[Federal Register Volume 61, Number 153 (Wednesday, August 7, 1996)]
[Rules and Regulations]
[Pages 40949-40950]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-20092]



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 Rules and Regulations
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  Federal Register / Vol. 61, No. 153 / Wednesday, August 7, 1996 / 
Rules and Regulations  

[[Page 40949]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 531

RIN 3206-AG88


Pay Under the General Schedule; Locality Pay Areas for 1997

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management is issuing final 
regulations to remove three metropolitan areas from the ``Rest of 
U.S.'' locality pay area and establish three new locality pay areas in 
January 1997 corresponding to these metropolitan areas. The three 
metropolitan areas affected by these final regulations are: Milwaukee-
Racine, WI; Minneapolis-St. Paul, MN-WI; and Pittsburgh, PA. The 
President's Pay Agent made the final determination on the boundaries of 
the new locality pay areas after considering the recommendations of the 
Federal Salary Council and public comments.

EFFECTIVE DATE: The regulations are effective on January 1, 1997, and 
are applicable on the first day of the first pay period beginning on or 
after January 1, 1997.

FOR FURTHER INFORMATION CONTACT:
Jeanne Jacobson, (202) 606-2858 or FAX: (202) 606-0824.

SUPPLEMENTARY INFORMATION: On October 16, 1995, the Office of Personnel 
Management (OPM) published proposed regulations to remove three 
metropolitan areas from the ``Rest of U.S.'' locality pay area and 
establish three new locality pay areas in January 1997 corresponding to 
these metropolitan areas based on the recommendations of the Federal 
Salary Council. (See 60 FR 53545.) After considering the views of the 
Federal Salary Council and comments from agencies, organizations, and 
individuals, the President's Pay Agent (consisting of the Secretary of 
Labor, the Director of the Office of Management and Budget (OMB), and 
the Director of OPM) decided to adopt the Federal Salary Council's 
recommendations on the three new locality pay areas. This determination 
was reflected in the Pay Agent's November 29, 1995, report to the 
President. These final regulations list the locality pay areas for 
1997, including the three new locality pay areas corresponding to the 
following Metropolitan Statistical Areas (MSA's) or Consolidated 
Metropolitan Statistical Areas (CMSA's), as defined by OMB: (1) 
Milwaukee-Racine, WI; (2) Minneapolis-St. Paul, MN-WI; and (3) 
Pittsburgh, PA.
    The definitions of the MSA's and CMSA's that comprise the locality 
pay areas are found in OMB Bulletin No. 96-08, June 28, 1996. Based on 
these definitions, the three new locality pay areas will be composed of 
the following geographic areas:
    (1) Milwaukee-Racine, WI--includes Milwaukee, Ozaukee, Washington, 
Waukesha, and Racine Counties;
    (2) Minneapolis-St. Paul, MN-WI--includes, in Minnesota, Anoka, 
Carver, Chisago, Dakota, Hennepin, Isanti, Ramsey, Scott, Sherburne, 
Washington, and Wright Counties and, in Wisconsin, Pierce and St. Croix 
Counties; and
    (3) Pittsburgh, PA--includes Allegheny, Beaver, Butler, Fayette, 
Washington, and Westmoreland Counties.
    The boundaries of locality pay areas are subject to change if the 
boundaries of the corresponding MSA's and CMSA's change, as determined 
by OMB.
    OPM received comments on the boundaries of the proposed locality 
pay areas from nine agency field offices, four employee organizations, 
and two individuals. Most commenters fully supported the boundaries of 
the new locality pay areas. However, three commenters requested that 
certain additional areas in the ``Rest of U.S.'' locality pay area be 
included in the Minneapolis-St. Paul, MN-WI, locality pay area. These 
areas are Waseca County, MN; the city of Rochester, MN; and Pine 
County, MN. However, as explained below, none of these locations meets 
all of the criteria set forth by the Federal Salary Council for removal 
from the ``Rest of U.S.'' locality pay area and inclusion as an ``area 
of application'' in the Minneapolis-St. Paul locality pay area.
    Prior to the implementation of locality pay in 1994, the 
President's Pay Agent adopted the Federal Salary Council's 
recommendation that the boundaries of locality pay areas follow the 
boundaries of MSA's and CMSA's, as defined by OMB. The Federal Salary 
Council also recommended that certain areas outside the boundaries of 
an MSA or CMSA (i.e., ``areas of application'') be included in the 
locality pay area if they meet certain criteria.
    In order for the Federal Safety Council to recommend an area as a 
county-wide area of application for the January 1997 locality payments, 
the affected county must--
    1. Be contiguous to a pay locality;
    2. Contain at least 2,000 GS-GM employees;
    3. Have a significant level of urbanization, based on 1990 Census 
data. A `significant level of urbanization'' is defined as a population 
density of more than 200 per square mile or at least 90 percent of the 
population in urbanized areas; and
    4. Demonstrate some economic linkage with the pay locality, defined 
as commuting at a level of 5 percent or more into or from the areas in 
question. The areas in question are the contiguous county under 
consideration and the central counties (or in the case of New England, 
the central cores) identified by the Census Bureau for the process of 
defining the CMSA's and MSA's involved.
    In the case of Waseca County, criterion 1--that the county be 
contiguous to the Minneapolis-St. Paul, MN-WI, locality pay area--is 
not met.
    With respect to the city of Rochester, MN, under established 
policies, areas of application must comprise entire counties (except 
where a Federal facility crosses pay area boundaries). Even if 
individual cities could be considered, Rochester would not meet 
criterion 1--that an area of application be contiguous to a pay 
locality. Nor does Olmstead County, MN, meet this criterion.
    In the case of Pine County, criterion 2--that it contain at least 
2,000 GS-GM employees--and criterion 3--that it have a significant 
level of urbanization--are not met.
    Therefore, because the FSC's criteria for ``areas of application'' 
were not met

