14188 Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Rules and Regulations

OFFICE OF PERSONNEL

MANAGEMENT

5 CFR Part 591

RIN 3206–AH07

Cost-of-Living Allowances (Nonforeign

Areas)

AGENCY: Office of Personnel

Management.

ACTION: Interim rule.

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 cola@opm.gov.

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-ofliving 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 Costof-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

Allowance area/category

Current

rate

New

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.

Geographic coverage/

allowance category

Authorized

allowance

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
Federal Register / Vol. 62, No. 57 / Tuesday, March 25, 1997 / Rules and Regulations 14189

Geographic coverage/

allowance category

Authorized

allowance

rate

(percent)

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

Geographic coverage/

allowance category

Authorized

allowance

rate

(percent)

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