Settlements over payroll error cost Municipality of Anchorage $16 million


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Settlements involving nine bargaining units will cost the Municipality of Anchorage an estimated $16 million — a fraction of the total $2.7 billion liability created by several months of payroll errors. 

The problems started with the roll-out of the controversial and long-troubled SAP software project in September 2017. The municipality experienced roughly 1,200 pay errors during the first pay period after the new accounting program went live, and continued to see that level of error for multiple months after that. 

The majority of the errors represented employees getting underpaid, according to Jason Bockenstedt, the mayor's deputy chief of staff. And some of those errors went unaddressed for as long as 18 months.