Federal union seeks block on curb in retirees' pay

A federal employees union in seeking a court order to restore twice-a-year cost-of-living pay increases that had been going to more than 1 million retired government workers. The National Treasury Employees Union challenged a provision passed by Congress in July that eliminated the twice-yearly cost-of-living adjustment in favor of a single annual increase.

The union said the congressional action will affect 1.6 million retired workers, costing them about 2.4 percent of their retirement pay each year. The union claims the government is not meeting commitments to federal employees and retirees to use a formula for calculating cost-of-living increases which adjusts annuities to offset the effects of inflation.