USPS letterhead for HEADQUARTERS users.



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[date]

[name]

[street address]

[city, state, ZIP+4]

Dear [name]:

You have notified us that you will be absent from the Postal Service in order to perform active military service under Title 10, Title 14, or Title 32 United States Code (U.S.C.) or to perform service as an Intermittent Disaster-Response Appointee (hereafter included in the term "military service").

You will be placed in a military leave without pay status (LWOP — military) while you are performing military service unless you request in writing to be separated from employment and specifically state that (a) you do not intend to return to employment with the Postal Service after completing military service and (b) you understand that you are forfeiting benefits by separating.

This package includes enclosures developed to introduce you to important information, some of which simply need to understand, and some of which you must act on before you leave. Note these essential points:

1. If you remain a Postal Service employee in an LWOP status for the period of active duty military service, you will be entitled to all the rights and benefits offered by the Uniformed Services Employment and Reemployment Rights Act (USERRA), provided you meet the qualifications for coverage and fulfill your obligations under the law. If you separate, you still have the right to reemployment as long as you meet the requirements set out in the attached document under Entitlement to Reemployment or Reinstatement and Eligibility Requirements, but you will not be entitled to non-seniority-based benefits or Postal Service benefits not required by USERRA.

See Part 1, USERRA and Postal Service Rights, Benefits, and Obligations

and Part 2, Steps for Providing Required Notification and Documentation.

2. You may take steps now to prepare documentation so that we can process your applications for position changes while you are away.

See 3A, Application for Positions.

3. You must decide whether to continue your Federal Employees Health Benefits (FEHB) coverage while you are away. If you are activated under Title 10, U.S.C, you may qualify for Postal Service payment of your premiums for up to 24 months during LWOP, or perhaps longer if you are able to use leave to interrupt your continuous LWOP and extend your benefits. You will also want to review other steps needed to obtain Postal Service benefits and retirement service credit.

Note: If you began your active duty military service before this letter became effective on January 1, 2008, the suppression of billing described in 4C of this letter may not apply to you. The procedures in place when you began your active military service and described in the letter you received at that time will continue in effect unless your modify your request (see 4C).

See 1G, Entitlement to Continue FEHB Coverage

and 4C, Federal Employees Health Benefits (FEHB)

Questions

If you have questions about the protections that USERRA affords you or about Postal Service policies that apply to employees performing military service, contact your HR local services. If you have any questions regarding benefits and the actions you must take to secure them contact the HRSSC at 1-877-477-3273, option 5 or at YTSBCO@.

HR Shared Service Center

Enclosures: Uniformed Services Employment and Reemployment Rights Act (USERRA)

PS Form 3111, Federal Employees Health Benefits (FEHB) Coverage or Termination While in Leave Without Pay (LWOP) Status

SF 1152, Unpaid Compensation of Deceased Civilian Employee

SF 2808, Civil Service Retirement System, or SF 3102, Federal Employees’ Retirement System, as applicable

SF 2823, Federal Employees’ Group Life Insurance (FEGLI) Program

TSP-3, Thrift Savings Plan

TSP Fact Sheet: TSP Benefits That Apply to Members of the Military Who Return to Federal Civilian Service

USERRA and Postal Service Provisions

For Employees Performing Active Duty Military Service

February 12, 2008

Contents

1. USERRA and Postal Service Rights, Benefits, and Obligations

A. General Overview

B. Conditions Required for USERRA-Protected Military Service

C. Entitlement to Reemployment or Reinstatement and Eligibility Requirements

D. Entitlement to Return to Your Escalator Position

E. Entitlement to Receive Necessary Training

F. Entitlement to Qualify for Pay Raises

G. Entitlement to Continue FEHB Coverage

H. Status While Performing Military Service

I. Working for the Postal Service While Performing Military Service

J. Leave While Performing Military Service

K. Service Credit for the Family and Medical Leave Act (FMLA) While Performing Military Service

L. Copy of the Law

Exhibit 1 — Exceptions to the 5-Year Period of Military Service After Which Postal Service Employment Must Be Terminated

2. Steps for Providing Required Notification and Documentation

A. Reasonable Advance Notice

B. Advance Documentation of Military Service

C. Timely Request for Reemployment or Reinstatement

D. Final Documentation of Military Service

3. Steps for Obtaining Positions

A. Application for Positions

4. Steps for Obtaining Benefits

A. Beneficiary Forms

B. Use of Leave to Interrupt Continuous LWOP

C. Federal Employees Health Benefits (FEHB)

D. Federal Employees Group Life Insurance (FEGLI)

E. Federal Employees Dental and Vision Insurance Program (FEDVIP)

F. Flexible Spending Accounts (FSAs)

G. Civil Service Retirement System (CSRS) and Federal Employees Retirement System (FERS)

H. Thrift Savings Plan (TSP)

I. 5-Day Administrative Leave Allowance

J. Forms

Exhibit 2 — FEHB and FEGLI Coverage for Employees Absent on LWOP to Perform Military Service

1. USERRA and Postal Service Rights, Benefits, and Obligations

A. General Overview

The Uniformed Services Employment and Reemployment Rights Act (USERRA) prohibits discrimination in employment because of your military service. It protects your right to reemployment, maintaining your seniority rights, and entitles you to some benefits during and after your military service, provided you perform qualifying military service and fulfill your obligations under the law.

The Postal Service also provides certain additional benefits to employees performing military service that are not required by USERRA.

Note that the term reemployment used in the context of USERRA applies to you

when you return from a period of active duty military service —

whether you remain an employee of the Postal Service on LWOP or separate.

B. Conditions Required for USERRA-Protected Military Service

USERRA covers your military service provided you meet all of the following conditions:

1. You must perform military service as a member of the uniformed services, as an Intermittent Disaster-Response Appointee, or as a member of a category of other persons who are designated by the President as uniformed services in time of war or emergency.

Qualifying as members of the "uniformed services" are:

▪ Members of the Army, Navy, Air Force, Marine Corps, Coast Guard, Public Health Service (Commissioned Corps)

▪ Members of the Army Reserve, Air Force Reserve, Navy Reserve, Marine Corps Reserve, Coast Guard Reserve, Public Health Service (Commissioned Corps Reserve)

Note: State militias (for example, the Virginia Militia), state guards (for example, the New York Guard), and state naval militias (for example, the New York Naval Militia) are not included within USERRA’s definition of “uniformed services,” and service in these organizations does not afford employees USERRA protections or benefits. Employees performing service in these organizations are not entitled to Postal Service benefits for “employees performing military service as a member of a uniformed service.”

▪ Members of the Army National Guard or Air National Guard when performing military service under Title 10 or Title 32 United States Code.

Note: State military service is not uniformed service and is not protected by USERRA.

▪ Individuals who qualify as “Intermittent Disaster-Response Appointee,” that is, appointed under the provisions of Public Law 107–188, dated June 12, 2002.

This military service may be voluntary or involuntary, paid or unpaid, active or inactive (that is, drills, individual mandays, and similar training periods, without orders issued.)

2. You must be employed by the Postal Service when your military service commences.

3. You must provide reasonable advance notice, written or oral, to your supervisor, manager, and/or HR local services before departing for military service, unless reasonable advance notice cannot be given because it is impossible or unreasonable.

Note: While there is no specific amount of advance notice that you must give, whether your notice is considered reasonable will be based on your circumstances. If you do not provide reasonable advance notice, the Postal Service must allow you to perform military service when you are ordered to do so. However, the military service you perform without having given reasonable advance notice is not protected by USERRA, and you are not entitled to the employment protections and benefits provided by USERRA. Receipt of this letter or the fact that you are being permitted to leave for military service does not constitute or imply an acknowledgement by the Postal Service that you have provided reasonable advance notice or that your absence to perform military service is protected by USERRA.

C. Entitlement to Reemployment or Reinstatement and Eligibility Requirements

You are eligible to return to Postal Service employment after a period of USERRA-protected military service if you meet the following requirements:

1. You must not have been absent to perform military service for more than 5 cumulative years during your employment with the Postal Service.

