2005 Nonforeign Area Cost-of-Living Allowance Survey Report: Alaska and Pacific Interim Adjustments, 63178-63179 [E6-17952]
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63178
Federal Register / Vol. 71, No. 208 / Friday, October, 27, 2006 / Notices
OFFICE OF PERSONNEL
MANAGEMENT
2005 Nonforeign Area Cost-of-Living
Allowance Survey Report: Alaska and
Pacific Interim Adjustments
Office of Personnel
Management.
ACTION: Notice.
AGENCY:
SUMMARY: This notice publishes the
interim adjustments for the Alaska and
Pacific Nonforeign Area Cost-of-Living
Allowance (COLA) areas. The Federal
Government conducts COLA surveys in
Alaska, Hawaii, Guam, Puerto Rico, and
the U.S. Virgin Islands to set COLA
rates. These surveys are conducted once
every 3 years on a rotating basis. In
between COLA surveys, the Government
adjusts COLA rates for the areas not
surveyed using the relative change in
the Consumer Price Index (CPI) for the
COLA area compared with the
Washington-Baltimore CPI. The Alaska
and Pacific COLA areas were not
surveyed in 2005. Therefore, OPM is
calculating and publishing interim
adjustments for these COLA areas.
DATES: We will consider comments
received on or December 26, 2006.
ADDRESSES: Send or deliver comments
to Jerome D. Mikowicz, Acting 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 email: COLA@opm.gov.
FOR FURTHER INFORMATION CONTACT:
Donald L. Paquin, (202) 606–2838; fax:
(202) 606–4264; or e-mail:
COLA@opm.gov.
Subpart B
of part 591 of title 5, Code of Federal
Regulations, requires the Office of
Personnel Management (OPM) to set
nonforeign area cost-of-living allowance
(COLA) rates that are paid to U.S. Postal
Service and white-collar Federal
employees in Alaska, Hawaii, Guam and
the Northern Mariana Islands, Puerto
SUPPLEMENTARY INFORMATION:
Rico, and the U.S. Virgin Islands.
Section 591.223(a) prescribes that we
conduct these surveys on a rotating
basis, once every 3 years. Section
591.224 requires we adjust the previous
COLA survey price indexes for the areas
not surveyed by using the relative
change in the Consumer Price Index
(CPI) for the COLA area compared with
the change in the Washington, DC area
CPI.
In 2005, we surveyed Puerto Rico and
the U.S. Virgin Islands. We did not
survey the Alaska or Pacific COLA
areas. Therefore, we are adjusting the
previous Alaska and Pacific survey
price indexes using the relative change
in the CPIs. As required by § 591.225,
we used the CPI, All Urban Consumers
(CPI–U’s), as published by the Bureau of
Labor Statistics (BLS) for Anchorage,
Honolulu, and the WashingtonBaltimore area.
surveys (Anchorage, Fairbanks, Juneau,
and Rest of the State of Alaska) by the
change in the Anchorage CPI–U and
divide that by the change in the
Washington-Baltimore CPI–U. The price
index is the COLA survey index before
the addition of the adjustment factor as
specified in § 591.227. The adjustment
factor reflects differences in need,
access to and availability of goods and
services, and quality of life in the COLA
area relative to the DC area and is a
constant amount throughout time.
Therefore, it is not adjusted by the
change in the CPI.
OPM published the 2003 Alaska
survey report in the Federal Register on
March 12, 2004, at 69 FR 12002. The
report included the survey price indexes
for each of the Alaska COLA areas.
However, OPM revised these price
indexes, incorporating methodological
changes that OPM adopted pursuant to
comments it received. The revised
2003 Alaska Survey Results and
indexes were published recently in the
Interim Adjustments
Federal Register in a final rule that
The first step is to compute the
implemented COLA rate changes.
change in prices for the COLA area
Subsequently, OPM discovered it made
compared with the change in prices in
a mathematical error in calculating
the Washington-Baltimore area using
Anchorage utility prices for the 2003
the CPI–Us for each area. Table 1,
survey. This changed the Anchorage
below, shows this process. It also shows
shelter and utilities index from 101.96
prices have increased slightly faster in
to 95.20 and changed the overall index
the Washington-Baltimore area than in
from 113.64 to 111.40. OPM is using the
Anchorage since the first half of 2003.
corrected overall index to calculate the
interim adjustment for Anchorage.
