Special Rates Proposed Settlement Gets Preliminary Approval Of Court Of Federal Claims, NTEU’s Kelley Says

Press Release July 3, 2002

Washington, D.C.—A federal judge has given preliminary approval to the proposed settlement of the long-running special salary rates case reached by the National Treasury Employees Union (NTEU) and the Office of Personnel Management, the leader of NTEU said today. Under terms of the settlement, some 212,000 current and former federal employees would share in more than $173.5 million in back pay and interest.

NTEU President Colleen M. Kelley said the preliminary approval by Judge Nancy B. Firestone of the U.S. Court of Federal Claims “is a major step in moving us closer to putting money in the hands of current and former federal employees who rightfully deserve it.”

NTEU and OPM settled the matter earlier this year, after some 19 years of litigation and negotiation. The case began in 1983 when NTEU challenged an OPM regulation governing how salaries would be calculated for a group of federal workers paid “special salary rates” because their jobs were hard to fill.

Judge Firestone said the proposed settlement “preliminarily appears to be a fair, reasonable and adequate resolution” of the case, and she authorized the independent settlement administrator to send class members notice concerning the settlement. This includes information about their right to comment on the proposal and instructions on how to do so.

The judge set Nov. 18 for a “fairness” hearing on the matter. At that time, the court will consider any comments of class members and will decide whether to grant final approval to the settlement. Earlier this year, the special salary rates case was transferred to the Court of Federal Claims, which has special jurisdiction over large claims against the United States, from the U.S. District Court for the District of Columbia.

NTEU President Kelley said there is a newly established telephone number at which class members may receive additional information on the settlement. It is (800) 750-3406. Information also may be obtained at www.SpecialRatesSettlement.com.

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