ELM Revision: Update to Definition of Basic Pay

Effective January 4, 2018, the Postal Service™ is revising the Employee and Labor Relations Manual (ELM), sections 532, 538.3, 566.252, 586.252, and 592.1, to remove outdated references to “Cost of Living Allowances” from definitions of basic pay.

Employee and Labor Relations Manual (ELM)

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5 Employee Benefits
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532 Coverage
532.1 Based on Pay

532.11 Full-Time Employees

[Revise the last sentence of 532.11 to read as follows:]
***(Basic pay for insurance purposes excludes such additional pay as overtime pay, holiday pay, etc.)

532.12 Part-Time Employees

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[Revise the text of items a. and b. to read as follows:]
a. Part-time regular. The annual basic pay of part-time regular schedule employees is computed by multiplying the basic hourly rate of pay for their levels and steps by the number of scheduled hours of service in a 52-week work year.

b. Part-time flexible. The annual basic pay of part-time flexible schedule employees is computed by multiplying the basic hourly rate of pay for their level and step by 2,000 hours.
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532.222 Option B — Additional

[Revise the first sentence of 532.222 to read as follows:]
Option B — Additional may be elected in an amount equal to one, two, three, four, or five times the employee’s annual rate of basic pay after first rounding to the next higher multiple of $1,000 if the pay is not an exact multiple of $1,000.***
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538.3 Claims

538.31 Death of Insured Employee
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538.312 SF 2821
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[Revise the text of item a. to read as follows:]
a. Installation heads certify SF 2821, Agency Certification of Insurance Status, promptly and accurately. Particular attention is given to ensuring that basic pay, as shown in Item 8, is accurate and does not contain overtime pay, holiday pay, etc.
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538.322 SF 2821
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[Revise the text of item b. to read as follows:]
b. Installation heads (or designees) certify each SF 2821 for accuracy and ensure that annual basic pay in Item 8 is correct, and excludes overtime pay, holiday pay, etc.
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560 Civil Service Retirement Program

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566 Annuity Computation
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566.252 Basic Pay
[Revise the text of 566.252 to read as follows:]
Basic pay for retirement purposes includes higher level pay but does not include Territorial Cost of Living Allowances, overtime pay, night differential, military pay, allowances, premium pay, or lump-sum terminal leave benefits.
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580 Federal Employees Retirement System

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586 Annuity Computation
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586.252 Basic Pay
[Revise the text of 586.252 to read as follows:]
Basic pay for retirement purposes includes higher level pay but does not include Territorial Cost of Living Allowances, overtime pay, night differential, military pay, allowances, premium pay, or lump-sum terminal leave benefits.
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590 Thrift Savings Plan

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592 Contributions
592.1 Basic Pay
[Revise the second sentence of 592.1 to read as follows:]
***Basic pay includes higher level pay but does not include Territorial Cost of Living Allowances, overtime pay, night differential, military pay, allowances, premium pay, or lump-sum terminal leave payments.
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We will incorporate these revisions into the next online update of the ELM, which is available on the Postal Service PolicyNet website.

— Benefits and Wellness,
Human Resources, 1-4-18

Source: USPS

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