[Federal Register Volume 63, Number 203 (Wednesday, October 21, 1998)]
[Rules and Regulations]
[Pages 56430-56431]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-28054]
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OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 591
RIN 3206--AI38
Cost-of-Living Allowances (Nonforeign Areas); Honolulu, HI
AGENCY: Office of Personnel Management.
ACTION: Interim rule with request for comments.
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SUMMARY: The Office of Personnel Management (OPM) is publishing an
interim regulation to increase the cost-of-living allowance (COLA) rate
paid to General Schedule, U.S. Postal Service, and certain other
Federal employees in the City and County of Honolulu, Hawaii. This
increase is a result of cost-of-living surveys conducted by OPM in
Alaska, Hawaii, Guam, Puerto Rico, and the U.S. Virgin Islands. This
regulation increases the Honolulu COLA rate from 22.5 percent to 25
percent. Additionally, OPM is broadening the composition of the
Miscellaneous Expense Category used in the COLA methodology. This
change allows the addition of other types of expenses to that category,
including the use of private education (K-12) data collected in the
1997 surveys. This amendment will permit OPM additional flexibility in
organizing survey data under the COLA model.
DATES: Effective date: October 21, 1998. 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 October 21,
1998. Comment date: Comments must be received on or before January
19, 1999.
ADDRESSES: Comments may be sent or delivered to Donald J. Winstead,
Assistant Director for Compensation Administration, Workforce
Compensation and Performance Service, Office of Personnel Management,
Room 7H31, 1900 E Street NW., Washington, DC 20415-8200, FAX: (202)
606-4264, or email at 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-of-living allowances (COLAs)
when local living costs are substantially higher than those in
Washington, DC. Nonforeign area COLAs are currently paid in the
following locations: Alaska, Hawaii, Guam and the Commonwealth of the
Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.
During the summer of 1997, OPM surveyed Alaska, Hawaii, Guam,
Puerto Rico, and the U.S. Virgin Islands. Data were collected by OPM in
conjunction with COLA Partnership Committees and Subcommittees
established under the COLA Partnership Pilot Project. This is a 2-year
pilot project established to test and evaluate a new approach in the
administration of the COLA program, including the conduct of living-
cost surveys. At approximately the same time data were collected in the
allowance areas, OPM 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 1997 Surveys
Used to Determine Cost-of-Living Allowances in Nonforeign Areas.'' This
report explains the methodology, procedures, and results of the 1997
living-cost surveys.
The COLA rate increase is summarized in the following table:
Increase in Cola Rate
------------------------------------------------------------------------
Current New
Allowance area/category rate rate
------------------------------------------------------------------------
City and County of Honolulu, Hawaii
All employees...................................... 22.5 25.0
------------------------------------------------------------------------
OPM is adjusting the only rate for which the 1997 surveys indicate
an increase is warranted. Rates that would otherwise be reduced 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.
OPM is also broadening the composition of the Miscellaneous
Expense Category, as described in section 591.205 (b)(4) of title 5,
Code of Federal Regulations. (The Miscellaneous Expense Category is one
of the four major expense categories used in the COLA methodology.
Currently, the composition of the Miscellaneous Expense Category is
defined to cover six types of expenses: health care, gifts,
contributions, savings and investments, retirement, and life
insurance.) This change allows the addition of other types of expenses
to the miscellaneous
[[Page 56431]]
category, including the use of private education (K-12) data collected
in the 1997 survey. These data could have been used under the
Consumption Goods and Services Category, and mathematically, the result
would have been the same. However, in terms of how data are organized
and analyzed within the COLA model, OPM believes it is more appropriate
to include the private education data within the Miscellaneous Expense
Component.
Application of 5 U.S.C. 553
Pursuant to paragraphs (b)(3)(B) and (d)(3) of Sec. 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 delay in the
effective date of this regulation. 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 increase 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 October 21, 1998.
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 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.
Janice R. Lachance,
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. In Sec. 591.205, paragraph (b)(4) is revised to read as
follows:
Sec. 591.205 Comparative cost index.
* * * * *
(b)* * *
(4) Miscellaneous expenses. Miscellaneous expenses, including
expenses for health care, gifts, contributions, savings and
investments, retirement, and life insurance, are estimated from
consumer expenditure surveys and other data appropriate for Federal
employees for each income level.
* * * * *
3. 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
------------------------------------------------------------------------
Authorized
allowance
Geographic coverage/ allowance category 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....................................... 25.0
County of Hawaii:
All Employees....................................... 15.0
County of Kauai:
All Employees....................................... 22.5
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
U.S. Virgin Islands
All Employees....................................... 20.0
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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. 98-28054 Filed 10-20-98; 8:45 am]
BILLING CODE 6325-01-F
