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Federal Agencies' Unemployment Compensation Costs Can Be Reduced Through Improved Management

FPCD-83-3 Published: Oct 29, 1982. Publicly Released: Nov 12, 1982.
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Highlights

In response to a congressional request, GAO reviewed the adequacy of four agencies' controls to ensure that only eligible former federal employees receive unemployment payments.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of Labor The Secretary of Labor should alert all executive departments and agencies of the need to appeal state decisions to pay unemployment benefits to former employees who were separated from federal service under circumstances that the agency believes would disqualify the claimant.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Labor The Secretary of Labor should alert all executive departments and agencies of the need to enforce the requirement to notify state unemployment offices when former employees refuse job offers made after separation.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Labor The Secretary of Labor should clarify whether agencies should report job refusals by former employees of other agencies to state unemployment offices.
Closed – Not Implemented
Labor concluded, and GAO agrees, that implementing the recommendation is not practical unless the agencies are given some incentive for reporting job refusals by former employees of other agencies. Any system to provide such incentives would be too costly.
Department of Labor The Secretary of Labor should require all executive departments and agencies to begin providing state unemployment offices with the following severance pay information: (1) weekly amount and total entitlement; (2) the date severance pay will begin; and (3) the number of weeks severance pay will be made.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.
Department of Labor The Secretary of Labor should alert all executive departments and agencies of the need to provide state unemployment offices with accurate, complete, and timely wage and separation information for former employees who apply for unemployment payments. Of particular importance is information on those former employees who received severance or lump-sum leave payments, refused job offers made before separation, resigned voluntarily, were fired for misconduct, or retired and are receiving an annuity.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

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Topics

Cost controlEligibility criteriaFederal employeesstate relationsReporting requirementsUnemployment insurance benefitsUnemploymentSeverance payFederal agenciesCompensation