[Federal Register Volume 59, Number 250 (Friday, December 30, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-32189]
Federal Register / Vol. 59, No. 250 / Friday, December 30, 1994 /
[[Page Unknown]]
[Federal Register: December 30, 1994]
VOL. 59, NO. 250
Friday, December 30, 1994
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 531
RIN 3206-AG39
Pay Under the General Schedule; Locality-Based Comparability
Payments
AGENCY: Office of Personnel Management.
ACTION: Final rule.
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SUMMARY: The Office of Personnel Management is issuing final
regulations that reflect the final determination of the President's Pay
Agent concerning the locality pay areas within which locality-based
comparability payments will be paid beginning in January 1995. The
regulations remove four metropolitan areas from the ``Rest of U.S.''
locality pay area, establish four new locality pay areas corresponding
to these metropolitan areas, and move five pay localities that were
established as locality pay areas in 1994 into the ``Rest of U.S.''
locality pay area. In addition, the regulations remove San Francisco as
an interim geographic adjustment area.
DATES: The regulations are effective January 1, 1995. They are
applicable on the first day of the first pay period beginning on or
after January 1, 1995.
FOR FURTHER INFORMATION CONTACT:
Belva MacDonald, (202) 606-2858.
SUPPLEMENTARY INFORMATION: On October 18, 1994, the Office of Personnel
Management (OPM) published proposed regulations (59 FR 52467) based on
a recommendation of the Federal Salary Council to remove six
metropolitan areas from the ``Rest of U.S.'' locality pay area and
establish six new locality pay areas corresponding to these
metropolitan areas. At the direction of the President's Pay Agent
(consisting of the Secretary of Labor, the Director of the Office of
Management and Budget (OMB), and the Director of OPM), the Bureau of
Labor Statistics conducted local salary surveys in 1993-94 in these six
areas, which were in addition to the 27 Metropolitan Statistical Areas
(MSA's) and Consolidated Metropolitan Statistical Areas (CMSA's) within
which the Bureau of Labor Statistics (BLS) conducted salary surveys for
the implementation of locality pay in January 1994.
The Council recommended that any area in which the pay disparity is
2/10ths of a percentage point or more below the pay disparity for
``Rest of U.S.'' should be dropped as a separate pay locality and
combined with ``Rest of U.S.'' The data needed to make the
determination for the six proposed areas did not become available until
after the proposed regulations were published. Four of the proposed six
metropolitan areas met the conditions recommended by the Council for
removal from the ``Rest of U.S.'' locality pay area and establishment
as separate pay localities. These four new locality pay areas are (1)
Columbus, OH; (2) Miami-Fort Lauderdale, FL; (3) Portland-Salem, OR-WA;
and (4) Richmond-Petersburg, VA. Two of the six proposed areas,
Albuquerque, NM, and New Orleans, LA, have pay disparities that are
more than 2/10ths of a percentage point below that for the ``Rest of
U.S.'' area. Therefore, they will remain in the ``Rest of U.S.'' area.
There are also five areas that were established by the Pay Agent as
locality pay areas for 1994 that are being dropped as separate locality
pay areas and combined with ``Rest of U.S.'' for 1995 because they have
pay disparities that are 2/10ths of a percentage point or more below
the ``Rest of U.S.'' These areas are (1) Memphis, TN-AR-MS; (2)
Norfolk-Virginia Beach-Newport News, VA-NC; (3) Oklahoma City, OK; (4)
Salt Lake City-Ogden, UT; and (5) San Antonio, TX.
There are 27 locality pay areas for 1995. They consist of 26 areas
corresponding to MSA's or CMSA's, including certain ``areas of
application'' contiguous to 2 CMSA's, plus 1 area composed of the
``Rest of U.S.'' (i.e., those portions of the 48 contiguous States not
located within another locality pay area). MSA's and CMSA's are defined
by OMB.
OPM received comments on locality pay areas from two members of
Congress, one individual, one agency, and three organizations. Section
5304(f)(1) of title 5, United States Code, authorizes the President's
Pay Agent to provide for such pay localities as the Pay Agent considers
appropriate. Comments on the proposed regulations were reviewed by the
President's Pay Agent. The Pay Agent decided to adopt the changes in
locality pay areas that were recommended by the Federal Salary Council.
The final regulations list each of the locality pay areas for 1995 and
are issued by OPM under the authority in 5 U.S.C. 5304(i).
