honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Monday, November 30, 2009

Briefings will explain how federal benefits will change

Advertiser Staff

U.S. Sen. Daniel Akaka will hold 15 briefings over the next week or so to explain a change in the way federal workers in the state will be paid.

About 50,000 federal employees in Hawai'i, Alaska and U.S. territories nowy receive a cost of living allowance that is not taxed but also is not figured into retirement calculations.

Thus, they tend to receive less retirement pay than counterparts on the Mainland, who receive what is known as locality pay.

A new law will phase in locality pay for federal workers in Hawai'i, Alaska and the territories, and phase out cost of living allowances.

Locality pay is taxed and is figured into retirement calculations.

The briefings begin tomorrow at Marine Corps Base Hawaii at Kaneohe Bay.