Examination Into Alleged Irregularities in Retirement and Leave Records

FPCD-80-14: Published: Oct 5, 1979. Publicly Released: Oct 5, 1979.

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As a result of alleged irregularities in the U.S. Postal Service, retirement and leave records were sampled for 32 full-time employees in both headquarters and field offices.

Problems with the new payroll system caused thousands of employees to be paid emergency (manual) salaries for various pay periods in 1978. Some employees were still being paid that way at the time of the study in 1979. This resulted in failures to pay the civil service retirement fund, failures to credit individual retirement accounts, failures to credit leave or retirement records, and, consequently, overpayment and underpayment of employees. The Postal Service may also have provided some employees with confusing information on benefits. GAO discussed the problems with Post Office officials and was assured that audits would be made and steps would be taken to correct oversights and abuses.

Recommendation for Executive Action

  1. Status: Closed

    Comments: Please call 202/512-6100 for additional information.

    Recommendation: The Postal Service should (1) revise its employees' earnings statement to show total retirement contributions to date or expressly state that the amount shown may not be total contributions; (2) clarify its regulations to remove any doubt about how sick leave is credited; and (3) stress to postal installation officials that it is their responsibility to control the leave of employees and to follow postal regulations requiring proper control over leave authorization.

    Agency Affected:

 

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