[Federal Register Volume 69, Number 150 (Thursday, August 5, 2004)]
[Rules and Regulations]
[Pages 47353-47354]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-17842]



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 Rules and Regulations
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  Federal Register / Vol. 69, No. 150 / Thursday, August 5, 2004 / 
Rules and Regulations  

[[Page 47353]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 531

RIN 3206-AK56


Locality-Based Comparability Payments

AGENCY: Office of Personnel Management.

ACTION: Interim rule with request for comments.

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SUMMARY: The Office of Personnel Management is issuing interim 
regulations to provide that a locality rate of pay is considered basic 
pay for the purpose of computing danger pay allowances and post 
differentials for certain employees temporarily assigned to work in 
foreign areas for which the Department of State has established danger 
pay allowances. These regulations will aid agencies in responding to 
emergency, mission-critical staffing needs in support of the Global War 
on Terrorism and other international activities in imminently dangerous 
overseas work locations by increasing the danger pay allowance and post 
differential benefits for employees temporarily assigned to such 
locations.

DATES: Effective Date: August 5, 2004.
    Applicability Date: These regulations apply on the first day of the 
first applicable pay period beginning on or after August 5, 2004.
    Comment Date: Comments must be received on or before October 4, 
2004.

ADDRESSES: Send or deliver comments to Donald J. Winstead, Deputy 
Associate Director for Pay and Performance Policy, Office of Personnel 
Management, Room 7H31, 1900 E Street, NW., Washington, DC 20415-8200; 
FAX: (202) 606-4264; or e-mail: [email protected].

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

SUPPLEMENTARY INFORMATION: The Office of Personnel Management (OPM) is 
issuing interim regulations that amend 5 CFR 531.606(b) to provide that 
a locality rate of pay is considered basic pay for the purpose of 
computing danger pay allowances under 5 U.S.C. 5928 and post 
differentials under 5 U.S.C. 5925(a) for certain employees temporarily 
assigned to work in foreign areas for which the Department of State has 
established danger pay allowances. These regulations will aid agencies 
in responding to emergency, mission-critical staffing needs in 
imminently dangerous overseas work locations in support of the Global 
War on Terrorism and other international activities by increasing the 
danger pay allowance and post differential benefits for employees 
temporarily assigned to such locations.

Overseas Danger Pay Allowances and Post Differentials

    Under 5 U.S.C. 5928, the Department of State may establish a danger 
pay allowance for a foreign area on the basis of civil insurrection, 
civil war, terrorism, or wartime conditions in that area which threaten 
physical harm or imminent danger to the health or well-being of an 
employee. A danger pay allowance may not exceed 25 percent of an 
employee's rate of basic pay. Employees are entitled to receive a 
danger pay allowance if they work in an approved danger pay post for a 
minimum of 4 hours in one day (including while on detail or in a 
temporary duty travel status).
    Under 5 U.S.C. 5925(a), the Department of State may establish a 
post differential for an overseas location based on conditions of 
environment that differ substantially from conditions of environment in 
the continental United States and warrant additional pay as a 
recruitment and retention incentive. A past differential may not exceed 
25 percent of an employee's rate of basic pay. Employees working on 
extended detail or in a temporary duty travel status in an overseas 
location with an approved post differential are entitled to receive the 
post differential after working in a hardship post location for 42 
days.
    The allowance and differential rates established by the Department 
of State apply to all United States Government civilian employees 
overseas, regardless of agency affiliation. Additional information on 
danger pay allowances and post differentials may be obtained from the 
Department of State at http://www.state.gov/m/a/als/.

Locality Rates of Pay

    Locality rates of pay under 5 U.S.C. 5304 and 5 CFR part 531, 
subpart F, are authorized for employees whose official duty stations 
(as defined in 5 CFR 531.602) are located in one of the locality pay 
areas listed in 5 CFR 531.603, covering all locations in the 48 
contiguous States and Washington, DC. Employees with official duty 
stations outside the 48 contiguous States are not entitled to locality 
pay. However, the official duty station of an employee who is 
temporarily assigned to work in a location outside the 48 contiguous 
States while on detail or in a temporary duty travel status generally 
remains the duty station of his or her permanent position of record as 
indicated on the most recent notification of personnel action. Such 
employees are entitled to receive the locality rate of pay associated 
with their official duty station while working overseas.
    Under 5 U.S.C. 5304(c)(2), a locality rate of pay must be 
considered part of basic pay for purposes of retirement under 5 U.S.C. 
chapters 83 or 84, as applicable; life insurance under 5 U.S.C. chapter 
87; premium pay under 5 U.S.C. chapter 55, subchapter V; and for such 
other purposes as may be expressly provided for by law or as OPM may 
prescribe by regulation. OPM regulations provide that a locality rate 
of pay is considered basic pay for purposes of severance pay under 5 
CFR part 550, subpart G, and advances in pay under 5 CFR part 550, 
subpart B. (See 5 CFR 531.606(b).)

