NALC – Lump Sum Terminal Leave Payment for 2021

On September 3, 2020 the NALC and the Postal Service agreed to a Memorandum of Understanding (M-01928 in the NALC Materials Reference System) which allows regular work force career employees to carry over 520 hours of accumulated annual leave from leave year 2020 to leave year 2021. M-01928 states:

The parties agree that for leave year 2021, regular work force career employees covered by the USPS-NALC Agreement may carry over 520 hours of accumulated annual leave from leave year 2020 to leave year 2021.

In all other respects, the ELM provisions for payment of accumulated leave are not changed because of this Memorandum.

This MOU will expire December 31, 2021.

Although this memorandum did not impact the ELM provisions for payment of accumulated leave, after further discussion, the Postal Service has confirmed that employees that retire during leave year 2021 can receive a terminal leave payment of up to 520 hours. Separating employees may receive a lump sum terminal leave payment as follows (found in Employee and Labor Relations Manual section 512.732):

  1. Bargaining Unit Employee. Bargaining unit employees may receive a lump sum leave payment:
    1. If separating other than under the Voluntary Early Retirement Authority (VERA), for accumulated annual leave carried over from the previous year; accrued annual leave for the year in which they separate, up to the carryover maximum for their bargaining unit (see 512.32); any unused donated leave; and for full–time and part-time regular employees, holidays that fall within the terminal leave period. Any part of the unused annual leave earned during the leave year of separation that is in excess of the maximum carryover amount is granted prior to separation rather than paid out in the form of a lump sum payment. No payment is made for unused leave that the employee would have been required to forfeit at the end of the leave year.

Employees retiring pay period two (2) of 2021 (which starts January 2, 2021) through the 2021 leave year can receive a terminal leave payment of up to 520 hours.


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