Areas of Application
Three commenters requested that certain areas in the ``Rest of
U.S.'' locality pay area be added as ``areas of application'' to other
locality pay areas. One requested that Hartford County, CT, be added as
an area of application to the New York-Northern New Jersey-Long Island,
NY-NJ-CT-PA CMSA. Another requested that the Rhode Island cities of
Providence, Pawtucket, Cranston, Warwick, West Warwick, and Newport be
added as areas of application to the Boston-Worcester-Lawrence, MA-NH-
ME-CT CMSA. The third commenter requested that the Massachusetts
counties of Barnstable, Dukes, and Nantucket be added as areas of
application to the Boston-Worcester-Lawrence, MA-NH-ME-CT CMSA.
However, none of these locations meet all of the criteria set forth by
the Federal Salary Council for establishment as areas of application
for locality pay purposes.
The Federal Salary Council's criteria for making its
recommendations on ``areas of application'' for the January 1995
locality payments, as outlined in an attachment to the Council's
memorandum of September 20, 1994, provided that to be considered for
county-wide areas of application, the affected county must--
1. Be contiguous to a pay locality.
2. Contain at least 2,000 GS-GM employees.
3. Have a significant level of urbanization, based on 1990 Census
data. A ``significant level of urbanization'' is defined as a
population density of more than 200 per square mile or at least 90
percent of the population in urbanized areas.
4. Demonstrate some economic linkage with the pay locality, defined
as commuting at a level of 5 percent or more into or from the areas in
question. The areas in question are the contiguous county under
consideration and the central counties (or in the case of New England,
the central cores) identified by the Census Bureau for the process of
defining the CMSA's or MSA's involved.
In the case of Hartford County, criterion 4--that commuting into or
from the central counties identified by the Census Bureau for the New
York-Northern New Jersey-Long Island, NY-NJ-CT-PA CMSA be at a level of
5 percent--is not met.
With respect to the Rhode Island cities requested as areas of
application, under established policies, areas of application must
comprise entire counties (except in cases where a Federal facility
crosses pay area boundaries). Even if these individual cities could be
considered, they would not meet criterion 1--that an area of
application be contiguous to a pay locality. Also, they would not meet
the 5-percent commuting standard under criterion 4.
In the case of the Massachusetts counties requested as areas of
application, none of the counties meets criterion 2. Nantucket and
Dukes Counties do not meet criterion 4. Also, Nantucket County fails to
meet criterion 1, since it is not adjacent to the Boston-Worcester-
Lawrence, MA-NH-ME-CT CMSA.
An agency commented that inconsistent application of criteria for
areas of application could lead to unwarranted expansion of locality
pay areas and agreed that it is in the best interest of the locality
pay program to continue application of the criteria developed by the
Federal Salary Council in 1994.
Pay Administration
Locality pay rates to be implemented in January 1995 for the San
Francisco-Oakland-San Jose, CA CMSA are greater than interim geographic
adjusted rates for 1995. Therefore, the San Francisco CMSA was deleted
as an interim geographic adjustment (IGA) area by Executive order and
is being removed from the definition of interim geographic adjustment
area in Sec. 531.101. A conforming change also is being made to ensure
that an employee in San Francisco receiving a continued rate of pay
under Sec. 531.106 will not be adversely affected by the removal of San
Francisco as an IGA area. This is accomplished by providing an
exception in the rules governing the termination of an adjusted rate of
pay for an employee receiving a continued rate in an area that was an
IGA area when the continued rate first became applicable in January
1994. (See Sec. 531.103(f)(1).)
The definitions of scheduled annual rate of pay for purposes of
computing interim geographic adjustments, special pay adjustments for
law enforcement officers, and locality-based comparability payments in
Secs. 531.101, 531.301, and 531.602 have been revised to clarify that a
rate of pay resulting from any of these provisions may not be used as
the basis for computing the adjusted rate in question.
Comments Beyond the Scope of These Regulations
A professional association commented that locality payments in 1995
should be extended to Administrative Law Judges and other senior
positions that do not automatically receive locality pay. These
determinations are not within the purview of these regulations.
However, on December 1, 1994, the Pay Agent informed heads of executive
departments and agencies that 1995 locality payments would be extended
to administrative law judges and various other senior positions.
