By Tannya Joaquin

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President Bush has proposed changes to the cost of living allowance for federal workers. Thousands who would be affected by the new plan here in Hawaii don't see eye to eye.

Thousands of US Postal Service workers in Hawaii are among those who would be affected by a proposed change to the Cost of Living Allowance compensation. Due to Hawaii's higher prices, their COLA pay can be 25-% higher than their Mainland counterparts. What the President is considering is switching to locality pay, a difference because it's taxable income and considered basic pay for retirement purposes.

"Postal employees in the non-foreign areas realize that the price of goods has skyrocketed throughout the entire country and families everywhere are feeling the pain. However, postal employees here still pay a huge premium for domestic and imported goods, services compared to our co-workers on the Mainland."

Federal workers offered their testimony today to Senator Daniel Akaka.

"It's trying to convert COLA intact wholly to locality pay so they can enjoy the locality pay that their counterparts receive in the 48 states."

A dividing factor over this debate is age. Workers heading into retirement favor it to maximize their nest egg, while younger workers oppose it because it would become taxable.

"The Non-Foreign AREA Act is not to be seen as the last word, only the latest step forward in determining the best way to ensure retirement equity for federal workers in the non-foreign areas," said Hawaii Senator Daniel Akaka.

Cola is calculated comparing living costs in Washington D.C. Hawaii's Senators are proposing changes to the presidents' plan-- to address workers' concerns.

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