[Federal Register Volume 59, Number 101 (Thursday, May 26, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-12462]
[[Page Unknown]]
[Federal Register: May 26, 1994]
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Part II
Office of Personnel Management
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5 CFR Part 591
Cost-of-Living Allowances (Nonforeign Areas) and Report on Summer 1993
Surveys Used To Determine Cost-of-Living Allowances in Selecting
Nonforeign Areas; Proposed Rule and Notice
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 591
RIN 3206-AF88
Cost-of-Living Allowances (Nonforeign Areas)
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management (OPM) proposes to increase
certain cost-of-living allowance (COLA) rates paid to General Schedule,
U.S. Postal Service, and certain other Federal employees in Kauai
County, Hawaii; the City and County of Honolulu, Hawaii; Guam and the
Commonwealth of the Northern Mariana Islands; and the U.S. Virgin
Islands. OPM also proposes to consolidate the two nonforeign COLA areas
in the U.S. Virgin Islands into a single allowance area. In addition,
OPM proposes to remove from regulations three locations listed as
places where nonforeign post differentials are paid. These three
locations are no longer territories or possessions of the United States
and, therefore, are not covered by the nonforeign area post
differential program.
DATES: Comments must be received on or before July 25, 1994.
ADDRESSES: Send or deliver comments to Allan G. Hearne, Methodology
Development Branch, Office of Compensation Policy, Personnel Systems
and Oversight Group, Office of Personnel Management, room 6H31, 1900 E
Street NW., Washington, DC 20415.
FOR FURTHER INFORMATION CONTACT:
Allan G. Hearne, (202) 606-2838.
SUPPLEMENTARY INFORMATION: Under section 5941 of title 5, United States
Code, certain Federal employees in nonforeign areas outside the 48
contiguous States are eligible for cost-of-living allowances (COLA's)
when local living costs are substantially higher than those in
Washington, DC. Nonforeign area COLA's are currently paid in the
following locations: Alaska, Hawaii, Puerto Rico, the U.S. Virgin
Islands, Guam, and the Commonwealth of the Northern Mariana Islands.
OPM contracts with Runzheimer International to conduct living-cost
surveys in all of the nonforeign allowance areas. During the summer of
1993, Runzheimer surveyed Hawaii, Guam, Puerto Rico, and the U.S.
Virgin Islands. At that time, Runzheimer also surveyed the Washington,
DC, area, which is the base or reference area for living-cost
comparisons.
As background to this notice of proposed rulemaking, OPM is
publishing a separate Federal Register notice immediately following
this notice. The separate notice provides the complete ``Report to OPM
on Living Costs in Hawaii, Guam and the Commonwealth of the Northern
Mariana Islands, Puerto Rico, United States Virgin Islands, and in the
Washington, DC, Area, March 1994,'' produced by Runzheimer
International. This report explains the methodology, procedures, and
results of the summer 1993 living-cost surveys.
This notice of proposed rulemaking and the notice immediately
following are based only on the results of the summer 1993 surveys. OPM
is publishing the proposed rate adjustments and survey results at this
time to expedite the implementation of proposed COLA rate adjustments.
These notices do not cover the winter 1994 living-cost surveys
conducted in Alaska. Any proposed COLA rate adjustments and the results
of the winter 1994 surveys will be published in separate notices later
this year after OPM has fully analyzed the results of the Alaska
surveys.
The proposed increases in COLA rates are summarized in the
following table:
Proposed Increases in COLA Rates
------------------------------------------------------------------------
Proposed
Allowance area category Current rate rate
------------------------------------------------------------------------
City and County of Honolulu, Hawaii; Commissary/ 17.5......... 20.0
Exchange.
County of Kauai, Hawaii; All Employees......... 17.5......... 20.0
Territory of Guam and Commonwealth of the 17.5......... 20.0
Northern Mariana Islands; Commissary/Exchange.
U.S. Virgin Islands; All Employees............. *12.5 or 17.5 17.5
------------------------------------------------------------------------
*Current rates for St. Croix and St. Thomas/St. John, respectively.
OPM proposes to adjust only those rates that would increase. Rates
that would otherwise decrease will remain unchanged, as required by a
general provision in the Treasury, Postal Service, and General
Government Appropriations Act, 1992 (Pub. L. 102-141). Without this
provision, a total of four rates would decrease in three of the
allowance areas covered by the summer 1993 surveys.
In addition to proposing COLA rate adjustments, OPM is proposing to
consolidate the two allowance areas in the U.S. Virgin Islands into a
single allowance area. The two allowance areas are (1) the island of
St. Croix and (2) the islands of St. Thomas and St. John. The new
allowance area would be named the U.S. Virgin Islands allowance area.
Living-cost surveys would continue to be conducted on both St. Croix
and St. Thomas, but the data would be consolidated to represent the
Virgin Islands as a whole. OPM believes this action would improve the
survey yield, which has been less than optimal. This action would also
address comments OPM received from members of Congress and Federal
employees concerning OPM's living-cost measurements in the Virgin
Islands.
OPM also proposes to remove from regulations three locations that
are listed as places where nonforeign post differentials are paid. The
three locations are the Canton, Enderbury, and Christmas Islands. These
islands are no longer territories or possessions of the United States
and, therefore, are not covered by the nonforeign area post
differential program.