Periods of absence for the purpose of preparing for military service and periods following your release from military service until your request for reemployment do not count against the

5-year cumulative period, nor do some other periods.

See Exhibit 1 at the end of this section for additional information

on the periods of military service that do not count against the 5-year limitation.

If you are absent for more than 5 years of military service that is not excluded from the 5 year limit, USERRA reemployment rights do not apply and you may be separated from employment. Separation because you have exceeded the 5-year limit is non-punitive, and it will not reflect negatively on a future application for employment.

2. You must request reemployment or reinstatement in a timely manner.

▪ Service of less than 31 days (or leave to take a fitness exam for service) — You must report by the beginning of the first full regularly scheduled day of work after release from USERRA-covered service, and following time for safe transportation back to your residence, plus an 8-hour rest period. You must report for work at the expiration of the 8 hour period.

▪ Service of 31 to 180 days — You must apply for reemployment following separation to a supervisor or manager or to HR local services, either orally or in writing, no later than 14 days after release from USERRA-covered service.

▪ Service of 181 or more days — You must apply for reemployment following separation to a supervisor or manager or to HR local services, either orally or in writing, no later than 90 days after release from USERRA-covered service.

▪ Hospitalized or convalescent status ― If you are injured or aggravate an injury during military service and are hospitalized or put in a convalescent status, you have up to 2 years, or upon release from the hospital or convalescent status, whichever is earlier, to request reemployment.

3. Your military service must be creditable. If you are separated from military service with a Dishonorable Discharge, Bad Conduct Discharge, or Other Than Honorable Discharge, you are not eligible for reemployment under USERRA.

4. You must provide documentation that shows the following when you apply for reemployment:

▪ Service lasting less than 31 days (or leave to take a fitness exam for military service) ― No documentation is required. Your supervisor or manager may check with your military command to verify service. You may be required to provide contact information for your military command.

▪ Service lasting 31 days or more ― Documentation is required that shows the length of your military service, the character of your separation from military service, and the date of your separation from military service. (A DD Form 214 (Member 4 Copy), Certificate of Release or Discharge from Active Duty, is a document that contains all of the required information.)

▪ Disability incurred during military service ― If you incur a medical condition or injury during military service that prevents you from performing the essential tasks of your Postal Service job, it is your responsibility to provide the Postal Service with medical documentation that explains your limitations and work restrictions. This documentation is required in order to reemploy you in the proper position. USERRA provides for special placement and training for employees who are unable to return to their regular position because of a disability that is incurred or aggravated during military service.

If documentation is not readily available, you are still entitled to be promptly reemployed. However, you are required to obtain the required documents, and if you are unable to do so, to assist the Postal Service to get the documents.

D. Entitlement to Return to Your Escalator Position

USERRA entitles you, as an employee who has been absent to perform military service, regardless of the duration of that service, to return to employment in the position or job that you would have attained but for your military service. This position is known as the "escalator position." For example, if you are a craft employee and would have been eligible to bid on a position that was posted during your absence, you may “bid” the position when you return and will be awarded it if you would have been the senior bidder at the time that it was posted. (Note that the escalator position may be higher or lower than the position you held before performing military service.) Still the job that you will be placed in when you return to work may or may not be the same position or job that you held before entering active military service. Duration of absence may affect your placement, as follows:

▪ Service lasting less than 91 days ― You are entitled to your escalator position or job. If your position or job would not have changed, you are entitled to the exact position that you held at the time you departed for uniformed service, if that position still exists. If the escalator or old position no longer exists, you will be placed in a position or job closest in seniority, pay, and status to the position or job you would have held if it still existed.

▪ Service lasting 91 days or more ― You are entitled to your escalator position or job. If your position or job would not have changed, you are entitled to the exact position that you held at the time you departed for uniformed service or one of equivalent seniority, pay, and status. Management determines whether you will be placed in your former position or assigned to an equivalent one. The selection of the equivalent position is also solely within the discretion of the Postal Service. If the position that you are entitled to no longer exists, you will be placed in the position nearest in approximation to the position you would have held had you not performed military service.

E. Entitlement to Receive Necessary Training

You are entitled to receive training to refresh your job skills, if it is necessary, when you return from military service. Additionally, you will be given the training that you would have gotten if you had not been absent due to military service.

If you incur a service-connected disability that prevents you from performing the essential tasks of the position or job to which you are entitled with reasonable accommodation, the Postal Service will make reasonable efforts to retrain you for another position, closest to your former position in pay seniority and status, that you can become qualified to perform. The Postal Service determines the position or job that you will be assigned to. If you must change crafts, your seniority will transfer into the new craft.

F. Entitlement to Qualify for Pay Raises

If you are on LWOP for active duty military service, the Postal Service guarantees that your pay status will be preserved as if you had remained in your current position and had never left for military duty, as follows:

♣ If your employment is covered by a collective bargaining agreement, while you are performing active duty military service the pay raises required by your collective bargaining agreement will continue to be processed as if you were actively at work.

♣ If you are not covered by a collective bargaining agreement, an evaluator will rate you for all periods of active military LWOP, and you will be provided the merit pay adjustment governed by the Pay for Performance program based on the following special rating rules:

▪ If you are in a duty (work) status for less than 90 consecutive calendar days during the evaluation period, you will receive an individual core requirement rating proportional to the average of your unit and, if applicable, the end-of-year National Performance Assessment (NPA) composite summary. (Your manager will use a tool provided by the Performance Evaluation System to arrive at this calculation.)

▪ If you are in a duty (work) status for 90 or more consecutive calendar days during the evaluation period, you will receive a narrative performance review from your evaluator. All narrative performance reviews conducted during the evaluation period must be taken into consideration when deriving your individual core requirements rating at the end of the evaluation period. You will receive an overall performance rating based on your individual core requirements rating and, if applicable, the end-of-year NPA composite summary.

G. Entitlement to Continue FEHB Coverage

Overview

Even though you and your dependents will be covered by the military medical plan (TRICARE), USERRA provides that you may elect to continue your FEHB medical coverage for up to 24 months after you begin active duty military service, provided you request coverage in a timely manner. You may also use small portions of paid leave to interrupt continuous LWOP and thus prevent termination of life insurance as well as health benefits (see 1J, Leave While Performing Military Service).

In addition, if you are activated under Title 10 of the United States Code (U.S.C.) for a qualifying military operation, after 30 days of service the Postal Service will pay the entire premium (employer and employee shares) for you for up to 24 months. If you do not qualify for the 24-month premium payment benefit, you may still be able to use the LWOP interruption option to extend coverage and continuing to pay only the employee premium, not the 102% of the premium ordinarily charged after the initial 365 days of LWOP.

The detailed information that follows will help you evaluate the factors you must consider in deciding whether to elect FEHB coverage.

USERRA Entitlement to FEHB Coverage

USERRA provides that you may elect to continue your FEHB medical coverage for up to 24 months after you begin active duty military service. Regardless of whether you elect to continue FEHB coverage, you are automatically covered under the military medical plan (TRICARE) immediately, and your dependents, if any, are covered under the military medical plan after you complete 30 days of active military service.

You are eligible to continue your FEHB coverage for up to 24 months for each separate period of active military service. If you are discharged from military service, return to work with the Postal Service for at least 1 full day, and then are reactivated for military service, you are eligible for a new period of FEHB eligibility under active duty military service rules.

Note: The 24-month entitlement applies to employees entering active military duty on or after December 10, 2004. Those who entered before that date are limited to up to 18 months of FEHB coverage.

