Non-mainland federal retirement pay increased

Retirement pay increased for federal workers in Hawaii, Alaska and US territories

• On 11:19 am EDT, Thursday October 29, 2009

HONOLULU (AP) -- About 43,000 federal employees in Hawaii, Alaska and the U.S. territories will receive an increase in retirement benefits under the 2010 National Defense Authorization Act.

President Barack Obama signed the measure into law Wednesday. The affected employees who receive an annual cost of living adjustment will instead get locality pay -- the same as federal employees on the mainland.

Hawaii Democrats Rep. Neil Abercrombie and Sen. Daniel Akaka said the change means retirement pay for the workers will increase to match the retirement pay of their counterparts in 48 other states.

"Federal employees in Hawaii, Alaska, Puerto Rico and the Pacific islands shouldn't have to settle for less financial security in their retirement," Abercrombie said in a news release.

Employees from Hawaii who wanted full retirement benefits will no longer have to work on the mainland for several years to qualify, Akaka said.

"That ends with this new law," he said.

The $680 billion act also includes nearly $24 million in defense project spending for Hawaii.