Regulatory Flexibility Act
I certify that this regulation will not have a significant economic
impact on a substantial number of small entities because the regulation
will affect only Federal agencies and employees.
List of Subjects in 5 CFR Part 591
Government employees, Travel and transportation expenses, Wages.
U.S. Office of Personnel Management.
James B. King,
Director.
Accordingly, OPM proposes to amend 5 CFR part 591 as follows:
PART 591--ALLOWANCES AND DIFFERENTIALS
Subpart B--Cost-of-Living Allowance and Post Differential--Nonforeign
Areas
1. The authority citation for subpart B of part 591 continues to
read as follows:
Authority: 5 U.S.C. 5941; E.O. 10000, 3 CFR, 1943-1948 Comp., p.
792; E.O. 12510, 3 CFR, 1985 Comp., p. 338.
2. In Sec. 591.204, paragraph (b)(4) is revised to read as follows:
Sec. 591.204 Establishment of allowance areas.
* * * * *
(b) * * *
(4) The U.S. Virgin Islands.
* * * * *
3. In Sec. 591.208, paragraph (b) is revised to read as follows:
Sec. 591.208 Post Differential.
* * * * *
(b) The places at which differentials are paid are--
(1) American Samoa (including the island of Tutuila, the Manua
Islands, and all other islands of the Samoa group east of longitude 171
degrees west of Greenwich, together with Swains Island);
(2) Guam;
(3) The commonwealth of the Northern Mariana Islands;
(4) Johnston Island and Sand Island; and
(5) Midway Islands and Wake Island.
* * * * *
4. Appendix A of subpart B is revised to read as follows:
Appendix A of Subpart B--Places and Rates at Which Allowances Shall
Be Paid
This appendix lists the places where a cost-of-living allowance
has been approved and shows the allowance rate to be paid to
employees along with any special eligibility requirements for the
allowance payment. The allowance percentage rate shown is paid as a
percentage of an employee's rate of basic pay.
------------------------------------------------------------------------
Authorized
allowance
Geographic coverage/allowance category rate
(percent)
------------------------------------------------------------------------
State of Alaska:
City of Anchorage and 50-mile radius by road:
Local Retail............................................ 25.0
Commissary/Exchange..................................... 17.5
City of Faribanks and 50-mile radius by road:
Local Retail............................................ 25.0
Commissary/Exchange..................................... 20.0
City of Juneau and 50-mile radius by road:
All Employees........................................... 25.0
Rest of the State:
All Employees........................................... 25.0
State of Hawaii:
City and county of Honolulu:
Local Retail............................................ 22.5
Commissary/Exchange..................................... 20.0
County of Hawaii:
All Employees........................................... 15.0
County of Kauai:
All Employees........................................... 20.0
County of Maui and County of Kalawao:
All Employees........................................... 22.5
Territory of Guam and Commonwealth of the Northern Mariana
Islands:
All Locations:
Local Retail............................................ 22.5
Commissary/Exchange..................................... 20.0
Commonwealth of Puerto Rico:
All Locations:
Local Retail............................................ 10.0
Commissary/Exchange..................................... 0.0
The U.S. Virgin Islands:
All Employees........................................... 17.5
------------------------------------------------------------------------
Definitions of Allowance Categories
The following definitions of the allowance categories identified
in the tables in this appendix shall be used to determine employee
eligibility for the appropriate allowance rate:
------------------------------------------------------------------------
Allowance category Definition
------------------------------------------------------------------------
Local Retail....................... This category includes those
employees who purchase goods and
services from private retail
establishments.
Commissary/Exchange................ This category includes those
employees who shop at private
retail establishments, but who, as
a result of their Federal civilian
employment, also have unlimited
access to commissary and exchange
facilities. This category is
established only in those
allowance areas that have these
facilities.
------------------------------------------------------------------------
Note: Eligibility for access to military commissary and exchange
facilities is determined by the appropriate military department. If
an employee is furnished with these privileges for reasons
associated with his or her Federal civilian employment, he or she
will have an identification card that authorizes access to such
facilities. Possession of such an identification card--i.e., one
issued by reason of his or her Federal civilian employment--is
sufficient evidence that the employee uses the facilities.
5. Appendix B of subpart B is revised to read as follows:
Appendix B of Subpart B--Places and Rates at Which Differentials
Shall Be Paid
This appendix lists the places where a post differential has
been approved and shows the differential rate to be paid to eligible
employees. The differential percentage rate shown is paid as a
percentage of an employee's rate of basic pay.
------------------------------------------------------------------------
Percentage
Geographic coverage differential Effective date
rate
------------------------------------------------------------------------
American Samoa (including 25 June 8, 1975.
the island of Tutuila, the
Manua Islands, and all
other islands of the Samoa
group east of longitude 171
deg. west of Greenwich,
together with Swains
Island).
Johnston Island and Sand 25 Do.
Island.
Midway Islands.............. 25 Do.
Territory of Guam and 20 First day of the first pay
Commonwealth of the period beginning on or
Northern Mariana Islands. after January 8, 1993.
Wake Island................. 25 June 8, 1975.
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[FR Doc. 94-12462 Filed 5-25-94; 8:45 am]
BILLING CODE 6325-01-M