General Schedule Locality Pay Areas, 60285-60287 [2010-24495]
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60285
Rules and Regulations
Federal Register
Vol. 75, No. 189
Thursday, September 30, 2010
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
OFFICE OF PERSONNEL
MANAGEMENT
5 CFR Part 531
RIN 3206–AM25
General Schedule Locality Pay Areas
U.S. Office of Personnel
Management.
ACTION: Interim rule with request for
comments.
AGENCY:
On behalf of the President’s
Pay Agent, the U.S. Office of Personnel
Management is issuing interim
regulations on the locality pay program
for General Schedule employees. The
interim regulations establish separate
locality pay areas for the States of
Alaska and Hawaii and extend coverage
of the Rest of U.S. locality pay area to
include American Samoa, the
Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana
Islands, the Territory of Guam, the U.S.
Virgin Islands, and all other U.S.
possessions listed in 5 CFR 591.205,
applicable on the first day of the first
pay period beginning on or after January
1, 2011.
DATES: Effective Date: The regulations
are effective November 1, 2010.
Applicability Date: The regulations
apply on the first day of the first pay
period beginning on or after January 1,
2011.
Comment Date: We must receive
comments on or before November 29,
2010.
SUMMARY:
Send or deliver comments
to Jerome D. Mikowicz, Deputy
Associate Director for Pay and Leave,
Office of Personnel Management, Room
7H31, 1900 E Street, NW., Washington,
DC 20415–8200; FAX: (202) 606–4264;
or e-mail: pay-performancepolicy@opm.gov.
jdjones on DSK8KYBLC1PROD with RULES
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Allan Hearne, (202) 606–2838; FAX:
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15:07 Sep 29, 2010
Jkt 220001
(202) 606–4264; e-mail: payperformance-policy@opm.gov.
SUPPLEMENTARY INFORMATION: Section
5304 of title 5, United States Code,
authorizes locality pay for General
Schedule (GS) employees with duty
stations in the United States and its
territories and possessions. The NonForeign Area Retirement Equity
Assurance Act of 2009 (NAREA), Public
Law 111–84, title XIX, subtitle B
(October 28, 2009), extended locality
pay to the States of Alaska and Hawaii
and the U.S. territories and possessions
effective in January 2010. While the
statute included a sense of Congress that
one locality pay area cover the entire
State of Alaska and one cover the entire
State of Hawaii, it did not actually
establish any new locality pay areas.
Section 5304(f) of title 5, United
States Code, authorizes the President’s
Pay Agent (the Secretary of Labor, the
Director of the Office of Management
and Budget, and the Director of the
Office of Personnel Management) to
determine locality pay areas. The
boundaries of locality pay areas must be
based on appropriate factors, which may
include local labor market patterns,
commuting patterns, and the practices
of other employers. The Pay Agent must
give thorough consideration to the
views and recommendations of the
Federal Salary Council (Council), a body
composed of experts in the fields of
labor relations and pay policy and
representatives of Federal employee
organizations. The President appoints
the members of the Council, which
submits annual recommendations to the
Pay Agent about the locality pay
program.
The Federal Salary Council has been
unable to meet to consider what locality
pay areas should be established for the
States of Alaska and Hawaii and the
U.S. territories and possessions. Since
establishing locality pay areas by
regulation takes a substantial amount of
time, we are publishing this interim rule
now, even though the Council has not
yet met, to insure these new locality pay
areas are established in time for the
January 2011 pay adjustments. We are
hopeful the Council will be able to meet
during the comment period for these
regulations to formulate and submit
recommendations.
In the absence of Council
recommendations, the Pay Agent has
concluded that separate locality pay
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
areas should be established for the
States of Alaska and Hawaii. We have
non-Federal salary survey data collected
under the National Compensation
Survey (NCS) that can be used to set and
adjust locality pay rates for these
locations. This is the same survey
source currently used in the other
locality pay areas. In fact, the Council’s
recommendation letter of November 4,
2009, included a pay disparity for
Alaska (based on a survey of Anchorage)
of 54.98 percent and a pay disparity for
Hawaii (based on a survey of Honolulu)
of 38.41 percent. These measures were
generated using the methodology
adopted by the Council and the Pay
Agent and salary surveys conducted by
the Bureau of Labor Statistics (BLS) and
both are well above the Rest of U.S.