Timely Submission of Written Notice

USERRA requires that you submit written notice if you wish to continue your FEHB coverage. You are required to elect to continue your FEHB coverage before you begin active military duty, or, if that is impossible, as soon as possible thereafter. If you do not return the PS Form 3111 or signed notice electing to continue or terminate your coverage either before you go or while you are away performing active military duty, then the Postal Service will keep your health benefits in force for as long as you are eligible, assuming that the circumstances of your military duty have prevented you from making an election. However, since under USERRA rules the Postal Service must receive an election from you to keep your health benefits in force, the latest that you can make an election is 31 days after you return to work with the Postal Service. If after 31 days you have not elected to continue your FEHB coverage, in writing, your FEHB coverage will be terminated effective the last day of the pay period in which you entered active military duty.

Cost of Coverage and Possible Qualification to Receive 24-Month Premium Payment Benefit

If you elect to continue FEHB benefits, the cost to you will depend on the circumstances under which you are activated:

▪ If you serve on active military duty for a period of more than 30 consecutive days under official orders issued pursuant to Title10 of the United States Code (U.S.C.) stating that you are activated for Operation Noble Eagle, Operation Enduring Freedom, Operation Iraqi Freedom, or any other contingency operation that may be so designated by the Department of Defense subsequent to this instruction, the Postal Service will pay the entire premium (employer and employee shares) for you for up to 24 months.

Documentation acceptable to establish your qualification for the 24-month premium payment benefit includes DD Forms 214 (Member 4 Copy) indicating you were awarded any of these service medals:

▪ Iraq Campaign Medal.

▪ Afghanistan Campaign Medal.

▪ War on Terrorism Expeditionary Medal for providing support for one of the following:

▪ Operation Iraqi Freedom for service between March 19, 2003, and April 30, 2005.

▪ Operation Enduring Freedom for service between October 24, 2001, and April 30, 2005.

▪ Global War on Terrorism Service Medal if your documentation shows that the award was for providing support for one of the specified contingency operations.

▪ If you are (a) a member of the Army, Navy, Air Force, Marine Corps, Coast Guard or Public Health Service Reserve ordered to active military duty under Title 10 or Title 14 U.S.C. for military service that does not qualify for the 24-month premium payment benefit, or (b) a member of the Army National Guard or Air National Guard ordered to duty under Title 32 U.S.C., and thus do not qualify for the 24-month premium payment benefit, you will pay as follows:

▪ For the employee portion of the premium for the first 365 days of LWOP.

▪ For 102 percent of the premiums (employee and employer portions plus the required 2 percent administrative fee) for a period of additional coverage of up to 12 months of LWOP.

Note: Minimum amounts of paid leave may be used to interrupt LWOP and thus postpone termination of FEHB. See 4B, Use of Leave to Interrupt Continuous LWOP.

▪ If you are a member of the Army National Guard or Air National Guard ordered to duty under any provision of a state, territorial or the District of Columbia code, you are not eligible for USERRA qualified health benefits. You are in an LWOP (as opposed to LWOP-military) status and your health benefits will be the same as those of other employees in an LWOP status. The special rules and procedures described in this document do not apply to you.

Payment of Premiums

USERRA prohibits the Postal Service from requiring that you pay FEHB premiums if you have not submitted a written election to continue coverage, and in that circumstance the Postal Service will not collect such premiums, even though we extend coverage so that you have an opportunity to elect coverage retroactively. If you have not elected health benefits coverage and you receive invoices or statements while on active duty military service, you do not have to pay them while you are away, and you may contact the Accounting Help Desk on 1-866-974-2733 for assistance.

If your health insurance is terminated retroactively, any premiums due will be zeroed out. You will then be responsible for repaying any coverage that was paid by your FEHB plan during that period of time. (For example, you will have to repay the total payments your health insurance made for doctor bills, hospital bills, or prescription drugs.)

If you elect to continue coverage, the payment of premiums is handled in one of the following ways:

▪ If you elect to continue FEHB coverage before you go, in one of the two following ways:

▪ If you indicate that you want to continue your FEHB coverage and pay premiums from available pay, statements will be sent to you and your premiums will be deducted from your pay whenever there is sufficient pay available (typically, because you are using paid leave). If it is subsequently determined upon receipt of your final orders or DD Form 214 (Member 4 Copy) that you qualify for the 24-month premium payment benefit, your payments will be refunded. This option may be advantageous for employees who do not qualify for the 24-month premium payment benefit because it allows payments to be made on a pre-tax basis.

Having these premiums collected on a pre-tax basis (unless you have waived this feature) means that you have less out-of-pocket expense because of the tax savings you receive. If you take more than a minimum amount of paid leave in order to receive take-home pay, however, you must keep in mind that when pay is available, the automated payroll system will attempt to collect the premium for the current pay period plus up to four other unpaid premiums from the current year, thus reducing your take-home pay significantly.

Premiums that remain will be collected from you when you return — from your pay or through invoices as appropriate under finance procedures.

▪ If you indicate that you want to continue your FEHB coverage and not pay premiums during your absence, statements will not be sent to you and premiums will not be deducted from your pay. However, if it is determined that your service did not actually qualify you to have the full cost of your coverage paid by the Postal Service, premiums will be collected from you when you return — from your pay or through invoices as appropriate under finance procedures.

▪ If you elect coverage retroactively, premiums will be collected from you when you return — from your pay or through invoices as appropriate under finance procedures.

All premiums will be forgiven for employees who die while on active military duty or receive a service-connected injury making it impossible for them to be reemployed in a Postal Service or other federal position.

Note: According to IRS requirements, premiums can be deducted on a pretax basis only when they are for the current plan year. Premiums paid for a prior plan year, or after an accounts receivable invoice has been generated, may be paid only on an after-tax basis.

Entitlement to Make New Selections Upon Return

When you return from military service, you are entitled to reinstate the FEHB coverage that you had when you departed (if your FEHB option is still being offered), to change your reinstated enrollment from Self Only to Self and Family, and to change to either option of any plan available. If you were not enrolled in FEHB when you entered active military duty, you may enroll. You have 60 days to reinstate, enroll, or make any changes to your FEHB coverage unless you are eligible to delay reinstatement of FEHB (described in the next paragraph).

Entitlement to Delay Reinstatement Upon Return

If you are eligible for Department of Defense programs allowing you either to receive permanent TRICARE benefits for 180 days after discharge or to participate in TRICARE Reserve Select (TRS), you may delay reinstatement in FEHB until you are no longer eligible for TRICARE or TRS coverage. You have 60 days to notify HRSSC of your desire to delay coverage and complete a Waiver of Immediate Reinstatement of FEHB to preserve your right to reinstate FEHB when your TRICARE or TRS coverage ends.

Note: The John Warner National Defense Authorization Act for 2007 (P.L. 109–364), signed by President George W. Bush on October 17, 2006, excludes individuals eligible for health insurance under the FEHB Program from coverage under TRS. Therefore, Selected Reserve members who are eligible for FEHB will lose their TRS coverage when this provision of the law takes effect, no later than October 1, 2007.

H. Status While Performing Military Service

You will be placed in an LWOP-military status while you are performing military service unless you request in writing to be separated from employment. You will not be separated from employment unless your written requests specifically states that you do not intend to return to employment with the Postal Service after completing military service and that you understand that you are forfeiting the benefits to which you might otherwise have been entitled while performing military service. If you resign from Postal Service employment to perform military service, you still have the right to reemployment as long as you meet the requirements set out in the section titled Entitlement to Reemployment or Reinstatement and Eligibility Requirements. If you resign your employment, you will not be entitled to non-seniority-based benefits or Postal Service benefits not required by USERRA that you would receive if you continued your employment in an LWOP — military status.

If you elect to receive paid military leave while performing military duty (Uniformed Service only) — a benefit provided by the Postal Service that is not required by USERRA — you are required to provide documentation showing that you performed military service.

You may, but are not required to, use annual leave on your regularly scheduled duty days while you are performing military service.

You may not use annual leave for the period after you separate from military service and before you return to employment with the Postal Service.

You may use sick leave while on uniformed military duty if you are hospitalized, on quarters, or on convalescent leave (while on active duty) on the orders of military medical authority. You may not use sick leave at any other time while on military duty.