TABLE 1.—CHANGE IN ANCHORAGE
Table 2 shows the interim adjustment
AND IN THE WASHINGTON-BALTIprocess. For example, the 2003
MORE CPI–US 2003 TO 2005
Fairbanks COLA survey adjusted index,
as published in the Federal Register, is
Survey area
CPI–U
115.62. The Fairbanks adjustment factor
is 9 points. Therefore, the price index
Anchorage 2003 CPI–U first
half ........................................
161.1 from the 2003 survey is 106.62. We
Anchorage 2005 CPI–U second
increased this price index by 8.0695%
half ........................................
174.1 (i.e., multiplied by 1.080695), the
Anchorage change in percent ..
8.0695% change in the Anchorage CPI–U, and
DC-Baltimore 2003 CPI–U first
reduced it by 8.8235% (i.e., divided by
half ........................................
115.6
1.088235), the change in the
DC-Baltimore 2005 CPI–U second half .................................
125.8 Washington-Baltimore CPI–U, to give a
new price index of 105.88. We then
DC-Baltimore change in percent .......................................
8.8235% added the 9 point adjustment factor to
the new price index, which yields a
The second step is to multiply the
2005 Fairbanks Interim Adjustment
price indexes from the four 2003 Alaska COLA rate of 114.88.
TABLE 2.—ALASKA COLA AREA CPI–U PRICE INDEX ADJUSTMENTS
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Anchorage
2003 COLA Survey Indexes ....................................................................................
Adjustment Factors ..................................................................................................
2003 COLA Survey Price Indexes ..........................................................................
2005 CPI Adjusted Price Indexes ...........................................................................
2005 COLA Indexes with Adj. Factors ....................................................................
VerDate Aug<31>2005
13:35 Oct 26, 2006
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Frm 00001
Fmt 4701
Sfmt 4703
Fairbanks
111.40
7
104.40
103.68
110.68
115.62
9
106.62
105.88
114.88
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27OCN3
Juneau
118.09
9
109.09
108.33
117.33
Kodiak
135.84
9
126.84
125.96
134.96
63179
Federal Register / Vol. 71, No. 208 / Friday, October, 27, 2006 / Notices
2004 Pacific Survey Results and
Interim Adjustments
The process we used to compute the
interim adjustments for the Pacific
surveys (i.e., Honolulu, Hawaii, Kauai,
Maui, and Guam) is identical to the one
described above for Alaska except that
we used the BLS CPI–U for Honolulu,
as specified in § 591.225. Table 3 shows
the relative change in the Honolulu
CPI–U compared with the WashingtonBaltimore CPI–U. Once again, the table
shows prices have increased somewhat
faster in the Washington-Baltimore area
than in Honolulu since the first half of
2004.
TABLE 3.—CHANGE IN HONOLULU AND CPI–U and divide that by the change in
IN
THE
WASHINGTON-BALTIMORE the Washington-Baltimore CPI–U. OPM
published the 2004 Pacific survey report
CPI–US 2004 TO 2005
in the Federal Register on August 4,
2005, at 70 FR 44989. This report
included the survey price indexes for
Honolulu 2004 CPI–U first half
189.2 each of the Pacific COLA areas.
Honolulu 2005 CPI–U second
However, as with Alaska, OPM
half ........................................
200.6 subsequently revised the Pacific price
Honolulu change .......................
6.0254%
indexes, incorporating methodological
DC-Baltimore 2004 CPI–U first
half ........................................
118.3 changes that OPM adopted pursuant to
comments it received. The revised
DC-Baltimore 2005 CPI–U second half .................................
125.8 indexes were published recently in the
DC-Baltimore change ...............
6.3398% Federal Register in a final rule that
implemented COLA rate changes. Table
The second step is to multiply the
4 shows the revised indexes, the interim
price indexes from the five 2004 Pacific adjustment process, and the final
surveys by the change in the Honolulu
results.
Survey Area
CPI–U
TABLE 4.—PACIFIC COLA AREA CPI–U PRICE INDEX ADJUSTMENTS
Honolulu
2004 COLA Survey Indexes ..........................................................
Adjustment Factors ........................................................................
