B-229182, Nov 18, 1987, Office of General Counsel
Highlights
This is FAR case No. 87-33. FAR Sec. 31.205-6(g)(2)(i) currently provides that severance payments to workers whose employment is terminated involuntarily may be allowable. We have no comment on the proposed change.
B-229182, Nov 18, 1987, Office of General Counsel
PROCUREMENT - Payment/Discharge - Federal Procurement Regulations/Laws - Revision - Severance Compensation DIGEST: General Accounting Office has no comment on a proposal to change Federal Acquisition Regulation Sec. 31.205-6(g)(2)(i) to make allowable severance payments to involuntarily terminated workers notwithstanding that early or normal retirement payments might also be made.
Ms. Willis:
This responds to your letter of September 25, 1987, requesting our comments on a proposal to change Federal Acquisition Regulation (FAR) Sec. 31.205-6(g)(2)(i). This is FAR case No. 87-33.
FAR Sec. 31.205-6(g)(2)(i) currently provides that severance payments to workers whose employment is terminated involuntarily may be allowable, except when paid to employees in addition to early or normal retirement payments. The proposed change would delete this exception, thereby permitting severance payments to be allowable notwithstanding that early or normal retirements payments might also be made. The requirement of overall reasonableness of compensation would continue to apply, however.
We have no comment on the proposed change.