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

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.

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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].

SUPPLEMENTARY 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]]

The 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.

Regulatory 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.

* * * * *

(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]

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