This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

12031 

Vol. 72, No. 50 

Thursday, March 15, 2007 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR PART 211 

RIN 3206–AL00 

Veterans’ Preference 

AGENCY: Office of Personnel 

Management. 

ACTION: Final rule. 

SUMMARY: The Office of Personnel 

Management (OPM) is adopting as a 

final rule, without changes, an interim 

rule that implemented amendments to 

veterans’ preference as contained in the 

National Defense Authorization Act for 

FY 2006. These amendments expanded 

the definition of a veteran and clarified 

veterans’ preference eligibility for 

individuals discharged or released from 

active duty under honorable conditions. 

The intended effect of the regulatory 

changes was to conform OPM’s 

regulations to the changes in the 

veterans’ preference laws, to ensure that 

job-seeking veterans received the 

preference to which they are entitled. 

DATES: Final rule effective March 15, 

2007. 

FOR FURTHER INFORMATION CONTACT: 

Scott A. Wilander by telephone at (202) 

606–0960; by fax at (202) 606–0390; 

TTY at (202) 606–3134; or by e-mail at 

Scott.Wilander@opm.gov. 

SUPPLEMENTARY INFORMATION: On June 9, 

2006, OPM issued an interim rule with 

request for comments at 71 FR 33375, to 

amend its regulation for implementing 

statutory changes regarding veterans’ 

preference. This rule: (1) Expanded the 

definition of a veteran in 5 CFR 

211.102(a) to include individuals who 

served on active duty for more than 180 

consecutive days, other than for 

training, any part of which occurred 

during the period beginning September 

11, 2001, and ending on the date 

prescribed by Presidential proclamation 

or by law as the last day of Operation 

Iraqi Freedom; (2) revised § 211.102(a) 

to include anyone who served on active 

duty during the period beginning 

August 2, 1990, and ending January 2, 

1992, as previously established by the 

National Defense Authorization Act for 

Fiscal Year 1998 (Public Law 105–85); 

(3) clarified that individuals who are 

released or discharged from active duty 

in the armed forces, as opposed to being 

separated from the armed forces, may 

receive veterans’ preference provided 

these individuals meet other applicable 

veterans’ preference eligibility 

requirements; and (4) amended 

§ 211.102(g) to correspond with the 

changes in § 211.102(a) and (b) by 

replacing the term ‘‘Separated under 

honorable conditions’’ with ‘‘Discharged 

or released from active duty’’ consistent 

with the statutory change contained in 

the Act. 

OPM received written comments from 

one agency and 7 individuals, and one 

voice-mail comment from an individual. 

Of the nine comments received, three 

expressed concern and confusion as to 

whether dishonorably discharged 

veterans would receive veterans’ 

preference under the new criteria. As 

stated in the interim regulation and 

§ 211.102(g), a veteran must have been 

separated under honorable conditions 

(i.e., an honorable or general discharge) 

to be eligible for veterans’ preference 

under these provisions. 

One individual asked whether 

agencies must grant veterans’ preference 

to employees currently on their rolls 

who did not have the preference 

documented at the time the interim 

regulation was published. Agencies are 

not required to update their employees’ 

Official Personnel Files (OPF) as a result 

of the interim regulation. Because 

veterans’ preference is a consideration 

in a reduction in force (RIF), any agency 

preparing for a RIF must update their 

employees’ OPFs (block 26 on the 

Standard Form—50) to ensure that 

individuals entitled to veterans’ 

preference are accorded their rights for 

RIF purposes. 

One agency asked OPM to clarify the 

phrase, ‘‘the date prescribed by 

Presidential proclamation or by law as 

the last day of Operation Iraqi Freedom’’ 

contained in § 211.102(a)(6). The phrase 

refers to the ending date (yet to be 

determined) of the period during which 

anyone who served on active duty and 

is otherwise eligible is entitled to 

veterans’ preference under these 

provisions. The President, through 

proclamation, or Congress, through 

legislation, is responsible for 

designating the termination date of 

military operations which qualify for 

veterans’ preference. OPM will revise 

the regulations and update the VetGuide 

when this ending date becomes 

available. 

