USPS Retirement Incentive: Second Payment Due August 28

Eligible APWU and NPMHU retirees are approaching the second installment of the one-time retirement incentive. It is a paper check, and it may not arrive at your home automatically.

Published August 20, 2026 · 5 min read

First, the amount: August 28 is the second installment of the previously negotiated $15,000 incentive. It is not another $15,000 payment. An eligible full-time retiree is due up to $5,000 before taxes and other required deductions.

The APWU-USPS and NPMHU-USPS retirement-incentive agreements split the maximum full-time benefit into two payments: $10,000 paid in August 2025 and as much as $5,000 due on August 28, 2026. The payment applies only to employees who retired under the eligible 2025 optional-retirement or voluntary-early-retirement arrangements. It is not a payment to every postal retiree.

How much should you receive?

Eligible employees who retired from full-time career positions receive the full second installment of $5,000 before withholding. Eligible part-time flexible and part-time regular employees receive a prorated amount based on paid hours in the 26 full pay periods before retirement.

Paid hours used for prorationPercentageSecond installment
Under 520 hours25%$1,250
520 to under 1,020 hours50%$2,500
1,020 to under 1,520 hours75%$3,750
1,520 hours or more100%$5,000

The figures above are gross amounts. The actual check will be lower after taxes and other applicable deductions.

Where will the check go?

The incentive is being issued as a paper payroll check and sent to the employee’s office of last appointment with that office’s regular payroll checks. Retirees should arrange with that office to pick up the check.

If you previously submitted PS Form 3077, Request to Forward Salary Check, the former office should forward the check to the address on that request. This is why an eligible retiree should not assume the money will appear through direct deposit or automatically arrive at the current home address.

Best step before August 28: Call the office where you last worked, confirm how it will handle incentive checks, and verify whether it has a PS Form 3077 forwarding request for you. Do not send your EIN or other private information through social media.

What if the check is missing?

  1. Contact your former office of record and ask whether the payroll shipment arrived.
  2. If you submitted PS Form 3077, confirm the forwarding address the office used.
  3. Contact the APWU local, APWU state organization or NPMHU local that represented you when you retired.
  4. Have your former office, retirement date and employee identification information available privately—but do not post those details publicly.

A late or missing paper check does not by itself mean the retiree was excluded. The first place to trace it is the last employing office because that is where the payroll check is sent.

Does this confirm another VERA?

No. This payment completes a benefit negotiated for the earlier retirement group. It is not proof that USPS has approved another voluntary early retirement program for September or any other month. A new VERA would require a separate, official announcement describing eligible crafts, installations, retirement dates and any incentive.

Planning a future postal retirement? Estimate your pension, survivor reduction and Social Security bridge before making a retirement decision.

Open the FERS retirement calculator