[Federal Register Volume 65, Number 137 (Monday, July 17, 2000)]
[Rules and Regulations]
[Pages 44100-44101]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17568]



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Part II





Office of Personnel Management





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5 CFR Part 591



Cost-of-Living Allowances (Nonforeign Areas); Guam and the Commonwealth 
of the Northern Mariana Islands and Honolulu, HI; Interim and Final 
Rules



Report on 1998 Surveys Used To Determine Cost-of-Living Allowances in 
Nonforeign Areas; Notice

  Federal Register / Vol. 65, No. 137 / Monday, July 17, 2000 / Rules 
and Regulations  

[[Page 44100]]


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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 591

RIN 3206-AJ15


Cost-of-Living Allowances (Nonforeign Areas); Guam and the 
Commonwealth of the Northern Mariana Islands

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management (OPM) is publishing an 
interim regulation to increase the cost-of-living allowance (COLA) rate 
paid to certain Federal employees in Guam and the Commonwealth of the 
Northern Mariana Islands (CNMI). This regulation increases the local 
retail COLA rate for the Guam/CNMI allowance area from 22.5 percent to 
25 percent. This increase is a result of cost-of-living surveys 
conducted in October and November 1998 using our current methodology 
for calculating COLA rates. A settlement agreement that is currently 
awaiting court approval calls for OPM to use a new methodology in 
conducting future surveys and in calculating future COLA rates. 
Therefore, the survey results reflected in this rule are not an 
indication of what survey results or COLA rates would be under the new 
methodology.

DATES: Effective date: July 17, 2000. Implementation date: First day of 
the first pay period beginning on or after July 17, 2000. Comment date: 
Submit comments on or before October 16, 2000.

ADDRESSES: Send or deliver comments to Donald J. Winstead, Assistant 
Director for Compensation Administration, Workforce Compensation and 
Performance Service, Office of Personnel Management, Room 7H31, 1900 E 
Street NW., Washington, DC 20415-8200; fax: (202) 606-4264; or email: 
[email protected].

FOR FURTHER INFORMATION CONTACT: Donald L. Paquin, (202) 606-2838; fax: 
(202) 606-4264; or email: [email protected].

SUPPLEMENTARY INFORMATION: The Federal Government pays cost-of-living 
allowances (COLAs) to General Schedule, U.S. Postal Service, and 
certain other Federal employees in Alaska, Hawaii, Guam and the 
Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. 
Virgin Islands. The Office of Personnel Management (OPM) conducts cost-
of-living surveys in each allowance area to determine whether, and to 
what degree, local living costs are higher than those in the 
Washington, DC, area. OPM sets the COLA rate for each area based on the 
results of these surveys.
    In October and November 1998, we conducted cost-of-living surveys 
in Alaska, Hawaii, Guam, Puerto Rico, the U.S. Virgin Islands, and the 
Washington, DC, area. We compared the results of the Washington, DC, 
area survey with the results of the other surveys to derive an index 
for each of the areas. We provide the details of this process in a 
separate report in this issue of the Federal Register.
    The 1998 surveys indicate that the local retail COLA rate for the 
Guam/CNMI allowance area should be increased to 25 percent, as shown in 
the following table. Under the Treasury, Postal Service, and General 
Government Appropriations Act, 1992 (Pub. L. 102-141), as amended, no 
COLA rates may decrease until after December 31, 2000.

                          Increase in COLA Rate
------------------------------------------------------------------------
                                                        Current     New
               Allowance area/category                    rate     rate
------------------------------------------------------------------------
Guam/CNMI, Local Retail..............................      22.5      25
------------------------------------------------------------------------

Appendix text changes

    We inadvertently omitted the introductory text to appendix A of 
subpart B in the interim rule published with our 1997 survey report. 
(See 63 FR 56430, October 21, 1998.) We are reinstating the text with 
this rule. We have also rewritten a portion of the introductory text 
and other text in appendix A to improve clarity. These changes are not 
substantive.

Rulemaking waivers

    Under 5 U.S.C. 553 (b)(3)(B) and (d)(3), OPM finds that good cause 
exists to waive the publication of proposed rulemaking and the 30-day 
delay in the effective date of this regulation. Because of unexpected 
delays in completing these surveys and calculating the living-cost 
indexes, we believe it is in the public interest to implement the COLA 
rate increase immediately. In the future, as we have done in the past, 
we plan to announce COLA rate adjustments in a proposed rule for public 
notice and comment.

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.
Janice R. Lachance,
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 approved for a cost-of-living 
allowance and shows the allowance rate and 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

[[Page 44101]]

 
Rest of the State:
    All Employees..........................................         25.0
                      State of Hawaii
City and County of Honolulu:
    All Employees..........................................         25.0
County of Hawaii:
    All Employees..........................................         15.0
County of Kauai:
    All Employees..........................................         22.5
County of Maui and County of Kalawao:
    All Employees..........................................         22.5
 Territory of Guam and Commonwealth of the Northern Mariana
                          Islands
Local Retail...............................................         25.0
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: The appropriate military department determines eligibility 
for access to military commissary and exchange facilities. 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. 00-17568 Filed 7-14-00; 8:45 am]
BILLING CODE 6325-01-P