Hagatna, Guam

Hagatna, Guam: (Aug-31-07) A class action lawsuit threatened the Guam administration following complaints alleging that it did not pay cost-of-living allowance (COLA) that was owed to retirees who have died and do not have a survivor. In a bid to avoid being faced with a legal action by the Attorney General's Office, the administration began mailing 2,626 COLA checks worth a little more than $4.3 million to government of Guam retirees. According to the administration, the money owed to retirees who have died and do not have a survivor on the COLA class list will be held in trust until such time that a disbursement method is determined. Sources state that administration has been especially concerned for those who need the money the most, and feels that it is best to have the checks distributed to them first. This is the first of several checks from the $123 million settlement that will be paid to the retirees. The administration indicates that the retirees deserve the checks, and thanks them for their service to the community. [PACIFIC NEWS CENTER: COLA SETTLEMENT]