COLA payments Hawaii's 25,000 current and former federal workers and probably Hawaii's ailing economy got an early Christmas present with promises that a $90 million court settlement would be paid out beginning Dec. 10.
early holiday gifts
The $90 million is part of
a settlement for Hawaii's
25,000 federal employeesBy Gregg K. Kakesako
gkakesako@starbulletin.comThat was good news to Cheryl Connett, a federal worker at Pearl Harbor who earlier had been told that her check might be delayed until after the holidays.
"That's good news," said Connett, who has been with the federal government for nine years, and has been waiting since Nov. 15 when the checks were supposed to be mailed.
"Hawaii's economy needs a shot in the arm. It will really be a boost."
The money is part of a $232.5 million reimbursement for white-collar civilian federal employees in Hawaii, Guam, Alaska, Puerto Rico and the Virgin Islands for a differential in cost-of-living allowances, or COLA. Blue-collar employees are not part of the settlement.
The announcement was made by Seattle attorney Paul Ahern, one of the lawyers for the white collar federal employees in the class action lawsuit.
The Oahu Defense COLA Committee, which monitors COLA issues, said eligible federal employees could be getting as little as a few dollars or as much as $20,000, depending on their pay grade between October 1990 and October 1998. The settlement also covers former employees and survivors of deceased employees.
L.A. Burke, executive director of the Federal Executive Board, and Ahern said the delay was due to compliance issues with Hawaii's withholding requirements. Burke said she was told that part of the delay for Hawaii claimants is because the state was slow in providing the tax information.
However, state Tax Director Marie Okamura said her office did "its best to try to provide information in a timely manner."
Okamura said one of the problems was that Hawaii was the only state that taxed COLA payments and the settlement trustee was required to help the claimants determine how much should be withheld for state taxes.
Burke said the settlement calculations are being handled by the Portland firm of Poorman Douglas, the claims administrator in the class action suit.
Federal employees filed suit in the Virgin Islands, and an out-of-court settlement was reached last year, boosting Oahu's COLA to 25 percent of an employee's salary from 22.5 percent. It also was increased for the neighbor islands -- Maui up to 23.75 percent from 22.5 percent, Kauai up to 23.5 percent from 22.5 percent, and the Big Island up to 16.5 percent from 15 percent.
COLA Defense officials said that from Oct. 1, 1990, to Oct. 1, 1998, cost-of-living allowances were too low for federal employees in Hawaii and other affected areas.
Of the 25,000 current and former federal workers covered by the settlement, about 10,000 are retired or family members of deceased workers. The other 15,000 include postal employees, FBI agents, clerks, firefighters, administrative and other executive employees.
More than 65,000 packets were mailed worldwide to possible recipients. More than 35,000 packets were returned for claims while about 5,000 were returned as undeliverable.
The Federal Executive Board has a Web site at www.honolulu-pacific.feb.govwww.honolulu-pacific.feb.gov that explains the process. Federal employees can also call the administrator at 1-877-480-2652.