Pay Under the General Schedule; Locality Pay Areas for 1998

SUMMARY: The Office of Personnel Management is issuing proposed

regulations to remove two metropolitan areas from the ``Rest of U.S.''

locality pay area and establish two new locality pay areas in January

1998 corresponding to these metropolitan areas. The two metropolitan

areas affected by this proposed regulation are Hartford, CT, and

Orlando, FL. These proposed changes are based on a recommendation of

the Federal Salary Council. The purpose of this notice is to solicit

public comments on the boundaries of locality pay areas recommended by

the Federal Salary Council before the President's Pay Agent makes a

final determination on this matter.

DATES: Comments must be received on or before November 25, 1996.

ADDRESSES: Comments may be sent or delivered to Donald J. Winstead,

Assistant Director for Compensation Policy, Human Resources Systems

Service, Office of Personnel Management, Room 6H31, 1900 E Street NW.,

Washington, DC 20415 (FAX: (202) 606-0824).

FOR FURTHER INFORMATION CONTACT:

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

SUPPLEMENTARY INFORMATION: Section 5304(a)(1) of title 5, United States

Code, provides that locality payments shall be payable within each

locality determined to have a pay disparity greater than 5 percent.

Section 5304(f)(1) authorizes the President's Pay Agent (consisting of

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 provide for such pay localities as the Pay Agent considers

appropriate. In so doing, 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 and representatives of Federal employee organizations. Members

of the Federal Salary Council are appointed by the President and meet

regularly to consider issues related to the locality pay system for

General Schedule employees.

Starting with the January 1996 locality payments, 5 U.S.C.

5304(d)(1) requires the Pay Agent to make recommendations to the

President on the locality pay areas no later than 13 months before the

start of the calendar year for which the locality payments are paid. In

late 1995, the President's Pay Agent adopted the recommendations of the

Federal Salary Council concerning locality pay areas for 1997 in their

entirety. These recommendations resulted in the establishment of a

total of 30 locality pay areas consisting of 29 areas corresponding to

Metropolitan Statistical Areas (MSA's) or Consolidated Metropolitan

Statistical Areas (CMSA's) (as defined by OMB), including certain

``areas of application'' contiguous to two areas, plus one area

composed of the ``Rest of U.S.'' (See 61 FR 40949, August 7, 1996.) If

OMB makes changes in the boundaries of MSA's and CMSA's, the boundaries

of the corresponding locality pay areas are automatically changed

accordingly.

At its meeting on October 4, 1996, the Federal Salary Council

recommended that two areas--Hartford, CT, and Orlando, FL--be removed

from the ``Rest of U.S.'' locality pay area and established as separate

locality pay areas effective in January 1998. These two new locality

pay areas ''would be in addition to the 30 locality pay areas

established for the 1997 locality payments.

At the direction of the Pay Agent following an earlier

recommendation of the Federal Salary Council, the Bureau of Labor

Statistics (BLS) conducted additional local salary surveys in 1995-96

in the MSA's for Hartford, CT, and Orlando, FL. The surveys showed that

the pay disparity in the Orlando, FL MSA was slightly below the pay

disparity in the ``Rest of U.S.'' locality pay area. Because the pay

disparity was less than \2/10\ths of a percentage point below the pay

disparity for ``Rest of U.S.,'' the Federal Salary Council recommended

establishing Orlando, FL, as a separate locality pay area. (Under

established policy, any surveyed area with a pay disparity of \2/10\ths

of a percentage point or more below the ``Rest of U.S.'' pay disparity

does not qualify to be established or continued as a locality pay area.

Also, a locality pay area must be dropped if its pay disparity is below

the ``Rest of U.S.'' pay disparity in three consecutive annual

surveys.)

The Federal Salary Council also recommended that the Orlando, FL,

locality pay percentage be set equal to the ``Rest of U.S.'' locality

pay percentage in 1998 and that the Orlando, FL, pay gap be averaged

with the ``Rest of U.S.'' pay gap to determine the combined pay gap for

the two areas. This is consistent with past practices for dealing with

locality pay areas in which the locality pay percentage is below the

``Rest of U.S.'' percentage.

The BLS surveys showed that the pay disparity in the Hartford, CT

MSA was greater than the pay disparity in the ``Rest of U.S.'' locality

pay area. Thus, the Federal Salary Council recommended that the

Hartford, CT MSA be added as a separate locality pay area. It also

recommended that that portion of New London County, CT, outside the

Hartford, CT MSA be added to the Hartford locality pay area as an

``area of application.''

