$10.9M proposed for salary hike, retro pay

House minority members are pushing for a nearly $11 million appropriation to raise government employees’ salaries and pay off retroactive compensation, retirement, and healthcare contributions of government employees.

House Bill 14-304, authored by Rep. Jesus Attao, aims to allocate $10.9 million to settle unpaid frozen steps, within-grade increases, and retroactive adjustments owed current and former employees in the last five years and 14 years, respectively, pursuant to Public Law 7-31.

“It is only fair and appropriate for the government to settle the long overdue payments so that former and current employees can enjoy their rightful salary and to avoid any litigation,” said Attao.

He cited that both the House and Senate, in the vetoed $217.7 million appropriation bill for fiscal year 2005, approved to fund the retroactive pay for Rota and Tinian employees, pursuant to P.L. 7-31; and within-grade increases and frozen steps pursuant to P.L. 10-76 and P.L. 11-59.

Under Attao’s bill:

* Rota employees would get a total of $1.9 million: $224,163 for frozen step increase, $1.04 million for retroactive pay increase, and $702,933 for within-grade increase.

* Tinian personnel would receive $1.5 million: $316,990 for frozen step increase, $904,157 for retroactive pay increase, and $344,971 for within-grade increase.

* Saipan employees would have $5.03 million: $1.6 million for frozen step increase and $3.5 million for within-grade hikes.

* The bill also wants to give $2.4 million for government employees’ retirement, Medicare, and health insurance contribution.

The proposed measure calls for the establishment of a special reserve account, to which will be deposited $10.9 million that will be used for this purpose.

The bill asks the Retirement Fund to recalculate and adjust the benefits of those current and former employees who are now entitled to salary adjustment compensation and shall receive one lump sum payment added on to one of the employee’s three highest annual salaries.

Attao’s bill was co-sponsored by Reps. Ray Tebuteb, Arnold I. Palacios, and Heinz Hofschneider, among others.

The 2005 budget conference committee earlier agreed to set aside $4.1 million for salary adjustment from the projected $5.1 million in increased revenue. The joint panel said $2.2 million shall be used to pay the within-grade hikes; $1 million for frozen steps personnel under Public Law 10-76; and $942,522 for the retroactive payment owed Rota and Tinian government personnel, pursuant to P.L. 7-31.