[Federal Register Volume 69, Number 183 (Wednesday, September 22, 2004)]
[Proposed Rules]
[Pages 56721-56725]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-21302]


 ========================================================================
 Proposed Rules
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains notices to the public of 
 the proposed issuance of rules and regulations. The purpose of these 
 notices is to give interested persons an opportunity to participate in 
 the rule making prior to the adoption of the final rules.
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 

  Federal Register / Vol. 69, No. 183 / Wednesday, September 22, 2004 / 
Proposed Rules  

[[Page 56721]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 531

RIN 3206-AJ45


General Schedule Locality Pay Areas

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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

SUMMARY: The Office of Personnel Management is issuing proposed 
regulations on behalf of the President's Pay Agent to link the 
definitions of General Schedule locality pay area boundaries to the 
geographic scope of metropolitan area definitions established by the 
Office of Management and Budget. This proposal makes use of new 
criteria for evaluating areas adjacent to locality pay areas. The 
proposed regulations would retain all of the existing locality pay 
areas, which would be expanded to include a number of additional 
locations.

DATES: We must receive comments on or before November 8, 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: Allan Hearne, (202) 606-2838; FAX: 
(202) 606-4264; e-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 5304 of title 5, United States Code, 
authorizes locality pay for General Schedule (GS) employees with duty 
stations in the contiguous United States and the District of Columbia. 
By law, locality pay is set by comparing GS pay rates with non-Federal 
pay rates for the same levels of work in each locality pay area. Non-
Federal pay levels are estimated by means of salary surveys conducted 
by the Bureau of Labor Statistics (BLS). Currently, there are 32 
locality pay areas: 31 separate metropolitan locality pay areas and a 
Rest of U.S. (RUS) locality pay area that consists of all locations in 
the contiguous United States that are not part of one of the 31 
separate metropolitan locality pay areas.
    Section 5304(f) of title 5, United States Code, authorizes the 
President's Pay Agent (the Secretary of Labor, the Director of the 
Office of Management and Budget (OMB), and the Director of the Office 
of Personnel Management (OPM)) to determine locality pay areas. The 
boundaries of locality pay areas must be based on appropriate factors, 
which may include local labor market patterns, commuting patterns, and 
the practices of other employers. The Pay Agent must give thorough 
consideration to the views and recommendations of the Federal Salary 
Council, a body composed of experts in the fields of labor relations 
and pay policy and representatives of Federal employee organizations. 
The President appoints the members of the Federal Salary Council, which 
submits annual recommendations to the President's Pay Agent about the 
locality pay program.
    Based on the Council's 1993 recommendations, the Pay Agent approved 
using Metropolitan Statistical Area (MSA) and Consolidated Metropolitan 
Statistical Area (CMSA) definitions established by OMB as the basis for 
defining GS locality pay areas. In the 1990s, OMB defined MSAs and 
CMSAs based on population size, population density, and commuting 
patterns. Each MSA consisted of a densely populated and highly 
integrated core composed of central counties and outlying counties with 
a high level of commuting to/from the central counties meeting certain 
population size/density criteria. CMSAs were composed of adjacent MSAs 
that met specified commuting criteria. The criteria for establishing 
MSAs in the 1990s are available on the Internet at: http://www.census.gov/population/www/estimates/mastand.html.
    OMB defines MSAs to establish geographic standards to be used by 
all Federal agencies in reporting statistical data. MSAs are not 
specifically designed for use in any non-statistical program. 
Nevertheless, the Council and the Pay Agent concluded that MSAs should 
serve as the basis for locality pay areas because they were based on 
population and commuting patterns, two factors that are also important 
in defining local labor markets. Furthermore, MSAs already existed, 
were used in BLS salary survey programs, and covered large areas, all 
of which were thought to reduce the level of controversy over locality 
pay area boundaries and simplify Federal pay administration.
    The Council also recommended and the Pay Agent approved criteria 
for adding adjoining areas to locality pay areas that were not part of 
the MSA or CMSA as defined by OMB. The Council's criteria for adding 
adjoining areas to locality pay areas were based on GS employment, 
population density, and commuting patterns. The criteria were 
intentionally made difficult to pass in order to limit the number of 
added areas because the use of MSAs and CMSAs already resulted in very 
large locality pay areas.
    OMB redefines MSAs after each census and released new MSA 
definitions based on new criteria and 2000 census data in June 2003. 
Under the new criteria, OMB now identifies outlying counties for MSAs 
based only on commuting rates. Population size and population density 
are no longer considered. Any county where 25 percent or more of the 
resident workers commute to central counties, or 25 percent of the 
persons employed in the county commute from central counties, is 
included in the MSA. Adjacent highly-related MSAs where 25 percent or 
more resident workers commute to/from the adjacent MSA are now 
incorporated into Combined Statistical Areas (CSAs). Finally, OMB 
created a new category of Micropolitan Statistical Areas, which have a 
core population of less than 50,000. The new criteria for establishing 
MSAs are available on the Internet at: http://www.whitehouse.gov/omb/fedreg/metroareas122700.pdf, and the new MSA definitions can be found 
at: http://www.whitehouse.gov/omb/bulletins/fy04/b04-03.html.
    Because MSAs are designed for statistical reporting purpose only, 
OMB cautions that other Federal agencies should carefully consider MSAs 
before using the definitions in their non-statistical programs. The 
Federal Salary Council's Working Group met six times and the full 
Council met twice in 2003 to review the new MSA definitions, new 
commuting pattern data from the 2000 census, and other information. In 
its

