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Clarification on MOU Regarding Leave Payout Upon Retirement

The MOU on Annual Leave Carryover for Leave Year 2021, which was signed on August 27, 2020, expanded the annual leave carryover limit and allows regular work force employees to carryover 520 hours of accumulated leave from leave year 2020 to leave year 2021. The allowed annual leave carryover is normally 440 hours. The MOU also stated, that in all other respects, the ELM provisions for payment of accumulated leave are not changed.

We have been able to clarify how this will affect payout for accumulated annual leave for mail handlers who are planning to retire by December 31, 2021.

If a mail handler retires prior to January 2, 2021, which is the beginning of the new leave year, the mail handler will be able to receive a payout of 440 hours of accumulated annual leave.

If a mail handler retires between January 2, 2021 and December 31, 2021 and carries over 520 hours of annual leave into the 2021 Leave Year, the mail handler will be eligible for a payout of 520 accumulated annual leave hours upon retirement.

If you have any questions, please contact the National Contract Administrative Department.

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