B-301721, Fish & Wildlife Service -- Reimbursement for Individual Financial, January 16, 2004

B-301721 Jan 16, 2004 Jump To VIEW DECISION DOWNLOADS RELATED PAGES GAO CONTACTS Highlights The Director of the U.S. Fish and Wildlife Service has requested an advance decision under 31 U.S.C. 3529 on the propriety of using appropriated funds to reimburse employees for costs associated with individual financial planning for retirement as part of the agency's retirement education program. For the reasons set forth below, we have no objection to the Service's proposal to reimburse its employees for the costs of individual financial planning for retirement as part of its legitimate function of administering its personnel benefits system. Employee retirement education and retirement counseling are legitimate agency expenses. We note that the Service's proposed reimbursement program does not designate acceptable sources of financial planning, and we encourage the Service to develop internal controls to assess each employee request to ensure that the service for which reimbursement is sought meets the agency's definition of "advice and consultation services on investments, retirement issues and benefit programs from a financial planner." View Decision B-301721, Fish & Wildlife Service -- Reimbursement for Individual Financial, January 16, 2004 Decision Matter of: Fish & Wildlife Service -- Reimbursement for Individual Financial Planning for Retirement File: B-301721 Date: January 16, 2004 DIGEST We have no objection to the U.S. Fish and Wildlife Service's (Service) proposal to use appropriated funds to reimburse its employees for the costs of individual financial planning as part of the agency's retirement education program. Employee retirement education and retirement counseling are legitimate functions of administering an agency's personnel benefits system, and therefore legitimate agency expenses. As the Service implements the proposed program, it should develop internal controls to ensure that the service for which reimbursement is sought meets the agency's definition of –advice and consultation services on investments, retirement issues and benefit programs from a financial planner.— DECISION The Director of the U.S. Fish and Wildlife Service has requested an advance decision under 31 U.S.C. sect. 3529 on the propriety of using appropriated funds to reimburse employees for costs associated with individual financial planning for retirement as part of the agency's retirement education program. For the reasons set forth below, we have no objection to the Service's proposal to reimburse its employees for the costs of individual financial planning for retirement as part of its legitimate function of administering its personnel benefits system. Employee retirement education and retirement counseling are legitimate agency expenses. We note that the Service's proposed reimbursement program does not designate acceptable sources of financial planning, and we encourage the Service to develop internal controls to assess each employee request to ensure that the service for which reimbursement is sought meets the agency's definition of –advice and consultation services on investments, retirement issues and benefit programs from a financial planner.— BACKGROUND The U.S. Fish and Wildlife Service (Service) is considering implementation of a program designed to educate its employees in planning for financial security in retirement and in making the best use of the federal benefit programs available to them. Letter from Marshall P. Jones, Jr., Director, FWS, to David M. Walker, Comptroller General, GAO, Aug. 12, 2003 (Jones letter). The director states that –[w]ith the increasing complexity of the Federal benefits program including long-term care insurance, additional options in the Thrift Savings Plan, and Flexible Spending Accounts, employees have a growing need for financial planning services related to the total compensation package.— Id.As explained in a draft of the proposal enclosed with the Jones letter, the Service, instead of providing retirement counseling to employees, would permit employees to choose their own financial planner outside the agency and the Service will not endorse or recommend a financial service provider. Draft Director's Order sect. 6. The Service would reimburse 50 percent of the cost of permanent employees' financial planning expenses for the previous year, or up to $200, whichever is less. Draft Director's Order sections 4, 8. Employees could receive the benefit once every 3 years, and within 12 months of retirement or other voluntary separation, regardless of the 3-year limit. Draft Director's Order sections 4, 11. Financial planning expenses are defined as advice and consultation services on investments, retirement issues, and benefit programs sought by an employee from a financial planner. Draft Director's Order sect.