), and reduction in grade (ELM 415). These changes are in accordance with consultation with the management associations and a memorandum announcing the changes by Postmaster General John E. Potter dated April 2, 2004.

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.

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

410 Pay Administration Policy for Nonbargaining Unit Employees

* * * * *

412 New Appointment

412.1 Career Appointment

[Revise the text of 412.1 to read as follows:]

A new employee hired into the EAS schedule is paid the minimum salary for the grade of the position to which hired, although the appointing official has the flexibility to set the starting salary up to the midpoint of the grade. Further variation may occur in the following circumstances:

a. Exceptional Qualifications. If the person has exceptional qualifications, the appointing official may request an exception to set the salary over the midpoint of the grade. The exception over the midpoint requires the approval of the functional vice president.

b. Supervision of Bargaining Unit Employees. When an appointment is to an exempt EAS-15 through EAS-19 grade position that involves directly supervising two or more full-time equivalent bargaining unit employees, the salary must be no less than the fixed supervisory differential salary rate for those employees appointed to positions listed in Exhibit 412.1b.

[Renumber and revise exhibit to read as follows:]

Exhibit 412.1b
Position Groups Eligible for Supervisory Differential

* * * * *

413 Promotion to Nonbargaining Unit Positions

413.1 Definition

[Revise the text of 413.1 to read as follows:]

A promotion is the permanent assignment, with or without relocation, of an employee to (a) an established position having a higher grade than the position to which the employee was previously assigned in the same schedule or (b) a position with a higher than equivalent grade (see 418.1) in another schedule.

Note:When an employee who has rate retention (see 415.6) is assigned to a different position, the assignment is not a promotion unless it is to a position with a grade or grade equivalent higher than the grade on which the rate retention was established.

413.2 Promotion Increase

[Revise the title and text of 413.21 to read as follows:]

413.21 Nonbargaining Unit Employees

Nonbargaining unit employees may receive promotion increases of from 3 to 10 percent, although increases of up to 12 percent may be granted on an exception basis. Management should consider the full 3 to 10 percent range in determining the amount of a promotion increase, giving consideration to such factors as responsibility and complexity of the job, skill requirements, and the employee's experience, credentials, and salary history. Increases of as much as 12 percent should be reserved for employees with exceptional qualifications and can be granted only with the approval of the functional vice president. Promotional increases are subject to the conditions and exceptions described below:

a. An increase cannot result in a salary that is below the minimum or exceeds the maximum of the new grade.

b. An increase of more than 10 percent is given if necessary to bring the salary to the minimum of the new grade or the minimum salary for certain supervisory positions as set forth in 413.21d.

c. If an employee is promoted more than once within 52 weeks, the aggregate promotional increase may not exceed 20 percent of the salary on which the first promotion action was calculated.

d. For promotions to positions at grades 15 through 19 that require supervising two or more full-time equivalent bargaining unit employees, the amount of the increase must result in a salary that is no less than the fixed supervisory differential salary rate for those employees promoted to positions listed in Exhibit 412.1b.

* * * * *

415 Rate Retention and Change to Lower EAS Grade

415.1 Rate Retention Types

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415.12 Veterans' Preference Saved Grade Under RIF

[Revise the text of 415.12 to read as follows:]

Veterans' preference eligible employees who are changed to a lower grade position under reduction in force (RIF) procedures and who held the higher grade position for at least 52 weeks at any time in their history retain the current grade and pay for a period not to exceed 2 years from the effective date of the change to the lower grade position. These employees are treated as being in the higher grade for pay increase and benefit purposes during the saved grade period. On expiration of the saved grade period, they are automatically reduced to the grade of the position to which assigned and receive saved salary indefinitely.

415.13 Saved Salary

[Revise the text of 415.13 to read as follows:]

Saved salary provides that an employee assigned to a lower grade position whose higher grade salary does not fall within the salary range of the lower grade has this higher grade salary continued (saved). For as long as the saved salary is higher than the maximum salary of the lower grade position, the employee may receive pay-for-performance lump sums based on the policies applicable to employees at or above their salary range maximum. The saved salary is continued until it is terminated as specified in 415.7.

[Delete 415.14 and 415.15.]

415.2 Changes to Lower Grade Using RIF Avoidance Procedures

[Revise the text of 415.2 to read as follows:]

Employees who are voluntarily placed in a lower grade position under the provisions of the RIF avoidance policies retain the current grade and pay for a period not to exceed 2 years from the effective date of the change to the lower grade position. However, they receive saved salary indefinitely.

415.3 Changes to Lower Grade Using RIF Procedures

415.31 Non-Veterans' Preference Eligibles

[Revise the text of 415.31 to read as follows:]

Non-veterans' preference eligible employees retain the current grade and pay for a period not to exceed 2 years from the effective date of the change to the lower grade position and receive saved salary indefinitely.