[[Page 56722]]

letter of October 28, 2003, to the President's Pay Agent, the Council 
recommended that the Pay Agent use the new MSA definitions in the 
locality pay program as the basis for defining locality pay areas in 
2005 and beyond. The Council's recommendations can be found at: http://www.opm.gov/oca/fsc/recommendation03.asp.
    The Council concluded that Micropolitan Areas that are not part of 
a CSA should not be considered in the locality pay program. The Pay 
Agent notes that some CSAs are composed solely of Micropolitan Areas. 
The Pay Agent concludes that Micropolitan Areas will be considered for 
the locality pay program only if they are part of a CSA that includes 
one or more MSAs.
    The Council also recommended that full county MSAs be used in New 
England. In the 1990s, MSAs and CMSAs composed of townships had been 
used to define locality pay areas in New England.
    The Pay Agent tentatively approved these recommendations of the 
Council in its 2003 Report to the President (see http://www.opm.gov/oca/payagent/2003/index.asp) and has asked OPM to revise subpart F of 
part 531 of title 5, Code of Federal Regulations, accordingly.

Effect of Adopting New MSA and CSA Definitions on Locality Pay Areas

    Adopting the new MSA and CSA definitions would add the following 
counties to existing locality pay areas effective in January 2005:

Atlanta-Sandy Springs-Gainesville, GA Combined Statistical Area

    Butts County, GA; Chambers County, AL; Dawson County, GA; Hall 
County, GA; Haralson County, GA; Heard County, GA; Jasper County, GA; 
Lamar County, GA; Meriwether County, GA; Pike County, GA; Polk County, 
GA; Troup County, GA; and Upson County, GA.

Boston-Worcester-Manchester, MA-NH Combined Statistical Area

    Belknap County, NH; the remainder of Hillsborough, Merrimack, 
Rockingham, and Strafford Counties, NH; and the remainder of Worcester 
County, MA.

Chicago-Naperville-Michigan City, IL-IN-WI Combined Statistical Area

    Jasper County, IN; LaPorte County, IN; and Newton County, IN.

Cincinnati-Middletown-Wilmington, OH-KY-IN Combined Statistical Area

    Bracken County, KY; Clinton County, OH; and Franklin County, IN.