2004 COLA Survey Price Indexes .................................................
2005 CPI Adjusted Price Indexes ..................................................
2005 COLA Indexes with Adj. Factors ..........................................
Interim Adjustments Summarized
In a proposed rule published with this
notice, OPM proposes to adjust COLA
rates based on the 2005 Caribbean
Survey results and the interim
adjustments. The interim adjustments
show both Alaska and Pacific prices are
falling slightly relative to WashingtonBaltimore prices. In the Pacific, the
results indicate that COLA rates in all of
the areas are currently set at the
appropriate levels, and no adjustments
are necessary. In Alaska, the results
indicate that Anchorage, Fairbanks and
Juneau COLA rates should continue to
be reduced by an additional 1
percentage point in each area, from 24
percent, which is the current COLA rate
in each of these areas, to 23 percent.
However, § 591.228(c) limits COLA rate
reductions to no more than 1 percentage
point in a 12-month period.
Linda M. Springer,
Director, Office of Personnel Management.
[FR Doc. E6–17952 Filed 10–26–06; 8:45 am]
BILLING CODE 6325–39–P
rmajette on PROD1PC67 with NOTICES3
OFFICE OF PERSONNEL
MANAGEMENT
2005 Nonforeign Area Cost-of-Living
Allowance Survey Report: Caribbean
and Washington, DC, Areas
Office of Personnel
Management.
ACTION: Notice.
AGENCY:
VerDate Aug<31>2005
13:35 Oct 26, 2006
Jkt 211001
125.80
5
120.80
120.44
125.44
Hawaii Co
117.25
7
110.25
109.92
116.92
SUMMARY: This notice publishes the
‘‘2005 Nonforeign Area Cost-of-Living
Allowance Survey Report: Caribbean
and Washington, DC, Areas.’’ The
Federal Government uses the results of
surveys such as these to set cost-ofliving allowance (COLA) rates for
General Schedule, U.S. Postal Service,
and certain other Federal employees in
Alaska, Hawaii, Guam and the Northern
Mariana Islands, Puerto Rico, and the
U.S. Virgin Islands. This report contains
the results of the COLA surveys
conducted by the Office of Personnel
Management in Puerto Rico, the U.S.
Virgin Islands, and the Washington, DC
area during the spring of 2005.
DATES: Comments on this report must be
received on or before December 26,
2006.
ADDRESSES: Send or deliver comments
to Jerome D. Mikowicz, Acting 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
591.229 of title 5, Code of Federal
Regulations, requires the Office of
Personnel Management (OPM) to
publish nonforeign area cost-of-living
PO 00000
Frm 00002
Fmt 4701
Sfmt 4703
Kauai
127.63
7
120.63
120.27
127.27
Maui
131.50
7
124.50
124.13
131.13
Guam
127.40
9
118.40
118.05
127.05
allowance (COLA) survey summary
reports in the Federal Register. We are
publishing the complete ‘‘2005
Nonforeign Area Cost-of-Living
Allowance Survey Report: Caribbean
and Washington, DC, Areas’’ with this
notice. The report contains the results of
the COLA surveys we conducted in
Puerto Rico, the U.S. Virgin Islands, and
the Washington, DC area during the
spring of 2005.
Survey Results
Using an index scale with
Washington, DC area living costs equal
to 100, we computed index values of
relative prices in the Puerto Rico and
U.S. Virgin Islands COLA areas. Then
we added an adjustment factor of 7.0 to
the Puerto Rico price index and 9.0 to
the U.S. Virgin Islands price index and
rounded the results to the nearest whole
percentage point. According to the
results, the COLA rate for the U.S.
Virgin Islands should increase from 23
percent, which is the current rate, to 25
percent; and the COLA rate for Puerto
Rico should decrease from 10.5 percent,
which is the current rate, to 9.5 percent.
Section 591.228(c) limits decreases to 1
percentage point in a 12-month period.
In a proposed rule published with this
notice, OPM proposes to adjust COLA
rate rates based on the results of the
2005 Caribbean surveys.
E:\FR\FM\27OCN3.SGM
27OCN3
]]>Agencies
[Federal Register Volume 71, Number 208 (Friday, October 27, 2006)]
[Notices]
[Pages 63178-63179]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-17952]
Federal Register / Vol. 71, No. 208 / Friday, October, 27, 2006 /
Notices
[[Page 63178]]
-----------------------------------------------------------------------
OFFICE OF PERSONNEL MANAGEMENT
2005 Nonforeign Area Cost-of-Living Allowance Survey Report:
Alaska and Pacific Interim Adjustments
AGENCY: Office of Personnel Management.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: This notice publishes the interim adjustments for the Alaska
and Pacific Nonforeign Area Cost-of-Living Allowance (COLA) areas. The
Federal Government conducts COLA surveys in Alaska, Hawaii, Guam,
Puerto Rico, and the U.S. Virgin Islands to set COLA rates. These
surveys are conducted once every 3 years on a rotating basis. In
between COLA surveys, the Government adjusts COLA rates for the areas
not surveyed using the relative change in the Consumer Price Index
(CPI) for the COLA area compared with the Washington-Baltimore CPI. The
Alaska and Pacific COLA areas were not surveyed in 2005. Therefore, OPM
is calculating and publishing interim adjustments for these COLA areas.
