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.

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REGISTER issue of each week.

Rules and Regulations Federal Register

23937 

Vol. 74, No. 98 

Friday, May 22, 2009 

OFFICE OF PERSONNEL 

MANAGEMENT 

5 CFR Parts 531 and 550 

RIN 3206–AL61 

Determining Rate of Basic Pay; 

Collection by Offset From Indebted 

Government Employees 

AGENCY: U.S. Office of Personnel 

Management. 

ACTION: Final rule. 

SUMMARY: The U.S. Office of Personnel 

Management is issuing final regulations 

to conform with provisions of the 

National Defense Authorization Act for 

Fiscal Year 2008. The final regulations 

revise the rules regarding setting pay for 

certain employees who move from 

nonappropriated fund instrumentality 

(NAFI) positions to General Schedule 

positions. Also, the final regulations 

allow certain NAFIs to collect debts 

owed to them by Federal employees via 

salary offset and allow Federal agencies 

to collect debts by offsetting salary 

payments of certain NAFI employees. 

DATES: The regulations are effective on 

June 22, 2009. 

FOR FURTHER INFORMATION CONTACT: 

David Barash by telephone at (202) 606– 

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

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

SUPPLEMENTARY INFORMATION: On August 

27, 2008, the U.S. Office of Personnel 

Management (OPM) issued proposed 

regulations (73 FR 50575) to revise the 

rules regarding setting pay for certain 

employees who move from 

nonappropriated fund instrumentality 

(NAFI) positions to General Schedule 

(GS) positions. Also, the regulations 

proposed to allow certain NAFIs to 

collect debts owed to them by Federal 

employees via salary offset and allow 

Federal agencies to collect debts by 

offsetting salary payments of certain 

NAFI employees. OPM issued the 

proposed regulations to conform with 

sections 652 and 1114 of the National 

Defense Authorization Act for Fiscal 

Year 2008 (Pub. L. 110–181, January 28, 

2008), hereafter referred to as ‘‘the Act.’’ 

These sections became effective on 

January 28, 2008. (Note: We issued 

guidance, including examples, as a 

complement to the changes in law 

under section 1114 of the Act regarding 

pay setting. We encourage agencies and 

employees to review these materials on 

OPM’s Web site at http://www.opm.gov/ 

oca/pay/HTML/NAFI.asp.) 

The 60-day comment period for the 

proposed regulations ended on October 

27, 2008. This Federal Register notice 

addresses the one comment we received 

from an individual. 

Comment Applicable to General 

Schedule Basic Pay Setting 

The individual commented on the 

proposed revisions to the pay-setting 

rules. Proposed 5 CFR 531.216(c) 

provides that when an employee moves 

voluntarily to a GS position in the 

Department of Defense (DOD) or the 

United States Coast Guard (USCG) from 

a NAFI position in DOD or USCG, 

respectively, without a break in service 

of more than 3 days, the agency may set 

the employee’s rate of basic pay above 

the minimum step based on the 

employee’s NAFI highest previous rate 

(HPR). The agency also may use the 

maximum payable rate rule in § 531.221 

based on a non-NAFI rate of basic pay 

if that rule produces a higher rate than 

using the employee’s NAFI HPR. 

Under § 531.216(d), when such an 

employee in DOD or USCG is moved 

involuntarily to a GS position from a 

NAFI position in DOD or USCG, 

respectively, without a break in service 

of more than 3 days, the employee is 

entitled to an initial payable rate of 

basic pay at the lowest step rate of the 

GS grade that is equal to or greater than 

the employee’s rate of basic pay in the 

NAFI position immediately before the 

move. 

The individual expressed concern 

about the additional costs for such paysetting rules and believed that every 

move to a GS position will result in a 

pay increase. The individual 

recommended that OPM provide cost 

data. 

We disagree and are not adopting this 

recommendation. Because of the small 

number of affected employees and the 

limited conditions under which the paysetting rules may be applied, the 

incrementally higher cost of setting pay 

under the revised rules is negligible. In 

addition, a covered NAFI employee 

would not necessarily receive a pay 

increase when he or she moves 

voluntarily to a GS position; his or her 

NAFI HPR could equal a GS step rate, 

for example, or the agency may set the 

employee’s pay at any GS step rate 

below the employee’s NAFI HPR or nonNAFI maximum payable rate. 