Columbus-Marion-Chillicothe, OH Combined Statistical Area

    Fayette County, OH; Knox County, OH; Marion County, OH; Morrow 
County, OH; Ross County, OH; and Union County, OH.

Dallas-Fort Worth, TX Combined Statistical Area

    Cooke County, TX; Delta County, TX; Palo Pinto County, TX; 
Somervell County, TX; and Wise County, TX.

Dayton-Springfield-Greenville, OH Combined Statistical Area

    Champaign County, OH; Darke County, OH; and Preble County, OH.

Denver-Aurora-Boulder, CO Combined Statistical Area

    Clear Creek County, CO; Elbert County, CO; Gilpin County, CO; and 
Park County, CO.

Hartford-West Hartford-Willimantic, CT Combined Statistical Area

    The remainder of Hartford, Middlesex, Tolland, and Windham 
Counties, CT.

Houston-Baytown-Huntsville, TX Combined Statistical Area

    Austin County, TX; Matagorda County, TX; San Jacinto County, TX; 
and Walker County, TX.

Huntsville-Decatur, AL Combined Statistical Area

    Lawrence County, AL, and Morgan County, AL.

Indianapolis-Anderson-Columbus, IN Combined Statistical Area

    Bartholomew County, IN; Brown County, IN; Henry County, IN; 
Jennings County, IN; Montgomery County, IN; and Putnam County, IN.

Kansas City-Overland Park-Kansas City, MO-KS Combined Statistical Area

    Atchison County, KS; Bates County, MO; Caldwell County, MO; 
Franklin County, KS; Johnson County, MO; and Linn County, KS.

Miami-Fort Lauderdale-Miami Beach, FL Metropolitan Statistical Area

    Palm Beach County, FL.

Minneapolis-St. Paul-St. Cloud, MN-WI Combined Statistical Area

    Benton County, MN; Goodhue County, MN; McLeod County, MN; Rice 
County, MN; and Stearns County, MN.

New York-Newark-Bridgeport, NY-NJ-CT-PA Combined Statistical Area

    The remainder of Litchfield County, CT, and Ulster County, NY.

Orlando-The Villages, FL Combined Statistical Area

    Sumter County, FL.

Pittsburgh-New Castle, PA Combined Statistical Area

    Armstrong County, PA, and Lawrence County, PA.

Portland-Vancouver-Beaverton, OR-WA Metropolitan Statistical Area

    Skamania County, WA.

Richmond, VA Metropolitan Statistical Area

    Amelia County, VA; Caroline County, VA; Cumberland County, VA, King 
and Queen County, VA; King William County, VA; Louisa County, VA; and 
Sussex County, VA.

Sacramento-Arden-Arcade-Truckee, CA-NV Combined Statistical Area

    Douglas County, NV, and Nevada County, CA.

St. Louis-St. Charles-Farmington, MO-IL Combined Statistical Area

    Bond County, IL; Calhoun County, IL; Macoupin County, IL; St. 
Francois County, MO; Washington County, MO.

San Jose-San Francisco-Oakland, CA Combined Statistical Area

    San Benito County, CA.

Seattle-Tacoma-Olympia, WA Combined Statistical Area

    Mason County, WA.

Washington-Baltimore-Northern Virginia, DC-MD-VA-WV Combined 
Statistical Area

    Frederick County, VA, the City of Winchester, VA; and Hampshire 
County, WV.

Criteria for Areas of Application

    The Council also recommended changes in the criteria used to 
evaluate areas adjacent to an MSA-based locality pay area for inclusion 
in the pay area as one or more ``areas of application.'' The criteria 
currently in effect require that adjacent counties (or partial counties 
in New England) in the RUS locality pay area must have--
     2,000 or more GS employees,
     a 5 percent or higher level of commuting to/from the core 
of the MSA, and
     200 or more persons per square mile OR 80 percent of the 
population living in urbanized areas.
    Under another criterion recommended by the Council and approved by 
the Pay Agent in the 1990s, the State of Rhode Island was evaluated 
under the county criteria as a single

