Cost-of-Living Allowance (Nonforeign Areas)Miscellaneous Changes

62 FR 63630Federal Register, Volume 62 Issue 231 (Tuesday, December 2, 1997) [Federal Register Volume 62, Number 231 (Tuesday, December 2, 1997)] [Rules and Regulations] [Pages 63630-63631] From the Federal Register Online via the Government Publishing Office [ www.gpo.gov ] [FR Doc No: 97-31537] ----------------------------------------------------------------------- OFFICE OF PERSONNEL MANAGEMENT 5 CFR Part 591 RIN 3206-AH51 Cost-of-Living Allowance (Nonforeign Areas)--Miscellaneous Changes AGENCY: Office of Personnel Management. ACTION: Final rule. ----------------------------------------------------------------------- SUMMARY: The Office of Personnel Management is issuing regulations that implement four changes in the nonforeign area cost-of-living allowance (COLA) program. One change removes obsolete references to hiring authorities no longer in use. A second change clarifies the application of COLA regulations to two pay systems linked to or equivalent to the Senior Executive Service. A third change clarifies the application of COLA regulations to employees under other pay systems. The fourth change extends nonforeign area post differentials to employees on long- term temporary assignments in the same manner as is provided by the Department of State for employees in foreign areas. DATES: These regulations become effective on December 2, 1997. These regulations are applicable on the first day of the first pay period beginning on or after December 2, 1997. FOR FURTHER INFORMATION CONTACT: Paul B. Malerba at (202) 606-2838, FAX: (202) 606-4264, or EMAIL: [email protected] .

62 FR 63630SUPPLEMENTARY INFORMATION: Under section 5941 of title 5, United States Code, and Executive Order 10000, as amended, certain Federal employees in nonforeign areas outside the 48 contiguous States are eligible for cost-of-living allowances (COLAs) when local living costs are substantially higher than those in the Washington, DC, area. These COLAs are paid in Alaska, Hawaii, Puerto Rico, the U.S. Virgin Islands, and Guam and the Commonwealth of the Northern Mariana Islands. [[Page 63631]]

62 FR 63630The Office of Personnel Management (OPM) published proposed rules at 60 FR 13354 on March 20, 1997, concerning four regulatory changes in the COLA program. One change would remove obsolete references to hiring authorities no longer in use. A second change would clarify the application of COLA regulations to two pay systems linked to or equivalent to the Senior Executive Service. A third change would clarify the application of COLA regulations to employees under other pay systems. The fourth change would extend nonforeign area post differentials to employees on long-term temporary assignments in the same manner as is provided by the Department of State for employees in foreign areas. OPM received three comments in response to the publication of the proposed regulations. One commenter endorsed the proposed changes in their entirety. The second commenter recommended including in section 591.201 (Definitions) the minimum length of time required for employees on temporary assignment to receive a differential. The third commenter recommended deleting the 25 percent limitation on allowances plus post differentials combined because there is no equivalent limitation under the Department of State program, and the purpose of OPM's proposed change was to parallel that program. OPM is not adopting the second commenter's recommendation because the minimum period is not a term used throughout the regulations, but rather a criterion that is used only once in section 591.210(b). Therefore, it is not appropriate to include it in the definitions section. OPM is not adopting the third commenter's recommendation because by law nonforeign area COLA and post differentials combined cannot exceed 25 percent. OPM notes that it published an interim rule at 60 FR 25423 on May 9, 1997, in response to changes made by the Federal Employee Travel Reform Act of 1996. The Act affects the status of employees who are assigned to work in another location for an extended period. The interim regulations clarify that the temporary duty station during such an extended assignment must be treated as the official duty station of the employee for purposes of determining the employee's location-based pay entitlements. The interim regulations added a definition of ``official duty station'' to 5 CFR 591.201 for purposes of paying allowances and differentials and changed the term ``permanent duty station'' to ``official duty station'' in 5 CFR 591.210(a) to make these terms consistent with those used in the regulations on locality- based comparability payments. The regulations also make conforming changes in Sec. 591.201 and in paragraphs (b)(1) (redesignated paragraph (c)(1)), and (c) (redesignated paragraph (d)) of Sec. 591.210. OPM has incorporated these changes in this final rule.

62 FR 63630Regulatory Flexibility Act I certify that this regulation will not have a significant economic impact on a substantial number of small entities because it affects 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 amends 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. In Sec. 591.203, paragraphs (a)(1), (a)(3), (a)(6), and (b) are revised to read as follows: Sec. 591.203 Agencies and employees covered. (a) * * * (1) General Schedule. * * * * * (3) Foreign Service (including the Senior Foreign Service). * * * * * (6) Senior Executive Service (including the Federal Bureau of Investigation--Drug Enforcement Administration Senior Executive Service). * * * * * (b) This subpart may be applied, at the sole discretion of the employing agency, to civilian employees in other positions authorized by specific law applicable to such positions, consistent with the intent of 5 U.S.C. 5941. 3. In Sec. 591.210, paragraph (f) is removed, paragraphs (b) through (e) are redesignated as (c) through (f), respectively, and a new paragraph (b) is added to read as follows: Sec. 591.210 Payment of allowances and differentials.

62 FR 63630* * * * * (b) Payment of an allowance or differential will begin on the effective date of the change in the employee's official duty station to a duty station within the allowance or differential area or on the effective date of the appointment in the case of local recruitment. An employee who is detailed for temporary duty in a nonforeign area (i.e., the employee's official duty station is outside the nonforeign area) is eligible for a differential, but not an allowance, except that payment of a differential shall not begin until after 42 consecutive calendar days of temporary duty in the differential area. Payment of an allowance or differential will cease-- (1) On separation; (2) On the effective date of assignment or transfer to a new official duty station outside the allowance or differential area; or (3) On the ending date of a detail, in the case of an employee on detail to temporary duty in a differential area. * * * * * [FR Doc. 97-31537 Filed 12-1-97; 8:45 am] BILLING CODE 6325-01-P