``Areas of application'' are areas contiguous to an MSA or CMSA

that are included in the corresponding pay locality for locality pay

purposes. In 1994, the Federal Salary Council developed the following

criteria for consideration as areas of application to pay localities:

a. County-wide areas of application. To be considered, the affected

county must meet all of the following criteria:

1. Be contiguous to a pay locality.

2. Contain at least 2,000 GS-GM employees.

3. Have a significant level of urbanization, based on 1990 Census

data. (A ``significant level of urbanization'' is defined as a

population density of more than 200 per square mile or at least 90

percent of the population in urbanized areas.)

4. Demonstrate some economic linkage with the pay locality, defined

as

[[Page 55228]]

commuting at a level of 5 percent or more into or from the areas in

question. (The areas in question are the contiguous county under

consideration and the central counties--or in the case of New England,

the central cores--identified by the Census Bureau for the process of

defining the CMSA's or MSA's involved.)

b. Federal facilities crossing pay locality boundaries. To be

included in a pay locality the portion of a federal facility which

crosses pay locality boundaries and which is not in the pay locality

must meet all of the following criteria:

1. Have at least 1,000 GS-GM employees.

2. Have the duty station(s) of the majority of GS-GM employees

within 10 miles of the prime critical survey boundary area.

3. Have a significant number of its employees commuting from the

pay locality.

However, because OMB defines CMSA's and MSA's in New England by

townships and cities instead of counties, the above-stated criteria for

consideration as an ``area of application'' cannot be fully applied to

New London County, part of which is outside the Hartford, CT MSA.

Therefore, the Federal Salary Council has adopted the following set of

criteria for consideration of partial counties as ``areas of

application'':

Criteria for Partial-County Areas of Application in New England

1. The partial-county area must be contiguous to the pay locality

(exclusive of any other areas of application) and must currently be

included in the ``Rest of U.S.'' locality pay area.

2. The partial-county area must contain at least 2,000 GS

employees.

3. The entire county must have a population density of more than

200 per square mile or at least 90 percent of the population in

urbanized areas.

4. The entire county must demonstrate some economic linkage with

the pay locality, defined as commuting at a level of 5 percent or more

into or from the areas in question. (The areas in question are the

entire county under consideration and the central core of the MSA as

defined by the Census Bureau for use in establishing metropolitan

areas.)

Because New London County, CT, meets all of the above-stated

criteria, the Federal Salary Council has recommended that that portion

of New London County, CT, outside the Hartford, CT MSA be included in

the Hartford, CT, locality pay area as an ``area of application.''

The definitions of the MSA's and CMSA's that comprise the locality

pay areas are found in OMB Bulletin No. 96-08, June 28, 1996. Based on

these definitions, the two proposed locality pay areas for 1998 will be

composed of the following geographic areas:

Orlando, FL, Locality Pay Area

Lake County

Orange County

Osceola County

Seminole County

Hartford, CT, Locality Pay Area

Hartford County (part)

Avon town

Berlin town

Bloomfield town

Bristol city

Burlington town

Canton town

East Granby town

East Hartford town

East Windsor town

Enfield town

Farmington town

Glastonbury town

Granby town

Hartford city

Manchester town

Marlborough town

New Britain city

Newington town

Plainville town

Rocky Hill town

Simsbury town

Southington town

South Windsor town

Suffield town

West Hartford town

Wethersfield town

Windsor town

Windsor Locks town

Litchfield County (part)

Barkhamsted town

Harwinton town

New Hartford town

Plymouth town

Winchester town

Middlesex County (part)

Cromwell town

Durham town

East Haddam town

East Hampton town

Haddam town

Middlefield town

Middletown city

Portland town

New London County (all)

Tolland County (part)

Andover town

Bolton town

Columbia town

Coventry town

Ellington town

Hebron town

Mansfield town

Somers town

Stafford town

Tolland town

Vernon town

Willington town

Windham County (part)

Ashford town

Chaplin town

Windham town

The Pay Agent's decision regarding locality pay areas for 1998 must

be made no later than November 30, 1996. Therefore, OPM has established

a 30-day public comment period for these proposed regulations. After

the public comment period, the Pay Agent will consider the comments

received from Federal employees, agencies, employee organizations, and

other interested parties before making its determination on the

establishment of pay localities. The Pay Agent also will consider any

additional views and recommendations expressed directly to the Pay

Agent by any member of the Federal Salary Council or by employee

organizations not represented on the Council. The final regulations

issued by OPM will reflect the Pay Agent's final determination on this

matter.