[[Page 56723]]

county. There are also existing criteria for evaluating a Federal 
facility that crosses locality pay area boundaries. These criteria 
require that the portion of the facility outside the locality pay area 
must have--
     at least 1,000 GS employees,
     the duty stations of the majority of GS employees within 
10 miles of the locality, and
     a significant number of employees who commute from the pay 
locality.
    In its letter of October 28, 2003, the Council recommended new 
criteria for evaluating adjacent areas for inclusion in a locality pay 
area based on GS employment and commuting rates. In the Council's view, 
the most relevant criteria are GS employment and commuting rates. The 
GS employment criterion measures the magnitude of potential problems in 
terms of the Federal workforce, and the commuting criterion measures 
the economic linkage among the areas and the likely recruitment or 
retention problems that might result if the county is excluded from the 
adjacent locality pay area. The Council recommended that metropolitan 
areas adjacent to locality pay areas be evaluated first and that single 
adjacent counties be evaluated second.

Proposed New Criteria for Areas of Application

    The Council recommended three new sets of criteria for evaluating 
adjacent areas:
    1. For adjacent MSAs and CSAs: To be included in an adjacent 
locality pay area, an adjacent MSA or CSA currently in the RUS locality 
pay area must have at least 1,500 GS employees and an employment 
interchange measure of at least 7.5 percent.
    2. For adjacent counties that are not part of a multi-county MSA or 
CSA: To be included in an adjacent locality pay area, an adjacent 
county that is currently in the RUS locality pay area must have at 
least 400 GS employees and an employment interchange measure of at 
least 7.5 percent.
    3. For Federal facilities that cross locality pay area boundaries: 
To be included in an adjacent locality pay area, that portion of a 
Federal facility outside of a higher-paying locality pay area must have 
at least 750 GS employees, the duty stations of the majority of those 
employees must be within 10 miles of the separate locality pay area, 
and a significant number of those employees must commute to work from 
the higher-paying locality pay area.
    For the purpose of evaluating areas under the Council's new 
criteria, OPM used a 4-quarter average of GS employment from its 
Central Personnel Data File. Commuting rates were calculated from data 
obtained from the Bureau of the Census. OPM used full MSAs and CSAs for 
calculating commuting rates, not central counties only. For calculating 
commuting rates, OPM used the Employment Interchange Measure defined by 
the Bureau of the Census as ``the sum of the percentage of employed 
residents of the smaller entity who work in the larger entity and the 
percentage of the employment in the smaller entity that is accounted 
for by workers who reside in the larger entity.''

Proposed New MSA-Based Areas of Application

    Application of the Council's first set of criteria to adjacent MSAs 
and CSAs would result in the following MSAs being included in a 
separate metropolitan locality pay area:

Boston-Worcester-Manchester, MA-NH Combined Statistical Area

    The Providence-New Bedford-Fall River, RI-MA MSA, composed of 
Bristol County, MA and all five counties in Rhode Island.

Denver-Aurora-Boulder, CO Combined Statistical Area

    The Fort Collins-Loveland, CO MSA, composed of Larimer County, CO.

Hartford-West Hartford-Willimantic, CT Combined Statistical Area

    The Springfield, MA MSA, composed of Franklin, Hampden, and 
Hampshire Counties, MA.

Los Angeles-Long Beach-Riverside, CA Combined Statistical Area

    The Santa Barbara-Santa Maria-Goleta, CA MSA, composed of Santa 
Barbara County, CA.

San Jose-San Francisco-Oakland, CA Combined Statistical Area

    The Salinas, CA MSA, composed of Monterey County, CA.

Washington-Baltimore-Northern Virginia, DC-MD-VA-WV Combined 
Statistical Area

    The Hagerstown-Martinsburg, MD-WV MSA, composed of Washington 
County, MD, and Berkeley and Morgan Counties, WV.

