Note: Columns (c)-(e). The USPS Pay-for-Performance (PFP) program relies on a 15-point scale with clearly defined and transparent corporate goals. The PFP plan target in any given year is set at a rating of 6. Incentives are not paid for any rating below or equal to 3 .The maximum threshold for payment is set at a rating of 15. Individual ratings vary but the corporate score is used as the regulator

Pension Benefits

The table below shows the present value of accumulated pension benefits payable to the named executive officer.

Note:       Column (d) Mr. Potter is the only USPS officer who also has a USPS Pension Benefit pursuant to contractual agreement. The amount in the first line in column (d) above for Mr. Potter is payable for his attainment of required performance objectives over the six-year period from June 2001 – June 2007 and was not based on Mr. Potter’s years of service to the Postal Service. Since 2007, the Board has not continued the USPS Pension Benefit and has frozen the amount of that benefit. Instead, since that time, Mr. Potter has been eligible for a performance incentive each year if he meets required performance objectives. The above amount of USPS Pension Benefit will be paid to Mr. Potter in monthly installments during his lifetime after he leaves postal employment, with a survivor annuity equal to 55% of the amount payable to Mr. Potter. All officers, including Mr. Potter, are eligible for CSRS or FERS retirement benefits available to career employees of the Federal Government. These benefits are described in the Retirement Annuities section of this Compensation Discussion and Analysis. The present value of the accumulated CSRS or FERS benefit represents the value of the pension over the actuarial lifetime, as of September 30, 2010. Mr. Donahoe and Mr. Vegliante participate in CSRS, Mr. Corbett participates in FERS, and Mr. Kearney’s annuity includes both a FERS and a CSRS component. Mr. Potter, Mr. Donahoe, and Mr. Vegliante are eligible for retirement, the calculation of which is described in the Retirement Annuities section of the Compensation Discussion and Analysis. The valuation for Mr. Corbett assumes that he has satisfied vesting requirements for retirement; however, because of his short tenure with the Postal Service, his retirement annuity has not vested.

Employment Agreement With Paul Vogel

The following shall constitute the contract of employment between the United States Postal Service ("Postal Service") and Paul E. Vogel ("Mr. Vogel").

1. This contract is entered into under the authority of section 204 of Title 39 of the United States Code.

2. The Postal Service agrees to employ Mr. Vogel in the position of President, Shipping & Mailing Services at the Postal Service's Headquarters located at
475 L'Enfant Plaza, S.W. , Washington , DC. Mr. Vogel's employment in this position shall commence on August 14, 2010.

3. The Postal Service will compensate Mr. Vogel with a basic salary paid at the annual rate of $245,000, provided however, that as more fully provided in
paragraph 4 below, certain amounts will be withheld from this sum because Mr. Vogel will be a reemployed annuitant. In accordance with standard Postal
Service policy and practice, this basic salary rate may be reviewed and adjusted on an annual basis during each succeeding year in which this
Agreement remains effective. Unless required by law, the basic salary rate will not be lower than set forth here. In addition to a basic salary, Mr. Vogel
will be eligible to participate in the Pay for Performance Program, or any successor program, that is generally applicable to officers of the Postal
Service. Mr. Vogel's participation in this program shall be according to the standard policies and practices governing the Pay for Performance Program,
or any successor program.

In addition to all other compensation specified in this agreement, Mr. Vogel shall receive a performance incentive, as set forth in this paragraph. For each twelve-month period listed below in this paragraph, Mr. Vogel shall be entitled to, at minimum, a performance incentive of 25% of his basic salary in effect as of the end of each twelve-month period.

For the twelve month period ending on September 30, 2011, the amount of the performance incentive shall be up to 50% of Mr. Vogel's basic salary as of September 30, 2011.

For the twelve month period ending on September 30, 2011, the amount of the performance incentive shall be up to 50% of Mr. Vogel's basic salary as of September 30, 2012.

The Full Report and Vogel Agreement can be found here USPS 10-K Report 2010 (PDF)

Employment Agreement With CFO Joseph Corbett

“On November 10,2010, the Postal Service entered into an Agreement for Retention Incentive (the “Agreement”) with Anthony J. Vegliante, Executive Vice President and Chief Human Resources Officer, providing for the payment of certain annual retention incentives to induce Mr. Vegliante to remain in his position as Executive Vice President and Chief Human Resources Officer. The Agreement is effective as of November 1, 2010 and provides for payments to Mr. Vegliante of twenty-five percent (25%) of Mr. Vegliante’s basic salary in effect as of November 1,2010 and as of November 1,2011. Mr. Vegliante will be entitled to receive such payment(s) within thirty (30) calendar days after November 1 of each twelve month period as long as he remains employed by the Postal Service as of that date, to the extent allowable by law. The Agreement provides that the parties may mutually agree in writing to extend the Agreement on an annual basis for each twelve month period commencing on November 1 of each year after November 1, 2011, so that the amount of the retention incentive for any such future period shall be twenty-five percent (25%) of Mr. Vegliante’s basic salary in effect as of November 1 of the relevant year.”

