Army Materiel Command:

Providing Early Retirement Incentives in 1990 Could Have Saved Money

NSIAD-93-233: Published: Aug 24, 1993. Publicly Released: Aug 24, 1993.

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Pursuant to a congressional request, GAO estimated the potential savings to the government if the Army Materiel Command (AMC) had implemented certain retirement incentives in 1990.

GAO found that: (1) the cost savings from additional retirements would have ranged from $100,000 to $250,000 per retiree if AMC did not replace the retiree; (2) factors affecting the costs of retirement incentives included installment payments, salary, annuity, and cash bonuses; (3) AMC could have reduced the number of involuntary separations it made to meet its 10-percent reduction in force if it had used some retirement incentives; and (4) savings from inducing employees eligible for normal retirement to retire could have been smaller than for early retirees because of the greater likelihood that some employees would have retired within a few years anyway.

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