415.32 Veterans' Preference Eligibles

[Revise the text of 415.32 to read as follows:]

Veterans' preference eligible employees who are changed to a lower grade position in a RIF are governed by Title 5, Code of Federal Regulations, sections 351 and 536. Veterans' preference eligible employees who held the higher grade position for less than 52 weeks are reduced to the grade of the position and are eligible for protected salary. Veterans' preference eligible employees who held the higher grade position for at least 52 weeks at any time in their history retain the current grade and pay for a period not to exceed 2 years (104 weeks) from the effective date of the change to the lower grade position. During the 2 years, these employees are eligible for veterans' preference saved grade. They are treated as being in the higher grade for pay and benefit purposes during this saved grade period. On expiration of the 2-year period, they are automatically reduced to the grade of the position to which assigned and receive saved salary indefinitely.

* * * * *

415.5 Non-RIF-Related Changes to Lower Grade

[Revise the title and text of 415.51 to read as follows:]

415.51 Voluntary Change to Lower Grade

An employee who voluntarily changes to lower grade position is immediately reduced to the lower grade, but the salary remains the same as that in the higher grade position, provided it is not above the maximum in the lower position's salary range. In no case may the salary be set above the maximum for the new grade or above the employee's salary immediately before the change. If the employee has a form of rate retention, it is terminated (see 415.7).

* * * * *

[Add new 415.54 as follows:]

415.54 Refusal of a Reasonable Assignment to a Higher Grade Position During a Rate Retention Period

An employee in a lower grade position with rate retention who refuses a reasonable assignment to a higher grade position is immediately reduced to the lower grade, and the salary is reduced by the dollar amount of the most recent promotion or upgrade received.

[Add new 415.55 as follows:]

415.55 Change to Lower Level Due to Demotion for Cause

An employee who is changed to a lower grade position as a result of a demotion for cause is immediately reduced to the lower grade, and the salary is reduced by 10 percent or placed at the maximum of the lower grade, whichever is lower.

415.6 Rate Retention Effect on Promotion

[Revise the text of 415.6 to read as follows:]

If an employee with rate retention is assigned to a different position, there is no promotional pay raise unless the assignment is to a position with a grade that is higher than the grade on which the retained rate was established. Pay adjustments are made as follows:

a. If the employee is assigned to a position with a grade equal to or lower than the grade on which the retained rate was established, the employee is placed at a salary in the new grade equal to the existing salary, and the retained rate continues until terminated in accordance with 415.7.

b. If the employee is assigned to a position with a grade higher than the grade on which the retained rate was established, the retained rate is terminated, and the employee is eligible for a promotional increase to base pay.

415.7 Termination of Salary Retention

* * * * *

[Delete 415.73.]

* * * * *

- Compensation,
Employee Resource Management, 10-14-04

ELM REVISION

Administrative Leave and Night Shift Differential

Effective October 14, 2004, Employee and Labor Relations Manual (ELM) 434.221, Eligibility for Night Differential, and Exhibit 434.2, Night Differential Pay Eligibility Table, are revised to show that the Postal ServiceTM pays night shift differential to eligible bargaining unit employees who receive administrative leave. This change was made pursuant to the national arbitration award by Philip W. Parkinson, dated December 8, 2000, case number J90M-1J-C-95047374.

Night shift differential is paid to eligible employees for all work and paid training or travel time performed between 6:00P.M. and 6:00A.M. It is paid in addition to premiums that the eligible employee might otherwise be entitled to receive, and is not paid due only to early clocking in or late clocking out. Under no circumstance can the total night shift differential hours exceed the total hours for the tour. Employees regularly assigned to a night tour of duty receive night shift differential if they are rescheduled to participate in training, if they are on court leave or paid military leave, and if they are in continuation of pay (COP) status or are rescheduled to daytime work in lieu of placement into COP status. Bargaining unit employees may also receive night shift differential on administrative leave hours if they are regularly assigned to a night tour of duty.

We will incorporate these revisions into the next printed version of the ELM and also into the online version, available on 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 Manuals.

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.

Summary of Changes

• 434.221, Eligibility for Night Differential, adds a reference to administrative leave.

• Exhibit 434.2, Night Differential Pay Eligibility Table, adds a reference to administrative leave applicability for nonbargaining unit employees.

Employee and Labor Relations Manual (ELM)

* * * * *

4 Pay Administration

* * * * *

430 Basic and Special Pay Provisions

* * * * *

434 Overtime and Premium Pay

* * * * *

434.2 Night Differential

* * * * *

434.22 Eligibility

* * * * *

[Replace 434.221 with the following:]

434.221 Eligibility for Night Differential

Exhibit 434.2 shows the employees who are eligible to receive night differential.

