DOE IG: SOME FORMER SANDIA EMPLOYEES GOT PAY BOOST IN RETIREMENT

Sandia National Laboratories hired a handful of retirees as consultants and paid them higher salaries than they earned as full-time employees, in some instances violating internal lab policies, according to a memorandum released by the Department of Energy Inspector General yesterday. An investigation by the IG revealed that eight retirees were paid at a higher hourly rate than during their time as full-time lab employees, and in two cases, the pay raises came within a year of the retirement of the employees, which violated the lab’s internal policies. In those two instances, the former employees were paid $110 and $95.36 an hour for consulting work. They had been paid an hourly rate of $81.44 and $68.69 when they retired, and the IG said they earned $16,173 and $5,269 for their consulting work more than allowed under lab procedures. The IG said the hourly rates being paid were based on market rates, and it noted that the lab has been concerned about using former employees as contractors and has examined ways to limit their employment as consultants and service contractors or for staff augmentation work. “Specifically, Sandia was concerned that existing policy did not sufficiently encourage line organizations to perform appropriate succession planning and transfer historical knowledge,” the IG said, adding that the lab had revised policies to limit the work hours and period of performance of retirees.

The IG noted that the use of one retired worker as a consultant for a period of 10 years had the effect of “potentially muting Sandia’s intent to limit the use of former employees.” In a statement, lab spokeswoman Sue Major Holmes noted that the IG did not issue any recommendations or find any violations. “As such, the report specifically stated there was no need for Sandia to respond,” she said. “There was no violation of any federal or DOE policies.”