The commenter also recommended 

that OPM revise the regulations to 

ensure that employees who move to pay 

banding positions do not receive a pay 

increase. This recommendation is 

outside of the scope of the regulations. 

The regulations provide the pay-setting 

rules for NAFI employees moving to GS 

positions, not NAFI employees moving 

to pay banding positions. 

Therefore, we are adopting the 

proposed rule as final without a change. 

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 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 Parts 531 and 

550 

Administrative practice and 

procedure, Claims, Government 

employees, Law enforcement officers, 

Wages. 

John Berry, 

Director, U.S. Office of Personnel 

Management. 

■ Accordingly, OPM amends 5 CFR 

parts 531 and 550 as follows: 

PART 531—PAY UNDER THE 

GENERAL SCHEDULE 

■ 1. The authority citation for part 531 

is revised to read as follows: 

Authority: 5 U.S.C. 5115, 5307, and 5338; 

sec. 4 of Public Law 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), 5305, 5333, 5334(a) and (b), 

and 7701(b)(2); Subpart D also issued under 

5 U.S.C. 5335 and 7701(b)(2); Subpart E also 

issued under 5 U.S.C. 5336; Subpart F also 


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23938 Federal Register / Vol. 74, No. 98 / Friday, May 22, 2009 / Rules and Regulations 

issued under 5 U.S.C. 5304 and 5305; E.O. 

12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 

682; and E.O. 13106, 63 FR 68151, 3 CFR, 

1998 Comp., p. 224. 

Subpart B—Determining Rate of Basic 

Pay 

■ 2. In § 531.216, paragraphs (a), (c)(1), 

(c)(2)(i), (c)(2)(ii), (d)(1), and (d)(2)(i) are 

revised to read as follows: 

§ 531.216 Setting pay when an employee 

moves from a Department of Defense or 

Coast Guard nonappropriated fund 

instrumentality. 

(a) General. This section governs the 

setting of pay for an employee who 

moves to a GS position in the 

Department of Defense or the Coast 

Guard from a position in a 

nonappropriated fund instrumentality 

(NAFI) (as described in 5 U.S.C. 2105(c)) 

of the Department of Defense or the 

Coast Guard, respectively, without a 

break in service of more than 3 days. If 

an employee moves from a NAFI 

position to a GS position with a break 

of more than 3 days or moves from a 

NAFI position in the Department of 

Defense or the Coast Guard to a GS 

position outside of the Department of 

Defense or the Coast Guard, 

respectively, the employee has no 

special conversion rights and this 

section does not apply. 

* * * * * 

(c) Voluntary move. (1) For a 

Department of Defense or Coast Guard 

employee who moves voluntarily, 

without a break in service of more than 

3 days, from a NAFI position in the 

Department of Defense or the Coast 

Guard to a GS position in the 

Department of Defense or the Coast 

Guard, respectively, the agency may set 

the employee’s initial payable rate of 

basic pay at the lowest step rate in the 

highest applicable rate range currently 

in effect for the employee’s GS position 

of record and official worksite which 

equals or exceeds the employee’s NAFI 

highest previous rate of pay, or any 

lower step rate, except as provided in 

paragraph (c)(2) or (3) of this section. 

The employee’s initial payable rate of 

basic pay may not exceed the maximum 

step rate (step 10). 

(2) * * * 

(i) Compare the NAFI highest 

previous rate to the highest applicable 

rate range currently in effect in the 

location where the employee was 

stationed while earning that rate. The 

highest applicable rate range is 

determined based on the pay schedules 

that would be applicable to the 

employee’s current GS position of 

record if the employee were stationed in 

that location. Identify the lowest step 

rate in the highest applicable rate range 

that was equal to or exceeded the NAFI 

highest previous rate. If the NAFI 

highest previous rate is less than the 

range minimum, identify the minimum 

step rate (step 1). If the NAFI highest 

previous rate exceeds the range 

maximum, identify the maximum step 

rate (step 10). 

