[Federal Register Volume 62, Number 54 (Thursday, March 20, 1997)]
[Proposed Rules]
[Pages 13354-13355]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7071]


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Proposed Rules
                                                Federal Register
________________________________________________________________________

This section of the FEDERAL REGISTER contains notices to the public of 
the proposed issuance of rules and regulations. The purpose of these 
notices is to give interested persons an opportunity to participate in 
the rule making prior to the adoption of the final rules.

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Federal Register / Vol. 62, No. 54 / Thursday, March 20, 1997 / 
Proposed Rules

[[Page 13354]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 591

RIN 3206-AH51


Cost-of-Living Allowances (Nonforeign Areas)

AGENCY: Office of Personnel Management.

ACTION: Notice of proposed rulemaking.

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SUMMARY: As authorized by law, the Office of Personnel Management (OPM) 
provides in its regulations for the payment of nonforeign area cost-of-
living allowances (COLA's) in Alaska, Hawaii, and other nonforeign 
overseas areas. OPM is proposing four regulatory changes in the COLA 
program. One change would remove obsolete references that refer 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 State Department for employees in 
foreign areas.

DATES: Comments must be received on or before May 19, 1997.

ADDRESSES: Send or deliver comments to Donald J. Winstead, Assistant 
Director, Office of Compensation Policy, Human Resources Systems 
Service, Office of Personnel Management, Room 6H31, 1900 E Street NW., 
Washington, DC 20415, or FAX to (202)606-4264.

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

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 (COLA's) when local living costs are 
substantially higher than those in the Washington, DC, area. Nonforeign 
area COLA's are paid in Alaska, Hawaii, Puerto Rico, the U.S. Virgin 
Islands, and Guam and the Commonwealth of the Northern Mariana Islands.

Obsolete Regulatory References

    Section 591.203 of title 5, Code of Federal Regulations, refers to 
hiring authorities under 5 CFR 213.3102(v) and (w), which are no longer 
used. These authorities covered Summer Aids paid the minimum wage and 
Stay-in-School positions paid less than the lowest rate on the General 
Schedule. Paragraphs (v) and (w) of Sec. 213.3102 are currently 
reserved, and OPM proposes to remove the references from Sec. 591.203.

Pay Systems Linked or Equivalent to the Senior Executive Service

    OPM proposes to add parenthetical language in Sec. 591.203(a)(1) 
and (3) to clarify that the Foreign Service includes the Senior Foreign 
Service and that the Senior Executive Service includes the Federal 
Bureau of Investigation (FBI) and the Drug Enforcement Administration 
(DEA) Senior Executive Service. Members of the Senior Foreign Service 
and the FBI-DEA Senior Executive Service currently receive COLA's. The 
proposed change is a technical amendment designed to make these 
references consistent with others used in title 5, Code of Federal 
Regulations.

Coverage of Employees Under Other Pay Systems

    In place of the obsolete references in Sec. 591.203(b), OPM 
proposes to add language that would authorize agencies to apply subpart 
B to other positions as authorized by specific statutes applicable to 
those other positions and consistent with the intent of 5 U.S.C. 5941. 
Section 5941 authorizes payment of COLA to employees in nonforeign 
areas whose rates of pay are set by statute. When 5 U.S.C. 5941 was 
enacted in 1948, the rates of pay for employees under several pay 
systems, including the General Schedule, were set by statute. Statutes 
enacted since that time have removed certain positions from the General 
Schedule and required or allowed the pay for these positions to be set 
in a different manner. It has long been the policy of the Federal 
Government to continue the payment of allowances and differentials in 
such cases unless the enabling statutes prohibited such payments. The 
regulatory change OPM proposes recognizes this longstanding policy and 
makes clear that such allowances and differentials are paid in 
accordance with regulations prescribed by OPM under the authority 
delegated to it by the President of the United States.

Post Differential and Long-Term Temporary Assignments

    As authorized in Sec. 591.210(f), payment of an allowance or 
differential begins as of the date of arrival on regular assignment or 
transfer, or on the date of entrance on duty in the case of local 
recruitment. OPM proposes to authorize payment of post differentials to 
employees after 42 consecutive days of temporary assignment in a 
nonforeign area. The purpose of this regulatory change is to make OPM's 
post differential program more consistent with the program administered 
by the State Department for employees temporarily assigned to work in 
foreign areas. Payment of nonforeign area differentials would stop upon 
an employee's departure from a differential area.

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 this regulation would not have a significant 
economic impact on a substantial number of small entities because the 
regulation would affect only Federal agencies and employees.

List of Subjects in 5 CFR Part 591

    Government employees, Travel and transportation expenses, Wages.

U.S. Office of Personnel Management.
James B. King,
Director.
    Accordingly, OPM proposes to amend 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:


[[Page 13355]]


    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 and the 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 begins as of the date 
of an employee's arrival on regular assignment or transfer, or on the 
date of entrance on duty in the case of local recruitment. An employee 
who is temporarily assigned to duty in a 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 assignment in the differential area. Payment of an allowance or 
differential ceases--
    (1) On separation;
    (2) As of the date of departure on transfer to a new post of 
regular assignment; or
    (3) As of the date of departure in the case of an employee on 
temporary assignment to the differential area.
* * * * *
[FR Doc. 97-7071 Filed 3-19-97; 8:45 am]
BILLING CODE 6325-01-P