[Claims for Severance Pay]
Highlights
The Department of Energy (DOE) requested an advance decision concerning whether a group of former DOE employees who were involuntarily separated under a reduction in force action were entitled to severance pay. DOE had terminated the employees' guard service duties in favor of contracting for the services from a private security firm. The firm then offered employment to the former employees. DOE declined their claim for severance pay on the basis that, within 90 days of the date of the transfer of function to the private security firm, the firm offered comparable employment to each of the former employees which precluded their entitlement to severance pay. The employees argued that they were entitled to severance pay because they were not offered comparable employment. However, GAO held that, since the differences in compensation and benefits were not sufficient to negate the comparability between their new and former employment, they are not entitled to severance pay.