New Single County Areas of Application

    Application of the Council's second set of criteria to single 
counties that are not part of a multi-county MSA or CSA would result in 
the following counties being included in a separate metropolitan 
locality pay area:

Boston-Worcester-Manchester, MA-NH Combined Statistical Area

    Barnstable County, MA.

Hartford-West Hartford-Willimantic, CT Combined Statistical Area

    New London County, CT.

Indianapolis-Anderson-Columbus, IN Combined Statistical Area

    Grant County, IN.

Miami-Fort Lauderdale-Miami Beach, FL Metropolitan Statistical Area

    Monroe County, FL.

New York-Newark-Bridgeport, NY-NJ-CT-PA Combined Statistical Area

    Monroe County, PA.

Philadelphia-Camden-Vineland, PA-NJ-DE-MD Combined Statistical Area

    Kent County, DE.

Sacramento--Arden-Arcade--Truckee, CA-NV Combined Statistical Area

    Carson City, NV.

San Jose-San Francisco-Oakland, CA Combined Statistical Area

    San Joaquin County, CA.

Washington-Baltimore-Northern Virginia, DC-MD-VA-WV Combined 
Statistical Area

    King George County, VA.

Effect on Federal Facilities That Cross County Lines

    Application of the Council's third set of criteria would result in 
the continued inclusion of all of Edwards Air Force Base, CA, in the 
Los Angeles locality pay area.

Retained Areas

    The Council also recommended that any county (or partial county in 
the case of portions of York County, ME) currently included in a 
metropolitan locality pay area be retained in the locality pay area if 
the county or partial county has an Employment Interchange Measure of 
15 percent or more with the area covered by the new MSA or CSA 
definition. Application of this rule would result in the following 
areas being retained in separate metropolitan locality pay areas:

Boston-Worcester-Manchester, MA-NH Combined Statistical Area

    Berwick town, Eliot town, Kittery town, South Berwick town, and 
York town in York County, ME.

Denver-Aurora-Boulder, CO Combined Statistical Area

    Weld County, CO.

[[Page 56724]]

Detroit-Warren-Flint, MI Combined Statistical Area

    Lenawee County, MI.

New York-Newark-Bridgeport, NY-NJ-CT-PA Combined Statistical Area

    Warren County, NJ.

Philadelphia-Camden-Vineland, PA-NJ-DE-MD Combined Statistical Area

    Atlantic County, NJ, and Cape May County, NJ.

Portland-Vancouver-Beaverton, OR-WA Metropolitan Statistical Area

    Marion County, OR, and Polk County, OR.

Washington-Baltimore-Northern Virginia, DC-MD-VA-WV Combined 
Statistical Area

    Culpeper County, VA.

Locality Pay Areas the Council Recommended Be Discontinued

    Noting the disparity between Federal and non-Federal pay levels in 
the Kansas City, Orlando, and St. Louis locality pay areas as compared 
to the disparity in the RUS locality pay area, the Council recommended 
that the Pay Agent discontinue these three locality pay areas. The Pay 
Agent tentatively agreed to this change in its 2003 report to the 
President. Upon further review, however, the Pay Agent has determined 
that it would be advisable to continue to monitor the disparity between 
Federal and non-Federal pay levels in the Kansas City, Orlando, and St. 
Louis areas before determining whether those areas should be 
discontinued. The Pay Agent will seek the views of the Federal Salary 
Council on this matter and include its findings in its annual report to 
the President on the GS locality pay program later this year.

