(Washington, DC)  --  U.S. Rep. Steven C. LaTourette (R-Concord Township) today announced that 600 to 700 new employees will be hired at the Cleveland Defense Finance and Accounting Office (DFAS) by the end of 2008 in a transformation plan that will be finalized this month.  In addition, the 1,100 existing DFAS workers will not have to relocate to other DFAS sites.

 “DFAS workers will be able to stay and as many as 700 local folks could land new jobs. Yes Cleveland, there is a Santa Claus,” LaTourette said.

 The Cleveland DFAS office was slated to close under the Base Realignment and Closure Commission (BRAC) process.  An exhaustive review of more than 10,000 pages of BRAC data by LaTourette proved the Pentagon used flawed data when it put Cleveland on the closure list.   In August, the BRAC Commission voted to close 20 DFAS offices and keep five open  – Cleveland, Columbus, Indianapolis, Limestone (ME), and Rome (NY). 

 LaTourette said Cleveland fares better than the other two DFAS locations that were slated to close because Cleveland could gain hundreds of jobs above the number guaranteed by BRAC.  He said Limestone, ME, will grow only to the 600 workers mandated by BRAC, while the Rome, NY, site will grow to just the 1,000 jobs guaranteed by BRAC.  Cleveland was guaranteed 1,500 jobs (it currently has about 1,100 workers), and could see number swell to 1,800.

 “If the stars align, DFAS Cleveland could grow to1,800 full-time jobs in just a few years,” LaTourette said.  “These are great jobs with great government benefits and an excellent retirement plan.  The average salary is $54,000.”

 LaTourette said the overall transformation plan deserves praise because it puts jobs in logical places, and expands sites that have room for additional workers without spending federal money for military construction.

 LaTourette said many changes will happen at the Cleveland office, according to DFAS director Zack Gaddy, who briefed LaTourette and congressional staffers Tuesday in LaTourette’s office.  Gaddy asked that no information about the transformation plan be released until closing sites were notified and existing DFAS employees were briefed.  Cleveland DFAS workers were being briefed this morning at 10 a.m. at the Cleveland Convention Center.  Here are the highlights:

• Between 600 and 700 new employees will be hired for the Cleveland office by the end of 2008.  About 90 percent of the jobs will be local hires because DFAS officials do not expect many employees at closing sites to transfer.  Those most likely to move will be those with the highest paying jobs, Gaddy indicated.

• No one currently working at Cleveland DFAS will be asked to move to another DFAS site.

• If a job “function” transfers from Cleveland to another DFAS site, the employee does not move with the work.  In addition, Gaddy assured LaTourette that DFAS employees in Cleveland will not be adversely affected in terms of salary if they change job functions.

• Cleveland DFAS will continue to operate a Call Center for troops with pay questions.

• DFAS will establish a new Center of Excellence for Garnishments in Cleveland.

• DFAS will establish a new Center of Excellence for Retired and Annuitant Pay in Cleveland.

• Cleveland DFAS will hire an undisclosed number of employees to do civilian pay, which is currently done by about 300 employees in Charleston, Denver and Pensacola – all closing sites.

• Cleveland DFAS will gain all Marine Corps field accounting and payroll jobs, including pay for active duty troops and reservists.  Kansas City, which will close as part of the DFAS consolidation, has about 66 workers doing Marine Corps payroll and 120 doing Marine Corps field accounting.

• Cleveland DFAS will keep Navy accounting and pay.

• The transformation plan ensures that all critical functions, like paying troops, are performed at more than one site.  Cleveland and Indianapolis will continue to share military pay duties.  Cleveland will handle Navy and Marine Corps pay, while Indianapolis will handle Army and Air Force military pay.  Denver, which is closing, currently handles Air Force pay.

• Cleveland will continue to handle all Retired and Annuitant Pay, and 400 to 500 contractor jobs will remain in Cleveland under the supervision of DFAS.

• Departmental accounting for the four services is being consolidated into corporate accounting.  Workers doing Navy departmental accounting in Cleveland will stay in Cleveland and will not have their pay cut, according to Gaddy.

• Cleveland DFAS will do the following work under the DFAS transformation: Vendor Pay (Accounts Receivable); Navy Field Accounting; Marine Corps Field Accounting; Navy and Marine Corps Active Duty and Reserve Pay; Disbursing, Civilian Pay; Corporate Organizations;  Strategic Business Management.  Cleveland will also remain home to the DFAS Call Center. 

• DFAS officials expect the entire DFAS workforce will decrease by the end of the BRAC period (2011) through retirements and normal attrition.  Gaddy expects some current full-time employees will retire or leave Cleveland and Columbus  DFAS by the end of the BRAC years, and those jobs will not likely be replaced.  According to BRAC documents, 360 employees in Cleveland are eligible for early retirement, and another 158 are eligible for optional retirement.  In Columbus, about 37 percent of the employees are eligible for retirement (309 early retirement and 396 optional retirement).  While Cleveland and Columbus will each see 600 to 700 new jobs added in the next few years, the number of net job gains in each city could be about 500 by 2011 due to other workers retiring or leaving.

Columbus DFAS

• About 600 to 700 new workers will be hired in Columbus by the end of 2008.  The center currently has about 2,000 full-time employees.

• Columbus DFAS will do the following work under the DFAS transformation:  Vendor Pay (Accounts Receivable); Air Force Field Accounting; Defense Agencies Accounting; Disbursing; Corporate Organizations;  Strategic Business Management.