[Federal Register Volume 62, Number 231 (Tuesday, December 2, 1997)]
[Rules and Regulations]
[Pages 63630-63631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31537]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 591

RIN 3206-AH51


Cost-of-Living Allowance (Nonforeign Areas)--Miscellaneous 
Changes

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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SUMMARY: The Office of Personnel Management is issuing regulations that 
implement four changes in the nonforeign area cost-of-living allowance 
(COLA) program. One change removes obsolete references to hiring 
authorities no longer in use. A second change clarifies the application 
of COLA regulations to two pay systems linked to or equivalent to the 
Senior Executive Service. A third change clarifies the application of 
COLA regulations to employees under other pay systems. The fourth 
change extends nonforeign area post differentials to employees on long-
term temporary assignments in the same manner as is provided by the 
Department of State for employees in foreign areas.

DATES: These regulations become effective on December 2, 1997. These 
regulations are applicable on the first day of the first pay period 
beginning on or after December 2, 1997.

FOR FURTHER INFORMATION CONTACT: Paul B. Malerba at (202) 606-2838, 
FAX: (202) 606-4264, or EMAIL: [email protected].

SUPPLEMENTARY INFORMATION: Under section 5941 of title 5, United States 
Code, and Executive Order 10000, as amended, certain Federal employees 
in nonforeign areas outside the 48 contiguous States are eligible for 
cost-of-living allowances (COLAs) when local living costs are 
substantially higher than those in the Washington, DC, area. These 
COLAs are paid in Alaska, Hawaii, Puerto Rico, the U.S. Virgin Islands, 
and Guam and the Commonwealth of the Northern Mariana Islands.

[[Page 63631]]

    The Office of Personnel Management (OPM) published proposed rules 
at 60 FR 13354 on March 20, 1997, concerning four regulatory changes in 
the COLA program. One change would remove obsolete references to hiring 
authorities no longer in use. A second change would clarify the 
application of COLA regulations to two pay systems linked to or 
equivalent to the Senior Executive Service. A third change would 
clarify the application of COLA regulations to employees under other 
pay systems. The fourth change would extend nonforeign area post 
differentials to employees on long-term temporary assignments in the 
same manner as is provided by the Department of State for employees in 
foreign areas.
    OPM received three comments in response to the publication of the 
proposed regulations. One commenter endorsed the proposed changes in 
their entirety. The second commenter recommended including in section 
591.201 (Definitions) the minimum length of time required for employees 
on temporary assignment to receive a differential. The third commenter 
recommended deleting the 25 percent limitation on allowances plus post 
differentials combined because there is no equivalent limitation under 
the Department of State program, and the purpose of OPM's proposed 
change was to parallel that program.
    OPM is not adopting the second commenter's recommendation because 
the minimum period is not a term used throughout the regulations, but 
rather a criterion that is used only once in section 591.210(b). 
Therefore, it is not appropriate to include it in the definitions 
section. OPM is not adopting the third commenter's recommendation 
because by law nonforeign area COLA and post differentials combined 
cannot exceed 25 percent.
    OPM notes that it published an interim rule at 60 FR 25423 on May 
9, 1997, in response to changes made by the Federal Employee Travel 
Reform Act of 1996. The Act affects the status of employees who are 
assigned to work in another location for an extended period. The 
interim regulations clarify that the temporary duty station during such 
an extended assignment must be treated as the official duty station of 
the employee for purposes of determining the employee's location-based 
pay entitlements. The interim regulations added a definition of 
``official duty station'' to 5 CFR 591.201 for purposes of paying 
allowances and differentials and changed the term ``permanent duty 
station'' to ``official duty station'' in 5 CFR 591.210(a) to make 
these terms consistent with those used in the regulations on locality-
based comparability payments. The regulations also make conforming 
changes in Sec. 591.201 and in paragraphs (b)(1) (redesignated 
paragraph (c)(1)), and (c) (redesignated paragraph (d)) of 
Sec. 591.210. OPM has incorporated these changes in this final rule.

Regulatory Flexibility Act

    I certify that this regulation will not have a significant economic 
impact on a substantial number of small entities because it affects 
only Federal agencies and employees.

List of Subjects in 5 CFR Part 591

    Government employees, Travel and transportation expenses, Wages.

Office of Personnel Management.
Janice R. Lachance,
Director.

    Accordingly, OPM amends 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. 591.203, paragraphs (a)(1), (a)(3), (a)(6), and (b) are 
revised to read as follows:


Sec. 591.203  Agencies and employees covered.

    (a) * * *
    (1) General Schedule.
* * * * *
    (3) Foreign Service (including the Senior Foreign Service).
* * * * *
    (6) Senior Executive Service (including the Federal Bureau of 
Investigation--Drug Enforcement Administration Senior Executive 
Service).
* * * * *
    (b) This subpart may be applied, at the sole discretion of the 
employing agency, to civilian employees in other positions authorized 
by specific law applicable to such positions, consistent with the 
intent of 5 U.S.C. 5941.
    3. In Sec. 591.210, paragraph (f) is removed, paragraphs (b) 
through (e) are redesignated as (c) through (f), respectively, and a 
new paragraph (b) is added to read as follows:


Sec. 591.210  Payment of allowances and differentials.

* * * * *
    (b) Payment of an allowance or differential will begin on the 
effective date of the change in the employee's official duty station to 
a duty station within the allowance or differential area or on the 
effective date of the appointment in the case of local recruitment. An 
employee who is detailed for temporary duty in a nonforeign area (i.e., 
the employee's official duty station is outside the nonforeign area) is 
eligible for a differential, but not an allowance, except that payment 
of a differential shall not begin until after 42 consecutive calendar 
days of temporary duty in the differential area. Payment of an 
allowance or differential will cease--
    (1) On separation;
    (2) On the effective date of assignment or transfer to a new 
official duty station outside the allowance or differential area; or
    (3) On the ending date of a detail, in the case of an employee on 
detail to temporary duty in a differential area.
* * * * *
[FR Doc. 97-31537 Filed 12-1-97; 8:45 am]
BILLING CODE 6325-01-P