Eligible employees who are regularly assigned to a night tour of duty are entitled to receive an equivalent amount of night differential when:

a. Rescheduled to day work to participate in compensable training.

b. On court leave.

c. On military leave.

d. In a continuation of pay (COP) status.

e. Rescheduled to day work due to a compensable liability in lieu of placement in a COP status.

f. On administrative leave (bargaining unit employees only).

[Replace Exhibit 434.2, Night Differential Pay Eligibility Table, with the following:]

Exhibit 434.2
Night Differential Pay Eligibility Table

* * * * *

- Compensation, Employee Resource Management, 10-14-04

ELM REVISION

Military Leave Allowance

Effective October 14, 2004, Employee and Labor Relations Manual (ELM) 517.41, General Allowance, is revised to allow the time that part-time employees spend on leave without pay (LWOP) due to active duty military service to be credited toward the 1,040 hours required each fiscal year to receive paid military leave.

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.

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)

* * * * *

5 Employee Benefits

510 Leave

* * * * *

517 Paid Military Leave

* * * * *

517.4 Military Leave Allowances

517.41 General Allowance

Eligible full-time and part-time employees receive credit for paid military leave as follows:

a. Full-time employees other than D.C. National Guard - 15 calendar days (120 hours) each fiscal year.

b. Part-time employees other than D.C. National Guard - 1 hour of military leave for each 26 hours in pay status (including military LWOP) in the preceding fiscal year provided:

(1) Employee was in pay status a minimum of 1,040 hours in the preceding fiscal year.

Note:A part-time employee's time on military LWOP in one fiscal year counts toward meeting the 1,040 hours' requirement for the next fiscal year.

(2) Employee's pay for military leave does not exceed 80 hours.

c. D.C. National Guard - all days (no limit) of parade or encampment duty ordered under Title 39, District of Columbia Code.

An employee may carry over up to 1 year's allotted but unused (not to exceed 15 days) military leave from one fiscal year to the next.

* * * * *

- Compensation,
Employee Resource Management, 10-14-04

ELM REVISION

Pay for Performance

Effective October 14, 2004, Employee and Labor Relations Manual (ELM) 416.22, Management Association Officials, is revised to show that the annual Pay for Performance (PFP) increase to the salary of record for employees who are placed on leave without pay (LWOP) to devote full-time service as elected national officers of a recognized management association is equal to the National Performance Assessment score.

We will incorporate this revision 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.

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

410 Pay Administration Policy for Nonbargaining Unit Employees

* * * * *

416 Pay for Performance Program

* * * * *

416.2 Eligibility Requirements

* * * * *

416.22 Management Association Officials

Employees who are placed on leave without pay (LWOP) to devote full-time service as elected national officers of a recognized management association are eligible to have their salary of record adjusted to reflect annual PFP increases as if they were continuing in a pay status. The effective date of an employee's adjustment is the same as it would be if the employee were in a pay status. The amount of such an adjustment is determined as follows:

[Revise item a of section 416.22 to read as follows:]

a. The percentage increase is equal to the National Performance Assessment score (national rating).

b. The adjusted salary may not exceed the maximum of the range for the employee's grade.

c. The employee is not eligible for a PFP lump sum.

* * * * *

- Compensation,
Employee Resource Management, 10-14-04

Election Campaigns - Hatch Act and Other Requirements

Hatch Act Requirements for Postal Service Employees

The Hatch Act affects some political activities, including off-duty activities, for Postal ServiceTM employees. The Office of Special Counsel, which investigates possible Hatch Act violations, has prepared examples of permitted and prohibited activities for federal, including Postal Service, employees:

Postal Service employees may:

• Be candidates for public office in nonpartisan elections.

• Register and vote as they choose.

• Assist in voter registration drives.

• Express opinions about candidates and issues.

• Contribute money to political organizations.

• Attend political fundraising functions.

• Attend and be active at political rallies and meetings.

• Join and be an active member of a political party or club.

• Sign nominating petitions.

• Campaign for or against referendum questions, constitutional amendments, and municipal ordinances.

• Campaign for or against candidates in partisan elections.

• Make campaign speeches for candidates in partisan elections.

• Distribute campaign literature in partisan elections.

• Hold office in political clubs or parties.

But, Postal Service employees may not:

• Be candidates for public office in partisan elections.

• Use their official authority or influence to interfere with an election.

• Collect political contributions unless both individuals are members of the same federal labor organization or employee organization and the one solicited is not a subordinate employee.

• Knowingly solicit or discourage the political activity of any person who has business before the agency.

• Engage in political activity while on duty.