Computing Danger Pay Allowances and Post Differentials Using Locality 
Rates of Pay

    These interim regulations amend 5 CFR 531.606(b) to provide that a 
locality rate of pay is considered basic pay for the purpose of 
computing danger pay allowances under 5 U.S.C. 5928 and post 
differentials under 5 U.S.C. 5925(a) for employees temporarily assigned 
to work in a foreign area for which the Department of State has 
established a danger pay allowance. Covered employees must be 
temporarily assigned

[[Page 47354]]

to locations with an approved danger pay allowance (e.g., via a detail 
or while in temporary duty travel status), have an official duty 
station that is located in a locality pay area specified in 5 CFR 
531.603, and receive a locality rate of pay under 5 U.S.C. 5304. Using 
locality rates of pay to compute danger pay allowances and post 
differentials for employees who must work temporarily in imminently 
dangerous overseas duty locations will increase the size of these 
payments and enhance their benefit for affected employees. This, in 
turn, will help agencies better respond to critical staffing needs in 
certain overseas duty locations in support of the Global War on 
Terrorism and other important international activities.
    Prior to the effective date of these regulations, a locality rate 
of pay under 5 U.S.C. 5304 and 5 CFR part 531, subpart F, cannot be 
considered part of an employee's basic pay for the purpose of computing 
any overseas allowance or differential, including those paid to 
employees detailed to or on official travel in a foreign area. Agencies 
must correct the payment of any danger pay allowance, post 
differential, or other overseas allowance or differential paid prior to 
the effective date of these regulations if it was computed using a 
locality rate of pay authorized under 5 U.S.C. 5304. An overpayment may 
be recovered under an agency's regulations for collection by offset 
from an indebted Government employee under 5 U.S.C. 5514 and 5 CFR part 
550, subpart K, or through the appropriate provisions governing Federal 
debt collection if the individual is no longer a Federal employee. 
However, the head of an agency may waive an overpayment under 5 U.S.C. 
5584, as appropriate.

Waiver of Notice of Proposed Rulemaking and Delay in Effective Date

    In order to give practical effect to these regulations at the 
earliest possible moment, I find that good cause exists to waive the 
general notice of proposed rulemaking pursuant to 5 U.S.C. 
553(b)(3)(B). Also, I find that good cause exists for making this rule 
effective in less than 30 days. The delay in effective date is waived 
so that affected agencies and employees may benefit from the new 
provisions as quickly as possible. Increasing the danger pay allowance 
and post differential benefits for employees temporarily assigned to 
imminently dangerous overseas work locations will help agencies respond 
to emergency, mission-critical staffing needs in support of the Global 
War on Terrorism and other important international activities.

E.O. 12866, Regulatory Review

    The Office of Management and Budget has reviewed this rule 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 531

    Government employees, Law enforcement officers, Wages.

Office of Personnel Management.
Kay Coles James,
Director.

0
Accordingly, OPM is amending 5 CFR part 531 as follows:

PART 531--PAY UNDER THE GENERAL SCHEDULE

0
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 Federal Employees Pay Comparability 
Act of 1990 (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 and E.O. 1306, 63 FR 68151, 3 CFR, 1998 Comp., p. 224; 
Subpart G also issued under 5 U.S.C. 5304, 5305, and 5553; section 
302 of the 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

0
2. In Sec.  531.606, a new paragraph (b)(6) is added to read as 
follows:


Sec.  531.606  Administration of locality rates of pay.

* * * * *
    (b) * * *
    (6) Post differentials under 5 U.S.C. 5925(a) and danger pay 
allowances under 5 U.S.C. 5928 for an employee temporarily assigned to 
work in a foreign area for which the Department of State has 
established a danger pay allowance under 5 U.S.C. 5928, when the 
employee's official duty station is located in a locality pay area 
under Sec.  531.603.
* * * * *

[FR Doc. 04-17842 Filed 8-4-04; 8:45 am]
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