Another commenter asked whether 

the expanded veterans’ preference 

criteria in § 211.102(a)(6) is for purposes 

of granting 5-point veterans’ preference 

or for some other purpose. Anyone who 

meets the criteria in § 211.102(a)(6), and 

is otherwise eligible, is entitled to 5- 

point veterans’ preference as well as 

additional protection during a reduction 

in force. Otherwise eligible in this 

context means the veteran must meet 

the requirements of § 211.201(g) and 

have served either 24 months of 

continuous active duty, or the full 

period of time called or ordered to 

active duty. OPM is updating VetGuide 

to clarify this information. 

One individual asked whether the 

veterans’ preference criteria in 

§ 211.102(a)(6) included veterans at the 

rank of major and above. The provision 

in § 211.102(a)(6) made no change to the 

statutory restriction against veterans’ 

preference entitlement for retired 

officers at the rank of major and above. 

Therefore, military retirees at the rank of 

major, lieutenant commander, or higher 

are not eligible for preference in 

appointment unless they are disabled 

veterans (this restriction does not apply 

to reservists who will not begin drawing 

military retired pay until age 60). 

One individual asked OPM to clarify 

whether a veteran must have served 

continuously for 24 months in order to 

be eligible under § 211.102(a)(6). A 

veteran must have served continuously 

for 24 months, or the full period called 

or ordered to active duty, in order to be 

eligible for veterans’ preference under 

§ 211.102(a)(6). This requirement, 

contained in 38 U.S.C. 5303A, 

prescribes a minimum of 2 years, 

service (or the full period called or 

ordered to active duty) for those 

enlisting after September 7, 1980, or 

who enter on active duty after October 

14, 1982. This requirement does not 

apply to individuals seeking 10-point 

veterans’ preference on the basis of a 

service-connected disability. OPM will 


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12032 Federal Register / Vol. 72, No. 50 / Thursday, March 15, 2007 / Rules and Regulations 

update VetGuide to further clarify the 

application of the 24-month 

requirement. 

One commenter recommended OPM 

replace the word ‘‘badge’’ with ‘‘medal’’

or ‘‘badge or medal’’ in § 211.102(a)(2). 

OPM is not adopting this 

recommendation because the reference 

to ‘‘badge’’ is contained in law at 5 

U.S.C. 2108(1)(A). Further, military 

personnel receive many awards and 

decorations which are determined by 

the Department of Defense. OPM and its 

predecessor agency, the Civil Service 

Commission, have always used the 

terms ‘‘badge’’ and ‘‘medal’’

interchangeably, as appropriate. We 

believe VetGuide provides sufficient 

explanation of the many badges and 

medals which qualify for purposes of 

veterans’ preference. 

The same individual asked OPM to 

clarify in the final regulation whether an 

Army ‘‘service medal’’ qualifies an 

individual for veterans’ preference 

under part 211. OPM is not adopting 

this suggestion. The list of military 

campaigns, expeditions, awards, and 

decorations qualifying for veterans’

preference is too lengthy to be contained 

in this part. However, OPM lists this 

information in Appendix A of VetGuide 

available on-line at http:// 

www.opm.gov/veterans/html/ 

vgmedal2.asp. In general, service 

medals are not qualifying for purposes 

of veterans’ preference. 

One commenter asked OPM to 

explain the significance of changing 

‘‘separated’’ to ‘‘released or discharged’’

in § 211.102(a), (b), and (g). OPM 

modified part 211 in order to be 

consistent with recent statutory changes 

to 5 U.S.C. 2108. With these changes the 

law, OPM’s implementing regulations, 

and Department of Defense (DD) Form 

214, Certificate of Release or Discharge 

from Active Duty, the form used by 

veterans to claim 5-point veterans’

preference, all use the same language 

which should make it easier for eligible 

veterans to receive their entitlement. 

E.O. 12866, Regulatory Review 

This rule has been reviewed by the 

Office of Management and Budget in 

accordance with Executive Order 12866. 

Regulatory Flexibility Act 

I certify that this regulation would not 

have a significant economic impact on 

a substantial number of small entities 

(including small businesses, small 

organizational units, and small 

governmental jurisdictions) because it 

affects only Federal agencies employees. 

List of Subjects in 5 CFR Part 211 

Government employees, Veterans. 

Office of Personnel Management. 

Linda M. Springer, 

Director. 

