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QUESTIONS ABOUT PARTICIPATING IN THE SPECIAL RATES SETTLEMENT
- What is this settlement about?
- Who is covered by the settlement?
- What do I have to do to participate in the settlement?
- What should relatives of deceased Class Members do?
- Are all Class Members entitled to payment?
1. What is this settlement about?
The settlement resolves a case about an illegal OPM rule that governed how salaries would be calculated for a group of federal employees paid "special salary rates" during fiscal years 1982 through 1988. The rule was found illegal because it prevented the annual salary increase authorized for employees paid under the general schedule from having any effect on the salaries paid to employees who received special salary rates.
The National Treasury Employees Union filed a lawsuit challenging the rule in 1983, shortly after it went into effect. In a 1989 decision, a federal court of appeals agreed with NTEU that the rule was illegal. For the next several years, NTEU and the government litigated the issue of the proper remedy for those affected by the rule. In 1998, the court of appeals agreed with an NTEU argument that the "alignment rule," which was in effect prior to the 1982 rule, was the proper way to calculate the remedy. NTEU had argued for application of a back pay rule that would be more generous to class members. The court, however, declined to adopt that argument. Instead, it adopted NTEU's alternative argument that the alignment rule should be the appropriate measure of damages.
2. Who is covered by the settlement?
The class that is covered by this settlement consists of all federal employees who were paid special salary rates under Title V of the United States Code during fiscal years 1982 through 1988 (or, in other words, from October 1, 1981 through September 30, 1988). There are approximately 212,000 class members. These individuals are current and former federal employees located throughout the United States and overseas who worked for a variety of agencies from all three branches of government.
A small number of federal employees who were paid special salary rates under Title V up to December 31, 1990, are also covered by the settlement. These additional covered groups are listed in the notice of proposed class action.
3. What do I have to do to participate in the settlement?
All opportunities for participating in the settlement have now passed.
4. What should relatives of deceased Class Members do?
Successors who wish to collect the money owed to a Class Member who filed a timely claim or challenge form prior to his or her death should contact the Settlement Administrator. Relatives who have submitted claims for money owed to deceased Class Members should have already received a decision on their claims.
5. Are all Class Members entitled to payment?
No. In accordance with the court's decision, a Class Member must have been shortchanged as a result of the illegal OPM rule in order to be entitled to receive a payment. While most were, a substantial number of Class Members were not disadvantaged by the rule because they received the salary to which they were legally entitled despite the existence of the illegal rule. Because these Class Members were never harmed by the illegal OPM rule, they will receive no money under the court-ordered remedy.