[[Page 40950]]

none of the those areas in question will be part of the Minneapolis-St. 
Paul, MN-WI, locality pay area.

E.O. 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with E.O. 12866.

Regulatory Flexibility Act

    In certify that these regulations will not have a significant 
impact on a substantial number of small entities because they will 
apply only to Federal agencies and employees.

List of Subjects in 5 CFR Part 531

    Government employees, Law enforcement officers, Wages.

Office of Personnel Management,
James B. King,
Director.

    Accordingly, OPM is amending part 531 of title 5, Code of Federal 
Regulations, as follows:

PART 531--PAY UNDER THE GENERAL SCHEDULE

    1. The authority citation for part 531 continues to read as 
follows:

    Authority: 5 U.S.C. 5115, 5307, and 5338; sec. 4 of Pub. L. 103-
89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, 3 CFR, 1991 Comp., p. 
316;

    Subpart B also issued under 5 U.S.C. 5303(g), 5333, 5334(a), and 
7701(b)(2);
    Subpart C also issued under 5 U.S.C. 5304, 5305, and 5553; 
sections 302 and 404 of FEPCA, Pub. L. 101-509, 104 Stat. 1462 and 
1466; and section 3(7) of Pub. L. 102-378, 106 Stat. 1356;
    Subpart D also issued under 5 U.S.C. 5335(g) and 7701(b)(2);
    Subpart E also issued under 5 U.S.C. 5336;
    Subpart F also issued under 5 U.S.C. 5304, 5305(b)(1), and 5553; 
and E.O. 12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 682;
    Subpart G also issued under 5 U.S.C. 5304, 5305, and 5553; 
section 302 of the Federal Employees Pay Comparability Act of 1990 
(FEPCA), Pub. L. 101-509, 104 Stat 1462; and E.O. 12786, 56 FR 
67453, 3 CFR, 1991 Comp., p. 376.

Subpart F--Locality-Based Comparability Payments

    2. In Sec. 531.603, paragraph (b) is revised to read as follows:


Sec. 531.603  Locality pay areas.

