[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]


_______________________________________________________________________

Part II





Office of Personnel Management





_______________________________________________________________________



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.

-----------------------------------------------------------------------

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.               
------------------------------------------------------------------------

[FR Doc. 94-12462 Filed 5-25-94; 8:45 am]
BILLING CODE 6325-01-M