[Federal Register Volume 61, Number 208 (Friday, October 25, 1996)]
[Proposed Rules]
[Pages 55227-55229]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-27629]


 ========================================================================
 Proposed Rules
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
 
 ========================================================================
 

  Federal Register / Vol. 61, No. 208 / Friday, October 25, 1996 / 
Proposed Rules  

[[Page 55227]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 531

RIN 3206-AH65


Pay Under the General Schedule; Locality Pay Areas for 1998

AGENCY: Office of Personnel Management.

ACTION: Proposed rule with request for comments.

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

SUMMARY: The Office of Personnel Management is issuing proposed 
regulations to remove two metropolitan areas from the ``Rest of U.S.'' 
locality pay area and establish two new locality pay areas in January 
1998 corresponding to these metropolitan areas. The two metropolitan 
areas affected by this proposed regulation are Hartford, CT, and 
Orlando, FL. These proposed changes are based on a recommendation of 
the Federal Salary Council. The purpose of this notice is to solicit 
public comments on the boundaries of locality pay areas recommended by 
the Federal Salary Council before the President's Pay Agent makes a 
final determination on this matter.

DATES: Comments must be received on or before November 25, 1996.

ADDRESSES: Comments may be sent or delivered to Donald J. Winstead, 
Assistant Director for Compensation Policy, Human Resources Systems 
Service, Office of Personnel Management, Room 6H31, 1900 E Street NW., 
Washington, DC 20415 (FAX: (202) 606-0824).

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

SUPPLEMENTARY INFORMATION: Section 5304(a)(1) of title 5, United States 
Code, provides that locality payments shall be payable within each 
locality determined to have a pay disparity greater than 5 percent. 
Section 5304(f)(1) authorizes 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 the Office of Personnel Management 
(OPM)) to provide for such pay localities as the Pay Agent considers 
appropriate. In so doing, the Pay Agent must give thorough 
consideration to the views and recommendations of the Federal Salary 
Council, a body composed of experts in the fields of labor relations 
and pay and representatives of Federal employee organizations. Members 
of the Federal Salary Council are appointed by the President and meet 
regularly to consider issues related to the locality pay system for 
General Schedule employees.
    Starting with the January 1996 locality payments, 5 U.S.C. 
5304(d)(1) requires the Pay Agent to make recommendations to the 
President on the locality pay areas no later than 13 months before the 
start of the calendar year for which the locality payments are paid. In 
late 1995, the President's Pay Agent adopted the recommendations of the 
Federal Salary Council concerning locality pay areas for 1997 in their 
entirety. These recommendations resulted in the establishment of a 
total of 30 locality pay areas consisting of 29 areas corresponding to 
Metropolitan Statistical Areas (MSA's) or Consolidated Metropolitan 
Statistical Areas (CMSA's) (as defined by OMB), including certain 
``areas of application'' contiguous to two areas, plus one area 
composed of the ``Rest of U.S.'' (See 61 FR 40949, August 7, 1996.) If 
OMB makes changes in the boundaries of MSA's and CMSA's, the boundaries 
of the corresponding locality pay areas are automatically changed 
accordingly.
    At its meeting on October 4, 1996, the Federal Salary Council 
recommended that two areas--Hartford, CT, and Orlando, FL--be removed 
from the ``Rest of U.S.'' locality pay area and established as separate 
locality pay areas effective in January 1998. These two new locality 
pay areas ''would be in addition to the 30 locality pay areas 
established for the 1997 locality payments.
    At the direction of the Pay Agent following an earlier 
recommendation of the Federal Salary Council, the Bureau of Labor 
Statistics (BLS) conducted additional local salary surveys in 1995-96 
in the MSA's for Hartford, CT, and Orlando, FL. The surveys showed that 
the pay disparity in the Orlando, FL MSA was slightly below the pay 
disparity in the ``Rest of U.S.'' locality pay area. Because the pay 
disparity was less than \2/10\ths of a percentage point below the pay 
disparity for ``Rest of U.S.,'' the Federal Salary Council recommended 
establishing Orlando, FL, as a separate locality pay area. (Under 
established policy, any surveyed area with a pay disparity of \2/10\ths 
of a percentage point or more below the ``Rest of U.S.'' pay disparity 
does not qualify to be established or continued as a locality pay area. 
Also, a locality pay area must be dropped if its pay disparity is below 
the ``Rest of U.S.'' pay disparity in three consecutive annual 
surveys.)
    The Federal Salary Council also recommended that the Orlando, FL, 
locality pay percentage be set equal to the ``Rest of U.S.'' locality 
pay percentage in 1998 and that the Orlando, FL, pay gap be averaged 
with the ``Rest of U.S.'' pay gap to determine the combined pay gap for 
the two areas. This is consistent with past practices for dealing with 
locality pay areas in which the locality pay percentage is below the 
``Rest of U.S.'' percentage.
    The BLS surveys showed that the pay disparity in the Hartford, CT 
MSA was greater than the pay disparity in the ``Rest of U.S.'' locality 
pay area. Thus, the Federal Salary Council recommended that the 
Hartford, CT MSA be added as a separate locality pay area. It also 
recommended that that portion of New London County, CT, outside the 
Hartford, CT MSA be added to the Hartford locality pay area as an 
``area of application.''
    ``Areas of application'' are areas contiguous to an MSA or CMSA 
that are included in the corresponding pay locality for locality pay 
purposes. In 1994, the Federal Salary Council developed the following 
criteria for consideration as areas of application to pay localities:
    a. County-wide areas of application. To be considered, the affected 
county must meet all of the following criteria:
    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.)
    4. Demonstrate some economic linkage with the pay locality, defined 
as