locality pay area pay disparity of 27.81
percent included in our 2009 annual
report to the President. Establishing
single pay areas for all of Alaska and all
of Hawaii also coincides with a sense of
Congress provision that these locations
each be covered by a single separate
locality pay area. Since it is not feasible
for BLS to conduct salary surveys using
the current survey methods at current
budget levels in additional locations in
Alaska, Hawaii, or the U.S. territories
and possessions, the Pay Agent
concludes Alaska and Hawaii should
become whole-State locality pay areas
and the other locations should be part
of the Rest of U.S. (RUS) locality pay
area. This decision may be revisited if
the Federal Salary Council makes a
different recommendation when it next
convenes.
Impact and Implementation
This rule will affect rates of pay for
about 44,100 civilian white-collar
employees in the States of Alaska and
Hawaii, the Commonwealths of Puerto
Rico and the Northern Mariana Islands,
Guam, the U.S. Virgin Islands, and other
U.S. possessions. Under the rule,
approved locality pay rates would likely
be higher than in the RUS locality pay
area for employees in Alaska and
Hawaii. Federal civilian white-collar
employees in the U.S. territories and
possessions will be covered by the RUS
locality pay rate.
Waiver of Notice of Proposed
Rulemaking
Pursuant to 5 U.S.C. 553(b)(3)(B), I
find that good cause exists for waiving
E:\FR\FM\30SER1.SGM
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60286
Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations
the general notice of proposed
rulemaking. Notice is being waived to
comply with the intent of Congress that
employees affected by the NAREA in
Alaska and Hawaii have separate
locality pay areas established for
January 2011 pay adjustments. In
addition, notice is being waived to
ensure that employees in the U.S.
territories and possessions who are
affected by the NAREA are included in
the RUS locality pay area in time for the
January 2011 pay adjustments. I find
that provision of the general notice of
proposed regulations is both
impracticable and unnecessary in this
instance because Congress has indicated
its intent that these changes be effected
in time for the January 2011 pay
adjustments, and because the process of
promulgating proposed and final rules
to establish these changes would
introduce unnecessary delay resulting
in effecting these changes beyond the
date on which the January 2011 pay
adjustments take effect. In addition,
since the latest available data indicates
that, for Alaska and Hawaii, the locality
pay rates will be higher than that for the
RUS locality pay area, the process of
promulgating proposed and final rules
would be contrary to the public interest
in that it would cause unnecessary
delay in applying the higher locality pay
rates in these areas in time for the
January 2011 pay adjustments.
E.O. 12866, Regulatory Review
The Office of Management and Budget
has reviewed this rule in accordance
with E.O. 12866.
Paperwork Reduction Act
This document does not contain
proposed information collection
requirements subject to the Paperwork
Reduction Act of 1995, Public Law 104–
13.
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.
jdjones on DSK8KYBLC1PROD with RULES
List of Subjects in 5 CFR Part 531
Government employees, Law
enforcement officers, Wages.
John Berry,
Director, U.S. Office of Personnel
Management.
Accordingly, OPM amends 5 CFR part
531 as follows:
■
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15:07 Sep 29, 2010
Jkt 220001
PART 531—PAY UNDER THE
GENERAL SCHEDULE
1. The authority citation for part 531
continues 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, 3 CFR, 1991 Comp.,
p. 316; Subpart B also issued under 5 U.S.C.
5303(g), 5305, 5333, 5334(a) and (b), and
7701(b)(2); Subpart D also issued under 5
U.S.C. 5335 and 7701(b)(2); Subpart E also
issued under 5 U.S.C. 5336; Subpart F also
issued under 5 U.S.C. 5304 and 5305; E.O.
12883, 58 FR 63281, 3 CFR, 1993 Comp., p.
682; and E.O. 13106, 63 FR 68151, 3 CFR,
1998 Comp., p. 224.
Subpart F—Locality-Based
Comparability Payments
2. In § 531.603, paragraph (b) is
revised to read as follows:
■
§ 531.603
Locality pay areas.
