NFFE Supports Bill Extending Locality Pay to Federal Workers in Alaska, Hawaii, and U.S. Territories
Tuesday, March 3, 2009
Washington,
DC - The
National Federation of Federal Employees
(NFFE), a national union representing 100,000
federal government workers, endorses the
Non-Foreign Area Retirement Equity Act (S.
507), a bill to ensure pay and retirement
equity for federal employees in Alaska, Hawaii,
and the U.S. territories, by transitioning them
into the federal locality pay
system.
Under the current system,
federal employees working outside of the
contiguous 48 states receive yearly cost of
living adjustments while their mainland
counterparts receive locality pay. Whereas
locality pay is factored in when calculating
one’s retirement annuity, COLA payments are
left out of the equation. The result of this
discrepancy is a significantly lower ‘high 3,’
and thus, retirement annuity, for employees
working in Alaska, Hawaii, or a U.S. territory,
than that enjoyed by employees in identical
positions working within the contiguous 48
states.
“Workers in these areas
are at a distinct disadvantage in being left
out of the locality pay system, particularly
when it comes to retirement,” said Richard N.
Brown, National President of the National
Federation of Federal Employees. “This
legislation will finally give these workers the
same pay and benefits as their colleagues in
the mainland U.S. These workers have waited
long enough for fair
treatment.”
As a result of this
discrepancy, federal employees working outside
of the contiguous 48 states often seek to
transfer to a locality pay area late in their
careers. This makes it difficult for federal
facilities in COLA areas to recruit and retain
employees.