Pay Under the General Schedule; Termination of Interim Geographic Adjustments

SUMMARY: The Office of Personnel Management is issuing final

regulations to implement the termination of interim geographic

adjustments (IGA's) payable to certain Federal employees. The IGA's

were terminated because the locality-based comparability payments the

President authorized for January 1996 exceeded 8 percent in both of the

two remaining IGA areas (New York-Northern New Jersey-Long Island, NY-

NJ-CT-PA, and Los Angeles-Riverside-Orange County, CA).

EFFECTIVE DATE: August 2, 1996.

FOR FURTHER INFORMATION CONTACT:

Jeanne D. Jacobson, (202) 606-2858 or FAX: (202) 606-0824.

SUPPLEMENTARY INFORMATION: On February 1, 1996, the Office of Personnel

Management (OPM) published interim regulations (61 FR 3539) to

implement the termination of IGA's. IGA's were terminated because the

locality-based comparability payments the President authorized for

January 1996 exceeded 8 percent in both of the two remaining IGA areas

(New York-Northern New Jersey-Long Island, NY-NJ-CT-PA, and Los

Angeles-Riverside-Orange County, CA).

The President's alternative pay plan of August 31, 1995, provided

an 8.05-percent comparability payment for the New York-Northern New

Jersey-Long Island, NY-NJ-CT-PA, locality pay area and an 8.15-percent

comparability payment for the Los Angeles-Riverside-Orange County, CA,

locality pay area for 1996. Since the comparability payments exceeded

the 8-percent IGA previously established for these areas, the

President's Executive Order 12984 of December 28, 1995, included no IGA

pay schedules. This had the effect of terminating the IGA's for the New

York and Los Angeles IGA areas. (Executive Order 12944 of December 29,

1994, previously terminated IGA's for the San Francisco-Oakland-San

Jose, CA IGA area because the comparability payment for that area

exceeded 8 percent in January 1995.)

As a result of the termination of IGA's, the interim rule removed 5

CFR part 531, subpart A, ``Interim Geographic Adjustments.'' However,

because some employees in the former IGA areas will continue to receive

``continued rates of pay'' (a form of saved pay established in January

1994 for employees who previously received an IGA on top of a worldwide

or nationwide special rate), the provisions previously found in subpart

A concerning the administration of continued rates of pay were retained

in a new subpart G of part 531. The interim regulations also made

conforming changes in other parts of the regulations to reflect the

termination of IGA's.

The 60-day comment period for the interim regulations ended on

April 1, 1996. OPM received comments by telephone from one agency

asking for clarification of 5 CFR 531.703(i). Section 531.703(i)

provides that an employee's entitlement to a continued rate of pay is

not affected by a temporary promotion or temporary reassignment. The

agency felt this provision could be interpreted incorrectly to provide

entitlement to continued pay during temporary promotions or

reassignments when such assignments involve one of the actions that

ordinarily terminate continued pay, such as when an employee's official

duty station is no longer located in one of the IGA areas. OPM agrees.

We have revised 5 CFR 531.703(i) in the final regulations to

provide that an employee's entitlement to a continued rate of pay is

not affected by a temporary promotion or temporary reassignment, unless

such assignments cause one of the conditions in 5 CFR 531.703(g) to be

satisfied. In such situations, the continued rate is suspended during

the temporary promotion or reassignment. The employee's entitlement to

the continued rate resumes as if never interrupted upon return to his

or her permanent position, as long as the employee is otherwise

eligible to receive that rate. A continued rate that is resumed must

include any pay adjustments authorized for the permanent position

during the period of the temporary promotion or reassignment, as

provided in 5 CFR 531.703(e).

This revision is the only change being made in the interim

regulations. All other provisions of the interim regulations are

adopted as final.

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 Parts 530, 531, 534, 550, 575, 581, 582,

and 630

Administrative practice and procedure, Alimony, Child support,

Claims, Government employees, Hospitals, Law enforcement officers,

Reporting and recordkeeping requirements, Students, and Wages.

Office of Personnel Management.

James B. King,

Director.

Accordingly, the interim rule amending parts 530, 531, 534, 550,

575, 581, 582, and 630 of title 5, Code of Federal Regulations, which

was published at 61 FR 3539 on February 1, 1996, is adopted as final

with the following change:

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 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;

[[Page 34714]]

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;

Subpart G also issued under 5 U.S.C. 5304, 5305, and 5553;

section 302 of the Federal Employees Pay Comparability Act of 1990

(FEPCA), Pub. L. 101-509, 104 Stat. 1462; and E.O. 12786, 56 FR

67453, 3 CFR, 1991 Comp., p. 376.

Subpart G--Continued Rates of Pay

2. In Sec. 531.703, paragraph (i) is revised to read as follows:

Sec. 531.703 Administration of continued rates of pay.

* * * * *

(i) An employee's entitlement to a continued rate of pay is not

affected by a temporary promotion or temporary reassignment, except

that a continued rate shall be suspended when a temporary promotion or

reassignment causes one of the conditions in paragraph (g) of this

section to be satisfied. In such situations, an employee's entitlement

to continued pay will resume as if never interrupted upon return to the

permanent position, subject to the requirements of this subpart. A

continued rate that is resumed shall include any pay adjustments that

were authorized for the permanent position under paragraph (e) of this

section during the period of the temporary promotion or reassignment.

[FR Doc. 96-16942 Filed 7-2-96; 8:45 am]

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