THE Public Services Association (PSA) says it has rejected a proposal from the Chief Personnel Officer (CPO) for the payment of outstanding arrears to public officers and retirees and will submit a new proposal today for 60% cash and 40% deferred cash.In a bulletin issued to members dated May 23, PSA president Felisha Thomas said the union recently met with the CPO as negotiations continue for outstanding periods covering January 1, 2014 to December 31, 2016 and January 1, 2017 to December 31, 2019 for the Civil Service, Statutory Authorities and the Tobago House of Assembly.The PSA said it had secured a 10% salary increase for public officers in December 2025, along with the consolidation of the Cost of Living Allowance (COLA), adjustments and arrears for retirees.“This settlement represented a major departure from the 4% position of the last administration without the consolidation of COLA and has delivered tangible and meaningful benefits to workers and their families,” the bulletin stated.According to the PSA, the CPO presented a proposal on January 30, 2026 comprising 40% cash and 60% non-cash arrangements, with the cash component to be paid over three fiscal periods. The proposed non-cash arrangements included the offsetting of Housing Development Corporation and Trinidad and Tobago Mortgage Bank mortgage and rental obligations, settlement of outstanding tax liabilities, executive medical coverage valued at $3,500, offsetting tuition fees at state owned institutions, tax exemptions on the purchase of new and roll on/roll off vehicles and conversion of cash entitlements into leave.The PSA said it rejected the proposal and submitted a counter-proposal consisting of “80% cash and 20% deferred cash in the form of interest-bearing bonds”.The union also proposed settlement of outstanding medical plan debt, preferential access to Housing Development Corporation housing and access to residential and agricultural lands across Trinidad and Tobago.The PSA said that, during a meeting held Friday, the CPO resubmitted “substantially the same proposal” previously made in January, with an added provision that retirees would only receive full cash entitlements up to 2018, while subsequent payments would be facilitated through non-cash arrangements.“The PSA immediately rejected the offer presented,” the bulletin stated.The union said it continued to engage with the CPO and submitted alternative proposals including the application of arrears towards mortgage obligations, conversion of cash entitlements into leave, relief from monthly income tax payments, supermarket and fuel credit facilities and application of arrears towards pension entitlements.The PSA maintained that “all retirees must receive their outstanding arrears in full cash” and that cash payments should be made on or before March 31, 2027.The union said revised submissions would be presented in writing to the CPO today, Monday, May 25, 2026, proposing a settlement structure comprising 60% cash and 40% deferred cash, subject to acceptable terms and equity in state-owned publicly traded assets.“Members can be assured that just as the PSA worked tirelessly to secure an improved settlement beyond that shameless and disrespectful 4% and to preserve the consolidation of COLA, the Association remains fully committed to pursuing the best possible outcome,” the bulletin stated.On Friday, CPO Dr Daryl Dindial described the proposal of 40% cash and 60% non-cash instruments, which was estimated at $3.8 billion, as Government’s “best and final offer”. The PSA was given four weeks to respond to the offer.