[Congressional Record Volume 155, Number 36 (Monday, March 2, 2009)]
[Senate]
[Pages S2638-S2641]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. AKAKA (for himself, Ms. Murkowski, Mr. Inouye, and Mr. 
        Begich):
  S. 507. A bill to provide for retirement equity for Federal employees 
in nonforeign areas outside the 48 contiguous States and the District 
of Columbia, and for other purposes; to the Committee on Homeland 
Security and Governmental Affairs.
  Mr. AKAKA. Mr. President, today I join with my good friend from 
Hawaii, Senator Daniel Inouye, and my friends from Alaska, Senators 
Lisa Murkowski and Mark Begich, to reintroduce legislation to ensure 
retirement equity for Federal workers in Hawaii, Alaska, and the U.S. 
Territories.
  For years, Federal employees in my home State of Hawaii and in other 
non-foreign areas have been disadvantaged when it comes to their 
retirement due to a lack of locality pay. Federal workers in those 
areas may receive a non-foreign cost of living allowance, COLA, based 
on the difference in the cost of living between those areas and the 
District of Columbia. However, this pay adjustment does not count 
toward their retirement.
  The inequity in retirement benefits for Federal workers in Hawaii, 
Alaska, and the U.S. Territories hinders efforts to recruit and retain 
Federal workers in these areas, and it has led to several lawsuits 
against the Federal government. Most recently, on January 30, 2008, 
Judge Phillip M. Pro in the U.S. District Court in Honolulu issued a 
decision on this in Matsuo v. the Office of Personnel Management. In 
his ruling, Judge Pro acknowledged the disparity saying that Congress 
discharged its legislative responsibilities imperfectly and recommended 
that Congress correct the incongruity made so evident by this case.
  Under the Federal Employee Pay Comparability Act, FEPCA, of 1990, 
Federal employees in Alaska, Hawaii, and the Territories were excluded 
from receiving locality pay, which is adjusted for local labor markets 
across the country to help close the gap between private sector and 
public sector wages. The first year FEPCA was implemented, in 1994, 
Federal employees in Alaska, Hawaii, and the Territories were denied a 
pay raise so that Federal employees in the 48 contiguous States could 
receive their first locality pay allowance. Every year since 1994, 
Federal employees outside of the continental United States have been 
denied approximately one percent of the average annual pay raise, which 
goes toward locality pay rates.
  As you can imagine, this issue has caused Federal employees in the 
non-foreign areas great concern for years, but there has never been 
enough support for any proposed solution. In the past two years, 
however, we have laid the groundwork for the solution represented by 
this bipartisan bill. The previous Administration submitted a 
legislative proposal to phase-out non-foreign COLA and phase-in 
locality pay. That proposal provided a good starting point, but did not 
address numerous important issues, including the impact such a change 
would have on postal employees, employees who receive special rates, 
members of the Senior Executive Service, and others who are in agency-
specific personnel systems or those who do not receive locality pay, 
such as employees under the National Security Personnel System at the 
Department of Defense.
  My Federal Workforce Subcommittee, in collaboration with Senators 
Stevens, Inouye, and Murkowski, worked extensively with Federal 
employees in Hawaii, Alaska, and the Territories and with the Office of 
Personnel Management, OPM, and other Federal agencies to craft a 
comprehensive solution, which we introduced as the Non-Foreign Area 
Retirement Equity Assurance Act last year.
  We also have worked with OPM to help ensure that affected Federal 
employees understand the proposal. After we introduced the bill, my 
Subcommittee held a series of meetings in Hawaii with representatives 
from OPM, the Postal Service, and DoD to educate Federal employees on 
the impact of the legislation and listen to their concerns. I also 
chaired a field hearing in Honolulu, Hawaii, where the Administration 
presented its formal opinion on the legislation and Federal employee 
representatives from Hawaii, Alaska, Guam, and other Territories were 
invited to express their thoughts on the legislation. While there are 
still divergent views on this proposal, the vast majority of employees 
who I have heard from support it.
  As the bill moved through the Senate, I agreed to a few modifications 
of the bill to address particular concerns. The Senate passed the 
amended version by unanimous consent in October 2008. Unfortunately, 
the 110th Congress adjourned before the House could take action on the 
bill.
  Today, we are reintroducing a similar version of the Non-Foreign AREA 
Act that passed the Senate by unanimous consent only a few months ago 
in the hopes that we can move quickly to address this growing inequity. 
This bill is not a windfall or a pay raise for Federal employees. Since 
1994, Federal employees in Alaska, Hawaii, and the Territories have 
been denied pay and retirement equity and this bill seeks to correct 
the long-time inequity, prevent further lawsuits, and protect employees 
take-home pay in the process.
  As we all know, the declining economy is making it hard on working 
men and women to pay their bills and stay afloat. While locality rates 
have increased in recent years, non-foreign COLA rates have been 
gradually declining. COLA rates are expected to drop again this year in 
Alaska, Hawaii, and the Territories. Unless Congress acts soon, Federal 
employees in these areas will see their pay further adversely affected. 
In the current economic climate, we must be careful to do no harm.
  I continue to encourage employees in Alaska, Hawaii, and in the 
Territories to write us with their questions and concerns on our 
legislation. My goal remains to ensure that Federal workers in the non-
foreign areas are not disadvantaged when it comes to their pay and 
retirement.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
placed in the Record, as follows:

                                 S. 507

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Non-Foreign Area Retirement 
     Equity Assurance Act of 2009'' or the ``Non-Foreign AREA Act 
     of 2009''.

     SEC. 2. EXTENSION OF LOCALITY PAY.

       (a) Locality-Based Comparability Payments.--Section 5304 of 
     title 5, United States Code, is amended--
       (1) in subsection (f)(1), by striking subparagraph (A) and 
     inserting the following:
       ``(A) each General Schedule position in the United States, 
     as defined under section

[[Page S2639]]

     5921(4), and its territories and possessions, including the 
     Commonwealth of Puerto Rico and the Commonwealth of the 
     Northern Mariana Islands, shall be included within a pay 
     locality;'';
       (2) in subsection (g)--
       (A) in paragraph (2)--
       (i) in subparagraph (A), by striking ``and'' after the 
     semicolon;
       (ii) in subparagraph (B) by striking the period and 
     inserting ``; and''; and
       (iii) by adding after subparagraph (B) the following:
       ``(C) positions under subsection (h)(1)(C) not covered by 
     appraisal systems certified under section 5382; and''; and
       (B) by adding at the end the following:
       ``(3) The applicable maximum under this subsection shall be 
     level II of the Executive Schedule for positions under 
     subsection (h)(1)(C) covered by appraisal systems certified 
     under section 5307(d).''; and
       (3) in subsection (h)(1)--
       (A) in subparagraph (B) by striking ``and'' after the 
     semicolon;
       (B) by redesignating subparagraph (C) as subparagraph (D);
       (C) by inserting after subparagraph (B) the following:
       ``(C) a Senior Executive Service position under section 
     3132 or 3151 stationed within the United States, but outside 
     the 48 contiguous States and the District of Columbia in 
     which the incumbent was an individual who on the day before 
     the date of enactment of the Non-Foreign Area Retirement 
     Equity Assurance Act of 2009 was eligible to receive a cost-
     of-living allowance under section 5941; and'';
       (D) in clause (iv) in the matter following subparagraph 
     (D), by inserting ``, except for members covered by 
     subparagraph (C)'' before the semicolon; and
       (E) in clause (v) in the matter following subparagraph (D), 
     by inserting ``, except for members covered by subparagraph 
     (C)'' before the semicolon.
       (b) Allowances Based on Living Costs and Conditions of 
     Environment.--Section 5941 of title 5, United States Code, is 
     amended--
       (1) in subsection (a), by adding after the last sentence 
     ``Notwithstanding any preceding provision of this subsection, 
     the cost-of-living allowance rate based on paragraph (1) 
     shall be the cost-of-living allowance rate in effect on the 
     date of enactment of the Non-Foreign Area Retirement Equity 
     Assurance Act of 2009, except as adjusted under subsection 
     (c).'';
       (2) by redesignating subsection (b) as subsection (d); and
       (3) by inserting after subsection (a) the following:
       ``(b) This section shall apply only to areas that are 
     designated as cost-of-living allowance areas as in effect on 
     December 31, 2009.
       ``(c)(1) The cost-of-living allowance rate payable under 
     this section shall be adjusted on the first day of the first 
     applicable pay period beginning on or after--
       ``(A) January 1, 2010; and
       ``(B) January 1 of each calendar year in which a locality-
     based comparability adjustment takes effect under section 4 
     (2) and (3) of the Non-Foreign Area Retirement Equity 
     Assurance Act of 2009.
       ``(2)(A) In this paragraph, the term `applicable locality-
     based comparability pay percentage' means, with respect to 
     calendar year 2010 and each calendar year thereafter, the 
     applicable percentage under section 4 (1), (2), or (3) of 
     Non-Foreign Area Retirement Equity Assurance Act of 2009.
       ``(B) Each adjusted cost-of-living allowance rate under 
     paragraph (1) shall be computed by--
       ``(i) subtracting 65 percent of the applicable locality-
     based comparability pay percentage from the cost-of-living 
     allowance percentage rate in effect on December 31, 2009; and
       ``(ii) dividing the resulting percentage determined under 
     clause (i) by the sum of--
       ``(I) one; and
       ``(II) the applicable locality-based comparability payment 
     percentage expressed as a numeral.
       ``(3) No allowance rate computed under paragraph (2) may be 
     less than zero.
       ``(4) Each allowance rate computed under paragraph (2) 
     shall be paid as a percentage of basic pay (including any 
     applicable locality-based comparability payment under section 
     5304 or similar provision of law and any applicable special 
     rate of pay under section 5305 or similar provision of 
     law).''.

