Base Closures: Long and Costly Process of Reducing the Local National Work Force in Germany
NSIAD-92-62
Published: Apr 17, 1992. Publicly Released: Apr 17, 1992.
Skip to Highlights
Highlights
Pursuant to a congressional request, GAO reviewed U.S. obligations to its local national work force in Germany resulting from the drawdown of U.S. forces, focusing on: (1) the U.S. military's basic severance pay liability according to international agreements; (2) the potential for other costs increasing that liability; and (3) whether the Army and Air Force have sufficient funds to cover those liabilities.
Recommendations
Recommendations for Executive Action
| Agency Affected | Recommendation | Status |
|---|---|---|
| Department of State | If local nationals continue to litigate and severance costs exceed employee entitlements under the Tariff Agreement and indemnity plan, the Secretary of State should request the German government to assist in financing the U.S. military drawdown by bearing the additional severance costs. During the planned bilateral burden-sharing initiative being undertaken by the United States, it would be appropriate to introduce local national termination costs. |
Closed – Not Implemented
State agrees that such an initiative should be part of bilateral burden-sharing discussions but that because of other ongoing discussions, the time is not right to introduce this topic.
|
| Department of Defense | The Secretaries of Defense, the Army, and the Air Force should endeavor to announce base closure dates in adequate time to terminate employees to avoid paying millions of dollars in unearned salaries. |
Closed – Implemented
The Department of Defense (DOD) is now announcing base closures 6 to 12 months in advance. This should allow ample time to terminate local nationals without incurring unearned salary costs.
|
| Department of the Air Force | The Secretaries of Defense, the Army, and the Air Force should endeavor to announce base closure dates in adequate time to terminate employees to avoid paying millions of dollars in unearned salaries. |
Closed – Implemented
DOD is now announcing base closures 6 to 12 months in advance. This should allow ample time to terminate local nationals without incurring unearned salary costs.
|
| Department of the Army | The Secretaries of Defense, the Army, and the Air Force should endeavor to announce base closure dates in adequate time to terminate employees to avoid paying millions of dollars in unearned salaries. |
Closed – Implemented
DOD is now announcing base closures 6 to 12 months in advance. This should allow ample time to terminate local nationals without incurring unearned salary costs.
|
| Department of State | When delays are caused by the German government, the Secretary of State should negotiate an agreement with Germany to ensure that associated costs are paid by Germany. |
Closed – Not Implemented
State agrees that such an initiative should be part of bilateral burden-sharing discussions but that because of other ongoing discussions, the time is not right to introduce this topic.
|
| Department of Defense | To ensure funds for severance pay are available for anticipated base and facility closures, the Secretary of Defense should direct the Secretaries of the Army and the Air Force to establish a consistent policy and procedures for severance pay accounting in Germany. Those procedures would provide for the accounting of severance on an accrual basis using employee records to estimate the liability and provide for the annual reconciliation of the severance account. |
Closed – Implemented
DOD issued implementation guidance on the new Foreign National Separation pay account, which reemphasized the policy for accruing severance pay obligations and the requirement to perform annual reconciliations of the account.
|
Full Report
Office of Public Affairs
Topics
Base closuresCivilian employeesCost controlForeign governmentsInternational agreementsLiability (legal)Military basesMilitary budgetsReductions in forceSeverance pay