The Agreement provides that any portion ofthe payment(s) owed to Mr. Vegliante pursuant to the Agreement that are required to be deferred by the limitation found at section 3686 of Title 39 ofthe United States Code will be paid as deferred compensation. The Agreement provides that Mr. Vegliante may receive a distribution of his deferred compensation in the event of an "unforeseeable emergency" as such term is defined in Section 409A ofthe Internal
Revenue Code.

The Agreement states that if Mr. Vegliante separates from the Postal Service for any reason prior to the conclusion ofa pertinent twelve month period, he is obligated to refund to the Postal Service a prorated portion ofthe retention incentive payment he received, less any applicable deductions. If amounts to be refunded to the Postal Service have been deferred pursuant to the Agreement, Mr. Vegliante relinquishes any right to such deferred amounts.

This description of the terms of the Agreement is qualified in its entirety by reference to the attached Agreement. Form 8-K
 

Real Estate Deal

Prior to 2010, the Postal Service infrequently entered into financially immaterial transactions with certain highly-limited groups of eligible employees. Until 2009, in connection with the relocations of eligible employees, the Postal Service provided fully- secured mortgage loans to assist in the purchase of residential housing at the new location.

In 2005, the Postal Service made a 30 year secured loan to Susan Plonkey, who served as Acting President, Shipping and Mailing Services, from June 2, 2010 until August 13, 2010. At the time the loan was originally made, Ms. Plonkey served as Vice President, Service and Market Development. The initial loan amount was $686,815. The highest principal amount of the loan during fiscal year 2010 was $660,320. The amount of the loan outstanding as of September 30, 2010 is $653,006. During fiscal year 2010, Ms. Plonkey paid $7,314 in principal and $19,518 in interest on the loan. 60% of the loan bears interest at the rate of 5.125% and the other 40% of the loan does not bear interest. Instead, the Postal Service will share in 35% of the appreciation in the value of the residence upon sale, or the occurrence of certain other events resulting in the prepayment or acceleration of the loan.

The above loan was made pursuant to an established program designed to provide financial assistance to eligible employees that transfer to high cost-of-living areas, so that they are able to purchase a suitable home. This program specified certain loan parameters, including the maximum amount of any first or second mortgage, required down payments, and the maximum shared appreciation portion of the loan. The fixed portion of the loan is at market rates at the time the loan was made
 

Note: Columns (c)-(e). The USPS Pay-for-Performance (PFP) program relies on a 15-point scale with clearly defined and transparent corporate goals. The PFP plan target in any given year is set at a rating of 6. Incentives are not paid for any rating below or equal to 3 .The maximum threshold for payment is set at a rating of 15. Individual ratings vary but the corporate score is used as the regulator.

PENSION BENEFITS
The table below shows the present value of accumulated pension benefits payable to the named executive officer.

Name Plan name Number of years credited service (#) Present value of accumulated benefit ($)
(a) (b) (c) (d)
John E. Potter USPS Pension Benefit n/a $1,350,318
John E. Potter CSRS Annuity 31 Years $2,846,111
Joseph Corbett FERS Annuity 1 Year $ 11,785
H. Glen Walker FERS Annuity 3 Years $ 63,981
Patrick R. Donahoe CSRS Annuity 34 Years $2,840,108
Anthony J. Vegliante CSRS Annuity 32 Years $2,371,464
Robert F. Bernstock FERS Annuity 1 Year $ 38,236

Note: Column (d) Mr. Potter is the only USPS officer who also has a USPS Pension Benefit pursuant to contractual agreement. The amount in the first line in column (d) above for Mr. Potter is payable for his attainment of required performance objectives over the six-year period from June 2001 – June 2007 and was not based on Mr. Potter’s years of service to the Postal Service. Since 2007, the Board has not continued the USPS Pension Benefit and has frozen the amount of that benefit. Instead, since that time, Mr. Potter has been eligible for a performance incentive each year if he meets required performance objectives. The above amount of USPS Pension Benefit will be paid to Mr. Potter in monthly installments during his lifetime after he leaves postal employment, with a survivor annuity equal to 55% of the amount payable to Mr. Potter. All officers, including Mr. Potter, are eligible for CSRS or FERS retirement benefits available to career employees of the Federal Government. These benefits are described in the Retirement Annuities section of this Compensation Discussion and Analysis. The present value of the accumulated CSRS or FERS benefit represents the value of the pension over the actuarial lifetime, as of September 30, 2009. Mr. Corbett, Mr. Walker and Mr. Bernstock participate in FERS and the other named executive officers participate in CSRS. The present value for Mr. Walker is calculated as of February 27, 2009, which was the end of his tenure as CFO. Mr. Potter and Mr. Donahoe are eligible for early retirement, the calculation of which is described in the Retirement Annuities section of the Compensation Discussion and Analysis. The valuations for Mr. Potter and Mr. Donahoe reflect reductions that would apply for early retirement, as neither of these individuals has reached the age required for optional retirement. The valuations for Mr. Corbett, Mr. Walker and Mr. Bernstock assume that they have satisfied vesting requirements for retirement; however, because of their short tenure with the Postal Service, their retirement annuities have not vested.