*
*
*
*
*
(b) The following are locality pay
areas for the purposes of this subpart:
(1) Alaska—consisting of the State of
Alaska;
(2) Atlanta-Sandy Springs-Gainesville,
GA–AL—consisting of the AtlantaSandy Springs-Gainesville, GA–AL
CSA;
(3) Boston-Worcester-Manchester,
MA–NH–RI–ME—consisting of the
Boston-Worcester-Manchester, MA–RI–
NH CSA, plus Barnstable County, MA,
and Berwick, Eliot, Kittery, South
Berwick, and York towns in York
County, ME;
(4) Buffalo-Niagara-Cattaraugus, NY—
consisting of the Buffalo-NiagaraCattaraugus, NY CSA;
(5) Chicago-Naperville-Michigan City,
IL–IN–WI—consisting of the ChicagoNaperville-Michigan City, IL–IN–WI
CSA;
(6) Cincinnati-MiddletownWilmington, OH–KY–IN—consisting of
the Cincinnati-Middletown-Wilmington,
OH–KY–IN CSA;
(7) Cleveland-Akron-Elyria, OH—
consisting of the Cleveland-AkronElyria, OH CSA;
(8) Columbus-Marion-Chillicothe,
OH—consisting of the ColumbusMarion-Chillicothe, OH CSA;
(9) Dallas-Fort Worth, TX—consisting
of the Dallas-Fort Worth, TX CSA;
(10) Dayton-Springfield-Greenville,
OH—consisting of the DaytonSpringfield-Greenville, OH CSA;
(11) Denver-Aurora-Boulder, CO—
consisting of the Denver-AuroraBoulder, CO CSA, plus the Ft. CollinsLoveland, CO MSA;
(12) Detroit-Warren-Flint, MI—
consisting of the Detroit-Warren-Flint,
MI CSA, plus Lenawee County, MI;
PO 00000
Frm 00002
Fmt 4700
Sfmt 4700
(13) Hartford-West HartfordWillimantic, CT–MA—consisting of the
Hartford-West Hartford-Willimantic, CT
CSA, plus the Springfield, MA MSA and
New London County, CT;
(14) Hawaii—consisting of the State of
Hawaii;
(15) Houston-Baytown-Huntsville,
TX—consisting of the HoustonBaytown-Huntsville, TX CSA;
(16) Huntsville-Decatur, AL—
consisting of the Huntsville-Decatur, AL
CSA;
(17) Indianapolis-AndersonColumbus, IN—consisting of the
Indianapolis-Anderson-Columbus, IN
CSA, plus Grant County, IN;
(18) Los Angeles-Long BeachRiverside, CA—consisting of the Los
Angeles-Long Beach-Riverside, CA CSA,
plus the Santa Barbara-Santa MariaGoleta, CA MSA and all of Edwards Air
Force Base, CA;
(19) Miami-Fort Lauderdale-Pompano
Beach, FL—consisting of the Miami-Fort
Lauderdale-Pompano Beach, FL MSA,
plus Monroe County, FL;
(20) Milwaukee-Racine-Waukesha,
WI—consisting of the MilwaukeeRacine-Waukesha, WI CSA;
(21) Minneapolis-St. Paul-St. Cloud,
MN–WI—consisting of the MinneapolisSt. Paul-St. Cloud, MN–WI CSA;
(22) New York-Newark-Bridgeport,
NY–NJ–CT–PA—consisting of the New
York-Newark-Bridgeport, NY–NJ–CT–
PA CSA, plus Monroe County, PA,
Warren County, NJ, and all of Joint Base
McGuire-Dix-Lakehurst;
(23) Philadelphia-Camden-Vineland,
PA–NJ–DE–MD—consisting of the
Philadelphia-Camden-Vineland, PA–
NJ–DE–MD CSA excluding Joint Base
McGuire-Dix-Lakehurst, plus Kent
County, DE, Atlantic County, NJ, and
Cape May County, NJ;
(24) Phoenix-Mesa-Scottsdale, AZ—
consisting of the Phoenix-MesaScottsdale, AZ MSA;
(25) Pittsburgh-New Castle, PA—
consisting of the Pittsburgh-New Castle,
PA CSA;
(26) Portland-Vancouver-Hillsboro,
OR–WA—consisting of the PortlandVancouver-Hillsboro, OR–WA MSA,
plus Marion County, OR, and Polk
County, OR;
(27) Raleigh-Durham-Cary, NC—
consisting of the Raleigh-Durham-Cary,
NC CSA, plus the Fayetteville, NC MSA,
the Goldsboro, NC MSA, and the
Federal Correctional Complex Butner,
NC;
(28) Richmond, VA—consisting of the
Richmond, VA MSA;
(29) Sacramento—Arden-Arcade—
Yuba City, CA–NV—consisting of the
Sacramento—Arden-Arcade—Yuba
City, CA–NV CSA, plus Carson City,
NV;