I. Working for the Postal Service While Performing Military Service

There are strict limits on your ability to work for the Postal Service while performing military service:

▪ Postal Service policy prohibits you from working for the Postal Service:

▪ If you are on full-time federal military duty. For the purposes of this policy, full-time military duty includes all military duty under orders issued pursuant to Title 10 and Title 14, U.S.C., all military orders issued under 32 U.S.C. 503, 504, 505, 32 U.S.C. 502(f), all military orders issued under 32 U.S.C. 502(a) pertaining to annual military training (sometimes referred to as encampment), and orders specifying that the duty performed is annual training (AT), additional duty special work (ADSW) or active duty for training (ADT) where the employee is absent from work for military service lasting 5 or more consecutive days.

▪ If you are on full-time state military duty.

▪ You may work for the Postal Service only when you are on inactive military duty for the purpose of participating in scheduled or unscheduled drills, rescheduled training (RST) (training to make up missed drills), or short periods of paid or unpaid inactive duty military service lasting less than 5 consecutive days.

J. Leave While Performing Military Service

You will not earn any annual or sick leave while you are in a continuous LWOP-military status. Because annual leave that you are advanced at the beginning of each leave year will be reduced each pay period that you reach 80 hours of LWOP by the amount of leave you would have earned in that pay period, no leave will be left credited at the end of the year if LWOP has been continuous.

You may request, but cannot be required to use, annual leave or paid military leave (which is distinct from LWOP — military) to cover a period of USERRA-covered service on your regular scheduled Postal Service duty days. You may wish to use small portions of such paid leave to interrupt continuous LWOP and thus prevent termination of health benefits and life insurance. A request for annual leave cannot be approved for the purpose of qualifying for holiday pay if you are on LWOP (ELM 434.421).

You may use sick leave while on military duty if you are hospitalized, on quarters, or on convalescent leave (while on active duty) on the orders of military medical authority. Sick leave may not be used at any other time while you are on military duty.

K. Service Credit for the Family and Medical Leave Act (FMLA) While Performing

Military Service

To be eligible for leave under the FMLA, you must have worked for the Postal Service for at least 12 months, and you must have worked at least 1250 hours during the 12-month period before the date leave begins.

Time spent in USERRA-covered military service is fully credited towards the FMLA work requirement, as follows:

▪ Each month you perform USERRA-covered service counts as 1 month actively employed by the Postal Service for the purpose of determining the requirement for 12 months of employment. The 12 months of employment do not have to be consecutive to meet this FMLA requirement.

▪ The hours that would have been worked for the Postal Service, based on your work schedule before you began the USERRA-covered service, are added to any hours actually worked during the previous 12-month period to determine whether you meet the 1250 workhour requirement. The hours you would have worked are calculated in the same manner as they would be for back pay.

As a reminder, once you meet the 1250 workhour eligibility test, you remain eligible for all absences for the same FMLA qualifying condition (up to the allowed maximum) during the same Postal Service leave year.

L. Copy of the Law

A copy of the Uniformed Services Employment and Reemployment Rights Act (USERRA) is enclosed in this package.

Exhibit 1

Exceptions to the 5-Year Period of Military Service

After Which Postal Service Employment Must Be Terminated

(1) Service that is required beyond five years to complete an initial period of obligated service. Some military specialties require an individual to serve more than five years because of the amount of time or expense involved in training. If the employee works in one of those specialties, he or she has reemployment rights when the initial period of obligated service is completed;

(2) If the employee was unable to obtain orders releasing him or her from service in the uniformed services before the expiration of the five-year period, and the inability was not the employee's fault;

(3) (i) Service performed to fulfill periodic National Guard and Reserve training requirements as prescribed by 10 U.S.C. 10147 and 32 U.S.C. 502(a) and 503; and,

(ii) Service performed to fulfill additional training requirements determined and certified by a proper military authority as necessary for the employee's professional development, or to complete skill training or retraining;

(4) Service performed in a uniformed service if he or she was ordered to or retained on active duty under:

(i) 10 U.S.C. 688 (involuntary active duty by a military retiree);

(ii) 10 U.S.C. 12301(a) (involuntary active duty in wartime);

(iii) 10 U.S.C. 12301(g) (retention on active duty while in captive status);

(iv) 10 U.S.C. 12302 (involuntary active duty during a national emergency for up to 24 months);

(v) 10 U.S.C. 12304 (involuntary active duty for an operational mission for up to 270 days);

(vi) 10 U.S.C. 12305 (involuntary retention on active duty of a critical person during time of crisis or other specific conditions);

(vii) 14 U.S.C. 331 (involuntary active duty by retired Coast Guard officer);

(viii)14 U.S.C. 332 (voluntary active duty by retired Coast Guard officer);

(ix) 14 U.S.C. 359 (involuntary active duty by retired Coast Guard enlisted member);

(x) 14 U.S.C. 360 (voluntary active duty by retired Coast Guard enlisted member);

(xi) 14 U.S.C. 367 (involuntary retention of Coast Guard enlisted member on active duty); and

(xii) 14 U.S.C. 712 (involuntary active duty by Coast Guard Reserve member for natural or man-made disasters).

(5) Service performed in a uniformed service if the employee was ordered to or retained on active duty (other than for training) under any provision of law because of a war or national emergency declared by the President or the Congress, as determined by the Secretary concerned;

(6) Service performed in a uniformed service if the employee was ordered to active duty (other than for training) in support of an operational mission for which personnel have been ordered to active duty under 10 U.S.C. 12304, as determined by a proper military authority;

(7) Service performed in a uniformed service if the employee was ordered to active duty in support of a critical mission or requirement of the uniformed services as determined by the Secretary concerned; and,

(8) (i) Service performed as a member of the National Guard if the employee was called to respond to an invasion, danger of invasion, rebellion, danger of rebellion, insurrection, or the inability of the President with regular forces to execute the laws of the United States.

(ii) Service performed to mitigate economic harm where the employee's employer is in violation of its employment or reemployment obligations to him or her.

2. Steps for Providing Required Notification and Documentation

Some of the requirements for your qualification for USERRA coverage — such as the organization for which you perform active duty military service or the length of time of your service — are beyond your control. Provision of required notification and documentation, however, depends on your active participation. Following are steps for fulfilling these USERRA obligations and for securing certain benefits.

A. Reasonable Advance Notice

Before you go . . .

Whether you are on LWOP or separate, notify your supervisor, your manager, and/or Human Resources, either orally or in writing, that you have been called to perform active duty military service. The specific amount of advance notice that you must give is, of course, based on your circumstances. Keep in mind, however, that the military service you perform without having given reasonable advance notice is not protected by USERRA, i.e., it does not entitle you to the employment protections and benefits provided by USERRA.

Note: Receipt of this letter or the fact that you are being permitted to leave for military service does not constitute or imply an acknowledgement by the Postal Service that you have provided reasonable advance notice or that your absence to perform military service is protected by USERRA.

B. Advance Documentation of Military Service

Before you go . . .

Although you are not required by USERRA to provide documentation to be released to perform active duty military service, we recommend that you provide military orders or other information documenting the circumstances of your activation to allow your benefits to be administered more efficiently. Such documentation includes the legal authority (title of the U.S. Code) under which you have been activated, the name of the contingency operation you have been called to support, if any, and the expected length of your service. It is helpful if you do provide a copy of your orders or other documents showing the length and nature of your military service.

If you are a member of the National Guard, providing a copy of your orders will also clarify your status (state military service or federal military service) so that you can be correctly informed about your rights and benefits. Documentation showing that you will be performing state military duty may be required.

You should also provide whatever contact information you can (unit address, phone number, spouse, or parent through whom you may be contacted during your absence).

C. Timely Request for Reemployment or Reinstatement

When you return . . .

Whether you are on LWOP or separate, request reemployment or reinstatement after release from USERRA-covered service within the following time frames:

▪ If you have served less than 31 days or have had leave to take a fitness exam for service, you must report by the beginning of the first full regularly scheduled day of work following time for safe transportation back to your residence plus an 8-hour period for rest.