• Engage in political activity in any government office.

• Engage in political activity while wearing an official uniform.

• Engage in political activity while using a government vehicle.

• Solicit political contributions from the general public.

• Wear political buttons on duty.

For further information about the Hatch Act, please contact the Field Law Office that serves your location, or contact the Ethics Helpline by telephone at 202-268-6346 or by e-mail at ethics.help@usps.gov.

Campaigning on Postal Service Premises

Because 2004 is an election year, candidates may seek to use Postal Service premises for campaign purposes. Postal Service regulations (see Postal Operations Manual 124.54; 39 CFR 232.1; and Poster 7, Rules and Regulations Governing Conduct on Postal Property) prohibit campaigning for election to public office on leased or owned Postal Service property. Tell individuals who ask about the availability of Postal Service property for such purposes about the prohibition, and give them a copy of the regulations. The following points will help you interpret and apply the regulations:

• The focus of the regulations is to identify activities that are "prohibited." Activities that are not prohibited by any of the regulations are permitted. For example, in the context of political campaigning, informational leafleting would be permitted, so long as the information in the leaflet itself is not political campaigning and the leafleting were carried out in a way that does not disrupt Postal Service business.

• Campaigning for election to public office is prohibited on Postal Service property, even if the candidate is independent of any political party.

• The regulations do not prohibit all activities related to political issues. For example, distributing literature pertaining to a referendum or ballot measure is permitted. The regulations do prohibit, however, the solicitation of signatures on petitions, polls, and surveys.

• The regulations prohibit depositing posters or literature on Postal Service property, obstructing entrances, any activity that tends to impede or disturb the public in transacting Postal Service business, the sale of goods, and the solicitation of contributions on Postal Service property.

• The regulations cover activity only on Postal Service premises. Activity outside Postal Service property, even if it affects our premises, is not governed by our regulations.

- Ethics and Federal Government,
Law Department, 10-14-04

Health Benefits Open Season

The 2004 Federal Employees Health Benefits (FEHB) Open Season is scheduled for November 8 through December 14, 2004. Many open season changes may be made via self-service on PostalEASE. During this open season, eligible employees may make any one, or a combination, of the following changes:

• Enroll if not enrolled.

• Change from one plan to another plan.

• Change from one option to another option.

• Change from Self Only to Self and Family.

• Change from Self and Family to Self Only.

• Cancel enrollment.

• Change from pre-tax to post-tax payment of health insurance premiums, or vice versa.

Enrollment changes and new enrollments made during the 2004 open season will be effective January 8, 2005 (Pay Period 02-05).

Distribution of Open Season Materials

Employees

Before the start of open season, the 2005 Guides to Federal Employees Health Benefits (FEHB) Plans for (1) career employees (RI 70-2); (2) Postal Inspection Service and Office of Inspector General (OIG) employees (RI 70-2IN); and (3) certain temporary (noncareer) employees (RI 70-8PS) will be mailed from the national level to each employee's address of record. Each 2005 Guide includes:

• An overview of FEHB Program eligibility requirements and election choices during open season.

• A comparison of biweekly premium costs of participating plans.

• An explanation of the pre-tax payment feature, including a current listing of qualified life status changes.

• Enrollee survey results provided by the individual health plans.

• Information about accreditation of the key systems and processes that managed care organizations use.

Installations

To assist in publicizing this FEHB open season, all installations must post the open season notice provided on page 4 of this Postal Bulletin through December 14, 2004, on bulletin boards.

Compensation will make an automatic distribution of brochures indicated below to the same offices that receive Thrift Savings Plan and Flexible Spending Account materials. This distribution is to all customer service district offices, processing and distribution centers, airport mail centers, bulk mail centers, remote encoding centers, the Office of the Inspector General, selected Postal Inspection Service divisions, and selected Headquarters field units.

Personnel offices will receive through automatic distribution:

• RI 70-2, 2005 Guide to FEHB Plans (postal career employees) - postal stocking number (PSN) 7690-03-000-3774.

• RI 70-2IN, 2005 Guide to FEHB Plans (USPS Inspectors and Office of the Inspector General employees).

• RI 70-5, 2005 Guide to FEHB Plans (temporary continuation of coverage and former spouses) - PSN 7690-03-000-3772.

• Most fee-for-service plan brochures.

The Rural Carrier Benefit Plan will distribute automatically to district and area Human Resources offices (not to the TSP/FSA installation distribution list):

• RI 72-5, Rural Carriers Benefit Plan (individual plan brochure for the rural carriers closed enrollment fee- for-service plan) - PSN 7690-03-000-3809.

Personnel offices must requisition the following item from the Material Distribution Center (MDC):

• RI 70-8PS, 2005 Guide to FEHB Plans (certain temporary/noncareer employees) - PSN 7690-03-000-3754.