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Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 / Rules and Regulations
(30) San Diego-Carlsbad-San Marcos,
CA—consisting of the San DiegoCarlsbad-San Marcos, CA MSA;
(31) San Jose-San Francisco-Oakland,
CA—consisting of the San Jose-San
Francisco-Oakland, CA CSA, plus the
Salinas, CA MSA and San Joaquin
County, CA;
(32) Seattle-Tacoma-Olympia, WA—
consisting of the Seattle-TacomaOlympia, WA CSA, plus Whatcom
County, WA;
(33) Washington-Baltimore-Northern
Virginia, DC–MD–VA–WV–PA—
consisting of the Washington-BaltimoreNorthern Virginia, DC–MD–VA–WV
CSA, plus the Hagerstown-Martinsburg,
MD–WV MSA, the York-HanoverGettysburg, PA CSA, and King George
County, VA; and
(34) Rest of U.S.—consisting of those
portions of the United States and its
territories and possessions as listed in 5
CFR 591.205 not located within another
locality pay area.
[FR Doc. 2010–24495 Filed 9–29–10; 8:45 am]
BILLING CODE 6325–01–P
FEDERAL DEPOSIT INSURANCE
CORPORATION
12 CFR Part 360
RIN 3064–AD55
Treatment by the Federal Deposit
Insurance Corporation as Conservator
or Receiver of Financial Assets
Transferred by an Insured Depository
Institution in Connection With a
Securitization or Participation After
September 30, 2010
Federal Deposit Insurance
Corporation (FDIC).
ACTION: Final rule.
AGENCY:
The Federal Deposit
Insurance Corporation (‘‘FDIC’’) has
adopted an amended regulation
regarding the treatment by the FDIC, as
receiver or conservator of an insured
depository institution, of financial
assets transferred by the institution in
connection with a securitization or a
participation (the ‘‘Rule’’). The Rule
continues the safe harbor for financial
assets transferred in connection with
securitizations and participations in
which the financial assets were
transferred in compliance with the
existing regulation. The Rule also
imposes further conditions for a safe
harbor for securitizations or
participations issued after a transition
period. On March 11, 2010, the FDIC
established a transition period through
September 30, 2010. In order to provide
jdjones on DSK8KYBLC1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
15:07 Sep 29, 2010
Jkt 220001
for a transition to the new conditions for
the safe harbor, the Rule provides for an
extended transition period through
December 31, 2010 for securitizations
and participations. The Rule defines the
conditions for safe harbor protection for
securitizations and participations for
which transfers of financial assets are
made after the transition period; and
clarifies the application of the safe
harbor to transactions that comply with
the new accounting standards for off
balance sheet treatment as well as those
that do not comply with those
accounting standards. The conditions
contained in the Rule will serve to
protect the Deposit Insurance Fund
(‘‘DIF’’) and the FDIC’s interests as
deposit insurer and receiver by aligning
the conditions for the safe harbor with
better and more sustainable
securitization practices by insured
depository institutions (‘‘IDIs’’).
DATES: Effective September 30, 2010.
FOR FURTHER INFORMATION CONTACT:
Michael Krimminger, Office of the
Chairman, 202–898–8950; George
Alexander, Division of Resolutions and
Receiverships, (202) 898–3718; Robert
Storch, Division of Supervision and
Consumer Protection, (202) 898–8906;
or R. Penfield Starke, Legal Division,
(703) 562–2422, Federal Deposit
Insurance Corporation, 550 17th Street,
NW., Washington, DC 20429.
