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B-189394 1 (1978-02-10)

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FiLE:  B-189394


DATE:   February 10, 1978


MATTER OF: National Federation   of Federal Employees -
              Validity of Severance Pay Regulations


DIGEST:


labor union contends that CSC regulation, 5 C.F.R.
5 550.701(b)(6), which excludes certain employees
from entitlement to severance pay when they are
hired by a private contractor engaged by the
agency to perform their former functions, is con-
trary to 5 U.S.C. 5 5595 governing severance pay.
We find that the regulation is consistent with
the statute and is authorized by the statutory
provision which empowers C¶C by regulation to
exclude such othor employees as it may designate.


     Mr. James M. Peirce, President of the National Federation
of Federal Employees (NFFE), has requested a decision on the
validity of Civil Service Commission (CSC) regulations, con-
tained in 5 C.F.R. f 550.701(b)(6), that preclude the payment
of severance pay to Federal employers in certain situations.

     The NFFE states that some Department of Defense activities
have begun to contract out to privata organizations ertain
operation and maintenance responsibilities heretofore performed
by Federal employees. The NFFE contends that employees ter-
minated in such situations should be entitled to severance pay
under 5 U.S.C. 5 5595(b) which provides as follows:

          (b) Under regulations prescribed by the
     President or such officer or agency as he may
     designate, an employee who--

              (1)  has been employed currently for a
          continuous period of at least 12 months; and

              (2)  is involuntarily separated from
          the service, not by removal for cause r.n
          charges of misconduct, delinquency. or
          inefficiency;

     is entitled Lo be paid severance pay in regular
     pay periods by the agency from which separated.


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  9- -


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                            THE   COMPTROLLEF GENERAL
DECISION *       OF THE UNITUC STATEE
                          9WASHINGTON. D. C 20548


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