     SEC. 3. ADJUSTMENT OF SPECIAL RATES.

       (a) In General.--Each special rate of pay established under 
     section 5305 of title 5, United States Code, and payable in 
     an area designated as a cost-of-living allowance area under 
     section 5941(a) of that title, shall be adjusted, on the 
     dates prescribed by section 4 of this Act, in accordance with 
     regulations prescribed by the Director of the Office of 
     Personnel Management under section 8 of this Act.
       (b) Agencies With Statutory Authority.--
       (1) In general.--Each special rate of pay established under 
     an authority described under paragraph (2) and payable in a 
     location designated as a cost-of-living allowance area under 
     section 5941(a)(1) of title 5, United States Code, shall be 
     adjusted in accordance with regulations prescribed by the 
     applicable head of the agency that are consistent with the 
     regulations issued by the Director of the Office of Personnel 
     Management under subsection (a).
       (2) Statutory authority.--The authority referred to under 
     paragraph (1), is any statutory authority that--
       (A) is similar to the authority exercised under section 
     5305 of title 5, United States Code;
       (B) is exercised by the head of an agency when the head of 
     the agency determines it to be necessary in order to obtain 
     or retain the services of persons specified by statute; and
       (C) authorizes the head of the agency to increase the 
     minimum, intermediate, or maximum rates of basic pay 
     authorized under applicable statutes and regulations.
       (c) Temporary Adjustment.--Regulations issued under 
     subsection (a) or (b) may provide that statutory limitations 
     on the amount of such special rates may be temporarily raised 
     to a higher level during the transition period described in 
     section 4 ending on the first day of the first pay period 
     beginning on or after January 1, 2012, at which time any 
     special rate of pay in excess of the applicable limitation 
     shall be converted to a retained rate under section 5363 of 
     title 5, United States Code.

     SEC. 4. TRANSITION SCHEDULE FOR LOCALITY-BASED COMPARABILITY 
                   PAYMENTS.

       Notwithstanding any other provision of this Act or section 
     5304 or 5304a of title 5, United States Code, in implementing 
     the amendments made by this Act, for each non-foreign area 
     determined under section 5941(b) of that title, the 
     applicable rate for the locality-based comparability 
     adjustment that is used in the computation required under 
     section 5941(c) of that title shall be adjusted effective on 
     the first day of the first pay period beginning on or after 
     January 1--
       (1) in calendar year 2010, by using \1/3\ of the locality 
     pay percentage for the rest of United States locality pay 
     area;
       (2) in calendar year 2011, by using \2/3\ of the otherwise 
     applicable comparability payment approved by the President 
     for each non-foreign area; and
       (3) in calendar year 2012 and each subsequent year, by 
     using the full amount of the applicable comparability payment 
     approved by the President for each non-foreign area.

     SEC. 5. SAVINGS PROVISION.