To order brochure RI 70-8PS, and for additional copies of brochures RI 70-2, RI 70-5, and RI 72-5, personnel offices may order from the 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.)

When ordering, provide the item number and PSN and also the following information:

Unit of Measure:EA

Minimum Order Quantity:1

Quick Pick Number:N/A

Bulk Pack Quantity:100

Price:No cost

Available on the Postal Service PolicyNet Web site are these two forms:

• PS Form 8201, Pre-Tax Health Insurance Premium Waiver/Restoration Form for Career Employees.

• PS Form 8202, Pre-Tax Health Insurance Premium Election/Waiver Form for Noncareer Employees.

To find them, go to http://blue.usps.gov; under "Essential Links," click on Forms. Printed copies of these forms are available from the Headquarters Compensation insurance officer.

Personnel offices must order directly from plan sponsors:

• Brochures for health maintenance organizations (HMOs) and Point of Service Plans (POSs).

Additional Information

Publication 12, Health Benefits Open Season Administrative and Processing Information (November 2004), addresses FEHB open season administrative issues in more detail than the various guides. It contains information on:

• Open season materials, including details of when and how to requisition a residual supply of materials.

• Eligibility requirements for coverage.

• A list of FEHB health plan withdrawals and other significant changes.

• Comprehensive medical plan (HMO) contact information.

• Personnel processing information.

• Open season publicity material.

Publication 12 is available on 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 PUBs.

- Compensation,
Employee Resource Management, 10-14-04

2004 Combined Federal Campaign Guidelines

Schedule and Responsibilities

Each fall, the Postal ServiceTM joins other federal agencies in the Combined Federal Campaign (CFC) drive. In accordance with Office of Personnel Management (OPM) regulations, the campaign runs for a 6-week period between September 1 and December 15, as established by the Local Federal Coordinating Committee.

Vice presidents of Area Operations have campaign responsibility. Area offices must ensure that campaign information is disseminated to all offices in their jurisdiction.

Guidelines Online

Publication 530, Combined Federal Campaign Operational Guidelines, May 1994, explains how to carry out a successful campaign. The November 1998 update of Publication 530, which revised position titles, facility locations, and dates of campaign, is available on 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 PUBs.

The OPM Web site (www.opm.gov) offers additional information on the Combined Federal Campaign, including geographic boundaries.

Pledge Form Management Instructions

1. Make sure local campaign staff check pledge forms for completeness.

2. Distribute pledge forms as follows:

a. Central Receipt and Accounting copy - submit to appropriate CFC official.

b. Employee copy - return to employee.

c. Payroll Office copy -

3. Submit corrections to the local DDE/DR site, not to the Eagan ISC.

Note:All cards that are illegible or incomplete will be returned to the local CFC coordinator for local processing in pay period 03/04 or later.

Local DDE/DR sites are to be notified by broadcast message of their ability to access D20M, SDI-09 in pay period 02/04 for local entry, changes, or corrections. DDE/DR sites are not allowed access to D20M for CFC charity entries before that time.

Final Report

At the end of each campaign, the Eagan ISC prepares a report from the Postal Payroll System of CFC contributions through payroll deduction (as of pay period 02) as the annual report of national CFC contributions. Each performance cluster manager receives a copy.

- Personnel Operations Support,
Employee Resource Management, 10-14-04

Finance

HANDBOOKF-1 REVISION

Check Acceptance Policy

Effective November 1, 2004, the policy for accepting checks at postal retail units and Post OfficesTM is revised to require a photo-bearing identification showing the customer's (presenter's) picture and signature for all types of checks, regardless of whether or not the customer is known. Only the following are acceptable photo-bearing identification: valid state-issued driver's license, state-issued non-driver identification, passport, military identification card, or other U.S. government-issued identification that shows both the customer's picture and signature.

Photo-bearing identification is required for both personal and business checks. In addition to the customer's identification number, the acceptance employee must record the customer's Post Office (P.O.) box/caller service numbers, trust account permit numbers, or postage meter serial numbers on the face of checks accepted for payment of these services.

The requirement of photo-bearing identification does not apply to checks received by mail for payment of P.O. box/caller services, trust account deposits, or Stamps by Mail®. However, the acceptance employee must record the customer's P.O. box/caller services numbers or trust account permit numbers for payment of these services, and mark "by mail" on the face of the checks.

We will incorporate these revisions into the next printed edition of Handbook F-1 and into the next update of the online version accessible 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.

• Then click on HBKs.

