Department Of Energy Workforce Reduction

RCED-99-135 Department of Energy Workforce Reduction: Community Assistance Can Be Better Targeted

DOE'S assistance to separated contractor workers is reasonably consistent with the types of benefits offered by other government and private employers. However, its community development assistance funds did not necessarily go to those communities most affected by downsizing or those with the highest unemployment. For fiscal years 1994 through 1998, DOE obligated and spent about $1.033 billion on benefits for the contractor workers and communities affected by its downsizing. About $853 million was spent on worker assistance and the rest on community assistance. About $460 million of the $1.033 billion was provided by DOE's 0ffice of Worker and Community Transition and the remainder by other DOE programs, such as defense and environment. At the end of fiscal year 1998, DOE had a carryover balance of $72 million, including $10 million in unobligated funds and $62 million in funds that were obligated but not yet spent. Most of the contractor workers separated during fiscal years 1997 and 1998 received benefits under DOE'S workforce restructuring program. While DOE generally offered its separated contractor employees a large range of benefits, the value of the benefits varied widely, primarily because of the differences in the benefits packages among sites and in the employees' length of service and base pay. These benefit packages are reasonably consistent with the types of benefits offered by public and private employers. However, the benefit formulas in some of DOE'S workforce restructuring plans, such as those determining voluntary separation benefits and extended medical coverage, potentially allow more generous benefits than those offered for federal civilian employees.