▪ If you have served 31 days or more , you must apply for reemployment to your supervisor or your manager or to Human Resources, either orally or in writing:

▪ For service of 31 to 180 days, no later than 14 days after release.

▪ For service of 181 days or more, no later than 90 days after release.

▪ If you have been injured or have aggravated an injury during military service and have been hospitalized or put in a convalescent status, you have up to 2 years, or upon release from the hospital or convalescent status, whichever is earlier, to apply for reemployment.

D. Final Documentation of Military Service

When you return . . .

You will need to provide documentation according to your length of service and the nature of the benefits for which you may be eligible.

▪ If you have served less than 31 days, you may need to provide contact information for your military command so that your supervisor or manager may verify your service.

▪ If you have served 31 days or more, you will be required under USERRA to submit your military orders; DD Form 214 (Member 4 Copy), Certificate of Release or Discharge from Active Duty; or other military documentation establishing the length of your service, the character of service, and the date of separation.

Additionally, if you have not previously provided it, you will be asked for documentation showing the U.S.C. title under which you were activated and the contingency operation that your service supported, if any, so that your eligibility for reemployment can be determined and you can be provided any non-USERRA benefits that you may be entitled to.

It is very important that you provide this additional information as soon as you return to work so that personnel staff will have the information necessary to assess your obligation to pay for health benefits (see 4C, Federal Employees Health Benefits (FEHB)) and your eligibility for 5 days of administrative leave (see 4H, 5-day Administrative Leave Allowance).

▪ If you have been injured or have aggravated an injury during military service and have been hospitalized or put in a convalescent status and your injury prevents you from performing the essential tasks of your Postal Service job, you will need to provide the Postal Service with medical documentation that explains your limitations and work restrictions so that you can be reemployed in the proper position and receive the training to which you are entitled.

If required documentation is not immediately available, you should notify the HRSSC when you expect to get it. You will be returned to work with all USERRA rights and benefits except retroactive contributions to your retirement plan, but only provisionally until you are able to obtain the needed documentation.

3. Steps for Obtaining Position Change

Since USERRA requires that you, as an employee on active duty military service, be given the opportunity for career advancement as if you were actively present at work, you are entitled to apply for assignments and positions, including bid jobs, that become available while you are on active military service. If you are awarded a position that requires training, it will be deferred until you return.

A. Application for Positions

Before you go . . .

If you are interested in applying for positions that may become available while you are on active duty, if time permits, you may prepare proper documentation to apply for current positions. Provide HR Local Services with a written request, including your printed name, employee ID, and appropriate address, signed and dated, to have available bids and/or specific EAS vacancy announcements mailed to your address of record or to the military address provided.

While you are away . . . .

You may bid on jobs, making sure you have your employee ID and pin number available, in either of these ways:

▪ Call the toll free number (1-800-222-2415) to phone bid while on active duty.

▪ Use LiteBlue to view local and national EAS vacancies at .

When you return . . .

If your employment was covered by a collective bargaining agreement and you were unable to do so while you were on active duty, you may apply for a bid job when your return to Postal Service employment. If you would have been the senior bidder at the time the bid was awarded, you will be awarded the job.

If you were not able to apply for a non-seniority-based (bid) position that was awarded while you were on active military service and want to be considered for the position, you will need to show that you would have been selected for the position at the time that it was awarded. If you can show that you would have been selected, you will be placed in the position or placed in a position with the same pay, benefits, and status.

4. Steps for Obtaining Benefits

A. Beneficiary Forms

Before you go . . .

You may wish to review the beneficiary forms you have on file for Unpaid Compensation, Federal Employees’ Group Life Insurance (FEGLI), Thrift Savings Plan (TSP), and Civil Service Retirement System (CSRS) or Federal Employees Retirement System (FERS).

If you do not have valid beneficiary forms on file, benefits will go to your survivors in the order of precedence shown on the form for each program. Consider whether you are satisfied with the order of precedence shown or you would like to designate beneficiaries. If you have valid beneficiary forms on file, consider whether you are satisfied with the beneficiaries you designated or you would like to update your designations. If you want to update your decisions regarding beneficiaries, complete the enclosed forms and submit them according to the instructions printed on each.

B. Use of Leave to Interrupt Continuous LWOP

Paid leave can be used during active military service. If LWOP status is interrupted by even a minimum amount of paid Postal Service leave during each pay period for 4 straight months (eight consecutive pay periods) and this 4-month period is begun at any time before the conclusion of the initial benefit eligibility period (365 days for health benefits, 12 months for life insurance), a new period of LWOP, and thus health benefits and life insurance coverage eligibility, begins. Continued use of this LWOP interruption option, if paid leave is available, can potentially extend health benefits and life insurance indefinitely.

Before you go . . .

You can make plans to use paid leave, including small portions of paid leave for eight consecutive pay periods, beginning any time before the expiration of 365 days of LWOP, to interrupt continuous LWOP and thus postpone termination of health benefits and life insurance coverage (see 4C, Federal Employees Health Benefits (FEHB), and 4D, Federal Employees’ Government Life Insurance (FEGLI)).

You may use different types of leave, as follows:

▪ Paid military leave (distinct from LWOP for military service) may be used for LWOP interruption.

▪ Accrued and advanced annual leave can be used as well. Note, however, that the annual leave you are advanced at the beginning of each leave year will be reduced each pay period that you reach 80 hours of LWOP by the amount of leave you would have earned in that pay period, so using it may leave you with a deficit to make up when you return. This reduction is in addition to any leave you may use.

▪ Sick leave can be used only if you are hospitalized, confined to quarters as directed by competent military medical authorities, or on convalescent leave.

Submit requests for leave to your supervisor. HR Local Services or the HR Shared Service Center (HRSSC) can coordinate arrangements to use leave for the LWOP interruption option with the local payroll/timekeeping office.

While you are away . . .

You can make requests for leave that you were not able to make before you left for active military duty, including for the purpose of using the LWOP interruption option.

C. Federal Employees Health Benefits (FEHB) Program

Since USERRA provides that you may elect to continue your FEHB health benefits coverage for up to 24 months after you begin active duty military service, provided you do so in a timely manner, and since you may also qualify for the Postal Service to pay your premiums (employer and employee shares) after the first 30 days of service, it is important that you consider carefully whether you wish to elect FEHB coverage and do so immediately, or as soon as you are able to do so. See 1G, Entitlement to Continue FEHB Coverage.

Remember that regardless of whether you elect to continue FEHB coverage, you are automatically covered under the military medical plan (TRICARE) immediately upon being activated, and your dependents, if any, may be covered under the military medical plan after you complete 30 days of active duty military service.

Before you go . . .

Read about your entitlement in Entitlement to Receive FEHB Coverage During Active Duty Military Service — determining whether the orders by which you are activated qualify you for the 24-month premium payment benefit or, if not, what the cost will be, and reviewing how payment of premiums will be handled during your service and when you return — and decide whether you wish to continue health benefits coverage under the FEHB Program.

Note that once you elect to continue FEHB benefits, if you do not elect to terminate your health benefits coverage when given the opportunity after 365 days of LWOP and do not extend your eligibility by using the LWOP interruption option, your coverage will continue for up to 24 months while you are away.

Decide provisionally whether you will want to begin using small amounts of leave before 365 days of LWOP have elapsed to interrupt and thus extend the LWOP period during which you are entitled to FEHB coverage. See 4B, Use of Leave to Interrupt Continuous LWOP.

Use the enclosed PS Form 3111, Federal Employees Health Benefits (FEHB) Coverage or Termination While in Leave Without Pay (LWOP) Status, to make your election to continue or to terminate your FEHB coverage.

You are required to make your election before you begin active duty military service, or as soon as possible thereafter. However, if you do not return the signed notice electing to continue or terminate your coverage either before you go or while you are away performing active duty military service, then the Postal Service will keep your health benefits in force for as long as you are eligible, assuming that the circumstances of your military duty have prevented you from making an election. Note that if the HRSSC does not receive your election to continue FEHB — at the very latest, by 31 days after you return to work with the Postal Service — your FEHB coverage will be terminated effective the last day of the pay period in which you entered active military duty. (Any premiums due will be cancelled retroactive to that date, and you will then be responsible for repaying any claims that were paid by your health plan during that period of time.)