Handbook F-1, Post Office Accounting Procedures

* * * * *

3 Managing Postal Funds

31 Acceptable Payment for Postal Goods and Services

* * * * *

[Revise the title and text of 312 to read as follows:]

312 Bank Checks

Bank checks (drawn from a U.S. bank branch or a U.S.- based branch of a foreign bank, written in U.S. dollars) such as personal checks, business checks, certified checks, cashier's checks, drafts, checks covered by a check guarantee furnished by a bank, postal and non-postal money orders, are all acceptable payments for Postal Service goods and services, except for the purchase of postal money orders and SureMoney® (money by wire).

The following is an outline of the minimum requirements for the check acceptance policy at postal retail units, Post Offices, contract postal units, and business mail entry units (BMEUs). The district Finance manager, in conjunction with the district Retail manager and other concerned operations, may establish additional check acceptance requirements to satisfy the district business needs.

Employees must accept checks in compliance with this policy and any additional specific instructions from the postmaster or the district. The Eagan Accounting Service Center maintains a list of customers denied check acceptance privileges (bad check list) and electronically distributes it to the district offices monthly. Personal checks are accepted for all postal products, except money orders and SureMoney. Checks may be accepted for payment of a Collect on Delivery (COD) item provided that the check is made payable to the sender.

Note:Human resources personnel or a contracting officer representative with vending machine contracts may accept commission checks. Remit the checks to a Post Office and issue a no-fee postal money order for payment to state licensing agency and/or social and recreation committee.

[Revise the title and text of 312.1 to read as follows:]

312.1 Accepting a Personal Check at Post Offices

01> Verify that the customer's name and address are imprinted on the check from the check printer manufacturer; do not accept checks without this information.

02> If the customer's telephone number is not preprinted on the check, request the telephone number (unless prohibited by local or state law) and record it on the face of the check.

03> Verify that the issuer of the check is not on the bad check list. If the customer is on the list, do not accept the check.

04> Ensure the check is payable to the "US Postal Service" or "Postmaster" by title only, in the exact amount of the purchase, and with the current date. Do not accept post-dated checks.

05> Request to see a photo-bearing identification that shows the customer's (presenter's) picture and signature; identification is required for check acceptance (see section 312.3). Either the customer or acceptance employee must record the identification number on the face of the check.

06> Verify the identification and the signature on the identification with the signature on the check.

07> If payment is for a specific service, in addition to the identification number, record the customer's Post Office (P.O.) box/caller services number, trust account permit number, or postage meter serial number on the face of the check accepted for payment of any of these services.

08> Do not accept a check made payable to the customer and endorsed on the back as payable to "Postmaster."

09> Do not cash personal checks.

10> For checks in the amount of $1,000 or more, the issuing bank must be contacted by the Post Office to make sure the bank account is active. Record the bank official's name on the face of the check. (The district Finance manager may recommend a different threshold amount for this process following instructions outlined in section 312.)

Note:After banking hours, process the transaction, make a photocopy of the check, and call the bank on the following business day to ensure the bank account is active. If the bank account is not an active account, immediately communicate this to the district Finance manager to avoid proliferation of bad checks from this bank account.

[Revise the title and text of 312.2 to read as follows:]

312.2 Checks Mailed in for Payments

Checks mailed in for payment of P.O. box/caller services, trust account deposits, or Stamps by Mail:

1> Verify that the customer's name and address are imprinted on the check from the check printer manufacturer; do not accept checks without this information.

2> Verify that the issuer of the check is not on the bad check list. If the customer is on the list, do not accept the check and mark it "return to sender."

3> Make sure that the check is payable to the "US Postal Service" or "Postmaster" by title only, in the exact amount, and with a date no more than 6 months prior to the acceptance date. Do not accept post-dated checks.

4> The requirement of photo-bearing identification is not applicable, but the customer's P.O. box/caller services number or trust account permit number must be recorded on the face of the check.

5> Endorse "by mail" on the back of the check.

6> For checks in the amount of $1,000 or more, the issuing bank must be contacted by the Post Office to make sure the bank account is active. Record the bank official's name on the face of the check. (The district Finance manager may recommend a different threshold amount for this process following instructions outlined in section 312.)

Note:After banking hours, process the transaction, make a photocopy of the check, and call the bank on the following business day to ensure the bank account is active. If the bank account is not an active account, immediately communicate this to the district Finance manager to avoid proliferation of bad checks from this bank account.

[Revise the title and text of 312.3 to read as follows:]

312.3 Identification for Check Acceptance

All checks accepted for payment at postal retail units, Post Offices, and contract postal units require a photo- bearing identification that shows the customer's (presenter's) picture and signature. Record the name and identification number on the face of the check in location A as shown in Exhibit 312.1. The required photo-bearing identification must be one of the following:

• Valid state-issued drivers' license.

• State-issued, non-driver identification.

• Passport (foreign or domestic).