■ Accordingly, the interim rule 

amending part 211 of title 5, Code of 

Federal Regulations, which was 

published at 71 FR 33375 on June 9, 

2006, is adopted as a final rule without 

changes. 

[FR Doc. E7–4697 Filed 3–14–07; 8:45 am] 

BILLING CODE 6325–39–P 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR PARTS 317, 353, 550, and 551 

RIN 3206–AL21 

Employment in the Senior Executive 

Service, Restoration To Duty From 

Uniformed Service or Compensable 

Injury, Pay Administration (General), 

and Pay Administration Under the Fair 

Labor Standards Act; Miscellaneous 

Changes to Pay and Leave Rules 

AGENCY: Office of Personnel 

Management. 

ACTION: Final rule. 

SUMMARY: The Office of Personnel 

Management is issuing final regulations 

to amend a number of rules on pay and 

leave administration, including 

employment in the Senior Executive 

Service, use of paid leave during 

uniformed service, time limits for using 

compensatory time off earned in lieu of 

overtime pay, and other miscellaneous 

changes. The final regulations are being 

issued to standardize pay and leave 

policies in support of the consolidation 

of agency human resources and payroll 

systems. 

DATES: The regulations are effective on 

May 14, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Sharon Dobson by telephone at (202) 

606–2858; by fax at (202) 606–0824; or 

by e-mail at pay-performancepolicy@opm.gov. 

SUPPLEMENTARY INFORMATION: On 

January 5, 2005, the Office of Personnel 

Management (OPM) issued a 

comprehensive package of proposed 

regulations on Restoration to Duty From 

Uniformed Service or Compensable 

Injury; Payrates and Systems (General); 

Pay Under the General Schedule; Pay 

Administration (General); Pay 

Administration Under the Fair Labor 

Standards Act; Recruitment and 

Relocation Bonuses; Retention 

Allowances; Supervisory Differentials; 

Hours of Duty; and Absence and Leave 

(70 FR 1068). The proposed regulations 

are available at http://www.opm.gov/ 

fedregis. The 60-day comment period 

ended on March 7, 2005. We received a 

total of 93 comments on the proposed 

regulations. 

In these final regulations, we are 

addressing the revisions to rules 

concerning the retention of pay and 

benefits for a Senior Executive Service 

(SES) member who accepts a 

Presidential appointment, use of paid 

leave during uniformed service, time 

limits for using compensatory time off 

earned in lieu of overtime pay, and 

other miscellaneous rules. We have 

already published regulations for some 

of the subject areas included in the 

January 2005 proposed regulations in 

separate issuances in the Federal 

Register. Comments received on the 

proposed changes to the rules on 

Adjustments of Work Schedules for 

Religious Observances, Hours of Duty, 

and Absence and Leave will be 

addressed in subsequent issuances in 

the Federal Register. 

Except as otherwise stated in this 

supplementary information, the purpose 

of the revisions in these final 

regulations is to standardize pay and 

leave policies in support of the 

consolidation of agency human 

resources and payroll systems and in 

general to aid agencies in the 

administration of these programs. All 

revisions are being made to regulations 

in title 5, Code of Federal Regulations. 

Regulations Already Issued 

Some of the changes included in the 

January 2005 proposed regulations have 

already been addressed in subsequent 

regulations issued by OPM on May 13, 

2005, May 31, 2005, and August 17, 

2006, as discussed below. 

The January 2005 regulations 

proposed to amend the definition of rate 

of basic pay in §§ 575.103, 575.203, and 

575.303 to clarify that night pay and 

environmental differential pay under 

the Federal Wage System are not 

included in the rate of basic pay for the 

purposes of recruitment, relocation, and 

retention incentives. The amended 

definition of rate of basic pay for the 

purpose of recruitment, relocation, and 

retention incentives was included in 

OPM’s interim regulations issued on 

May 13, 2005, for recruitment, 

relocation, and retention incentives (70 

FR 25732). The interim regulations are 

available at http://www.opm.gov/ 

fedregis. 

The January 2005 regulations 

proposed to add a new § 531.605 to 

define the requirements for determining 

an employee’s official worksite for the 

purpose of identifying an employee’s 

location-based pay entitlements, 

including locality rates and special 


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