Provide a copy of your orders or other documentation of the circumstances of your activation if possible.

If you wish to continue coverage, you must indicate whether you want to elect to have premiums for the current year deducted from any available pay (presumably when you take leave) on a pre-tax basis or to not have premiums deducted until you return to work. Upon your return to duty with the Postal Service, a determination of your qualification for the 24-month premium benefit will be made for the entire period of your absence. If you qualify, any premiums you have paid will be returned to you.

You have the option of waiving pre-tax treatment by completing a PS Form 8201, Pre-Tax Health Insurance Premium Waiver/Restoration Form for Career Employees. The advantage to waiving pre-tax treatment is that you can terminate your FEHB coverage or change from Self and Family to Self Only coverage without waiting for a qualifying event.

While you are away . . .

During the first 365 days of LWOP, premiums will be collected as follows:

▪ If you elected to continue FEHB coverage:

▪ If you indicated that you want to continue your enrollment and pay the premiums from available pay, statements will be sent to you and the employee share of the premiums will be collected from available pay whenever pay is sufficient to cover the deduction (presumably when you take leave). You will incur a debt for the remainder of your premiums that are due. If it is determined upon your return that you qualify for the 24-month premium payment benefit, you will be refunded for any premiums that you paid. This option is advantageous for employees who do not qualify for the 24-month premium payment benefit because it allows payments to be made on a pre-tax basis.

▪ If you indicated that you do not want to pay premiums during your absence, no statements will be sent to you and the Postal Service will pay your premiums. When you return, a determination will be made whether you qualify for the 24-month premium payment benefit after you submit your DD Form 214 (Member 4 Copy) to the HRSSC.

Note: If you began your active duty military service before this letter became effective on January 1, 2008, the suppression of billing described here will not apply to you unless you follow the procedures below to change your request at the end of 365 day or at the end of 2 years. Otherwise, the procedures in place when you began your active military service and described in the letter you received at that time will continue in effect.

If you made no election, premiums will not be collected until you have elected to continue your benefits.

If you receive statements or invoices while you are on active duty military service, you may contact the Accounting HelpDesk on 1-866-974-2733 for assistance.

Before the end of 365 days of LWOP, you may want to begin using small portions of paid leave to interrupt LWOP, as described above, so that your eligibility for life insurance as well as health benefits will be extended at the same cost.

Approximately 1 month before the end of 365 days of LWOP, you will be offered the opportunity to terminate FEHB coverage if you wish. The HRSSC will send you notice and will enclose a PS Form 3111, Federal Employees Health Benefits (FEHB) Coverage or Termination While in Leave Without Pay (LWOP) Status. Complete the PS Form 3111, indicating whether you want to terminate your FEHB coverage when you reach the 365-day limit or continue it for an additional 12 months. Return this form to the address noted on the form within 31 days (45 days if you are overseas).

If the HRSSC does not receive the form, your FEHB coverage will be continued until you no longer qualify for coverage due to having 24 months of LWOP. You will have 31 days after you return to work with the Postal Service to terminate your coverage effective the last day of the pay period in which you reached 365 days of LWOP (or effective the last day of the pay period in which you entered active military duty if you did not submit your initial PS Form 3111) before your FEHB coverage and any premiums due are cancelled retroactively and you become responsible for repaying any claims that were paid by your health plan during that time.

If you do not terminate your FEHB coverage after 365 days of LWOP:

▪ If you do not interrupt LWOP with paid leave to extend coverage, it will continue for up to an additional 12 months:

▪ If you indicated that you want to continue your enrollment and pay the premiums from available pay, statements will be sent and 102 percent of the premiums will be collected from available pay whenever pay is sufficient to cover the deduction (presumably when you take leave).

▪ If you indicated that you do not want to pay premiums during your absence, no statements will be sent to you and the Postal Service will continue to pay your premiums (including the employee share) at 102 percent. When you return, a determination will be made whether you qualify for the 24-month premium payment benefit after you submit your DD Form 214 (Member 4 Copy) to the HRSSC.

▪ If you do interrupt LWOP with paid leave to extend coverage, your FEHB coverage will continue at the same rate as that applied to the initial 365 days of LWOP.

At the end of two years of FEHB coverage:

▪ If you have not interrupted LWOP with paid leave to extend coverage, coverage will terminate.

▪ If you have interrupted LWOP with paid leave to extend coverage, your FEHB coverage will continue as long as you use the LWOP interruption option, at the same rate as that applied to the initial 365 days of LWOP.

See Exhibit 2 at the end of this section for additional information

on the interaction of payment schedules with the LWOP interruption option.

When you return . . .

If circumstances prevented you from returning the PS Form 3111, you will have 31 days after your return to work with the Postal Service to use a PS Form 3111 to do either of the following:

▪ Elect to continue or terminate your FEHB coverage effective the last day of the pay period in which you entered active military duty.

▪ Terminate your FEHB coverage effective the last day of the pay period in which you reached 365 days of LWOP.

When coverage is terminated, premiums due are cancelled, and you become responsible for repaying any claims that were paid by your health plan. (For example, you will have to repay the total payments your health plan made for providers such as doctors or hospitals and for prescription drugs.)

If you elected to continue your FEHB coverage while you were away for active military duty, your premium payments will be handled as follows:

▪ For any amounts that you in fact do not owe, the HRSSC works with Accounting Services to zero out the appropriate FEHB past-due premiums and accounts receivable for unpaid FEHB and thus avoid taking unnecessary automatic pay deductions.

▪ For any amounts that you will need to pay, note the following:

▪ You should realize that when you return to pay status, the amount you owe for unpaid premiums may be significant. Premiums paid through a deduction from your pay for a prior year and also after an accounts receivable has been generated must be paid on an after-tax basis in accordance with IRS regulations.

The accounting system works like this: For employees on LWOP, each time there is an unpaid FEHB premium, an FEHB past-due premium is created, for up to a total of four pay periods. If there is a fifth unpaid FEHB premium (as would happen on the fifth pay period of LWOP), an accounts receivable balance is created for the employee. The four unpaid FEHB premiums that were being held, plus the current (fifth) premium, are transferred to this accounts receivable account that the employee owes. If there is another unpaid FEHB premium (for example, a sixth), the process simply starts over — a new FEHB past due premium is created, and up to a total of four unpaid premiums are held again. If a fifth unpaid FEHB premium occurs, then the same procedure is followed as detailed above.

Thus, if there are FEHB past-due premiums (from one to four unpaid FEHB premiums), up to the entire amount due will be deducted from your salary. In addition, if there are sufficient monies available, the premium for the current pay period will be deducted from your pay. When an accounts receivable account has been created for unpaid FEHB premiums and that receivable is over 45 days old, payroll automatically takes 15 percent of your disposable net pay per pay period until that accounts receivable account is paid off.

This means that when you return to pay status you could possibly pay all of these amounts at the same time — the past due FEHB premiums (maximum of four unpaid FEHB premiums), the current FEHB premium, and up to 15 percent of disposable net pay towards payment of any accounts receivables for unpaid FEHB premiums.

▪ Any premiums that are collected from your pay on a pre-tax basis and then are refunded are taxable in the year that they are refunded.

Take care of your reinstatement of, continuation of, or reenrollment in FEHB coverage within 60 days as follows:

▪ If you elected to terminate your FEHB, or it was terminated due to 24 months in LWOP, contact the HRSSC and request that your FEHB benefits be reinstated.

▪ If your FEHB was not terminated during your military service, confirm with the HRSSC that your FEHB is active and make arrangements to pay for the coverage that you had during your military service, if necessary. You are entitled to reinstate the FEHB coverage that you had when you departed, or from that point forward to change your reinstated enrollment from Self Only to Self and Family, and to change to either option of any plan available.

