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B-176519 1 (1973-08-21)

handle is hein.gao/gaobaafwz0001 and id is 1 raw text is: 7UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 / DIVISION OF FINANCIAL AND GENERAL MANAGEMENT STUDIES AUG2 1197 B-176519 The Honorable LMO96O91 I The Secretary of Defense Dear Mr. Secretary: GAO has reviewed DOD's policies and practic.es in-the Philippines for pal1 ci national (Filipino) employees. We examined the allowances DOD paid to Filipino employees who had participated in the U.S. civil service retirement system and whose employment had been termi- nated in calendar year 1971. During that year DOD paid severance allowances of $386,000 to Filipino employees who were also entitled to immediate ct s. If this prac- tice continues, additional severance allowances totaling about $1 million will be paid to employees entitled to imme- diate annuities. SEVERANCE ALLOWANCES PAID TO EMPLOYEES ENTITLED TO IMMEDIATE ANNUITIES AT THE TIME OF SEPARATION About 900 of the 15,000 Filipinos employed at U.S. bases in the Philippines participate in the civil service retirement system. Because all of these employees have participated in the system for over 20 years--no appoint- ments carrying entitlement to civil service retirement bene- fits have been made since 1951--many of them are now eligible for civil service retirement benefits, particularly under reductions in force. The Foreign Service ct of 1946 and DOD policy require that, in general, U.S. employment practices be consistent with the prevailing local practices. According to a local wage survey by the State Department, it is not the prevailing 7JM~r o'lwo 1I

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