April 21, 2009
Michael Victorian
(202) 639-6405

AFGE Applauds Representative Kucinich for Protecting Taxpayers, Federal Workers

(WASHINGTON) – The American Federation of Government Employees (AFGE) today expressed approval of the decision by the Defense Finance and Accounting Service to bring back in-house by 2010 the processing of retirement and annuity payments that had been contracted out to a private company. About 600 federal employees in the Cleveland area were put out of work because of the initial decision. Congressman Dennis Kucinich led the effort to get the work back inside the agency.

The work had been contracted out in error, according to a 2003 report from the Inspector General (D-2003-056). However, the agency chose not to return the function to in-house performance until after hearings had been held to review delays and errors by the same contractor in the processing of payments related to Combat Related Special Compensation and Concurrent Retirement Disability Payment.

In addition to numerous mistakes by the contractor (Dallas-based Affiliated Computer Services ) the Inspector Generals Office also found the outsourced work actually cost tax payers $30 million dollars more than if the work at stayed in-house to begin with...

“Representative Kucinich initiated the Inspector General’s investigation and never gave up his fight for taxpayers, for veterans, and for DFAS employees, no matter how much opposition the Bush Administration mounted. And Senator Wyden worked closely with Department of Defense Controller Robert Hale to ensure that the in-sourcing finally occurred.” said John Gage, president of the American Federation of Government Employees, the union which represents the DFAS employees in Cleveland.

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