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Federal Register / Vol. 63, No. 203 / Wednesday, October 21, 1998 / Rules and Regulations
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 591
RIN 3206—AH07
Cost-of-Living Allowances (Nonforeign
Areas); Kauai, HI; U.S. Virgin Islands
AGENCY: Office of Personnel
Management.
ACTION: Final rule.
SUMMARY: The Office of Personnel
Management (OPM) published an
interim regulation for comment on
March 25, 1997, (62 FR 14188) to
increase the cost-of-living allowance
(COLA) rates paid to General Schedule,
U.S. Postal Service, and certain other
Federal employees in Kauai County,
Hawaii, and the U.S. Virgin Islands. The
effect of this interim regulation was to
raise the COLA rate for Kauai County
from 20 percent to 22.5 percent, and to
raise the COLA rate for the U.S. Virgin
Islands from 17.5 percent to 20 percent.
These increases were the result of cost-
of-living surveys conducted in Hawaii,
Alaska, Guam, Puerto Rico, and the U.S.
Virgin Islands in February, 1996. OPM
received no comments on the interim
regulation. Therefore, we are adopting
the rates as final without change.
DATES: Effective date: November 20,
1998. Implementation date: The rate
increases authorized by these
regulations are applicable as of the first
day of the first pay period beginning on
or after March 25, 1998.
FOR FURTHER INFORMATION CONTACT:
Donald L. Paquin, (202) 606–2838, FAX:
(202) 606–4264, or email at
COLA@opm.gov.
SUPPLEMENTARY INFORMATION:
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.
PART 591—ALLOWANCES AND
DIFFERENTIALS
Accordingly, under the authority of 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), OPM is
adopting the interim regulations for 5
CFR part 591 published on March 25,
1997, at 62 FR 14188 as final without
change.
[FR Doc. 98–28053 Filed 10–20–98; 8:45 am]
BILLING CODE 6325–01–F
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.
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
Allowance area/category
Cur-
rent
rate
New
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