▪ If you completed a PS Form 8201 to waive pre-tax treatment of your FEHB premiums, complete another PS Form 8201 to restore pre-tax treatment.

▪ If you were not enrolled in FEHB when you entered active military duty, you may enroll.

▪ If you are eligible for permanent TRICARE benefits for 180 days after discharge or for participation in TRICARE Reserve Select (no longer possible after October 1, 2007) you may notify the HRSSC that you wish to delay coverage and complete a Waiver of Immediate Reinstatement of FEHB.

After 60 days, you must wait until FEHB Open Season to make changes or until you experience a Qualifying Life Event under FEHB regulations.

D. Federal Employees’ Group Life Insurance (FEGLI)

While you are away . . .

FEGLI coverage is provided for USERRA-covered service as follows:

▪ If you are on LWOP, you are covered for up to 12 months at no cost to you. Coverage then terminates unless you use the LWOP interruption option.

▪ If you elect to use small portions of paid leave to interrupt LWOP by contacting the HRSSC, you can prevent termination of FEGLI coverage, potentially indefinitely, as described above.

▪ If you choose to separate from the Postal Service, you are considered to be in a military LWOP status for the purpose of FEGLI coverage, and you are covered for up to 12 months or until a date that is 90 days after your active military service ends, whichever is earlier.

When you return . . .

If you were in LWOP status for 12 months and your FEGLI coverage was terminated, after you return to work at the Postal Service, it will be reinstated exactly as it was before you went into the LWOP status. (For FEGLI to begin again you must be in pay and duty status at the Postal Service or another federal agency.) However, if you return to work for less than 4 months before returning to LWOP status, the FEGLI coverage will again be terminated.

E. Federal Employees Dental and Vision Insurance Program (FEDVIP)

Before you go . . .

If you wish to continue your dental and/or vision insurance, you may do so through the direct bill option. Once you receive the first direct bill, you will have 20 days to remit payment. If payment is not received, another bill and a termination warning will be issued approximately 8 days after the due date of the first bill. The termination warning gives you approximately 25 days to remit payment. If you wish to inactivate your dental and/or vision insurance, or if you have any questions, contact BENEFEDS at or call 1-877-888-3337.

When you return . . .

If you wish to enroll in FEDVIP, you may do so by contacting BENEFEDS no later than 60 days after your return to work.

F. Flexible Spending Accounts (FSAs)

Before you go . . .

You should understand that your eligibility for participation in FSA depends on whether you are on LWOP or separated:

▪ If you choose to separate from the Postal Service, your FSA participation ends the day after you separate.

▪ If you are on LWOP and have been participating in FSA, you must continue participating in the FSA program for as long as eight consecutive full pay periods of LWOP, or until the end of the plan year (December 31), whichever comes first. During that time, any eligible expenses you have can still be paid through your FSA, and you will be required to make up any contributions missed.

You may be able to decrease or increase your contribution level — or if you have not been participating in FSA, to begin participation — if the HRSSC determines that any of the qualified life status changes listed in the FSA brochure, including the following two, applies to you:

Number 4 — You, your spouse, or your dependent has a change in work site making that person eligible or ineligible for a benefit plan or has a change in residence making that person ineligible for a benefit plan.

Number 7 — You, your spouse, or your dependent becomes or ceases to be eligible for Medicare, Medicaid or TRICARE.

Any change you make must be in keeping with your qualified life status change.

You must contact the HRSSC to request the contribution level change or enrollment within 60 days after your qualified life status change. The change will take effect the first day of the pay period following the pay period your election is approved by the HRSSC.

Be sure that you understand how the FSA program works — and how changes in contributions work — explained in the brochure Flexible Spending Accounts, FSA BK1, which is available from the HRSSC. And be sure that you understand the rules for participants who enter LWOP, as explained below.

While you are away . . .

The day after you have completed the eighth consecutive full pay period of LWOP, your FSA participation ends.

Whether you separate or are on LWOP, when your FSA participation ends, from that date on expenses that you incur cannot be paid through the FSA program and you will not owe any further FSA contributions.

▪ You are still required to make up any contributions you missed before your FSA participation ended, however. You cannot reduce what you owe by not filing claims. If you still owe Health Care FSA or Dependent Care FSA contributions at the end of the plan year, this amount will become a debt and will be collected (on an after-tax basis) under debt collection rules.

▪ You may still claim up to your maximum FSA contribution, as long as the eligible expenses are for services or items received during your period of FSA participation.

In other words, the collection of FSA contributions (including the collection of missed contributions) relates strictly to the amount of the contributions you were scheduled to make per pay period while you were an FSA participant — not to what you actually claim, whether it is more or less than what you were scheduled to contribute. For example, if you sign up for a $2,600 Health Care FSA, you are scheduled to contribute $100 per pay period. If your participation ends after 15 pay periods, you are required to contribute $1,500 to your Health Care FSA — no matter what amount you claim. And you may claim any amount between $0 and $2,600 — even though you are now scheduled to pay only $1,500 — provided you make claims only for services rendered during the 15 pay periods during which you were a participant.

When you return . . .

If you have missed an FSA enrollment opportunity due to circumstances beyond your control (including being on extended leave away from home for USERRA-covered service), you may contact the HRSSC to enroll in FSA — even if you have been in an LWOP status that lasted for eight consecutive full pay periods. You may enroll during the two pay periods that follow your first ability to make an election, during or after FSA Open Season. (Note that only employees returning from military service may enroll if they have been in extended LWOP.)

G. Civil Service Retirement System (CSRS) and Federal Employees Retirement

System (FERS)

When you return . . .

Whether you have been on LWOP or chose to separate from the Postal Service during your uniformed service, you may be entitled to receive credit for your USERRA-covered service toward both your retirement computation date and your annuity computation date.

Your eligibility to receive credit is determined as follows:

▪ If you are covered either by CSRS or FERS and performed full-time active duty military service, or full-time active duty reserve military service, or full-time active duty National Guard service called to duty in the service of the United States under 10 U.S.C., you will be eligible to receive credit for your service.

▪ If you were called to full-time active duty National Guard service under 32 U.S.C. 316, 502, 503, 504, or 505, you will be eligible to receive credit for your service only if you meet the additional requirements noted in Conditions Required for USERRA-Protected Military Service in Part 1.

Note: If you have been on LWOP to perform National Guard state service, which is not USERRA-covered service, you may be entitled to receive credit for your service as civilian service, subject to the 6-month limit on LWOP within a calendar year, with no service credit deposit required. In either case, contact the HRSSC to determine whether you qualify.

The deposit to the retirement fund that you may be required to complete to receive retirement credit for your military service is based either on a percentage of the salary you would have earned if you had not gone on military duty or on a percentage of your military pay (the percentages being determined by the rules of your retirement plan), whichever is less:

▪ For CSRS or CSRS Offset employees with a career CSRS appointment (Postal Service or other federal agency) effective before October 1, 1982 — You are allowed retirement credit without payment. However, if you become eligible for Social Security benefits at age 62 without having paid in full a deposit of 7 percent of military earnings — or for USERRA-covered military duty on or after August 1, 1990, the lesser of (1) 7 percent of military earnings or (2) 7 percent of the salary you would have earned if you had not gone on military duty (slightly higher amounts apply for 1999 – 2000) — the period of military service will be deleted from your annuity computation date service years and your annuity will be recalculated and reduced accordingly. If you elect to make the deposit, it must be completed before you retire.

▪ For CSRS or CSRS Offset employees with first career CSRS appointment (Postal Service or other federal agency) effective October 1, 1982, or later — You are not allowed retirement or annuity credit until you have paid in full a deposit of 7 percent of military earnings — or for USERRA-covered military duty on or after August 1, 1990, the lesser of (1) 7 percent of military earnings or (2) 7 percent of the salary you would have earned if you had not gone on military duty (slightly higher amounts apply for 1999 – 2000). The deposit must be completed before you retire.

