About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

B-199722 1 (1981-09-15)

handle is hein.gao/gaobadjsm0001 and id is 1 raw text is: DECISION ! FILE: B-199722 I'l y O THE COMPTROLLER GENERAL OF THE UNITEO STATES WASHINGTON. 0. C. 20548 DATE: September 15, 1981 MATTER OF: State Department Severance Pay Plan State Department severance pay plan for foreign service national employees at United States Embassy in Jordan to which both United States and Embassy employees would contribute may be implemented under authority in 22 U.S.C. S 889(a)(1) so long as moneys are maintained in United States depositary bank and their handling otherwise complies with applicable fiscal requirements since State has determined that plan is consistent with prevailing local compensation practices and in public interest. This responds to a Department of State inquiry concerning the propriety of the United States Embassy in Amman, Jordan, adopting a severance pay plan for its foreign service national employees. For the reasons given below we conclude that Jordanian foreign service national employees may be compensated for severance pay in the manner suggested by the State Department pursuant to 22 U.S.C. § 889(a)(1), which permits compensation of foreign service national employees in a manner consistent with prevailing local compensation practices where in the public interest. However, control of employer and em- ployee contributions must be in accordance with applicable fiscal statutes and regulations. The United States Embassy in Amman, Jordan, requested authority from State to establish a provident fund as a type of severance pay plan for its foreign service national employees. (A provident fund generally consists of employer and employee contributions used to provide various benefits to employees.) The plan would require em- ployee and employer contributions for each pay period of 7 percent and 10 percent of employee base pay respectively. These moneys would be deposited in local currency into two separate interest-bearing bank accounts, each in the name of U.S. Embassy FSN Provident Fund Account. Upon termination either by resignation or retirement, em- ployees would receive all of their contributions plus accrued inter- est, together with either 100 percent, 50 percent, 25 percent, or none of the corresponding employer's contributions and accrued inter- est based upon a service formula of up to 20 years or more employment. The Department of State asserts that the proposed plan is fully sup- ported by prevailing locality compensation practice and in the public interest, and, thus, is authorized by section 444 of the Foreign Service Act of 1946, as amended, 22 U.S.C. § 889(a)(1). I C3 DIGEST:

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most