• Military identification.

• Other U.S. government-issued identification showing the customer's picture and signature.

* * * * *

313 Accepting Other Types of Checks

[Revise the title and text of 313.1 to read as follows:]

313.1 Accepting Guarantee Payment Checks

1> Certified checks, cashier's checks and drafts, non- postal money orders, and checks covered by a check guarantee furnished by a bank may be accepted.

2> Make sure that the check is payable to the "US Postal Service" or "Postmaster" by title only, in the exact amount of the purchase, and with a date no more than 6 months prior to the acceptance date. Do not accept post-dated checks.

3> Record the identification number from a photo-bearing identification that shows the customer's picture and signature (see section 312.3). Record the customer's name and address if not printed on the face of the check.

4> In addition to the identification number, record the customer's P.O. box/caller services number, trust account permit number, or postage meter serial number on the check accepted for payment of any of these services.

5> Certified checks, cashier's checks, drafts, and checks covered by a check guarantee card presented for the purchase of Postal Service products (except money orders) in the amount of $1,000 or more must be verified with the issuer of the check and/or the issuing bank to ensure the check is valid. Record the bank official's name on the face of the check. (The district Finance manager may recommend a different threshold amount for this process following instructions outlined in section 312.)

Note:After banking hours, process the transaction, make a photocopy of the check, and call the bank on the following business day to ensure the bank account is active. If the bank account is not an active account, immediately notify the district Finance manager to avoid proliferation of bad checks from this bank account.

Caution:Certified checks, as well as business checks, are easy to replicate using laser printers.

313.2 Accepting Checks from Government Agencies

[Revise 313.2 to read as follows:]

1> Checks issued by federal, state, county, or municipal agencies may be accepted for the purchase of postal products (except money orders and SureMoney).

2> Verify that the check contains the agency's name and address; do not accept checks without this information imprinted on them.

3> If the telephone number is not imprinted on the check, request the agency's telephone number and record it on the face of the check. (Do not accept checks without the agency's telephone number.)

4> Make sure that the check is payable to the "US Postal Service" or "Postmaster" by title only, in the exact amount of the purchase, and with a date no more than 6 months prior to the acceptance date. Do not accept post-dated checks.

5> Record the identification number from a photo-bearing identification showing picture and signature (see section 312.3) on the face of the check.

6> In addition to the identification number, record the customer's P.O. box/caller services number, trust account permit number, or postage meter serial number on the check accepted for payment of any of these services.

7> Do not cash government agency checks.

8> Do not accept government checks made payable to the customer and endorsed on the back as payable to "Postmaster."

[Revise the title and text of 313.3 to read as follows:]

313.3 Accepting Business Checks

1> Checks issued from a business may be accepted for the purchase of postal products (except money orders and SureMoney).

2> Verify that the check contains the business name and address on the check from the check printer manufacturer; do not accept checks without this information imprinted on them.

3> If the telephone number is not imprinted on the check, request the business telephone number and record it on the check. (Do not accept checks without the business telephone number.)

4> Verify that the issuer of the check is not on the bad check list. If the customer is on the list, do not accept the check.

5> Make sure that the check is payable to the "US Postal Service" or "Postmaster" by title only, in the exact amount of the purchase, and with a date no more than 6 months prior to the acceptance date. Do not accept post-dated checks.

6> A photo-bearing identification that shows the customer's (presenter's) picture and signature must be required (see section 312.3). The identification number must be recorded on the face of the check by the customer or the acceptance employee.

7> In addition to the identification number, record the customer's P.O. box/caller services number, trust account permit number, or postage meter serial number on the face of the check accepted for payment of any of these services.

8> Do not cash business checks.

9> Checks from a new business, regardless of the amount, must be verified with the issuing bank to ensure the bank account is active. Record the bank official's name on the face of the check. (If the transaction is the first purchase made with the Post Office, the business would be considered a new business.)

Note:After banking hours, for checks accepted for a new business, process the transaction, make a photocopy of the check, and call the bank on the following business day to ensure the bank account is active. If the bank account is not an active account, immediately notify the district Finance manager to avoid proliferation of bad checks from this bank account.

[Revise the title and text of 313.4 to read as follows:]

313.4 Accepting Business Checks at Business Mail Entry Units

1> Verify that the business name and address are imprinted on the check from the check printer manufacturer; do not accept checks without this information.

2> If the telephone number is not preprinted on the check, request the business telephone number and record it on the face of the check. (Do not accept checks without the business telephone number.)

3> Verify that the issuer of the check is not on the bad check list. If the customer is on the list, do not accept the check.

4> Make sure that the check is payable to the "US Postal Service" or "Postmaster" by title only, with a date no more than 6 months prior to the acceptance date. Do not accept post-dated checks.

