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Washington, D.C.—An important court decision was issued today, paving the way for thousands of current and former special rate federal employees to receive their long-awaited back pay award. Judge Nancy B. Firestone of the U.S. Court of Federal Claims today gave her final approval to the $173.5 million settlement reached by the National Treasury Employees Union (NTEU) and the United States, resolving the long-running special salary rates class action.

NTEU President Colleen M. Kelley said the union expects that packages of materials will be sent to the class of some 212,000 current and former special rate federal employees sometime this spring—with payments estimated to follow in late 2003. Each package would include information describing the amounts the current or former federal employee is owed under the settlement and the process for claiming those amounts or challenging the underlying data used in the calculations.

Judge Firestone’s ruling follows a mid-November fairness hearing on the proposed settlement.

“Clearly, achieving final approval of the settlement is the goal we’ve been working toward for the past year,” President Kelley said. “After all this effort, it will be very gratifying to see this money paid to those who deserve it,” she added.

The NTEU leader emphasized that class members don’t need to do anything at this time. Instructions will be provided in the mailings expected to be sent this spring. Information about the case continues to be available by calling (800) 750-3406, or by visiting the litigation web site, www.SpecialRatesSettlement.com.

The NTEU lawsuit was brought in 1983 on behalf of a class of current and former special salary rate federal employees who were subject to an illegal regulation issued by OPM in 1982. Under that regulation,

special rate pay increases between 1982 and 1988 were often delayed or denied.

Special salary rate employees hold positions that generally are difficult to fill, often because they are in remote locations or because they require highly specialized skills. The long-running case initiated by NTEU involved multiple proceedings before federal appeals courts, followed by extended settlement negotiations with the government.

NTEU is the largest independent federal union, representing some 150,000 employees in 28 agencies and departments.