[Federal Register: December 12, 1997 (Volume 62, Number 239)]
[Rules and Regulations]
[Page 65311-65313]

OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 531
RIN 3206-AH65


Pay Under the General Schedule; Locality Pay Areas for 1998

AGENCY: Office of Personnel Management.

ACTION: Final rule.
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SUMMARY: The Office of Personnel Management is issuing final
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 regulation are Hartford, CT, and Orlando, FL.
The President's Pay Agent made the final determination on the
boundaries of the new locality pay areas after considering the
recommendations of the Federal Salary Council and public comments.

EFFECTIVE DATE: The regulations are effective on January 1, 1998, and
are applicable on the first day of the first pay period beginning on or
after January 1, 1998.

FOR FURTHER INFORMATION CONTACT: Jeanne D. Jacobson, (202) 606-2858,
FAX: (202) 606-0824, or email: payleave@opm.gov.

SUPPLEMENTARY INFORMATION: On October 25, 1996, the Office of Personnel
Management (OPM) published 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 based on the recommendations of the Federal
Salary Council. (See 61 FR 55227.) OPM received no public comments on
the proposed regulations. Therefore, after considering the views of the
Federal Salary Council, 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 OPM) decided to adopt the Federal Salary
Council's recommendations on the two new locality pay areas. This
determination was reflected in the Pay Agent's November 27, 1996,
report to the President. These final regulations list the locality pay
areas for 1998, including the two new locality pay areas corresponding
to the following Metropolitan Statistical Areas (MSA's) as defined by
OMB--Hartford, CT, including that portion of New London County, CT,
outside the Hartford, CT MSA, and Orlando, FL.
    The definitions of the MSA's and Consolidated Metropolitan
Statistical Areas (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 new locality pay areas for 1998 will be composed
of the following geographic areas:

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

Orlando, FL, Locality Pay Area

Lake County
Orange County
Osceola County
Seminole County

Hartford, CT, Locality Pay Area

    In its November, 27, 1996, report to the President, the President's
Pay Agent accepted the Federal Salary Council's recommendation that
Hartford, CT, be established as a separate locality pay area for
General Schedule (GS) workers in 1998, including the Hartford, CT MSA,
plus that portion of New London County, CT, outside the Hartford, CT
MSA. The Pay Agent also adopted the following criteria recommended by
the Federal Salary Council for consideration of partial counties as
``areas of application'' in New England. These criteria are needed
because OMB uses cities and townships, instead of full counties, to
define metropolitan areas in New England.
    Criteria for partial-county areas of application in New England:
    1. The partial-county area must be contiguous to the pay locality
(exclusive

[[Page 65312]]

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, met all of the above-stated
criteria, the Pay Agent accepted the Federal Salary Council's
recommendation 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'' for 1998.
    After the Pay Agent issued its November 1996 report to the
President reflecting its determination to establish Hartford, CT, as a
new locality pay area for 1998, OPM received a letter from a Member of
Congress expressing interest in including the city of Springfield, MA,
in the Hartford, CT, locality pay area. The Federal Salary Council
determined that Hampden County, MA, which includes the city of
Springfield, does not meet the Federal Salary Council's criteria for
consideration as an ``area of application.''
    Prior to the implementation of locality pay in 1994, the
President's Pay Agent adopted the Federal Salary Council's
recommendation that the boundaries of locality pay areas follow the
boundaries of MSA's and CMSA's as defined by OMB. The Federal Salary
Council also recommended that certain areas outside the boundaries of
an MSA or CMSA (i.e., ``areas of application'') be included in the
locality pay area if they meet certain criteria.
    In order for the Federal Salary Council to recommend an area as a
county-wide area of application, the affected county must--
    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; and
    4. Demonstration 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 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 and MSA's involved.)
    The Federal Salary Council considered Hampden County, MA, under
these criteria as a potential area of application before making its
October 1996 recommendation to the Pay Agent regarding the new
Hartford, CT, locality pay area. However, because Hampden County did
not pass the Federal Salary Council's criterion for GS employment
(having only 908 GS employees as of March 1996), the Federal Salary
Council did not recommend it as an ``area of application'' to the
Hartford, CT, locality pay area.

Orlando, FL, Locality Pay Area

    The President's Pay Agent accepted the Federal Salary Council's
recommendation that Orlando, FL, be established as a separate locality
pay area. Although Bureau of Labor Statistics (BLS) surveys showed the
pay disparity in Orlando was slightly below the pay disparity for the
``Rest of U.S.'' locality pay area, the Federal Salary Council's
established policy provides that any surveyed area with a pay disparity
of less than 2/10ths of a percentage point below the ``Rest of U.S.''
pay disparity may qualify to be established or continued as a locality
pay area.
    The Pay Agent also accepted the Federal Salary Council's
recommendation 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
pay disparity is below the ``Rest of U.S.'' pay disparity. BLS will
continue to conduct surveys in Orlando, and the Pay Agent and the
Federal Salary Council will reconsider these issues in the future.

Waiver of Delay in Effective Date

    Pursuant to 5 U.S.C. 553(d)(3), I find that good cause exists to
make these regulations effective in less than 30 days. The regulations
are being made effective on January 1, 1998, in order for the locality
payments for each locality pay area authorized for 1998 to be
applicable on the first day of the first pay period beginning on or
after January 1, 1998.

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 Part 531

    Government employees, Law enforcement officers, Wages.

Office of Personnel Management.
Janice R. Lachance,
Director.

    Accordingly, OPM is amending 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);
    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;
    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;

[[Page 65313]]

    (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 CMSA;
    (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 48
contiguous States not located in another locality pay area.

[FR Doc. 97-32580 Filed 12-11-97; 8:45 am]
BILLING CODE 6325-01-U