Confusion, Misinformation Could Hinder USPS’s Early-Retirement Push

Confusion reigns among the 115,000 postal workers who received notices in the past few days about a buyout offer. The confusion could limit the number of APWU-represented career employees who accept the U.S. Postal Service’s $15,000 incentive to retire or quit.

“There is still the misconception among FERS employees of an age penalty in a Voluntary Early Retirement,” [long-time USPS critic Don] Cheney says. “The opposite is true in most cases.”

Also tending to discourage early retirements is the mistaken belief that the IRS charges a 10 percent early-withdrawal penalty for money taken out of a Thrift Savings Plan by early retirees,