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  No. 04-25  December 3, 2004       
 
 
  MSPB Rules for Injured Carrier
In Annuity Calculation Dispute
   

An injured full-time employee who returns to limited duty but cannot work 40 hours per week is still entitled to have his retirement annuity calculated as if he had been in full-time status, the Merit Systems Protection Board (MSPB) ruled November 16 in Hatch v. OPM.

NALC President William Young praised the ruling which should set a precedent for all similarly situated retirees.

"This case demonstrates how the effort of one determined letter carrier can secure justice for all his sisters and brothers," Young said.

David Hatch, a member of Branch 7, Lynn, Massachusetts, was injured on the job in October 1990 and carried on the Postal Service rolls in a leave without pay status for nearly three years. In October 1992 he returned to work in limited duty status, but was never able to work more than 20 hours in a week.

After Hatch retired in September, 2002, he discovered that OPM had calculated his retirement annuity as if he had been a part-time employee, which reduced his monthly annuity payments.

Hatch protested OPM's action and appealed to the MSPB. In its decision, the MSPB totally rejected OPM's position.

"The fact that the appellant never recovered sufficiently to work full 8-hour days, despite expectations that he would do so, does not establish that he was a part-time employee, for retirement purposes, from 1993 until his retirement," the board said. Accordingly, the MSPB ordered OPM to recompute Hatch's annuity, crediting as full-time service his employment from October, 1993 until his retirement.

 

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  Fifth COLA Surges to $270.40
   
  Shop union for the Holidays graphic

The projected accumulation for the fifth of eight regular cost-of-living adjustments under the 2001-2006 National Agreement jumped to $270.40 following release November 17 of the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) for October, reflecting sharp increases in energy and food prices.

The fifth COLA will be based on inflation between July and January 2005 and will be payable in the second full pay period following release of the January, 2005 index.

The $270.40 annual accumulation equals 13 cents per hour or $10.40 per pay period.

The accumulation toward the 2006 retiree COLA stood at 0.8 percent following release of the October CPI-W. The 2006 retiree COLA will be based on the increase in the average CPI-W between the third quarter of 2004 and the third quarter of 2005.

Retirees under the Civil Service Retirement System (CSRS) will receive a cost-of-living adjustment of 2.7 percent in 2005 and Federal Employees Retirement System (FERS) retirees will receive a COLA of 2 percent. Under current law, FERS COLA increases are set at 2 percent if the CPI increase is between 2 percent and 3 percent.

The accumulation toward the 2005 COLA for Federal Employees Compensation Act (FECA) participants increased to 3.7 percent based on the latest figures. The 2005 FECA COLA is based on the increase in the CPI-W between December 2003 and December 2004.

   
 

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  Jackson Appointed RAA in Region 1
    Christopher Jackson, third vice president of NALC Branch 1100 in Garden Grove, California, has been appointed by NALC President Young as a full-time Regional Administrative Assistant in Region 1 (San Francisco).

Jackson, 43, succeeds Joan Hurst, who is retiring at the end of the year.

A resident of Rancho Cucamonga, California, Jackson first entered the Postal Service in 1981 as a LSM operator and switched to the letter carrier craft a year later. He became a shop steward for the NALC in 1986. In 1993, he became route inspection coordinator for the NALC in the San Diego District and in 1995 added the role of DPS coordinator, holding both positions until 2000. He assumed his current full-time position in Branch 1100 in 2001.

   
 

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  FEHB 'Open Season' Extended to Dec. 28
  Additional Time to Join NALC Health Plan
   

Letter carriers and other postal employees will have until December 28 to enroll in the NALC Health Benefit Plan for 2005 under an extension granted to the Postal Service by the Office of Personnel Management (OPM).

Letter carriers not already enrolled in the NALC Plan can assure themselves and their families of high-quality, comprehensive medical care coverage for 2005 by enrolling in the NALC Health Benefit Plan during this extended "Open Season."

If you are not already enrolled in the NALC Plan, don't miss this opportunity!

Doug A. Tulino, USPS Manager of Labor Relations Policies and Programs, told NALC President William H. Young in a November 29 letter that printing of the 2005 Federal Employee's Health Benefits (FEHB) Career Employee Guides (RI 70-2) was delayed, which in turn delayed the mailing and receipt of the guides at the mailing addresses of postal employees.

"To compensate for this nearly two-week delay, the Postal Service will accept FEHB open season elections for an additional two weeks under the belated election authority granted to agencies by the Office of Personnel Management," Tulino wrote.

Tulino explained that open season enrollments will be accepted until 5 p.m. Central Time on December 28 for all postal employees. The effective date of such choices will remain at January 8, 2005.

Every NALC member has been sent a copy of the NALC Health Benefit Plan's Official Brochure as well as enrollment information. In addition, the November issue of the Postal Record included extensive information in a special insert. Owned and operated by the union, the NALC Health Benefit Plan provides active letter carriers, annuitants, and other postal employees with top quality coverage that includes medical services provided by physicians, inpatient and outpatient hospital services, emergency treatment, mental health and substance abuse treatment, and NALC's prescription drug program.

This is a summary of some of the features of the NALC Health Benefit Plan. Detailed information on the 2005 NALC Health Benefit Plan can be found in the official brochure. Before making a final decision, please read the Plan's officially approved Brochure (RI 71-009). All benefits are subject to the definitions, limitations, and exclusions set forth in the official brochure.

   
 

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  Arbitrator Carlton J. Snow
    Longtime postal arbitrator Carlton J. Snow, who issued a number of crucial arbitration awards affecting letter carriers, passed away November 19 in Salem, Oregon after collapsing following a labor arbitration class with students at Willamette University College of Law. He was 64.

Since 1990, Arbitrator Snow issued more than 30 national level awards in NALC cases. Among his most significant decisions were his 1996 award holding that the Joint Statement on Violence and Behavior in the Workplace may be enforced against the Postal Service through the grievance procedure; a 1997 award enforcing the bundle limits provided by the DPS Work Methods Memorandum; and a 1998 decision prohibiting the Postal Service from transferring injured full-time letter carriers to the clerk craft as part-time flexibles.

NALC President William H. Young expressed the condolences of the NALC membership and praised Snow on his distinguished record of accomplishments.

"Throughout his career as an arbitrator, Carlton Snow strived to guarantee working men and women, including letter carriers, the respect and reward they deserve for their valuable service to their employer and to the nation," said Young. "He was a giant in the arbitration field and his passing is a great loss to all who have relied on his expertise and judgment."

Snow taught law for 33 years and was a senior professor at Willamette. The Salem (OR) Statesman Journal noted that he was known "for his gentle heart and profound understanding of labor arbitration."

   
 

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  Interpretive Step Appeal Filed in
USPS Outplacement Pilot Case
    The NALC has initiated an Interpretive Step appeal protesting the Postal Service's withdrawal of limited duty from a New York letter carrier whose limited duty job consisted of casing on her own bid assignment and performing other letter carrier duties.

Management, acting behind the shield of its misnamed Outplacement Pilot initiative, had based its action in part on the claim that medical evidence indicated the employee would never fully recover.

Those employees entitled to compensation and able to work limited duty but have limited duty jobs withdrawn or not provided in the first place may have appeal rights to the Merit System Protection Board (MSPB) in addition to their grievance rights.

These MSPB appeal rights apply to all compensably injured employees, not just veterans.

   
 

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