Hanford is one of the two Department of Energy nuclear cleanup sites with employee benefits more than 5 percent higher than comparable organizations, according to the Government Accountability Office.

It issued a report last week to Congress providing information on DOE's management of costs and liabilities for pensions and post-retirement benefits for which it must reimburse DOE contractors. DOE is concerned about future costs for pensions and benefits for retirees, such as health care and life insurance, and congressional leaders find budgeting for fluctuating amounts difficult each year.

In 2007, DOE faced a liability of $69.5 million for pensions and $10.3 billion for future benefits for retirees. Those numbers reflect the payments DOE eventually must make minus money set aside to cover payments.

Money is set aside for retirement benefits as required by the Employee Retirement Income Security Act but not for health care and other benefits in retirement, making that amount larger.

The report pointed out that liability amounts can fluctuate widely year to year. However, not since 2001 has DOE had adequate pension savings to keep the program in the black.

In response to its large and growing pension and retirement liabilities for contractor employees, DOE moved in 2006 to require new benefit packages for new employees. While current employees could retain existing benefits, new employees would be offered 401(k)-style retirement packages that they and contractors would contribute to rather than guaranteed pensions. They also would receive other benefits no more than 5 percent better than comparable organizations.

When Congress and others objected, DOE withdrew the plan. At Hanford there was concern that good benefit packages are needed to keep employee turnover low and retain employees experienced in working safely with Hanford's radiological and chemical hazards.

However, most new contracts at Hanford and at other DOE cleanup projects include the provision for less costly benefits and pensions for new employees.

The change will provide little immediate relief for DOE pension and retirement benefit liabilities, DOE told the GAO. It does not expect the change to substantially affect its costs over the next 20 to 30 years because new employees given "market-based" benefits are likely to be younger while current employees with guaranteed monthly pensions are likely to be closer to retirement age.