Impact and Implementation

    The Pay Agent plans to implement the Council's recommendations on 
locality pay area boundaries, as described above, in January 2005. 
Overall, the proposed changes in locality pay area boundaries would 
move about 15,000 GS employees to metropolitan locality pay areas from 
the RUS locality pay area, and retain about 16,000 GS employees in 
metropolitan locality pay areas that would have been excluded if only 
the new MSA definitions were used.
    In the event of a change in the geographic coverage of a locality 
pay area as a result of the addition by OMB of a new area(s) to the 
definition of an MSA or CSA or as the result of any change made by the 
President's Pay Agent in the definition of a locality pay area, the 
proposed regulations provide that any change in an employee's 
entitlement to a locality rate of pay will be made effective as of the 
first pay period that begins on or after January 1 of the next calendar 
year. In addition, the proposed regulations provide that any area 
removed by OMB from coverage within an MSA or CSA that serves as the 
basis for defining a locality pay area must be reviewed by the Federal 
Salary Council and the President's Pay Agent before a decision is made 
regarding the locality pay status of that area.

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 would not have a significant 
economic impact on a substantial number of small entities because they 
would 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.
    Accordingly, OPM is proposing to amend 5 CFR part 531 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 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

    2. In Sec.  531.602, the definition of CMSA is removed, a 
definition of CSA is added, and the definition of MSA is revised to 
read as follows:


Sec.  531.602  Definitions.

* * * * *
    CSA means the geographic scope of a Combined Statistical Area, as 
defined by the Office of Management and Budget (OMB) in OMB Bulletin 
No. 04-03, plus any areas subsequently added to the CSA by OMB.
* * * * *
    MSA means the geographic scope of a Metropolitan Statistical Area, 
as defined by the Office of Management and Budget (OMB) in OMB Bulletin 
No. 04-03, plus any areas subsequently added to the MSA by OMB.
* * * * *
    3. 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 purposes of this 
subpart:
    (1) Atlanta-Sandy Springs-Gainesville, GA-AL--consisting of the 
Atlanta-Sandy Springs-Gainesville, GA-AL CSA;
    (2) Boston-Worcester-Manchester, MA-NH-ME-RI--consisting of the 
Boston-Worcester-Manchester, MA-NH CSA, plus the Providence-New 
Bedford-Fall River, RI-MA MSA, Barnstable County, MA, and Berwick, 
Eliot, Kittery, South Berwick, and York towns in York County, ME;
    (3) Chicago-Naperville-Michigan City, IL-IN-WI--consisting of the 
Chicago-Naperville-Michigan City, IL-IN-WI CSA;
    (4) Cincinnati-Middletown-Wilmington, OH-KY-IN--consisting of the 
Cincinnati-Middletown-Wilmington, OH-KY-IN CSA;
    (5) Cleveland-Akron-Elyria, OH--consisting of the Cleveland-Akron-
Elyria, OH CSA;
    (6) Columbus-Marion-Chillicothe, OH--consisting of the Columbus-
Marion-Chillicothe, OH CSA;
    (7) Dallas-Fort Worth, TX--consisting of the Dallas-Fort Worth, TX 
CSA;
    (8) Dayton-Springfield-Greenville, OH-sconsisting of the Dayton-
Springfield-Greenville, OH CSA;
    (9) Denver-Aurora-Boulder, CO--consisting of the Denver-Aurora-
Boulder, CO CSA, plus the Ft. Collins-Loveland, CO MSA and Weld County, 
CO;
    (10) Detroit-Warren-Flint, MI--consisting of the Detroit-Warren-
Flint, MI CSA, plus Lenawee County, MI;
    (11) Hartford-West Hartford-Willimantic, CT-MA--consisting of the 
Hartford-West Hartford-Willimantic, CT CSA, plus the Springfield, MA 
MSA and New London County, CT;

[[Page 56725]]

