Sec. 205. Service credit contributions of voluntary separation incentive payments
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The Postal Service may provide voluntary separation incentive payments to employees of the Postal Service who voluntarily separate from service before October 1, 2016 (including payments to employees who retire under section 8336(d)(2) or 8414(b)(1)(B) of title 5, United States Code, before October 1, 2016), which may not exceed the maximum amount provided under section 3523(b)(3)(B) of title 5, United States Code, for any employee. Section 8332 of title 5, United States Code, is amended by adding at the end the following:
For an employee of the United States Postal Service who is covered under this subchapter and voluntarily separates from service before October 1, 2016, the Office, if so directed by the United States Postal Service, shall add not more than 1 year to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this subchapter (except for a disability annuity under section 8337). An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service.
The United States Postal Service shall ensure that the average actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from additional creditable service provided under paragraph
(1)or section 8411(m)(1) is not more than $25,000 per employee provided additional creditable service under paragraph
(1)or section 8411(m)(1). Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection. The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8348(h)(1)(A). . Section 8411 of title 5, United States Code, is amended by adding at the end the following: For an employee of the United States Postal Service who is covered under this chapter and voluntarily separates from service before October 1, 2016, the Office, if so directed by the United States Postal Service, shall add not more than 2 years to the total creditable service of the employee for purposes of determining entitlement to and computing the amount of an annuity under this chapter (except for a disability annuity under subchapter V of that chapter). An employee who receives additional creditable service under this paragraph may not receive a voluntary separation incentive payment from the United States Postal Service. The United States Postal Service shall ensure that the average actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from additional creditable service provided under paragraph
(1)or section 8332(p)(1) is not more than $25,000 per employee provided additional creditable service under paragraph
(1)or section 8332(p)(1). Subject to subparagraph (B), and notwithstanding any other provision of law, no deduction, deposit, or contribution shall be required for service credited under this subsection. The actuarial present value of the additional liability of the United States Postal Service to the Fund resulting from this subsection shall be included in the amount calculated under section 8423(b)(1)(B). . The Postal Service shall offer incentives for voluntary separation under this section and the amendments made by this section as a means of ensuring that the size and cost of the workforce of the Postal Service is appropriate to the work required of the Postal Service, including consideration of— the closure and consolidation of postal facilities; the ability to operate existing postal facilities more efficiently, including by reducing the size or scope of operations of postal facilities in lieu of closing postal facilities; and the number of employees eligible, or projected in the near-term to be eligible, for retirement, including early retirement. In this subsection, the term career employee of the Postal Service means an employee of the Postal Service— whose appointment is not for a limited period; and who is eligible for benefits, including retirement coverage under chapter 83 or 84 of title 5, United States Code.