       (a) Sense of Congress.--It is the sense of Congress that--
       (1) the application of this Act to any employee should not 
     result in a decrease in the take home pay of that employee;
       (2) in calendar year 2012 and each subsequent year, no 
     employee shall receive less than the Rest of the U.S. 
     locality pay rate;
       (3) concurrent with the surveys next conducted under the 
     provisions of section 5304(d)(1)(A) of title 5, United States 
     Code, beginning after the date of the enactment of this Act, 
     the Bureau of Labor Statistics should conduct separate 
     surveys to determine the extent of any pay disparity (as 
     defined by section 5302 of that title) that may exist with 
     respect to positions located in the State of Alaska, the 
     State of Hawaii, and the United States' territories, 
     including American Samoa, Guam, Commonwealth of the Northern 
     Mariana Islands, Commonwealth of Puerto Rico, and the United 
     States Virgin Islands;
       (4) if the surveys under paragraph (3) indicate that the 
     pay disparity determined for the State of Alaska, the State 
     of Hawaii, or any 1 of the United States' territories 
     including American Samoa, Guam, Commonwealth of the Northern 
     Mariana Islands, Commonwealth of Puerto Rico, and the United 
     States Virgin Islands exceeds the pay disparity determined 
     for the locality which (for purposes of section 5304 of that 
     title) is commonly known as the ``Rest of the United 
     States'', the President's Pay Agent should take appropriate 
     measures to provide that each such surveyed area be treated 
     as a separate pay locality for purposes of that section; and
       (5) the President's Pay Agent will establish 1 locality 
     area for the entire State of Hawaii and 1 locality area for 
     the entire State of Alaska.
       (b) Savings Provisions.--
       (1) In general.--During the period described under section 
     4 of this Act, an employee paid a special rate under 5305 of 
     title 5, United States Code, who the day before the date of 
     enactment of this Act was eligible to receive a cost-of-
     living allowance under section 5941 of title 5, United States 
     Code, and who continues to be officially stationed in an 
     allowance area, shall receive an increase in the employee's 
     special rate consistent with increases in the applicable 
     special rate schedule. For employees in allowance areas, the 
     minimum step rate for any grade of a special rate schedule 
     shall be increased at the time of an increase in the 
     applicable locality rate percentage for the allowance area by 
     not less than the dollar increase in the locality-based 
     comparability payment for a non-special rate employee at the 
     same minimum step provided under section 4 of this Act, and 
     corresponding increases shall be provided for all step rates 
     of the given pay range.
       (2) Continuation of cost of living allowance rate.--If an 
     employee, who the day before the date of enactment of this 
     Act was eligible to receive a cost-of-living allowance under 
     section 5941 of title 5, United States Code, would receive a 
     rate of basic pay and applicable locality-based comparability 
     payment which is in excess of the maximum rate limitation set 
     under section 5304(g) of title 5, United States Code, for his 
     position (but for that maximum rate limitation) due to the 
     operation of this Act, the employee shall

[[Page S2640]]

     continue to receive the cost-of-living allowance rate in 
     effect on December 31, 2009 without adjustment until--
       (A) the employee leaves the allowance area or pay system; 
     or
       (B) the employee is entitled to receive basic pay 
     (including any applicable locality-based comparability 
     payment or similar supplement) at a higher rate,
     but, when any such position becomes vacant, the pay of any 
     subsequent appointee thereto shall be fixed in the manner 
     provided by applicable law and regulation.
       (3) Locality-based comparability payments.--Any employee 
     covered under paragraph (2) shall receive any applicable 
     locality-based comparability payment extended under section 4 
     of this Act which is not in excess of the maximum rate set 
     under section 5304(g) of title 5, United States Code, for his 
     position including any future increase to statutory pay 
     limitations under 5318 of title 5, United States Code. 
     Notwithstanding paragraph (2), to the extent that an employee 
     covered under that paragraph receives any amount of locality-
     based comparability payment, the cost-of-living allowance 
     rate under that paragraph shall be reduced accordingly, as 
     provided under section 5941(c)(2)(B) of title 5, United 
     States Code.

     SEC. 6. APPLICATION TO OTHER ELIGIBLE EMPLOYEES.

