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September 18, 2007

Governor concurs with Majority Leader on Cost-of-Living Bonuses for government retirees; submits clarifying legislation

In a move to address the issue of cost of living bonuses for government retirees, Gov. John deJongh has written to Senate Majority Leader Celestino White Sr. concurring with the senator’s efforts to provide relief to the retirees and submitted legislation aimed at resolving all outstanding issues. The four amendments recommended by the Governor would clarify each of the existing appropriations and make the funding available until expended. "With these amendments, there will be $4.5 million available to pay the cost of living bonuses," deJongh said, adding, "We look forward to concluding this matter in the best interest of the retirees." 

The need for the clarifying legislation resulted from differences in language proposed to pay retirees in sections of three different existing laws which qualified only those who retired from government service before 1990. DeJongh said his administration, like Senator White, would like all others to be paid similar to those who retired prior to 1990. To expedite this process, the Government Employees Retirement System has informed the Administration that the quickest way to pay the remaining pool of retirees would be to amend the existing Acts so that "the appropriations are dispersed as Cost of Living increases equally to the remaining retirees."

"In this climate of increasing prices, the Administration is especially sensitive to the plight of those among us on fixed incomes. As long as the funds have been identified for this reason, you will have our full cooperation to pay these retirees," deJongh wrote in recent correspondence to Senator White.

deJongh further explained that this course of action will result in the use of $1.5 million that was passed to pay retirees who were owed monies when they were part of a bargaining unit. However, he said, "In the absence of reliable source data to identify eligible employees and the specific amount due to each individual, the Administration requested and received $400,000 in funding to assist the Personnel Division with this undertaking."

deJongh said once this task has been successfully completed, his administration will support the replacement of the funds. "I thank Senator Celestino White Sr. for his advocacy on this important issue on behalf of the retirees." 

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