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FPCD-82-44 1 (1982-05-07)

handle is hein.gao/gaobabdfy0001 and id is 1 raw text is: UNITED STATES GENERAL ACCOUNTING OFFICE WASHINGTON, D.C 20548 VALMU. M3OMNLK AM COMPUCHInOM CIVISIO B-207093 MAY7,4982 The Honorable David H. Pryor Ranking Minority Member Subcommittee on Civil Service, Post Office, and General Services Committee on Governmental Affairs 118350 United States Senate Dear Senator Pryor: Subject: Agencies Need Controls to Preclude Severance Payments to Certain Ineligible Former Employees (GAO/FPCD-82-44) Your letter of March 8, 1982, asked that we include in an ongoing review of the Federal severance pay program certain issues that you believed required special attention. Our work on one of those issues--severance payments to former Federal employees who are hired by Federal contractors--indicates some potentially serious problems that need immediate attention by the agencies involved. This report presents our findings on this severance pay issue and contains recommendations to the Director, Office of Personnel Management (OPM). We are contin- uing our review of severance payments in general and at a later date will be providing more information on the other issues you raised. Many Federal employees who are involuntarily separated from service through no fault of their own are entitled to receive severance pay under 5 U.S.C. 5595. Severance pay provides in- come for separated employees during their transition to a new career and extends a measure of compensation for the lost job, lost seniority, and disrupted life. OPM regulations, however, prohibit employees from receiving severance pay when their func- tions are transferred to a private contractor and the employees (1) are offered comparable employment with the contractor on or before contract conversion or (2) accept any employment with the contractor within 90 days after contract conversion. OPM issued this regulation because it believed the Congress did not intend to authorize severance pay for employees who do not actu- ally lose their jobs but instead start working for a Federal con- tractor rather than being directly employed by the Government. (,966084)

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