[[Page 55228]]

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 or MSA's involved.)
    b. Federal facilities crossing pay locality boundaries. To be 
included in a pay locality the portion of a federal facility which 
crosses pay locality boundaries and which is not in the pay locality 
must meet all of the following criteria:
    1. Have at least 1,000 GS-GM employees.
    2. Have the duty station(s) of the majority of GS-GM employees 
within 10 miles of the prime critical survey boundary area.
    3. Have a significant number of its employees commuting from the 
pay locality.
    However, because OMB defines CMSA's and MSA's in New England by 
townships and cities instead of counties, the above-stated criteria for 
consideration as an ``area of application'' cannot be fully applied to 
New London County, part of which is outside the Hartford, CT MSA. 
Therefore, the Federal Salary Council has adopted the following set of 
criteria for consideration of partial counties as ``areas of 
application'':

Criteria for Partial-County Areas of Application in New England

    1. The partial-county area must be contiguous to the pay locality 
(exclusive of any other areas of application) and must currently be 
included in the ``Rest of U.S.'' locality pay area.
    2. The partial-county area must contain at least 2,000 GS 
employees.
    3. The entire county must have a population density of more than 
200 per square mile or at least 90 percent of the population in 
urbanized areas.
    4. The entire county must 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 
entire county under consideration and the central core of the MSA as 
defined by the Census Bureau for use in establishing metropolitan 
areas.)
    Because New London County, CT, meets all of the above-stated 
criteria, the Federal Salary Council has recommended that that portion 
of New London County, CT, outside the Hartford, CT MSA be included in 
the Hartford, CT, locality pay area as an ``area of application.''
    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 two proposed locality pay areas for 1998 will be 
composed of the following geographic areas:

Orlando, FL, Locality Pay Area

Lake County
Orange County
Osceola County
Seminole County

Hartford, CT, Locality Pay Area

Hartford County (part)
Avon town
Berlin town
Bloomfield town
Bristol city
Burlington town
Canton town
East Granby town
East Hartford town
East Windsor town
Enfield town
Farmington town
Glastonbury town
Granby town
Hartford city
Manchester town
Marlborough town
New Britain city
Newington town
Plainville town
Rocky Hill town
Simsbury town
Southington town
South Windsor town
Suffield town
West Hartford town
Wethersfield town
Windsor town
Windsor Locks town
Litchfield County (part)
Barkhamsted town
Harwinton town
New Hartford town
Plymouth town
Winchester town
Middlesex County (part)
Cromwell town
Durham town
East Haddam town
East Hampton town
Haddam town
Middlefield town
Middletown city
Portland town
New London County (all)
Tolland County (part)
Andover town
Bolton town
Columbia town
Coventry town
Ellington town
Hebron town
Mansfield town
Somers town
Stafford town
Tolland town
Vernon town
Willington town
Windham County (part)
Ashford town
Chaplin town
Windham town

    The Pay Agent's decision regarding locality pay areas for 1998 must 
be made no later than November 30, 1996. Therefore, OPM has established 
a 30-day public comment period for these proposed regulations. After 
the public comment period, the Pay Agent will consider the comments 
received from Federal employees, agencies, employee organizations, and 
other interested parties before making its determination on the 
establishment of pay localities. The Pay Agent also will consider any 
additional views and recommendations expressed directly to the Pay 
Agent by any member of the Federal Salary Council or by employee 
organizations not represented on the Council. The final regulations 
issued by OPM will reflect the Pay Agent's final determination on this 
matter.

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

    I certify that these regulations would not have a significant 
economic impact on a substantial number of small entities because they 
would 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 proposing to amend 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);

[[Page 55229]]

    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. 5535(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(g)(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 MSA;
    (10) Detroit-Ann Arbor-Flint, MI--consisting of the Detroit-Ann 
Arbor-Flint, MI CMSA;
    (11) Hartford, CT--consisting of the Hartford, CT MSA plus that 
portion of New London County, CT, not located within the Hartford, CT 
MSA;
    (12) Houston-Galveston-Brazoria, TX--consisting of the Houston-
Galveston-Brazoria, TX CMSA;
    (13) Huntsville, AL--consisting of the Huntsville, AL MSA;
    (14) Indianapolis, IN--consisting of the Indianapolis, IN MSA;
    (15) Kansas City, MO-KS--consisting of the Kansas City, MO-KS MSA;
    (16) 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;
    (17) Miami-Fort Lauderdale, FL--consisting of the Miami-Fort 
Lauderdale, FL CMSA;
    (18) Milwaukee-Racine, WI--consisting of the Milwaukee-Racine, WI 
CMSA;
    (19) Minneapolis-St. Paul, MN-WI--consisting of the Minneapolis-St. 
Paul, MN-WI MSA;
    (20) 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;
    (21) Orlando, FL--consisting of the Orlando, FL MSA;
    (22) Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD--consisting 
of the Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD CMSA;
    (23) Pittsburgh, PA--consisting of the Pittsburgh, PA MSA;
    (24) Portland-Salem, OR-WA--consisting of the Portland-Salem, OR-WA 
CMSA;
    (25) Richmond-Petersburg, VA--consisting of the Richmond-
Petersburg, VA MSA;
    (26) Sacramento-Yolo, CA--consisting of the Sacramento-Yolo, CA 
CMSA;
    (27) St. Louis, MO-IL--consisting of the St. Louis, MO-IL MSA;
    (28) San Diego, CA--consisting of the San Diego, CA MSA;
    (29) San Francisco-Oakland-San Jose, CA--consisting of the San 
Francisco-Oakland-San Jose, CA CMSA;
    (30) Seattle-Tacoma-Bremerton, WA--consisting of the Seattle-
Tacoma-Bremerton, WA CMSA;
    (31) Washington-Baltimore, DC-MD-VA-WV--consisting of the 
Washington-Baltimore, DC-MD-VA-WV CMSA, plus St. Mary's County, MD; and
    (32) Rest of U.S.--consisting of those portions of the continental 
United States not located within another locality pay area.

[FR Doc. 96-27629 Filed 10-24-96; 8:45 am]
BILLING CODE 6325-01-M