[Request for Opinion Concerning Entitlement to Severance Pay]

The General Counsel of the Federal Trade Commission (FTC) requested a GAO opinion concerning the entitlement of several former FTC employees to severance pay. At issue is whether employees who give notice of their intent to resign while under specific notice of a reduction in force (RIF), but whose resignations are not effective until after the RIF notices have been cancelled, are entitled to severance pay. FTC announced that it was closing several regional offices and the employees at those offices were given specific notice that their jobs would be abolished pursuant to a RIF. After several employees submitted written resignations, FTC reversed its decision, did not close the regional offices, and cancelled the RIF notice. GAO stated that, since the RIF notice was cancelled before the employee's resignations took effect, they were not entitled to severance pay because their resignations were voluntary and could have been withdrawn.