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City: Bank Error Delays Paychecks For 16,000

Computer Glitch Fouls $21M In Deposits, Mayor Says

POSTED: 5:43 pm EDT May 1, 2009
UPDATED: 6:51 pm EDT May 1, 2009

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Thousands of city workers didn’t receive their paychecks on Friday after a technical glitch threw off Citizens Bank’s payroll system for city workers, according to Mayor Menino.

More than 16,000 employees, including upper-level administration members, were not issued their paychecks because of a computer processing error, Menino said in a statement. In total, about $21 million scheduled to be paid out on Friday was not deposited, the mayor said.

Citizens Bank had corrected the problem by Friday evening and forwarded funds to individual banks, according to the statement. Officials also contacted the individual banks to alert them to the problem and asked that they honor check cashing and withdrawals from impacted City of Boston employees, the mayor said.

Citizens Bank will refund any overdraft charges that result from the delayed deposits, according to the statement.

City employees with questions about the error are asked to contact a special hotline setup by Citizens Bank at 1-888-500-1046.

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