(ii) Identify the step rate in the highest 

applicable rate range for the employee’s 

current official worksite and position of 

record that corresponds to the step rate 

derived under paragraph (c)(2)(i) of this 

section. That corresponding rate is the 

maximum payable rate at which the 

agency may set the employee’s pay 

under this section, except as provided 

by paragraph (c)(3) of this section. The 

agency may set the employee’s rate of 

basic pay at any step rate that does not 

exceed that maximum payable rate. 

* * * * * 

(d) Involuntary move. (1) For a 

Department of Defense or Coast Guard 

employee who is moved involuntarily 

(as defined in paragraph (d)(3) of this 

section), without a break in service of 

more than 3 days, from a NAFI position 

in the Department of Defense or the 

Coast Guard to a GS position with 

substantially the same duties in the 

Department of Defense or the Coast 

Guard, respectively, the employee is 

entitled to an initial payable rate of 

basic pay at the lowest step rate of the 

grade that is equal to or greater than the 

employee’s rate of basic pay in the NAFI 

position immediately before the move. If 

the employee’s former NAFI rate 

exceeds the range maximum, identify 

the maximum step rate (step 10). 

(2) * * * 

(i) The lowest step rate within the 

highest applicable rate range for the 

employee’s GS position of record and 

official worksite that equals or exceeds 

the employee’s NAFI highest previous 

rate, or any lower step rate (consistent 

with the method prescribed in 

paragraphs (c)(1) and (2) of this section); 

* * * * * 

PART 550—PAY ADMINISTRATION 

(GENERAL) 

Subpart K—Collection by Offset From 

Indebted Government Employees 

■ 3. The authority citation for subpart K 

of part 550 continues to read as follows: 

Authority: 5 U.S.C. 5514; sec. 8(1) of E.O. 

11609; redesignated in sec. 2–1 of E.O. 

12107. 

■ 4. In § 550.1103, the definition of 

agency is revised to read as follows: 

§ 550.1103 Definitions. 

* * * * * 

Agency means an executive 

department or agency; a military 

department; the United States Postal 

Service; the Postal Regulatory 

Commission; any nonappropriated fund 

instrumentality described in 5 U.S.C. 

2105(c); the United States Senate; the 

United States House of Representatives; 

any court, court administrative office, or 

instrumentality in the judicial or 

legislative branches of the Government; 

or a Government corporation. If an 

agency under this definition is a 

component of an agency, the broader 

definition of agency may be used in 

applying the provisions of 5 U.S.C. 

5514(b) (concerning the authority to 

prescribe regulations). 

* * * * * 

[FR Doc. E9–12006 Filed 5–21–09; 8:45 am] 

BILLING CODE 6325–39–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2009–0473; Directorate 

Identifier 2009–CE–027–AD; Amendment 

39–15915; AD 2009–11–05] 

RIN 2120–AA64 

Airworthiness Directives; Air Tractor, 

Inc. Models AT–400, AT–400A, AT–402, 

AT–402A, AT–402B, AT–502, AT–502A, 

AT–502B, AT–503A, AT–602, AT–802, 

and AT–802A Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Final rule; request for 

comments. 

SUMMARY: We are adopting a new 

airworthiness directive (AD) to 

supersede AD 2008–10–12, which 

applies to certain Air Tractor, Inc. AT– 

400, AT–500, AT–600, and AT–800 

series airplanes. AD 2008–10–12 

currently requires repetitively 

inspecting the engine mounts for cracks, 

repairing any crack damage found, and 

installing gussets as a terminating action 

for the repetitive inspections. This AD 

results from a report of a Model AT–602 

airplane with a crack completely 

through the gusset that was installed as 

required in AD 2008–10–12. 

Consequently, this AD would require 

you to continue repetitively inspecting 

the engine mounts for cracks for all 

previously affected Air Tractor, Inc. 

AT–400, AT–500, AT–600, and AT–800 

series airplanes with or without gussets 

installed, and repairing any crack 

damage found. We are issuing this AD 

to detect and correct cracks in the 


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