U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce

Alert

This is a reminder that the Office of Personnel Management (OPM) issued interim regulations on May 31, 2005, that revised 5 CFR 451.104(g). The revised 5 CFR 451.104(g) implements a provision of the Federal Workforce Flexibility Act of 2004 that eliminated the language formerly in 5 U.S.C. 4505a(a)(2), which had prohibited the inclusion of locality pay in computing rating-based awards when expressed as a percentage of the employee's pay. To read the revised regulation, see the excerpt below from the May 31, 2005, Federal Register (volume 70, page 31287). If you have any questions, please contact your OPM Human Capital Officer.

PART 451--AWARDS

7. The authority citation for part 451 is revised to read as follows:,

Authority: 5 U.S.C. 4302, 4501-4509; E.O. 11438, 33 FR 18085, 3
CFR, 1966-1970 Comp., p. 755; E.O. 12828, 58 FR 2965, 3 CFR, 1993
Comp., p. 569.

Subpart A--Agency Awards

8. In Sec. 451.104, revise paragraph (g) to read as follows:

Sec. 451.104 Awards.

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(g) When granting an award paid as a percentage of basic pay under 5 U.S.C. 4505a(a)(2)(A), the rate of basic pay used must include any applicable locality payment under 5 CFR part 531, subpart F; special rate supplement under 5 CFR part 530, subpart C; or similar payment or supplement under other legal authority. For an employee receiving a retained rate under 5 CFR part 536, subpart C (or similar authority, such as 5 CFR 359.705), the rate of basic pay is the maximum payable rate for the employee's grade or level, rather than the retained rate.