E.O. 12866, Regulatory Review

This rule has been reviewed by the Office of Management and Budget

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.

James B. King,

Director.

Accordingly, OPM is proposing to amend part 531 of title 5, Code of

Federal Regulations, 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);

[[Page 55229]]

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. 5535(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;

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 F--Locality-Based Comparability Payments

2. 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 the purpose of this

subpart:

(1) Atlanta, GA--consisting of the Atlanta, GA MSA;

(2) Boston-Worcester-Lawrence, MA-NH-ME-CT--consisting of the

Boston-Worcester-Lawrence, MA-NH-ME-CT CMSA;

(3) Chicago-Gary-Kenosha, IL-IN-WI--consisting of the Chicago-Gary-

Kenosha, IL-IN-WI CMSA;

(4) Cincinnati-Hamilton, OH-KY-IN--consisting of the Cincinnati-

Hamilton, OH-KY-IN CMSA;

(5) Cleveland-Akron, OH--consisting of the Cleveland-Akron, OH

CMSA;

(6) Columbus, OH--consisting of the Columbus, OH MSA;

(7) Dallas-Fort Worth, TX--consisting of the Dallas-Fort Worth, TX

CMSA;

(8) Dayton-Springfield, OH--consisting of the Dayton-Springfield,

OH MSA;

(9) Denver-Boulder-Greeley, CO--consisting of the Denver-Boulder-

Greeley, CO MSA;

(10) Detroit-Ann Arbor-Flint, MI--consisting of the Detroit-Ann

Arbor-Flint, MI CMSA;

(11) Hartford, CT--consisting of the Hartford, CT MSA plus that

portion of New London County, CT, not located within the Hartford, CT

MSA;

(12) Houston-Galveston-Brazoria, TX--consisting of the Houston-

Galveston-Brazoria, TX CMSA;

(13) Huntsville, AL--consisting of the Huntsville, AL MSA;

(14) Indianapolis, IN--consisting of the Indianapolis, IN MSA;

(15) Kansas City, MO-KS--consisting of the Kansas City, MO-KS MSA;

(16) Los Angeles-Riverside-Orange County, CA--consisting of the Los

Angeles-Riverside-Orange County, CA CMSA; plus Santa Barbara County,

CA, and that portion of Edwards Air Force Base, CA, not located within

the Los Angeles-Riverside-Orange County, CA CMSA;

(17) Miami-Fort Lauderdale, FL--consisting of the Miami-Fort

Lauderdale, FL CMSA;

(18) Milwaukee-Racine, WI--consisting of the Milwaukee-Racine, WI

CMSA;

(19) Minneapolis-St. Paul, MN-WI--consisting of the Minneapolis-St.

Paul, MN-WI MSA;

(20) New York-Northern New Jersey-Long Island, NY-NJ-CT-PA--

consisting of the New York-Northern New Jersey-Long Island, NY-NJ-CT-PA

CMSA;

(21) Orlando, FL--consisting of the Orlando, FL MSA;

(22) Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD--consisting

of the Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD CMSA;

(23) Pittsburgh, PA--consisting of the Pittsburgh, PA MSA;

(24) Portland-Salem, OR-WA--consisting of the Portland-Salem, OR-WA

CMSA;

(25) Richmond-Petersburg, VA--consisting of the Richmond-

Petersburg, VA MSA;

(26) Sacramento-Yolo, CA--consisting of the Sacramento-Yolo, CA

CMSA;

(27) St. Louis, MO-IL--consisting of the St. Louis, MO-IL MSA;

(28) San Diego, CA--consisting of the San Diego, CA MSA;

(29) San Francisco-Oakland-San Jose, CA--consisting of the San

Francisco-Oakland-San Jose, CA CMSA;

(30) Seattle-Tacoma-Bremerton, WA--consisting of the Seattle-

Tacoma-Bremerton, WA CMSA;

(31) Washington-Baltimore, DC-MD-VA-WV--consisting of the

Washington-Baltimore, DC-MD-VA-WV CMSA, plus St. Mary's County, MD; and

(32) Rest of U.S.--consisting of those portions of the continental

United States not located within another locality pay area.

[FR Doc. 96-27629 Filed 10-24-96; 8:45 am]

BILLING CODE 6325-01-M