[Federal Register Volume 70, Number 149 (Thursday, August 4, 2005)]
[Proposed Rules]
[Pages 44976-44977]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-15097]



[[Page 44975]]

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Part II





Office of Personnel Management





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5 CFR Part 591



Cost-of-Living Allowances (Nonforeign Areas); COLA Rate Changes; 
Proposed Rule



2002, 2003, and 2004 Nonforeign Area Cost-of-Living Allowance Survey 
Reports; Notices

  Federal Register / Vol. 70, No. 149 / Thursday, August 4, 2005 / 
Proposed Rules  

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OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 591

RIN 3206-AK67


Cost-of-Living Allowances (Nonforeign Areas); COLA Rate Changes

AGENCY: Office of Personnel Management.

ACTION: Proposed rule.

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SUMMARY: The Office of Personnel Management (OPM) is publishing a 
proposed regulation to change the cost-of-living allowance (COLA) rates 
received by certain white-collar Federal and U.S. Postal Service 
employees in Alaska, Hawaii, Guam and the Northern Mariana Islands, 
Puerto Rico, and the U.S. Virgin Islands. The changes are the result of 
living-cost surveys conducted by OPM in 2002, 2003, and 2004.

DATES: We must receive comments on or before October 3, 2005.

ADDRESSES: Send or deliver written comments to Donald J. Winstead, 
Deputy Associate Director for Pay and Performance Policy, Strategic 
Human Resources Policy Division, 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: Donald L. Paquin, (202) 606-2838; fax: 
(202) 606-4264; or e-mail: [email protected].

SUPPLEMENTARY INFORMATION: Section 5941 of title 5, United States Code, 
authorizes Federal agencies to pay cost-of-living allowances (COLAs) to 
white-collar Federal and U.S. Postal Service employees stationed in 
Alaska, Hawaii, Guam and the Northern Mariana Islands, Puerto Rico, and 
the U.S. Virgin Islands. Executive Order 10000, as amended, delegates 
to the Office of Personnel Management (OPM) the authority to administer 
nonforeign area COLAs and prescribes certain operational features of 
the program. OPM conducts living-cost surveys in each allowance area 
and in the Washington, DC, area to determine whether, and to what 
degree, COLA area living costs are higher than those in the DC area. 
OPM sets the COLA rate for each area based on the results of these 
surveys.
    In 2002, 2003, and 2004, OPM conducted living-cost surveys in the 
various COLA areas. In 2002, OPM surveyed Puerto Rico, the U.S. Virgin 
Islands, and the Washington, DC, area. OPM published the results of 
these Caribbean surveys in the Federal Register on February 9, 2004, at 
69 FR 6020. In 2003, OPM surveyed Anchorage, Fairbanks, and Juneau, 
Alaska, and the Washington, DC, area. OPM published the results of 
these surveys on March 12, 2004, at 69 FR 12002. In 2004, OPM conducted 
living-cost surveys in Honolulu County, Kailua Kona, Hilo, Kauai 
County, Maui County, Guam, and the Washington, DC, area. OPM is 
publishing the results of these Pacific surveys in a notice that 
accompanies this proposed rule. OPM also is publishing the results of 
new shelter (rent) price analyses for the 2002 Caribbean surveys and 
the 2003 Alaska surveys in a notice that accompanies this proposed 
rule.

Proposed COLA Rate Changes

    As described in these reports, OPM compared the results of each of 
the COLA area surveys with the results of the DC area survey to derive 
a living-cost index for each of the COLA areas. The results of the 
living-cost surveys indicate that OPM should increase COLA rates in the 
U.S. Virgin Islands; Hawaii County, HI; Kauai County, HI; and Maui 
County, HI. The results also indicate that OPM should not change the 
COLA rate for the rest of the State of Alaska; Honolulu County, HI; and 
Guam and the Northern Mariana Islands, but should reduce COLA rates in 
Puerto Rico and in Anchorage, Fairbanks, and Juneau, Alaska. Under 
section 591.228(c) of title 5, Code of Federal Regulations, COLA rate 
reductions are limited to no more than 1 percentage point per year.

                           Proposed COLA Rates
------------------------------------------------------------------------
                                                  Current
            Allowance area/category                 rate       New rate
                                                 (percent)    (percent)
------------------------------------------------------------------------
Puerto Rico...................................         11.5         10.5
U.S. Virgin Islands...........................         22.5         23.0
Anchorage, Alaska.............................         25.0         24.0
Fairbanks, Alaska.............................         25.0         24.0
Juneau, Alaska................................         25.0         24.0
Rest of the State of Alaska...................         25.0         25.0
Honolulu County, Hawaii.......................         25.0         25.0
Hawaii County, Hawaii.........................         16.5         19.0
Kauai County, Hawaii..........................        23.25         25.0
Maui County, Hawaii...........................        23.75         25.0
Guam and the Northern Mariana Islands.........         25.0         25.0
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Executive Order 12866, Regulatory Review

    This rule has been reviewed by the Office of Management and Budget 
in accordance with Executive Order 12866.

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.
Linda M. Springer,
Director.
    Accordingly, OPM proposes to amend subpart B of 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 5 CFR part 591 continues 
to read as follows:

    Authority: 5 U.S.C. 5941; E.O. 10000, 3 CFR, 1943-1948 Comp., p. 
792; and E.O. 12510, 3 CFR, 1985 Comp., p. 338.


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    2. Revise appendix A of subpart B to read as follows:

Appendix A to Subpart B of Part 591--Places and Rates at Which 
Allowances Are Paid

    This appendix lists the places approved for a cost-of-living 
allowance and shows the authorized allowance rate for each area. The 
allowance percentage rate shown is paid as a percentage of an 
employee's rate of basic pay. The rates are subject to change based 
on the results of future surveys.

------------------------------------------------------------------------
                                                              Allowance
                    Geographic coverage                          rate
                                                              (percent)
------------------------------------------------------------------------
State of Alaska:
    City of Anchorage and 80-kilometer (50-mile) radius by          24.0
     road..................................................
    City of Fairbanks and 80-kilometer (50-mile) radius by          24.0
     road..................................................
    City of Juneau and 80-kilometer (50-mile) radius by             24.0
     road..................................................
    Rest of the State......................................         25.0
State of Hawaii:
    City and County of Honolulu............................         25.0
    Hawaii County, Hawaii..................................         19.0
    County of Kauai........................................         25.0
    County of Maui and County of Kalawao...................         25.0
Territory of Guam and Commonwealth of the Northern Mariana          25.0
 Islands...................................................
Commonwealth of Puerto Rico................................         10.5
U.S. Virgin Islands........................................         23.0
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[FR Doc. 05-15097 Filed 8-3-05; 8:45 am]
BILLING CODE 6325-39-P