Cost-of-Living Allowances (Nonforeign Areas)

SUMMARY: The Office of Personnel Management (OPM) is publishing

interim regulations that will increase cost-of-living allowance (COLA)

rates paid to General Schedule, U.S. Postal Service, and certain other

Federal employees in Kauai County, Hawaii, and the U.S. Virgin Islands.

These increases result from cost-of-living surveys conducted in Hawaii,

Alaska, Puerto Rico, the U.S. Virgin Islands, and Guam and the

Commonwealth of the Northern Mariana Islands by Runzheimer

International under contract with OPM. The full results of the cost-of-

living surveys are contained in the survey report, which appears after

this interim rule in today's Federal Register. Because it has taken

longer than expected to complete these surveys and calculate the

living-cost indexes, OPM is issuing this interim rule, which is

effective immediately, to implement the COLA rate increases. In the

future, as in the past, OPM plans to announce COLA rate adjustments in

a proposed rule for public notice and comment.

DATES: Effective date: March 25, 1997. Implementation date: The rate

increases authorized by these regulations are to be applied as of the

first day of the first pay period beginning on or after March 25, 1997.

Comment date: Comments must be received on or before June 23, 1997.

ADDRESSES: Send or deliver comments 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, or FAX comments to (202) 606-4264, or email

comments over the Internet to [email protected].

FOR FURTHER INFORMATION CONTACT: Donald L. Paquin, (202) 606-2838.

SUPPLEMENTARY INFORMATION: Under section 5941 of title 5, United States

Code, certain Federal employees in nonforeign areas outside the 48

contiguous States are eligible for cost-of-living allowances (COLA's)

when local living costs are substantially higher than those in

Washington, DC. Nonforeign area COLA's are currently paid in the

following locations: Alaska, Hawaii, Puerto Rico, Guam and the

Commonwealth of the Northern Mariana Islands, and the U.S. Virgin

Islands.

OPM contracted with Runzheimer International to conduct living-cost

surveys in all of the nonforeign allowance areas. During February 1996,

Runzheimer surveyed Alaska, Hawaii, Guam, Puerto Rico, and the U.S.

Virgin Islands. Runzheimer also surveyed the Washington, DC, area,

which is the base or reference area for living-cost comparisons. OPM is

publishing a separate Federal Register notice immediately following

this rulemaking that provides the complete ``Report On 1996 Surveys

Used to Determine Cost-of-Living Allowances in Nonforeign Areas.'' This

report explains the methodology, procedures, and results of the 1996

living-cost surveys.

The increases in COLA rates are summarized in the following table:

Increases in Cola Rates

------------------------------------------------------------------------

Current New

Allowance area/category rate rate

------------------------------------------------------------------------

County of Kauai, Hawaii

All employees...................................... 20.0 22.5

U.S. Virgin Islands

All employees...................................... 17.5 20.0

------------------------------------------------------------------------

OPM is adjusting only those rates that have increased. Rates that

would have otherwise decreased will remain unchanged, as required by a

provision in the Treasury, Postal Service, and General Government

Appropriations Act, 1992 (Pub. L. 102-141), as amended.

Application of 5 U.S.C. 553

Pursuant to paragraphs (b)(3)(B) and (d)(3) of 553 of title 5 of

the United States Code, OPM finds that good cause exists to waive the

publication of proposed rulemaking and the 30- day deferment of

effective date. Because it has taken longer than expected to complete

these surveys and calculate the living-cost indexes, OPM believes it is

in the public interest to implement the COLA rate increases

immediately. In the future, as in the past, OPM plans to announce COLA

rate adjustments in a proposed rule for notice and comment.

Implementation of rate changes

For administrative purposes, the rate increases authorized by

these regulations will be applied as of the first day of the first pay

period beginning on or after [Insert date of publication in the Federal

Register.]

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.

James B. King,

Director.

Accordingly, OPM is amending 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. Appendix A of subpart B is revised to read as follows:

Appendix A of Subpart B--Places and Rates at Which Allowances Shall Be

Paid

This appendix lists the places where a cost-of-living allowance

has been approved and shows the allowance rate to be paid to

employees along with any special eligibility requirements for the

allowance payment. The allowance percentage rate shown is paid as a

percentage of an employee's rate of basic pay.

------------------------------------------------------------------------

Authorized

allowance

Geographic coverage/ allowance category rate

(percent)

------------------------------------------------------------------------

State of Alaska

City of Anchorage and 80-kilometer (50-mile) radius by

road:

All Employees....................................... 25.0

City of Fairbanks and 80-kilometer (50-mile) radius by

road:

All Employees....................................... 25.0

City of Juneau and 80-kilometer (50-mile) radius by

road:

All Employees....................................... 25.0

Rest of the State:

All Employees....................................... 25.0

State of Hawaii

City and County of Honolulu:

All Employees....................................... 22.5

County of Hawaii:

All Employees....................................... 15.0

County of Kauai:

All Employees....................................... 22.5

[[Page 14189]]

County of Maui and County of Kalawao:

All Employees....................................... 22.5

Territory of Guam and Commonwealth of the Northern Mariana

Islands

All Locations:

Local Retail........................................ 22.5

Commissary/Exchange................................. 20.0

Commonwealth of Puerto Rico

All Employees....................................... 10.0

U.S. Virgin Islands

All Employees....................................... 20.0

------------------------------------------------------------------------

Definitions of Allowance Categories

The following are definitions of the allowance categories used

in the tables in this appendix.

All Employees: This category covers all Federal employees

eligible for an allowance under 5 U.S.C. 5941.

Local Retail: This category covers all Federal employees

eligible for an allowance who do not have unlimited access to

commissary and exchange facilities by virtue of their Federal

civilian employment.

Commissary/Exchange: This category covers all Federal

employees eligible for an allowance who have unlimited access to

commissary and exchange facilities by virtue of their Federal

civilian employment.

NOTE: Eligibility for access to military commissary and exchange

facilities is determined by the appropriate military department. If

an employee is furnished with these privileges for reasons

associated with his or her Federal civilian employment, he or she

will receive an identification card that authorizes access to such

facilities. Possession of such an identification card is sufficient

evidence that the employee uses the facilities.

[FR Doc. 97-7380 Filed 3-24-97; 8:45 am]

BILLING CODE 6325-01-F