March 2, 2009

Senator Mark Begich Supports Fair Retirement Benefits for Federal Workers

Legislation affecting Alaska, Hawaii, U.S. territories introduced today

In an effort to ensure pay and retirement equity for federal employees in Alaska, Sen. Mark Begich is co-sponsoring a bill introduced today in the U.S. Senate. The Non-Foreign Area Retirement Equity Assurance Act is designed to bring parity between federal workers serving Alaska, Hawaii, and the U.S. territories with those in the continental U.S.

"Facing the nation's highest rates for gasoline and heating fuel, Alaska's federal employees and their families have faced undue economic burdens from the continuing devaluation of COLA benefits," Sen. Begich said. "This legislation will work to correct the inequity between federal workers in Alaska, Hawaii, the U.S. Territories, and those in the continental United States through a gradual transition to locality pay. I look forward to working on this legislation so that we may properly compensate our federal employees and continue to attract and keep qualified federal workers."

Federal workers in Alaska, Hawaii, and the U.S. territories currently receive a cost of living allowance (COLA) while federal employees in the contiguous 48 states receive locality pay. The difference is the COLA is not factored in for retirement purposes. Furthermore, while locality rates generally increase, the non-foreign COLA rates have been gradually declining and are scheduled to drop later this year.

The legislation would freeze COLA rates at their current levels and phase-in locality pay over the next three years.

"What has happened over time is federal workers have started looking outside of Alaska to be fairly compensated," Sen. Begich said. "This legislation will allows us to attract and retain the highly-qualified people we want working in our state."

The Non-Foreign Area Retirement Equity Assurance Act is co-sponsored by several other lawmakers including Alaska Sen. Lisa Murkowski, Hawaii Senators Daniel Akaka and Daniel Inouye and Alaska Congressman Don Young.

From a Senator Mark Begich press release