Sunday, September 13, 2015

Auditor: Botched pay change could cost W.Va. tens of millions

(AP) — A state auditor says West Virginia's mishandled switch to biweekly pay could cost tens of millions of dollars and give almost 25,000 state employees raises.

Legislative Auditor Aaron Allred expressed concerns in a letter to legislative leadership Sunday.

The letter says switching from semi-monthly to biweekly pay caused a $22.5 million liability in the state's retirement program.

If the conversion is maintained, about 24,600 salaried employees would receive $47 million in pay raises over 10 years. About 23,600 hourly employees wouldn't get raises.

The switch is part of a conversion to the WV OASIS system, which cost $123.8 million.

The letter says Auditor Glen Gainer said there wasn't a significant cost difference between semi-monthly and biweekly software systems.

Allred and Treasurer John Perdue suggest stopping the conversion until reassessing impacts.