5> Either the permit holder or the acceptance employee must record the permit customer's trust account number on the face of the check.

6> The acceptance employee at the BMEU must ensure that the permit number is an active account.

7> Forward the checks to the postal retail unit responsible for processing permit account deposits. Ensure the following information is on the face of each check:

(a) Customer's and company's name, address, and telephone number.

(b) Permit account number.

(c) The account identifier code (AIC), which identifies the account type.

Include an adding machine tape with the total dollar amount of the checks and the number of checks enclosed.

Note:The BMEU must ensure that the permit customer profile with name, address, and telephone numbers are updated annually.

[Revise the title and text of 313.5 to read as follows:]

313.5 Accepting Traveler's Check and AMEX Gift Checks

Traveler's checks issued by a U.S. bank branch and American Express (AMEX) gift checks are acceptable payments for postal goods and services including postal money orders.

1> Follow any special instructions appearing on the check and make sure to process these checks with the terms stated on the check.

2> Ensure the check is payable to the "US Postal Service" or "Postmaster" by title only.

3> Request to see a photo-bearing identification that shows the customer's picture and signature; identification is required for check acceptance (see section 312.3). Either the customer or the acceptance employee must record the identification number on the face of the check.

4> Do not cash traveler's checks or AMEX gift checks.

5> The amount of the purchase must be at least 50 percent of the amount of the traveler's check or the amount of the AMEX gift check. (This precludes the customer from making small purchases merely to cash the traveler's check or the AMEX gift check.)

* * * * *

- Revenue and Field Accounting,
Finance, 10-14-04

Philately

STAMPANNOUNCEMENT04-35

Holiday Ornaments Stamps

The Postal ServiceTM will issue 37-cent, Holiday Ornaments special stamps in four designs in a pressure-sensitive adhesive (PSA) pane of 20 stamps (Item 566400), on November 16, 2004, in New York, New York. The stamps, designed by Derry Noyes of Washington, DC, go on sale nationwide November 17, 2004.

The stamps feature photographs by Sally Andersen- Bruce of painted glass Santa ornaments. The ornaments were made in 1999 in Lauscha, Germany, for D. Blümchen & Company of Ridgewood, New Jersey, and were hand- painted by designer Diane S. Boyce. Nestled in tissue paper, these shiny Santas evoke happy memories of lights, tinsel, and other favorite Christmas tree decorations.

The stamps will also be issued in a double-sided booklet of 20 (Item 673200), a folded vending book of 20 (Item 673300), and an ATM sheetlet of 18 stamps (Item 566900).

How to Order 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 OfficeTM, 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:

HOLIDAY ORNAMENTS STAMPS
SPECIAL EVENT UNIT
421 8TH AVE RM 2029B
NEW YORK NY 10199-9998

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 December 15, 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 calling 800-STAMP-24 or writing to:

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

Philatelic Products

There are no philatelic products for this stamp issue.

Distribution: Item 566400, Holiday Ornaments, PSA Pane of 20

Stamp distribution offices (SDOs) will receive a full standard automatic distribution quantity, plus an additional one- fourth, for a PSA sheet stamp. Distributions are rounded up to the nearest master carton size (40,000 stamps).

Initial Supply to Post Offices

SDOs will make a subsequent automatic distribution to Post Offices for their full standard automatic distribution quantity for a PSA sheet stamp using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute stamps to Post Offices before November 10, 2004.

Philatelic Requirement

SDOs with authorized philatelic centers will receive an automatic distribution of these stamps in eight positions for subsequent distribution to each philatelic window.

Additional Supply

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

For fulfilling supplemental orders from SDOs, the Memphis and New York APDs will each receive 3,200,000 additional stamps; the Chicago APD will receive 2,880,000 additional stamps; the San Francisco APD will receive 2,600,000 additional stamps; and the Denver APD will receive 1,000,000 additional stamps.

For fulfilling supplemental orders from APDs, the Kansas City Stamp Services Center (SSC) will receive 12,000,000 additional stamps.

Distribution: Item 673200, Holiday Ornaments, PSA Double-Sided Booklet of 20

SDOs will receive a full standard automatic distribution quantity for a PSA booklet. Distributions are rounded up to the nearest master carton size (4,000 booklets).

Initial Supply to Post Offices

SDOs will make a subsequent automatic distribution to Post Offices for their full standard automatic distribution quantity for a PSA booklet using PS Form 17, Stamp Requisition/Stamp Return. SDOs must not distribute stamps to Post Offices before November 10, 2004.

Philatelic Requirement

Authorized philatelic centers requiring the Holiday Ornaments PSA double-sided booklet of 20 must order Item 673200 from their designated SDO using a separate PS Form 17.

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