Federal judge rejects federal pension appeal

Posted: Tuesday, February 05, 2008

HONOLULU - A federal judge has rejected an appeal by federal workers in Hawaii and Alaska to increase their pension benefits.

U.S. District Judge Philip Pro of Nevada has ruled that Congress should settle the issue.

Federal employees say that despite the 25 percent cost-of-living bonus they get in the two remote states, they are shortchanged when it comes to pensions. The allowances are not part of pension calculations....

Other employees around the country get "locality pay," which does become part of pension calculations.

The suit said result is lower pensions for some 40,000 federal employees in the two states.

The judge said the court is puzzled by the anomaly but it's up to Congress to fix it.

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