[Federal Register Volume 62, Number 57 (Tuesday, March 25, 1997)]
[Rules and Regulations]
[Pages 14188-14189]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7380]



[[Page 14187]]

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Part III





Office of Personnel Management





_______________________________________________________________________



5 CFR Part 591



Cost-of-Living Allowances (Nonforeign Areas); Interim Rule



Report on 1996 Surveys Used to Determine Cost-of-Living Allowances in 
Nonforeign Areas; Notice

  Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Rules 
and Regulations  

[[Page 14188]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 591

RIN 3206-AH07


Cost-of-Living Allowances (Nonforeign Areas)

AGENCY: Office of Personnel Management.

ACTION: Interim rule.

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

SUMMARY:  The Office of Personnel Management (OPM) is publishing 
interim regulations that will increase cost-of-living allowance (COLA) 
rates paid to General Schedule, U.S. Postal Service, and certain other 
Federal employees in Kauai County, Hawaii, and the U.S. Virgin Islands. 
These increases result from cost-of-living surveys conducted in Hawaii, 
Alaska, Puerto Rico, the U.S. Virgin Islands, and Guam and the 
Commonwealth of the Northern Mariana Islands by Runzheimer 
International under contract with OPM. The full results of the cost-of-
living surveys are contained in the survey report, which appears after 
this interim rule in today's Federal Register. Because it has taken 
longer than expected to complete these surveys and calculate the 
living-cost indexes, OPM is issuing this interim rule, which is 
effective immediately, to implement the COLA rate increases. In the 
future, as in the past, OPM plans to announce COLA rate adjustments in 
a proposed rule for public notice and comment.

DATES:  Effective date: March 25, 1997. Implementation date:  The rate 
increases authorized by these regulations are to be applied as of the 
first day of the first pay period beginning on or after March 25, 1997. 
 Comment date:  Comments must be received on or before June 23, 1997.

ADDRESSES:  Send or deliver comments 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, or FAX comments to (202) 606-4264, or email 
comments over the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Donald L. Paquin, (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, Guam and the 
Commonwealth of the Northern Mariana Islands, and the U.S. Virgin 
Islands.
    OPM contracted with Runzheimer International to conduct living-cost 
surveys in all of the nonforeign allowance areas. During February 1996, 
Runzheimer surveyed Alaska, Hawaii, Guam, Puerto Rico, and the U.S. 
Virgin Islands. Runzheimer also surveyed the Washington, DC, area, 
which is the base or reference area for living-cost comparisons. OPM is 
publishing a separate Federal Register notice immediately following 
this rulemaking that provides the complete ``Report On 1996 Surveys 
Used to Determine Cost-of-Living Allowances in Nonforeign Areas.'' This 
report explains the methodology, procedures, and results of the 1996 
living-cost surveys.
    The increases in COLA rates are summarized in the following table:

                         Increases in Cola Rates                        
------------------------------------------------------------------------
                                                         Current    New 
                Allowance area/category                    rate    rate 
------------------------------------------------------------------------
County of Kauai, Hawaii                                                 
    All employees......................................     20.0    22.5
U.S. Virgin Islands                                                     
    All employees......................................     17.5    20.0
------------------------------------------------------------------------

    OPM is adjusting only those rates that have increased. Rates that 
would have otherwise decreased will remain unchanged, as required by a 
provision in the Treasury, Postal Service, and General Government 
Appropriations Act, 1992 (Pub. L. 102-141), as amended.

 Application of 5 U.S.C. 553

     Pursuant to paragraphs (b)(3)(B) and (d)(3) of 553 of title 5 of 
the United States Code, OPM finds that good cause exists to waive the 
publication of proposed rulemaking and the 30- day deferment of 
effective date. Because it has taken longer than expected to complete 
these surveys and calculate the living-cost indexes, OPM believes it is 
in the public interest to implement the COLA rate increases 
immediately. In the future, as in the past, OPM plans to announce COLA 
rate adjustments in a proposed rule for notice and comment.

 Implementation of rate changes

     For administrative purposes, the rate increases authorized by 
these regulations will be applied as of the first day of the first pay 
period beginning on or after [Insert date of publication in the Federal 
Register.]

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.

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

     Accordingly, OPM is amending 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. 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 80-kilometer (50-mile) radius by              
     road:                                                              
        All Employees.......................................      25.0  
    City of Fairbanks and 80-kilometer (50-mile) radius by              
     road:                                                              
        All Employees.......................................      25.0  
    City of Juneau and 80-kilometer (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:                                        
        All Employees.......................................      22.5  
    County of Hawaii:                                                   
        All Employees.......................................      15.0  
    County of Kauai:                                                    
        All Employees.......................................      22.5  

[[Page 14189]]

                                                                        
    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 Employees.......................................      10.0  
U.S. Virgin Islands                                                     
        All Employees.......................................      20.0  
------------------------------------------------------------------------

  Definitions of Allowance Categories 
     The following are definitions of the allowance categories used 
in the tables in this appendix.
      All Employees: This category covers all Federal employees 
eligible for an allowance under 5 U.S.C. 5941.
      Local Retail: This category covers all Federal employees 
eligible for an allowance who do not have unlimited access to 
commissary and exchange facilities by virtue of their Federal 
civilian employment.
      Commissary/Exchange: This category covers all Federal 
employees eligible for an allowance who have unlimited access to 
commissary and exchange facilities by virtue of their Federal 
civilian employment.
    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 receive an identification card that authorizes access to such 
facilities. Possession of such an identification card is sufficient 
evidence that the employee uses the facilities.
[FR Doc. 97-7380 Filed 3-24-97; 8:45 am]
BILLING CODE 6325-01-F