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EMD-81-33 1 (1980-11-26)

handle is hein.gao/gaobabbgj0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C. 20548 ENERGY AND MINERALS DIVISION NOVEMBER 26,1980 B-199916 The Honorable Charles W. Duncan, Jr. The Secretary of Energy Dear Mr. Secretary: Subject: jrgonne National Laboratory Early Retirement Programj (EMD-8l-33) During our ongoing review of the Department of Energy's process for renewing the operating contract for the Argonne National Laboratory, we found a situation that we believe warrants your immediate attention. On June 15, 1979, the Department approved the operating contractor's proposed pro- gram to encourage senior laboratory scientists to retire earlier than the normal retirement age of 65 years. Through this early retirement program, the Laboratory and the Depart- ment were hoping to terminate the employment of older, less productive senior laboratory scientists who were engaged in less important work and who could not readily adapt to chang- ing priorities. By so doing, vacancies would be created for younger, more adaptable scientists. What warrants your immediate attention is the Department's acceptance of the proposal without any meaningful analysis by either the contractor or the Department. Specifically, the Department did not validate the program's objectives or deter- mine that the early retirement program was appropriate for or was focused on achieving those objectives. Because the Depart- ment failed to make such an analysis, the program has resulted in: --The expenditure of $1.7 million in severance payments to 59 laboratory employees in violation of Department regulations. --The inclusion of administrative employees in the pro- gram even though the program's objectives were not directed toward them. Twenty-three of the 59 employees who retired with severance pay were administrative employees. (300535)

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