DATES: We will consider comments received on or December 26, 2006.
ADDRESSES: Send or deliver comments to Jerome D. Mikowicz, Acting
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: Subpart B of part 591 of title 5, Code of
Federal Regulations, requires the Office of Personnel Management (OPM)
to set nonforeign area cost-of-living allowance (COLA) rates that are
paid to U.S. Postal Service and white-collar Federal employees in
Alaska, Hawaii, Guam and the Northern Mariana Islands, Puerto Rico, and
the U.S. Virgin Islands. Section 591.223(a) prescribes that we conduct
these surveys on a rotating basis, once every 3 years. Section 591.224
requires we adjust the previous COLA survey price indexes for the areas
not surveyed by using the relative change in the Consumer Price Index
(CPI) for the COLA area compared with the change in the Washington, DC
area CPI.
In 2005, we surveyed Puerto Rico and the U.S. Virgin Islands. We
did not survey the Alaska or Pacific COLA areas. Therefore, we are
adjusting the previous Alaska and Pacific survey price indexes using
the relative change in the CPIs. As required by Sec. 591.225, we used
the CPI, All Urban Consumers (CPI-U's), as published by the Bureau of
Labor Statistics (BLS) for Anchorage, Honolulu, and the Washington-
Baltimore area.
2003 Alaska Survey Results and Interim Adjustments
The first step is to compute the change in prices for the COLA area
compared with the change in prices in the Washington-Baltimore area
using the CPI-Us for each area. Table 1, below, shows this process. It
also shows prices have increased slightly faster in the Washington-
Baltimore area than in Anchorage since the first half of 2003.
Table 1.--Change in Anchorage and in the Washington-Baltimore CPI-Us
2003 to 2005
------------------------------------------------------------------------
Survey area CPI-U
------------------------------------------------------------------------
Anchorage 2003 CPI-U first half............................ 161.1
Anchorage 2005 CPI-U second half........................... 174.1
Anchorage change in percent................................ 8.0695%
DC-Baltimore 2003 CPI-U first half......................... 115.6
DC-Baltimore 2005 CPI-U second half........................ 125.8
DC-Baltimore change in percent............................. 8.8235%
------------------------------------------------------------------------
The second step is to multiply the price indexes from the four 2003
Alaska surveys (Anchorage, Fairbanks, Juneau, and Rest of the State of
Alaska) by the change in the Anchorage CPI-U and divide that by the
change in the Washington-Baltimore CPI-U. The price index is the COLA
survey index before the addition of the adjustment factor as specified
in Sec. 591.227. The adjustment factor reflects differences in need,
access to and availability of goods and services, and quality of life
in the COLA area relative to the DC area and is a constant amount
throughout time. Therefore, it is not adjusted by the change in the
CPI.
OPM published the 2003 Alaska survey report in the Federal Register
on March 12, 2004, at 69 FR 12002. The report included the survey price
indexes for each of the Alaska COLA areas. However, OPM revised these
price indexes, incorporating methodological changes that OPM adopted
pursuant to comments it received. The revised indexes were published
recently in the Federal Register in a final rule that implemented COLA
rate changes. Subsequently, OPM discovered it made a mathematical error
in calculating Anchorage utility prices for the 2003 survey. This
changed the Anchorage shelter and utilities index from 101.96 to 95.20
and changed the overall index from 113.64 to 111.40. OPM is using the
corrected overall index to calculate the interim adjustment for
Anchorage.
Table 2 shows the interim adjustment process. For example, the 2003
Fairbanks COLA survey adjusted index, as published in the Federal
Register, is 115.62. The Fairbanks adjustment factor is 9 points.