    (12) Houston-Baytown-Huntsville, TX--consisting of the Houston-
Baytown-Huntsville, TX CSA;
    (13) Huntsville-Decatur, AL--consisting of the Huntsville-Decatur, 
AL CSA;
    (14) Indianapolis-Anderson-Columbus, IN--consisting of the 
Indianapolis-Anderson-Columbus, IN CSA, plus Grant County, IN;
    (15) Kansas City-Overland Park-Kansas City, MO-KS--consisting of 
the Kansas City-Overland Park-Kansas City, MO-KS CSA;
    (16) Los Angeles-Long Beach-Riverside, CA--consisting of the Los 
Angeles-Long Beach-Riverside, CA CSA, plus the Santa Barbara-Santa 
Maria-Goleta, CA MSA and all of Edwards Air Force Base, CA;
    (17) Miami-Fort Lauderdale-Miami Beach, FL--consisting of the 
Miami-Fort Lauderdale-Miami Beach, FL MSA, plus Monroe County, FL;
    (18) Milwaukee-Racine-Waukesha, WI--consisting of the Milwaukee-
Racine-Waukesha, WI CSA;
    (19) Minneapolis-St. Paul-St. Cloud, MN-WI--consisting of the 
Minneapolis-St. Paul-St. Cloud, MN-WI CSA;
    (20) New York-Newark-Bridgeport, NY-NJ-CT-PA--consisting of the New 
York-Newark-Bridgeport, NY-NJ-CT-PA CSA, plus Monroe County, PA, and 
Warren County, NJ;
    (21) Orlando-The Villages, FL--consisting of the Orlando-The 
Villages, FL CSA;
    (22) Philadelphia-Camden-Vineland, PA-NJ-DE-MD--consisting of the 
Philadelphia-Camden-Vineland, PA-NJ-DE-MD CSA, plus Kent County, DE, 
Atlantic County, NJ, and Cape May County, NJ;
    (23) Pittsburgh-New Castle, PA--consisting of the Pittsburgh-New 
Castle, PA CSA;
    (24) Portland-Vancouver-Beaverton, OR-WA--consisting of the 
Portland-Vancouver-Beaverton, OR-WA MSA, plus Marion County, OR, and 
Polk County, OR;
    (25) Richmond, VA--consisting of the Richmond, VA MSA;
    (26) Sacramento--Arden-Arcade--Truckee, CA-NV--consisting of the 
Sacramento--Arden-Arcade--Truckee, CA-NV CSA, plus Carson City, NV;
    (27) St. Louis-St. Charles-Farmington, MO-IL--consisting of the St. 
Louis-St. Charles-Farmington, MO-IL CSA;
    (28) San Diego-Carlsbad-San Marcos, CA--consisting of the San 
Diego-Carlsbad-San Marcos, CA MSA;
    (29) San Jose-San Francisco-Oakland, CA--consisting of the San 
Jose-San Francisco-Oakland, CA CSA, plus the Salinas, CA MSA and San 
Joaquin County, CA;
    (30) Seattle-Tacoma-Olympia, WA--consisting of the Seattle-Tacoma-
Olympia, WA CSA;
    (31) Washington-Baltimore-Northern Virginia, DC-MD-VA-WV--
consisting of the Washington-Baltimore-Northern Virginia, DC-MD-VA-WV 
CSA, plus the Hagerstown-Martinsburg, MD-WV MSA, Culpeper County, VA, 
and King George County, VA; and
    (32) Rest of U.S.--consisting of those portions of the continental 
United States not located within another locality pay area.
    4. In Sec.  531.606, paragraph (g) is revised to read as follows:


Sec.  531.606  Administration of locality rates of pay.

* * * * *
    (g) In the event of a change in the geographic coverage of a 
locality pay area as a result of the addition by OMB of a new area(s) 
to the definition of an MSA or CSA or as the result of any change made 
by the President's Pay Agent in the definition of a locality pay area, 
the effective date of any change in an employee's entitlement to a 
locality rate of pay under this subpart is the first day of the first 
pay period beginning on or after January 1 of the next calendar year. 
Any area removed by OMB from coverage within an MSA or CSA that serves 
as the basis for defining a locality pay area must be reviewed by the 
Federal Salary Council and the President's Pay Agent before a decision 
is made regarding the locality pay status of that area.
* * * * *
[FR Doc. 04-21302 Filed 9-17-04; 2:47 pm]
BILLING CODE 6325-39-P