[Federal Register Volume 67, Number 197 (Thursday, October 10, 2002)]
[Rules and Regulations]
[Pages 63049-63050]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-25848]



 ========================================================================
 Rules and Regulations
                                                 Federal Register
 ________________________________________________________________________
 
 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
 
 The Code of Federal Regulations is sold by the Superintendent of Documents. 
 Prices of new books are listed in the first FEDERAL REGISTER issue of each 
 week.
 
 ========================================================================
 

  Federal Register / Vol. 67, No. 197 / Thursday, October 10, 2002 / 
Rules and Regulations  

[[Page 63049]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 534

RIN 3206-AJ47


Basic Pay for Employees of Temporary Organizations

AGENCY: Office of Personnel Management.

ACTION: Final rule.

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

SUMMARY: The Office of Personnel Management is issuing final 
regulations on setting pay for employees of temporary organizations 
established by law or Executive order. These regulations will enable 
agencies to determine the rate of basic pay and locality payments for 
employees of temporary organizations.

EFFECTIVE DATE: The regulations are effective on November 12, 2002.

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

SUPPLEMENTARY INFORMATION: On January 25, 2002, the Office of Personnel 
Management (OPM) issued interim regulations on compensation for 
employees of temporary organizations established by law or Executive 
order. (See 67 FR 3581.) Section 1101 of the Floyd D. Spence National 
Defense Authorization Act for fiscal year 2001 (Public Law 106-398, 
October 30, 2000), added a new subchapter IV to chapter 31 of title 5, 
United States Code. Subchapter IV provides OPM with authority to 
establish regulations to determine the rate of basic pay for employees 
of temporary organizations without regard to the provisions of chapter 
51 and subchapter III of chapter 53 of title 5, United States Code. 
(See 5 U.S.C. 3161 (d).) The 60-day comment period for the interim 
regulations ended on March 26, 2002. We received no comments from 
either agencies or individuals. However, we are revising Sec. Sec.  
534.301 and 534.302 concerning the purpose and coverage of these 
regulations to improve readability and reduce redundancy. We are also 
revising Sec.  534.304(b) to clarify that the cap on locality-adjusted 
rates of basic pay for employees in staff and other non-executive level 
positions is the rate for level IV of the Executive Schedule. This is 
consistent with the cap on locality rates for General Schedule 
employees. Other than these changes, we are adopting as final the 
interim rules for agencies to administer the basic pay rates for 
employees of temporary organizations under 5 U.S.C. part 534, subpart 
C. The final regulations do not apply to temporary organizations 
established prior to October 30, 2000.
    Consistent with 5 U.S.C. 3161(d), Sec.  534.303 of these final 
regulations provides that the rate of basic pay for executive level 
positions of a temporary organization may not exceed the maximum rate 
of basic pay established for the Senior Executive Service (SES) under 5 
U.S.C. 5382. Employees in executive level positions must be paid 
locality payments under 5 U.S.C. 5304 in addition to basic pay, not to 
exceed the rate for level III of the Executive Schedule. Section 
534.304 provides that the rate of basic pay for staff or other non-
executive level positions in a temporary organization may not exceed 
the maximum rate of basic pay for GS-15 under 5 U.S.C. 5332. However, 
Sec.  534.304(c) provides that the rate of basic pay for a senior staff 
position of a temporary organization may, in a case determined by the 
head of the temporary organization to be exceptional, exceed the 
maximum rate of basic pay for GS-15, but may not exceed the maximum 
rate of basic pay for the SES. As previously stated, staff and other 
non-executive positions also must be paid locality payments under 5 
U.S.C. 5304, not to exceed the rate for level IV of the Executive 
Schedule.
    In setting rates of basic pay for staff and other non-executive 
level positions, consideration should be given to the significance, 
scope, and technical complexity of the position and the qualifications 
required for the work involved. (See Sec.  534.304 (a)(2).) This is 
consistent with a parallel requirement established under regulations 
issued by General Services Administration for setting basic pay for 
advisory committee members and staff under the Federal Advisory 
Committee Act. (See 41 CFR 102-3.130.)

Executive Order 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 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 534

    Government employees, Hospitals, Students, Wages.

Office of Personnel Management.
Kay Coles James,
Director.

    Accordingly, the Office of Personnel Management is adopting the 
interim rule amending part 534 of title 5 of the Code of Federal 
Regulations which was published at 67 FR 3581 on January 25, 2002, as 
final with the following changes:

PART 534--PAY UNDER OTHER SYSTEMS

    1.The authority citation for part 534 continues to read as follows:

    Authority: 5 U.S.C. 1104, 3161(d), 5307, 5351, 5352, 5353, 5376, 
5383, 5384, 5385, 5541, and 5550a.

    2. Sections 534.301 and 534.302 are revised to read as follows:

Subpart C--Basic Pay for Employees of Temporary Organizations


Sec.  534.301  Purpose.

    This subpart provides rules for determining the rate of basic pay 
and locality-adjusted rate of basic pay for employees who are appointed 
to positions in temporary organizations and compensated under 5 U.S.C. 
3161. Such temporary organizations are established by law or Executive 
order. This subpart does not provide authority to establish other forms 
of compensation and benefits not authorized by title 5, United States 
Code, or another specific statutory authority.

[[Page 63050]]

Sec.  534.302  Coverage.

    This subpart applies to employees in executive level and staff 
positions in temporary organizations. Such employees are not subject to 
the provisions applicable to General Schedule employees covered by 
chapter 51 and subchapter III of chapter 53 of title 5, United States 
Code.

    3. Paragraph (b) of Sec.  534.304 is revised to read as follows:


Sec.  534.304  Basic pay for staff positions.

* * * * *
    (b) Employees in staff and other non-executive level positions of 
temporary organizations must be paid locality payments in addition to 
basic pay in the same manner as employees covered by 5 U.S.C. 5304. 
Locality-adjusted rates of basic pay may not exceed the locality-
adjusted rate of basic pay for grade GS-15 of the General Schedule 
under 5 U.S.C. 5304, for the locality pay area involved (not to exceed 
the rate for level IV of the Executive Schedule).
* * * * *
[FR Doc. 02-25848 Filed 10-9-02; 8:45 am]
BILLING CODE 6325-39-P