[Federal Register: August 4, 2005 (Volume 70, Number 149)]
[Proposed Rules]
[Page 44975-44977]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04au05-20]
[[Page 44975]]
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Part II
Office of Personnel Management
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5 CFR Part 591
Cost-of-Living Allowances (Nonforeign Areas); COLA Rate Changes;
Proposed Rule
2002, 2003, and 2004 Nonforeign Area Cost-of-Living Allowance Survey
Reports; Notices
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 591
RIN 3206-AK67
Cost-of-Living Allowances (Nonforeign Areas); COLA Rate Changes
AGENCY: Office of Personnel Management.
ACTION: Proposed rule.
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SUMMARY: The Office of Personnel Management (OPM) is publishing a
proposed regulation to change the cost-of-living allowance (COLA) rates
received by certain white-collar Federal and U.S. Postal Service
employees in Alaska, Hawaii, Guam and the Northern Mariana Islands,
Puerto Rico, and the U.S. Virgin Islands. The changes are the result of
living-cost surveys conducted by OPM in 2002, 2003, and 2004.
DATES: We must receive comments on or before October 3, 2005.
ADDRESSES: Send or deliver written comments to Donald J. Winstead,
Deputy Associate Director for Pay and Performance Policy, Strategic
Human Resources Policy Division, Office of Personnel Management, Room
7H31, 1900 E Street, NW., Washington, DC 20415-8200; fax: (202) 606-
4264; or e-mail: COLA@opm.gov.
FOR FURTHER INFORMATION CONTACT: Donald L. Paquin, (202) 606-2838; fax:
(202) 606-4264; or e-mail: COLA@opm.gov.
SUPPLEMENTARY INFORMATION: Section 5941 of title 5, United States Code,
authorizes Federal agencies to pay cost-of-living allowances (COLAs) to
white-collar Federal and U.S. Postal Service employees stationed in
Alaska, Hawaii, Guam and the Northern Mariana Islands, Puerto Rico, and
the U.S. Virgin Islands. Executive Order 10000, as amended, delegates
to the Office of Personnel Management (OPM) the authority to administer
nonforeign area COLAs and prescribes certain operational features of
the program. OPM conducts living-cost surveys in each allowance area
and in the Washington, DC, area to determine whether, and to what
degree, COLA area living costs are higher than those in the DC area.
OPM sets the COLA rate for each area based on the results of these
surveys.
In 2002, 2003, and 2004, OPM conducted living-cost surveys in the
various COLA areas. In 2002, OPM surveyed Puerto Rico, the U.S. Virgin
Islands, and the Washington, DC, area. OPM published the results of
these Caribbean surveys in the Federal Register on February 9, 2004, at
69 FR 6020. In 2003, OPM surveyed Anchorage, Fairbanks, and Juneau,
Alaska, and the Washington, DC, area. OPM published the results of
these surveys on March 12, 2004, at 69 FR 12002. In 2004, OPM conducted
living-cost surveys in Honolulu County, Kailua Kona, Hilo, Kauai
County, Maui County, Guam, and the Washington, DC, area. OPM is
publishing the results of these Pacific surveys in a notice that
accompanies this proposed rule. OPM also is publishing the results of
new shelter (rent) price analyses for the 2002 Caribbean surveys and
the 2003 Alaska surveys in a notice that accompanies this proposed
rule.
Proposed COLA Rate Changes
As described in these reports, OPM compared the results of each of
the COLA area surveys with the results of the DC area survey to derive
a living-cost index for each of the COLA areas. The results of the
living-cost surveys indicate that OPM should increase COLA rates in the
U.S. Virgin Islands; Hawaii County, HI; Kauai County, HI; and Maui
County, HI. The results also indicate that OPM should not change the
COLA rate for the rest of the State of Alaska; Honolulu County, HI; and
Guam and the Northern Mariana Islands, but should reduce COLA rates in
Puerto Rico and in Anchorage, Fairbanks, and Juneau, Alaska. Under
section 591.228(c) of title 5, Code of Federal Regulations, COLA rate
reductions are limited to no more than 1 percentage point per year.
Proposed COLA Rates
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Current
Allowance area/category rate New rate
(percent) (percent)
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Puerto Rico................................... 11.5 10.5
U.S. Virgin Islands........................... 22.5 23.0
Anchorage, Alaska............................. 25.0 24.0
Fairbanks, Alaska............................. 25.0 24.0
Juneau, Alaska................................ 25.0 24.0
Rest of the State of Alaska................... 25.0 25.0
Honolulu County, Hawaii....................... 25.0 25.0
Hawaii County, Hawaii......................... 16.5 19.0
Kauai County, Hawaii.......................... 23.25 25.0
Maui County, Hawaii........................... 23.75 25.0
Guam and the Northern Mariana Islands......... 25.0 25.0
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Executive Order 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 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.
Linda M. Springer,
Director.
Accordingly, OPM proposes to amend subpart B of 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 5 CFR part 591 continues
to read as follows:
Authority: 5 U.S.C. 5941; E.O. 10000, 3 CFR, 1943-1948 Comp., p.
792; and E.O. 12510, 3 CFR, 1985 Comp., p. 338.
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2. Revise appendix A of subpart B to read as follows:
Appendix A to Subpart B of Part 591--Places and Rates at Which
Allowances Are Paid
This appendix lists the places approved for a cost-of-living
allowance and shows the authorized allowance rate for each area. The
allowance percentage rate shown is paid as a percentage of an
employee's rate of basic pay. The rates are subject to change based
on the results of future surveys.
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Allowance
Geographic coverage rate
(percent)
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State of Alaska:
City of Anchorage and 80-kilometer (50-mile) radius by 24.0
road..................................................
City of Fairbanks and 80-kilometer (50-mile) radius by 24.0
road..................................................
City of Juneau and 80-kilometer (50-mile) radius by 24.0
road..................................................
Rest of the State...................................... 25.0
State of Hawaii:
City and County of Honolulu............................ 25.0
Hawaii County, Hawaii.................................. 19.0
County of Kauai........................................ 25.0
County of Maui and County of Kalawao................... 25.0
Territory of Guam and Commonwealth of the Northern Mariana 25.0
Islands...................................................
Commonwealth of Puerto Rico................................ 10.5
U.S. Virgin Islands........................................ 23.0
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[FR Doc. 05-15097 Filed 8-3-05; 8:45 am]
BILLING CODE 6325-39-P