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Akaka Reviewing Proposal to Replace Non-Foreign COLA with Locality Pay for Federal Workers in Hawaii, Alaska, Territories
May 30, 2007
WASHINGTON, D.C. - Today, the Office of Personnel Management (OPM) sent a legislative proposal to Congress that would phase-out the Non-Foreign Cost of Living Adjustment (COLA) and phase-in locality pay for federal employees in Alaska, Hawaii, Territory of Guam, Commonwealth of the Northern Mariana Islands, Commonwealth of Puerto Rico, and the U.S. Virgin Islands. Click here to read the administration's proposal to replace COLA with locality pay. The President proposed the change in compensation policy as part of his Fiscal Year 2008 budget. Since 1948, federal employees in the non-contiguous areas of the U.S. have received Non-Foreign COLA to ensure that their pay reflects the high cost of living. Non-foreign COLA is not subject to federal or Social Security/Medicare taxes. In 1990, the Federal Employees Pay Comparability Act (FEPCA), included provisions for "locality pay," paid to federal employees in the contiguous United States. Non-foreign COLA vs. locality pay: - Unlike COLA, locality pay is taxed and considered part of base pay, which is used to calculate an employee's retirement annuity.
- While COLA reflects a cost-of-living adjustment, locality pay reflects a comparison of federal salaries to private sector salaries in specific geographic areas.
- U.S. Postal Service employees receive Non-Foreign COLA if employed by the Postal Service in the non-contiguous areas. However, postal employees in the contiguous United States do not receive locality pay.
"As chairman of the federal workforce subcommittee, I am carefully reviewing the impact that the Administration's legislative proposal will have on federal employees. In addition, I will continue to seek input from those affected by this proposal," Senator Akaka said. "I look forward to hearing the views of federal employees in Hawaii, Alaska and the U.S. territories. Together we can work to ensure that these federal workers are not disadvantaged when it comes to their compensation or retirement." -30-
Year: 2008 , [2007] , 2006 , 2005 , 2004 , 2003 , 2002 , 2001 , 2000 , 1999 , 1900
May 2007
- Akaka Reviewing Proposal to Replace Non-Foreign COLA with Locality Pay for Federal Workers in Hawaii, Alaska, Territories [May 30, 2007]
- The Iraq Accountability Project: A Wrap-Up of This Week's Senate Oversight on Iraq [May 25, 2007]
- Senate Approves Akaka Amendment to Immigration Bill: Filipino Veterans Family Reunification Act [May 24, 2007]
- Senate Floor Statement: Akaka introduces amendment to immigration bill, the "Filipino Veterans Family Reunification Act" [May 24, 2007]
- Akaka Legislation on Traumatic Brian Injury and Combat Veterans' Access to Care Recieve Strong Support [May 23, 2007]
- Committee on Veterans’ Affairs Approves Nomination of Dr. Michael Kussman to Be Va Undersecretary of Health [May 22, 2007]
- Chairman Akaka Praises VA Agreement to Notify Injured Vets of Potential Medical Expense Reimbursement [May 18, 2007]
- Akaka Holds Hearing to Discuss the Impact of Health Care Premiums on Federal Workers [May 18, 2007]
- Akaka Applauds Final Passage of Budget Resolution Conference Report [May 17, 2007]
- Chairman Akaka Praises Placement Of Blinded Care Specialist For Hawaii Veterans [May 16, 2007]
- Akaka Holds Hearing On Nomination Of Dr. Michael Kussman To Be Veterans Affairs Under Secretary For Health [May 16, 2007]
- Akaka Introduces Legislation to Help Homeless Veterans [May 14, 2007]
- More than $2.4 Million in Homeland Security Funds For Hawaii and Honolulu, Inouye and Akaka Announce
[May 10, 2007]
- "Akaka Bill" & Hawaiian Homeownership Act Approved by Senate Committee [May 10, 2007]
- More Than $2.4 Million in Homeland Security Funds for Hawaii and Honolulu, Inouye and Akaka Announce [May 10, 2007]
- Akaka Applauds Creation of Advisory Committee for Iraq/Afghanistan Veterans and Families [May 9, 2007]
- Akaka Introduces Bill to Protect Federal Employees Against Sexual Orientation Discrimination [May 9, 2007]
- Akaka Holds Hearing to Review Veterans' Benefits Legistation [May 9, 2007]
- Akaka Reacts to Report on VA PTSD Compensation [May 8, 2007]
- Honolulu Star-Bulletin Editorial: "Prepare for a battle to pass Akaka Bill" [May 4, 2007]
- Senate Indian Affairs Committee Holds Hearing on "Akaka Bill" [May 3, 2007]
- Senators Durbin, Akaka, and Cochran Introduce Bipartisan Homeland Security Education Act to Increase Math, Science, and Foreign Language Instruction [May 3, 2007]
- Akaka Resolution Honoring Government Employees Passes Senate [May 2, 2007]
- Audio News Release: Akaka Calls President Bush’s Veto of Iraq Funding Bill a “Huge Mistake” [May 1, 2007]
- Akaka Introduces Legislation to Solve Problems with Department of Defense Disability Evaluation System [May 1, 2007]
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