Therefore, the price index from the 2003 survey is 106.62. We increased
this price index by 8.0695% (i.e., multiplied by 1.080695), the change
in the Anchorage CPI-U, and reduced it by 8.8235% (i.e., divided by
1.088235), the change in the Washington-Baltimore CPI-U, to give a new
price index of 105.88. We then added the 9 point adjustment factor to
the new price index, which yields a 2005 Fairbanks Interim Adjustment
COLA rate of 114.88.
Table 2.--Alaska COLA Area CPI-U Price Index Adjustments
----------------------------------------------------------------------------------------------------------------
Anchorage Fairbanks Juneau Kodiak
----------------------------------------------------------------------------------------------------------------
2003 COLA Survey Indexes................................ 111.40 115.62 118.09 135.84
Adjustment Factors...................................... 7 9 9 9
2003 COLA Survey Price Indexes.......................... 104.40 106.62 109.09 126.84
2005 CPI Adjusted Price Indexes......................... 103.68 105.88 108.33 125.96
2005 COLA Indexes with Adj. Factors..................... 110.68 114.88 117.33 134.96
----------------------------------------------------------------------------------------------------------------
[[Page 63179]]
2004 Pacific Survey Results and Interim Adjustments
The process we used to compute the interim adjustments for the
Pacific surveys (i.e., Honolulu, Hawaii, Kauai, Maui, and Guam) is
identical to the one described above for Alaska except that we used the
BLS CPI-U for Honolulu, as specified in Sec. 591.225. Table 3 shows
the relative change in the Honolulu CPI-U compared with the Washington-
Baltimore CPI-U. Once again, the table shows prices have increased
somewhat faster in the Washington-Baltimore area than in Honolulu since
the first half of 2004.
Table 3.--Change in Honolulu and in the Washington-Baltimore CPI-Us 2004
to 2005
------------------------------------------------------------------------
Survey Area CPI-U
------------------------------------------------------------------------
Honolulu 2004 CPI-U first half............................. 189.2
Honolulu 2005 CPI-U second half............................ 200.6
Honolulu change............................................ 6.0254%
DC-Baltimore 2004 CPI-U first half......................... 118.3
DC-Baltimore 2005 CPI-U second half........................ 125.8
DC-Baltimore change........................................ 6.3398%
------------------------------------------------------------------------
The second step is to multiply the price indexes from the five 2004
Pacific surveys by the change in the Honolulu CPI-U and divide that by
the change in the Washington-Baltimore CPI-U. OPM published the 2004
Pacific survey report in the Federal Register on August 4, 2005, at 70
FR 44989. This report included the survey price indexes for each of the
Pacific COLA areas. However, as with Alaska, OPM subsequently revised
the Pacific price indexes, incorporating methodological changes that
OPM adopted pursuant to comments it received. The revised indexes were
published recently in the Federal Register in a final rule that
implemented COLA rate changes. Table 4 shows the revised indexes, the
interim adjustment process, and the final results.
Table 4.--Pacific COLA Area CPI-U Price Index Adjustments
----------------------------------------------------------------------------------------------------------------
Honolulu Hawaii Co Kauai Maui Guam
----------------------------------------------------------------------------------------------------------------
2004 COLA Survey Indexes.................. 125.80 117.25 127.63 131.50 127.40
Adjustment Factors........................ 5 7 7 7 9
2004 COLA Survey Price Indexes............ 120.80 110.25 120.63 124.50 118.40
2005 CPI Adjusted Price Indexes........... 120.44 109.92 120.27 124.13 118.05
2005 COLA Indexes with Adj. Factors....... 125.44 116.92 127.27 131.13 127.05
----------------------------------------------------------------------------------------------------------------
Interim Adjustments Summarized
In a proposed rule published with this notice, OPM proposes to
adjust COLA rates based on the 2005 Caribbean Survey results and the
interim adjustments. The interim adjustments show both Alaska and
Pacific prices are falling slightly relative to Washington-Baltimore
prices. In the Pacific, the results indicate that COLA rates in all of
the areas are currently set at the appropriate levels, and no
adjustments are necessary. In Alaska, the results indicate that
Anchorage, Fairbanks and Juneau COLA rates should continue to be
reduced by an additional 1 percentage point in each area, from 24
percent, which is the current COLA rate in each of these areas, to 23
percent. However, Sec. 591.228(c) limits COLA rate reductions to no
more than 1 percentage point in a 12-month period.
Linda M. Springer,
Director, Office of Personnel Management.
[FR Doc. E6-17952 Filed 10-26-06; 8:45 am]
BILLING CODE 6325-39-P