       (a) In General.--
       (1) Definition.--In this subsection, the term ``covered 
     employee'' means--
       (A) any employee who--
       (i) on the day before the date of enactment of this Act--

       (I) was eligible to be paid a cost-of-living allowance 
     under 5941 of title 5, United States Code; and
       (II) was not eligible to be paid locality-based 
     comparability payments under 5304 or 5304a of that title; or

       (ii) on or after the date of enactment of this Act becomes 
     eligible to be paid a cost-of-living allowance under 5941 of 
     title 5, United States Code; or
       (B) any employee who--
       (i) on the day before the date of enactment of this Act--

       (I) was eligible to be paid an allowance under section 
     1603(b) of title 10, United States Code;
       (II) was eligible to be paid an allowance under section 
     1005(b) of title 39, United States Code;
       (III) was employed by the Transportation Security 
     Administration of the Department of Homeland Security and was 
     eligible to be paid an allowance based on section 5941 of 
     title 5, United States Code; or
       (IV) was eligible to be paid under any other authority a 
     cost-of-living allowance that is equivalent to the cost-of-
     living allowance under section 5941 of title 5, United States 
     Code; or

       (ii) on or after the date of enactment of this Act--

       (I) becomes eligible to be paid an allowance under section 
     1603(b) of title 10, United States Code;
       (II) becomes eligible to be paid an allowance under section 
     1005(b) of title 39, United States Code;
       (III) is employed by the Transportation Security 
     Administration of the Department of Homeland Security and 
     becomes eligible to be paid an allowance based on section 
     5941 of title 5, United States Code; or
       (IV) is eligible to be paid under any other authority a 
     cost-of-living allowance that is equivalent to the cost-of-
     living allowance under section 5941 of title 5, United States 
     Code.

       (2) Application to covered employees.--
       (A) In general.--Notwithstanding any other provision of 
     law, for purposes of this Act (including the amendments made 
     by this Act) any covered employee shall be treated as an 
     employee to whom section 5941 of title 5, United States Code 
     (as amended by section 2 of this Act), and section 4 of this 
     Act apply.
       (B) Pay fixed by statute.--Pay to covered employees under 
     section 5304 or 5304a of title 5, United States Code, as a 
     result of the application of this Act shall be considered to 
     be fixed by statute.
       (C) Performance appraisal system.--With respect to a 
     covered employee who is subject to a performance appraisal 
     system no part of pay attributable to locality-based 
     comparability payments as a result of the application of this 
     Act including section 5941 of title 5, United States Code (as 
     amended by section 2 of this Act), may be reduced on the 
     basis of the performance of that employee.
       (b) Postal Employees in Non-Foreign Areas.--
       (1) In general.--Section 1005(b) of title 39, United States 
     Code, is amended--
       (A) by inserting ``(1)'' after ``(b)'';
       (B) by striking ``Section 5941,'' and inserting ``Except as 
     provided under paragraph (2), section 5941'';
       (C) by striking ``For purposes of such section,'' and 
     inserting ``Except as provided under paragraph (2), for 
     purposes of section 5941 of that title,''; and
       (D) by adding at the end the following:
       ``(2) On and after the date of enactment of the Non-Foreign 
     Area Retirement Equity Assurance Act of 2009--
       ``(A) the provisions of that Act and section 5941 of title 
     5 shall apply to officers and employees covered by section 
     1003(b) and (c) whose duty station is in a nonforeign area; 
     and
       ``(B) with respect to officers and employees of the Postal 
     Service (other than those officers and employees described 
     under subparagraph (A)) section 6(b)(2) of that Act shall 
     apply.''.
       (2) Continuation of cost of living allowance.--
       (A) In general.--Notwithstanding any other provision of 
     this Act, any employee of the Postal Service (other than an 
     employee covered by section 1003 (b) and (c) of title 39, 
     United States Code, whose duty station is in a nonforeign 
     area) who is paid an allowance under section 1005(b) of that 
     title shall be treated for all purposes as if the provisions 
     of this Act (including the amendments made by this Act) had 
     not been enacted, except that the cost-of-living allowance 
     rate paid to that employee--
       (i) may result in the allowance exceeding 25 percent of the 
     rate of basic pay of that employee; and
       (ii) shall be the greater of--

       (I) the cost-of-living allowance rate in effect on December 
     31, 2009 for the applicable area; or
       (II) the applicable locality-based comparability pay 
     percentage under section 4.

       (B) Rule of construction.--Nothing in this Act shall be 
     construed to--
       (i) provide for an employee described under subparagraph 
     (A) to be a covered employee as defined under subsection (a); 
     or
       (ii) authorize an employee described under subparagraph (A) 
     to file an election under section 7 of this Act.

