Overseas Civilian Contractors

News and issues relating to Civilian Contractors working Overseas

Taxpayers On the Hook for Retiree Costs for Federal Contractors

Fox Business  Friday June 10, 2011

A surprising new government report shows that taxpayers have been footing the bill for retiree benefits not just for federal workers, but for independent freelance contractors who do work for the government as well. 

And no one is watching the store to see if your tax dollars are being wasted.

Taxpayers for years have been covering private contractors’ retiree costs for things like pensions and health care, even though these workers are not on the federal payroll.

Taxpayers also cover these retiree costs for contractors’ spouses, too, and in some cases if contractors want to retire early (at age 50), just like regular federal workers, many can then get taxpayer-funded coverage, says an official at the Government Accountability office.

For the Department of Energy alone, overall this coverage cost taxpayers $6.8 billion over the last 10 years, according to the new GAO report recently sent to Congress. Nine out of ten  dollars spent on the DOE’s annual budget goes towards contracts, including contractor retiree benefits.

Please read the entire story here

June 10, 2011 - Posted by | Civilian Contractors, Contractor Oversight, Government Contractor | , , ,

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: