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Tightening Eligibility Standards Could Cut Involuntary Retirement Costs by Millions of Dollars

FPCD-81-71 Published: Sep 25, 1981. Publicly Released: Sep 25, 1981.
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Highlights

GAO reported on the eligibility standards governing the involuntary retirement program which was established to provide immediate annuities to employees of long service who are involuntarily separated through no fault of their own. Age, service requirements, and benefits are established in law; however, the Office of Personnel Management (OPM), as administrator of the civil service requirement system, is responsible for determining what constitutes an involuntary separation. Originally, involuntary retirements were permitted only for employees subject to reduction in force. However, over the years, the OPM implementing policy and instructions have been liberalized. Under current policy, an employee becomes eligible for involuntary retirement when he is merely notified that his position is to be abolished.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Personnel Management The Director, OPM, should disallow involuntary retirements when an agency offers an employee whose position is to be abolished a vacant position within the agency and commuting area for which the employee is fully qualified and when acceptance would not result in an immediate reduction in pay. The Director, OPM, should monitor the retirement program to assure that agencies are making offers to the fullest extent practicable.
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Topics

Eligibility criteriaEmployee retirement plansPolicy evaluationProgram evaluationReductions in forceRetirement benefitsRetireesPensionsGovernment employeesCivil service retirement system