     SEC. 7. ELECTION OF ADDITIONAL BASIC PAY FOR ANNUITY 
                   COMPUTATION BY EMPLOYEES.

       (a) Definition.--In this section the term ``covered 
     employee'' means any employee--
       (1) to whom section 4 applies;
       (2) who is separated from service by reason of retirement 
     under chapter 83 or 84 of title 5, United States Code, during 
     the period of January 1, 2010, through December 31, 2012; and
       (3) who files an election with the Office of Personnel 
     Management under subsection (b).
       (b) Election.--
       (1) In general.--An employee described under subsection (a) 
     (1) and (2) may file an election with the Office of Personnel 
     Management to be covered under this section.
       (2) Deadline.--An election under this subsection may be 
     filed not later than December 31, 2012.
       (c) Computation of Annuity.--
       (1) In general.--Except as provided under paragraph (2), 
     for purposes of the computation of an annuity of a covered 
     employee any cost-of-living allowance under section 5941 of 
     title 5, United States Code, paid to that employee during the 
     first applicable pay period beginning on or after January 1, 
     2010 through the first applicable pay period ending on or 
     after December 31, 2012, shall be considered basic pay as 
     defined under section 8331(3) or 8401(4) of that title.
       (2) Limitation.--The amount of the cost-of-living allowance 
     which may be considered basic pay under paragraph (1) may not 
     exceed the amount of the locality-based comparability 
     payments the employee would have received during that period 
     for the applicable pay area if the limitation under section 4 
     of this Act did not apply.
       (d) Civil Service Retirement and Disability Retirement 
     Fund.--
       (1) Employee contributions.--A covered employee shall pay 
     into the Civil Service Retirement and Disability Retirement 
     Fund--
       (A) an amount equal to the difference between--
       (i) employee contributions that would have been deducted 
     and withheld from pay under section 8334 or 8422 of title 5, 
     United States Code, during the period described under 
     subsection (c) of this section if the cost-of-living 
     allowances described under that subsection had been treated 
     as basic pay under section 8331(3) or 8401(4) of title 5, 
     United States Code; and
       (ii) employee contributions that were actually deducted and 
     withheld from pay under section 8334 or 8422 of title 5, 
     United States Code, during that period; and
       (B) interest as prescribed under section 8334(e) of title 
     5, United States Code, based on the amount determined under 
     subparagraph (A).
       (2) Agency contributions.--
       (A) In general.--The employing agency of a covered employee 
     shall pay into the Civil Service Retirement and Disability 
     Retirement Fund an amount for applicable agency contributions 
     based on payments made under paragraph (1).
       (B) Source.--Amounts paid under this paragraph shall be 
     contributed from the appropriation or fund used to pay the 
     employee.
       (3) Regulations.--The Office of Personnel Management may 
     prescribe regulations to carry out this section.

     SEC. 8. REGULATIONS.

       (a) In General.--The Director of the Office of Personnel 
     Management shall prescribe regulations to carry out this Act, 
     including--
       (1) rules for special rate employees described under 
     section 3;
       (2) rules for adjusting rates of basic pay for employees in 
     pay systems administered by the Office of Personnel 
     Management when such employees are not entitled to locality-
     based comparability payments under section 5304 of title 5, 
     United States Code, without regard to otherwise applicable 
     statutory pay limitations during the transition period 
     described in section 4 ending on the first day of the first 
     pay period beginning on or after January 1, 2012; and
       (3) rules governing establishment and adjustment of saved 
     or retained rates for any

[[Page S2641]]

     employee whose rate of pay exceeds applicable pay limitations 
     on the first day of the first pay period beginning on or 
     after January 1, 2012.
       (b) Other Pay Systems.--With the concurrence of the 
     Director of the Office of Personnel Management, the 
     administrator of a pay system not administered by the Office 
     of Personnel Management shall prescribe regulations to carry 
     out this Act with respect to employees in such pay system, 
     consistent with the regulations issued by the Office under 
     subsection (a).

     SEC. 9. EFFECTIVE DATES.

       (a) In General.--Except as provided by subsection (b), this 
     Act (including the amendments made by this Act) shall take 
     effect on the date of enactment of this Act.
       (b) Locality Pay and Schedule.--The amendments made by 
     section 2 and the provisions of section 4 shall take effect 
     on the first day of the first applicable pay period beginning 
     on or after January 1, 2010.

                          ____________________