Waiver of Delay in Effective Date
Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists to
make this rule effective in less than 30 days. The final regulations
are being made effective on January 1, 1995, to authorize locality-
based comparability payments in the locality pay areas established by
the final regulations on the first day of the first pay period
beginning on or after January 1, 1995, as required by 5 U.S.C.
5304(d)(2) and as directed by the President's memorandum of November
30, 1994, to the President's Pay Agent (59 FR 62549, December 5, 1994).
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 Part 531
Government employees, Law enforcement officers, Wages.
U.S. Office of Personnel Management.
James B. King,
Director.
Accordingly, OPM is amending part 531 of title 5, Code of Federal
Regulations, 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 Pub. L. 103-
89, 107 Stat. 981; and E.O. 12748, 56 FR 4521, February 4, 1991, 3
CFR, 1991 Comp., p. 316;
Subpart A also issued under 5 U.S.C. 5304, 5305, and 5553;
section 302 of the Federal Employees Pay Comparability Act of 1990
(FEPCA), Pub. L. 101-509, 104 Stat. 1462; and E.O. 12786, 56 FR
67453, December 30, 1991, 3 CFR, 1991 Comp., p. 376;
Subpart B also issued under 5 U.S.C. 5303(g), 5333, 5334(a), and
7701(b)(2);
Subpart C also issued under 5 U.S.C. 5304, 5305, and 5553;
sections 302 and 404 of FEPCA, Pub. L. 101-509, 104 Stat. 1462 and
1466; and section 3(7) of Pub. L. 102-378, 106 Stat. 1356;
Subpart D also issued under 5 U.S.C. 5335(g) and 7701(b)(2);
Subpart E also issued under 5 U.S.C. 5336;
Subpart F also issued under 5 U.S.C. 5304, 5305(g)(1), and 5553;
and E.O. 12883, 58 FR 63281, November 29, 1993, 3 CFR, 1993 Comp.,
p. 682.
Subpart A--Interim Geographic Adjustments
2. In Sec. 531.101, in the definition of scheduled annual rate of
pay, paragraph (1) is revised to read as follows:
Sec. 531.101 Definitions.
* * * * *
Scheduled annual rate of pay means--
(1) The General Schedule rate of basic pay for the employee's grade
and step (or relative position in the rate range), including a special
rate for law enforcement officers under section 403 of the Federal
Employees Pay Comparability Act of 1990 (FEPCA) (Pub. L. 101-509, 104
Stat. 1465), but exclusive of a special salary rate established under 5
U.S.C. 5305 or similar provision of law (other than section 403 of
FEPCA), an adjusted annual rate of pay under this subpart (including a
rate continued under Sec. 531.106), a special law enforcement adjusted
rate of pay under subpart C of this part (including a rate continued
under Sec. 531.307), a locality rate of pay under subpart F of this
part, or additional pay of any kind;
* * * * *
3. In Sec. 531.103, paragraph (f)(1) is revised to read as follows:
Sec. 531.103 Administration of adjusted rates of pay.
* * * * *
(f) * * *
(1) An employee's official duty station is no longer located in an
interim geographic adjustment area, except that, for an employee
receiving an adjusted annual rate of pay that is continued under
Sec. 531.106(a), the continued rate terminates when the employee is no
longer in an area that was an interim geographic adjustment area when
the continued rate first became applicable in January 1994;
* * * * *
4. In Sec. 531.301, in the definition of Scheduled annual rate of
pay, paragraph (1) is revised to read as follows:
Sec. 531.301 Definitions.
* * * * *
Scheduled annual rate of pay means--
(1) The General Schedule rate of basic pay for the employee's grade
and step (or relative position in the rate range), including a special
rate for law enforcement officers under section 403 of the Federal
Employees Pay Comparability Act of 1990 (FEPCA) (Pub. L. 101-509, 104
Stat. 1465), but exclusive of a special salary rate established under 5
U.S.C. 5305 or similar provision of law (other than section 403 of
FEPCA), an adjusted annual rate of pay under subpart A of this part
(including a rate continued under Sec. 531.106), a special law
enforcement adjusted rate of pay under this subpart (including a rate
continued under Sec. 531.307), a locality rate of pay under subpart F
of this part, or additional pay of any kind;
* * * * *
Subpart F--Locality-Based Comparability Payments
5. In Sec. 531.602, in the definition of scheduled annual rate of
pay, paragraph (1) is revised to read as follows:
Sec. 531.602 Definitions.
