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FPCD-78-68 1 (1978-12-07)

handle is hein.gao/gaobaayiw0001 and id is 1 raw text is: DOCUMENT RESUHE 07992 - fC3468564 I The Federal Government's Severance Pay Pzograua. Need Reform. FPCD-78-68; B-161937. December 7, 1S78. 30 pp. + 5 appendices (1i pp.). Report to the Congress; by Elmer B. Staats, Comptrcller General. Issue Area: Personnel Management and Compensation (300). Contact: Federal Personnel and Compensation Div. Budqet Function: General Government: Central Pexzonnel management (805). Orqanization Concerned: Departwent of Labor; Department cf Defense; Civil Service Commission. Conqressional Relevance: House Committee cn Atmed Services; Senate Committee on Armed Services; Congress. Authority: Federal Employees Salary Act of 1965 (5 U.S.C. 5595). Social Security Act (42 U.S.C. 501), liagner-Peyser Act (29 U.S.C. 49). Unemployment Compensation Amendments of 1976 (P.L. 94-556; 26 U.S.,C. 3304). Armed Forces Reserve Act of 1952. Career Compensation Act of 1949. Officer Personnel Act of 1947. 10 U.S.C. 687. 10 U.S.C. 679. 10 U.S.C. 680. =5 C.F.R. 550. H. Rept. 89-792. Severance pay for Federal personnel was legislated to provide involuntarily terminated employees with recognition for their service, compensation for the lost job and its consequences, and help in the transition to a new career. The Federal Government's severance pay programs are divided into two major categories: for Federal civilian employees and for uniformed services personnel. Findings/Conclusions: The armed services nondisability severance program is sometimes viewed as a substi te for vesting for officers who are separated with less than 20 years of service. There are inequities in severance pay entitlements of military and civilian personnel and in benefits available to members of the uniformed services. For example: military nondisability severance pay is available only to officers, not enlisted members; Army and Air Ferce officers separated for substandard performance scmetimas receive more severance pay than officers separated for noLpromoticn; kasic pay used in calculating millJtary severance pay does not fully reflect a member's compensaition; most military officers are limited to a maximum severance pay of S15,000 unlike civilians vho are not limited to a fixed dollar amount; military officers can receive severance pay if separated for unsatisfactory performance while civilian employees are eligible only 1f they aze not at fault; and payments for civiliaD employees cease if they are rehired while this limitaticn does not apply to military members. Recent legislation may affect employees' entitlement to the concurrent receipt cf severance pay and unemployment insurance. Recommendations: The ;ongress sabuld: revise the aniformed sei'vices' severance Fay programs sc that separation pay will be calculated and applied uniformly for all

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