[Federal Register Volume 62, Number 239 (Friday, December 12, 1997)]
[Rules and Regulations]
[Pages 65311-65313]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-32580]



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 Rules and Regulations
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  Federal Register / Vol. 62, No. 239 / Friday, December 12, 1997 / 
Rules and Regulations  

[[Page 65311]]


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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: Final rule.

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SUMMARY: The Office of Personnel Management is issuing final 
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 regulation are Hartford, CT, and Orlando, FL. 
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, 1998, and 
are applicable on the first day of the first pay period beginning on or 
after January 1, 1998.

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

SUPPLEMENTARY INFORMATION: On October 25, 1996, the Office of Personnel 
Management (OPM) published 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 based on the recommendations of the Federal 
Salary Council. (See 61 FR 55227.) OPM received no public comments on 
the proposed regulations. Therefore, after considering the views of the 
Federal Salary Council, 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 two new locality pay areas. This 
determination was reflected in the Pay Agent's November 27, 1996, 
report to the President. These final regulations list the locality pay 
areas for 1998, including the two new locality pay areas corresponding 
to the following Metropolitan Statistical Areas (MSA's) as defined by 
OMB--Hartford, CT, including that portion of New London County, CT, 
outside the Hartford, CT MSA, and Orlando, FL.
    The definitions of the MSA's and Consolidated Metropolitan 
Statistical Areas (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 new locality pay areas for 1998 will be composed 
of the following geographic areas:

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

Orlando, FL, Locality Pay Area

Lake County
Orange County
Osceola County
Seminole County

Hartford, CT, Locality Pay Area

    In its November, 27, 1996, report to the President, the President's 
Pay Agent accepted the Federal Salary Council's recommendation that 
Hartford, CT, be established as a separate locality pay area for 
General Schedule (GS) workers in 1998, including the Hartford, CT MSA, 
plus that portion of New London County, CT, outside the Hartford, CT 
MSA. The Pay Agent also adopted the following criteria recommended by 
the Federal Salary Council for consideration of partial counties as 
``areas of application'' in New England. These criteria are needed 
because OMB uses cities and townships, instead of full counties, to 
define metropolitan areas in New England.
    Criteria for partial-county areas of application in New England:
    1. The partial-county area must be contiguous to the pay locality 
(exclusive

[[Page 65312]]

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, met all of the above-stated 
criteria, the Pay Agent accepted the Federal Salary Council's 
recommendation 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'' for 1998.
    After the Pay Agent issued its November 1996 report to the 
President reflecting its determination to establish Hartford, CT, as a 
new locality pay area for 1998, OPM received a letter from a Member of 
Congress expressing interest in including the city of Springfield, MA, 
in the Hartford, CT, locality pay area. The Federal Salary Council 
determined that Hampden County, MA, which includes the city of 
Springfield, does not meet the Federal Salary Council's criteria for 
consideration as an ``area of application.''
    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 Salary Council to recommend an area as a 
county-wide area of application, 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. Demonstration 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.)
    The Federal Salary Council considered Hampden County, MA, under 
these criteria as a potential area of application before making its 
October 1996 recommendation to the Pay Agent regarding the new 
Hartford, CT, locality pay area. However, because Hampden County did 
not pass the Federal Salary Council's criterion for GS employment 
(having only 908 GS employees as of March 1996), the Federal Salary 
Council did not recommend it as an ``area of application'' to the 
Hartford, CT, locality pay area.

Orlando, FL, Locality Pay Area

    The President's Pay Agent accepted the Federal Salary Council's 
recommendation that Orlando, FL, be established as a separate locality 
pay area. Although Bureau of Labor Statistics (BLS) surveys showed the 
pay disparity in Orlando was slightly below the pay disparity for the 
``Rest of U.S.'' locality pay area, the Federal Salary Council's 
established policy provides that any surveyed area with a pay disparity 
of less than 2/10ths of a percentage point below the ``Rest of U.S.'' 
pay disparity may qualify to be established or continued as a locality 
pay area.
    The Pay Agent also accepted the Federal Salary Council's 
recommendation 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 
pay disparity is below the ``Rest of U.S.'' pay disparity. BLS will 
continue to conduct surveys in Orlando, and the Pay Agent and the 
Federal Salary Council will reconsider these issues in the future.

Waiver of Delay in Effective Date

    Pursuant to 5 U.S.C. 553(d)(3), I find that good cause exists to 
make these regulations effective in less than 30 days. The regulations 
are being made effective on January 1, 1998, in order for the locality 
payments for each locality pay area authorized for 1998 to be 
applicable on the first day of the first pay period beginning on or 
after January 1, 1998.

Regulatory Flexibility Act

    I certify that these regulations will not have a significant 
economic 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.
Janice R. Lachance,
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(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;

[[Page 65313]]

    (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) 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 48 
contiguous States not located in another locality pay area.

[FR Doc. 97-32580 Filed 12-11-97; 8:45 am]
BILLING CODE 6325-01-U