* * * * *
Scheduled annual rate of pay means--
(1) The General Schedule rate of basic pay for the employee's grade
and step (or relative position in the rate range), including a special
rate for law enforcement officers under section 403 of the Federal
Employees Pay Comparability Act of 1990 (FEPCA) (Pub. L. 101-509, 104
Stat. 1465), but exclusive of a special salary rate established under 5
U.S.C. 5305 or similar provision of law (other than section 403 of
FEPCA), an adjusted annual rate of pay under subpart A of this part
(including a rate continued under Sec. 531.106), a special law
enforcement adjusted rate of pay under subpart C of this part
(including a rate continued under Sec. 531.307), a locality rate of pay
under this subpart, or additional pay of any kind;
* * * * *
6. In Sec. 531.603, paragraph (b) is revised to read as follows:
Sec. 531.603 Locality pay areas.
* * * * *
(b) The following are locality pay areas for the purpose of this
subpart:
(1) Atlanta, GA--consisting of the Atlanta, GA MSA;
(2) Boston-Worcester-Lawrence, MA-NH-ME-CT--consisting of the
Boston-Worcester-Lawrence, MA-NH-ME-CT CMSA;
(3) Chicago-Gary-Kenosha, IL-IN-WI--consisting of the Chicago-Gary-
Kenosha, IL-IN-WI CMSA;
(4) Cincinnati-Hamilton, OH-KY-IN--consisting of the Cincinnati-
Hamilton, OH-KY-IN CMSA;
(5) Cleveland-Akron, OH--consisting of the Cleveland-Akron, OH
CMSA:
(6) Columbus, OH--consisting of the Columbus, OH MSA;
(7) Dallas-Fort Worth, TX--consisting of the Dallas-Fort Worth, TX
CMSA;
(8) Dayton-Springfield, OH--consisting of the Dayton-Springfield,
OH MSA;
(9) Denver-Boulder-Greeley, CO--consisting of the Denver-Boulder-
Greeley, CO CMSA;
(10) Detroit-Ann Arbor-Flint, MI--consisting of the Detroit-Ann
Arbor-Flint, MI CMSA;
(11) Houston-Galveston-Brazoria, TX--consisting of the Houston-
Galveston-Brazoria, TX CMSA;
(12) Huntsville, AL--consisting of the Huntsville, AL MSA;
(13) Indianapolis, IN--consisting of the Indianapolis, IN MSA:
(14) Kansas City, MO-KS--consisting of the Kansas City, MO-KS MSA;
(15) Los Angeles-Riverside-Orange County, CA--consisting of the Los
Angeles-Riverside-Orange County, CA CMSA, plus Santa Barbara County,
CA, and that portion of Edwards Air Force Base, CA, not located within
the Los Angeles-Riverside-Orange County, CA CMSA;
(16) Miami-Fort Lauderdale, FL--consisting of the Miami-Fort
Lauderdale, FL CMSA;
(17) New York-Northern New Jersey-Long Island, NY-NJ-CT-PA--
consisting of the New York-Northern New Jersey-Long Island, NY-NJ-CT-PA
CMSA;
(18) Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD--consisting
of the Philadelphia-Wilmington-Atlantic City, PA-NJ-DE-MD CMSA;
(19) Portland-Salem, OR-WA--consisting of the Portland-Salem, OR-WA
CMSA;
(20) Richmond-Petersburg, VA--consisting of the Richmond-
Petersburg, VA MSA;
(21) Sacramento-Yolo, CA--consisting of the Sacramento-Yolo, CA
CMSA;
(22) St. Louis, MO-IL--consisting of the St. Louis, MO-IL MSA;
(23) San Diego, CA--consisting of the San Diego, CA MSA;
(23) San Diego, CA--consisting of the San Diego, CA MSA;
(24) San Francisco-Oakland-San Jose, CA--consisting of the San
Francisco-Oakland-San Jose, CA CMSA;
(25) Seattle-Tacoma-Bremerton, WA--consisting of the Seattle-
Tacoma-Bremerton, WA CMSA;
(26) Washington-Baltimore, DC-MD-VA-WV--consisting of the
Washington-Baltimore, DC-MD-VA-WV CMSA, plus St. Marys County, MD; and
(27) Rest of U.S.--consisting of those portions of the continental
United States not located within another locality pay area.
[FR Doc. 94-32189 Filed 12-29-94; 8:45 am]
BILLING CODE 6325-01-M