▪ For FERS employees without a CSRS component — You are not allowed retirement or annuity credit until you have paid in full a deposit of 3 percent of military earnings — or for USERRA-covered military duty on or after August 1, 1990, the lesser of (1) 3 percent of military earnings or (2) 0.8 percent of the salary you would have earned if you had not gone on military duty (slightly higher amounts apply for 1999 – 2000). The deposit must be completed before you retire.

▪ For FERS employees with a frozen CSRS component — Credit for your retirement computation date and annuity computation date depend on whether the service is included in the CSRS component or the FERS component of your annuity and will be treated as described above.

For all the above retirement coverage types, there will be an additional cost for interest if you do not complete your full deposit within the specified interest-free period. This period is 3 years following the date you first become covered by CSRS or FERS, but when active duty military service interrupts your civilian service, the interest-free period for that period of military service only is 3 years following your return to work. You will be charged interest on the outstanding balance, compounded annually, from a date 2 years from the date you first become a covered employee until payment is completed. The interest rate charged on deposit for military service will be at the yearly rate of retirement fund earnings, as determined by the Secretary of the Treasury.

Before making your decision, you should carefully review your estimated retirement benefits with the HRSSC to determine the amount of your annuity with and without credit for post-1956 military service, and if you are an employee with a career CSRS appointment effective before October 1, 1982, the possible reduction at age 62 if the military deposit is not made. You should also read Conditions Required for USERRA-Protected Military Service in Part 1 and contact the HRSSC to review the requirements that apply for military service to be creditable service for retirement.

H. Thrift Savings Plan (TSP)

Before you go . . .

If you have a TSP loan, you may choose to request that taxable distributions be put off for up to 5 years (or longer in certain circumstances) by contacting the HRSSC to complete TSP-41, Thrift Savings Plan Notification of TSP Nonpay Status.

While you are away . . .

Because you have no Postal Service salary, no contributions will be made, either by you or by the Postal Service (see below regarding making up contributions). However, you may continue to make elections concerning the distribution of your TSP funds, and you may continue to make TSP contribution elections to be effective during TSP Open Seasons that occurred before July 1, 2005, and at any time thereafter.

If you are on LWOP, you can make direct payments on your TSP loan by completing the TSP loan coupon, enclosing payment, and mailing it to the address noted on the coupon (see the TSP Web site Forms page for Loan Payment Coupon).

If you contribute to TSP while in the military, maintain copies of all your military leave and earnings statements. You will need to provide this information on your return so that it can be determined whether you are entitled to receive agency matching contributions and, if you choose to make up TSP contributions, these can be processed.

When you return . . .

If you had a TSP loan payment deferred, you should contact the HRSSC to complete another

TSP-41. Your TSP contributions will be resumed. In addition, you may take steps to make up certain losses to your TSP account.

▪ Whether you have been on LWOP or have been separated:

▪ Whether a FERS, CSRS, or CSRS Offset employee, you may make up TSP employee contributions that you missed due to your USERRA-covered service.

▪ If you are a FERS employee, you will receive agency automatic (1 percent) contributions and, if you choose to make up employee contributions, you will receive agency matching contributions. You will receive lost earnings (retroactive interest) on agency automatic (1 percent) and matching contributions, but not on employee contributions. Retroactive interest is calculated at the G Fund rate by law.

▪ All make-up contributions must be offset by any amount you paid into TSP while on active duty.

▪ Whether you have been on LWOP or have been separated, you may have any taxable distributions for TSP loans reversed.

▪ If you have been separated from the Postal Service, the following provisions apply:

▪ If you are a FERS employee who was not vested, you may have any forfeited funds restored to your TSP account.

▪ If you were required by TSP to have your account paid out, you may redeposit these monies.

If you want to make retroactive contributions to your TSP account, you must advise the HRSSC within 60 days of returning to employment, or you forfeit your right to do so.

I. 5-Day Administrative Leave Allowance

When you return . . .

If you serve on active military duty for a period of more than 30 consecutive days under official orders issued pursuant to 10 U.S.C. stating that you are activated for service in support of Operation Noble Eagle, Operation Enduring Freedom, Operation Iraqi Freedom, or any other contingency operation that may be designated as qualifying by the Department of Defense subsequent to this instruction you will be eligible to receive 5 consecutive days of administrative leave upon your discharge from military active duty. You may request this leave within 1 year from the date your qualifying active duty military service ends. Approval of the administrative leave request after return to work is subject to standard leave approval procedures. You will need to provide your supervisor a copy of your military orders.

You can receive only one award of 5 days of administrative leave under this policy, regardless of the number of times you are activated for qualifying military duty.

J. Forms

These forms, which you may need in taking steps to secure your benefits, are enclosed in this package:

PS Form 3111, Federal Employees Health Benefits (FEHB) Coverage or Termination While in Leave Without Pay (LWOP) Status

SF 1152, Unpaid Compensation of Deceased Civilian Employee

SF 2808, Civil Service Retirement System, or SF 3102, Federal Employees’ Retirement System, as applicable

SF 2823, Federal Employees’ Group Life Insurance (FEGLI) Program

TSP-3, Thrift Savings Plan

Exhibit 2

FEHB and FEGLI Coverage

For Employees Absent on LWOP to Perform Military Service

Purpose: The table below details how 24-month coverage eligibility, the LWOP interruption option, and 24-month premium payment benefit qualification interact for career employees. Noncareer employees can also use the LWOP interruption option to extend their eligibility for FEHB and FEGLI coverage, provided they have the necessary paid leave available, but they do not qualify for the 24-month premium payment benefit or any other Postal Service health benefit contribution.

FEHB Coverage

Applicable December 28, 2002, and After

|If employee is performing military |Schedule is . . . |

|service . . . | |

|Under 32 U.S.C. (state) |And does not |And begins |For up to |then |For up to |and |Coverage is |

|or under 10 U.S.C. |use LWOP |military service |365 days — | |6 months — |then |terminated. |

|(federal) but not in |interruption |before |employee shares | |employee pays full | | |

|support of a qualifying |option, |Dec. 10, 2004, |premiums with USPS, | |premiums, plus 2%, | | |

|contingency operation, | | | | | | | |

| | |And begins |For up to |then |For up to |and |Coverage is |

| | |military service |365 days — | |12 months — |then |terminated. |

| | |on or after Dec. |employee shares | |employee pays full | | |

| | |10, 2004, |premiums with USPS, | |premiums, plus 2%, | | |

| |And uses LWOP interruption option, |For up to |then |For up to |and |May continue to use |

| | |365 days — | |365 days — |then |the LWOP interruption|

| | |employee shares | |employee shares | |option to initiate |

| | |premiums with USPS, | |premiums with USPS,| |new coverage period, |

| | | | | | |and employee shares |

| | | | | | |premiums with USPS. |

|Under 10 U.S.C. |And does not use LWOP interruption |For up to 24 months — |and |Coverage is |

|(federal) and in support|option, |USPS pays full premiums, |then |terminated. |

|of a qualifying | | | | |

|contingency operation, | | | | |

| |And uses LWOP interruption option, |For up to |then |For up to |and |May continue to use |

| | |365 days — | |365 days — |then |the LWOP interruption|

| | |USPS pays full | |first USPS exhausts| |option to initiate |

| | |premiums from its | |its 24-month | |new coverage period, |

| | |24-month payment | |payment quota | |and employee shares |

| | |quota, | | | |premiums with USPS. |

FEGLI Coverage

|If employee is performing military |Schedule is . . . |

|service . . . | |

|And does not use LWOP interruption option, |For up to |then |Coverage is terminated. |

| |12 months — | | |

| |without cost to | | |

| |employee, | | |

|And uses LWOP interruption option, |For up to |then |May continue to use the LWOP interruption option, |

| |12 months — | |with deductions for premium payment only for |

| |without cost to | |periods of paid leave, to initiate new coverage |

| |employee, | |period |

| | | |without cost to the employee. |

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