* * * * *
    (b) The following are locality pay areas for the purpose of this 
subpart:
    (1) Atlanta, GA--consisting of the Atlanta, GA MSA;
    (2) Boston-Worcester-Lawrence, MA-NH-ME-CT--consisting of the 
Boston-Worcester-Lawrence, MA-NH-ME-CT CMSA;
    (3) Chicago-Gary-Kenosha, IL-IN-WI--consisting of the Chicago-Gary-
Kenosha, IL-IN-WI CMSA;
    (4) Cincinnati-Hamilton, OH-KY-IN--consisting of the Cincinnati-
Hamilton, OH-KY-IN CMSA;
    (5) Cleveland-Akron, OH--consisting of the Cleveland-Akron, OH 
CMSA;
    (6) Columbus, OH--consisting of the Columbus, OH MSA;
    (7) Dallas-Fort Worth, TX--consisting of the Dallas-Fort Worth, TX 
CMSA;
    (8) Dayton-Springfield, OH--consisting of the Dayton-Springfield, 
OH MSA;
    (9) Denver-Boulder-Greeley, CO--consisting of the Denver-Boulder-
Greeley, CO CMSA;
    (10) Detroit-Ann Arbor-Flint, MI--consisting of the Detroit-Ann 
Arbor-Flint, MI CMSA;
    (11) Houston-Galveston-Brazoria, TX--consisting of the Houston-
Galveston-Brazoria, TX CMSA;
    (12) Huntsville, AL--consisting of the Huntsville, AL MSA;
    (13) Indianapolis, IN--consisting of the Indianapolis, IN MSA;
    (14) Kansas City, MO-KS--consisting of the Kansas City, MO-KS MSA;
    (15) Los Angeles-Riverside-Orange County, CA--consisting of the Los 
Angeles-Riverside-Orange County, CA CMSA, plus Santa Barbara County, 
CA, and that portion of Edwards Air Force Base, CA, not located within 
the Los Angeles-Riverside-Orange County, CA CMSA;
    (16) Miami-Fort Lauderdale, FL--consisting of the Miami-Fort 
Lauderdale, FL CMSA;
    (17) Milwaukee-Racine, WI--consisting of the Milwaukee-Racine, WI 
CMSA;
    (18) Minneapolis-St. Paul, MN-WI--consisting of the Minneapolis-St. 
Paul, MN-WI MSA;
    (19) New York-Northern New Jersey-Long Island, NY-NJ-CT-PA--
consisting of the New York-Northern New Jersey-Long Island, NY-NJ-CT-PA 
CMSA;
    (20) Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD--consisting 
of the Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD CMSA;
    (21) Pittsburg, PA--consisting of the Pittsburgh, PA MSA;
    (22) Portland-Salem, OR-WA--consisting of the Portland-Salem, OR-WA 
CMSA;
    (23) Richmond-Petersburg, VA--consisting of the Richmond-
Petersburg, VA MSA;
    (24) Sacramento-Yolo, CA--consisting of the Sacramento-Yolo, CA 
CMSA;
    (25) St. Louis, MO-IL--consisting of the St. Louis, MO-IL MSA;
    (26) San Diego, CA--consisting of the San Diego, CA MSA;
    (27) San Francisco-Oakland-San Jose, CA--consisting of the San 
Francisco-Oakland-San Jose, CA CMSA;
    (28) Seattle-Tacoma-Bremerton, WA--consisting of the Seattle-
Tacoma-Bremerton, WA CMSA;
    (29) Washington-Baltimore, DC-MD-VA-WV--consisting of the 
Washington-Baltimore, DC-MD-VA-WV CMSA, plus St. Mary's County, MD; and
    (30) Rest of U.S.--consisting of those portions of the continental 
United States not located within another locality pay area.

[FR Doc. 96-20092 Filed 8-6-96; 8:45 am]
BILLING CODE 6325-01-M