SUPPLEMENTARY INFORMATION:
I. Background
In 2000, the FDIC clarified the scope
of its statutory authority as conservator
or receiver to disaffirm or repudiate
contracts of an insured depository
institution with respect to transfers of
financial assets by an IDI in connection
with a securitization or participation
when it adopted a regulation codified at
12 CFR 360.6 (the ‘‘Securitization
Rule’’). This rule provided that the FDIC
as conservator or receiver would not use
its statutory authority to disaffirm or
repudiate contracts to reclaim, recover,
or recharacterize as property of the
institution or the receivership any
financial assets transferred by an IDI in
connection with a securitization or in
the form of a participation, provided
that such transfer met all conditions for
sale accounting treatment under
generally accepted accounting
principles (‘‘GAAP’’). The rule was a
clarification, rather than a limitation, of
the repudiation power. Such power
authorizes the conservator or receiver to
breach a contract or lease entered into
by an IDI and be legally excused from
further performance, but it is not an
avoiding power enabling the
conservator or receiver to recover assets
PO 00000
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Fmt 4700
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60287
that were previously sold and no longer
reflected on the books and records on an
IDI.
The Securitization Rule provided a
‘‘safe harbor’’ by confirming ‘‘legal
isolation’’ if all other standards for off
balance sheet accounting treatment,
along with some additional conditions
focusing on the enforceability of the
transaction, were met by the transfer in
connection with a securitization or a
participation. Satisfaction of ‘‘legal
isolation’’ was vital to securitization
transactions because of the risk that the
pool of financial assets transferred into
the securitization trust could be
recovered in bankruptcy or in a bank
receivership. If the transfer satisfied this
condition, the Securitization Rule
confirmed that the transferred assets
were ‘‘legally isolated’’ from the IDI in an
FDIC conservatorship or receivership.
The Securitization Rule, thus, addressed
only purported sales which met the
conditions for off balance sheet
accounting treatment under GAAP.
Since its adoption, the Securitization
Rule has been relied on by
securitization participants as assurance
that investors could look to securitized
financial assets for payment without
concern that the financial assets would
be interfered with by the FDIC as
conservator or receiver. However, the
implementation of new accounting rules
has created uncertainty for
securitization participants.
Modifications to GAAP Accounting
Standards
On June 12, 2009, the Financial
Accounting Standards Board (‘‘FASB’’)
finalized modifications to GAAP
through Statement of Financial
Accounting Standards No. 166,
Accounting for Transfers of Financial
Assets, an Amendment of FASB
Statement No. 140 (‘‘FAS 166’’) and
Statement of Financial Accounting
Standards No. 167, Amendments to
FASB Interpretation No. 46(R) (‘‘FAS
167’’) (the ‘‘2009 GAAP Modifications’’).
The 2009 GAAP Modifications are
effective for annual financial statement
reporting periods that begin after
November 15, 2009. The 2009 GAAP
Modifications made changes that affect
whether a special purpose entity (‘‘SPE’’)
must be consolidated for financial
reporting purposes, thereby subjecting
many SPEs to GAAP consolidation
requirements. These accounting changes
may require some IDIs to consolidate an
issuing entity to which financial assets
have been transferred for securitization
onto their balance sheets for financial
reporting purposes primarily because an
affiliate of the IDI retains control over
E:\FR\FM\30SER1.SGM
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Agencies
[Federal Register Volume 75, Number 189 (Thursday, September 30, 2010)]
[Rules and Regulations]
[Pages 60285-60287]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2010-24495]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 75, No. 189 / Thursday, September 30, 2010 /
Rules and Regulations
[[Page 60285]]
OFFICE OF PERSONNEL MANAGEMENT
5 CFR Part 531
RIN 3206-AM25
General Schedule Locality Pay Areas
AGENCY: U.S. Office of Personnel Management.
ACTION: Interim rule with request for comments.
-----------------------------------------------------------------------
SUMMARY: On behalf of the President's Pay Agent, the U.S. Office of
Personnel Management is issuing interim regulations on the locality pay
program for General Schedule employees. The interim regulations
establish separate locality pay areas for the States of Alaska and
Hawaii and extend coverage of the Rest of U.S. locality pay area to
include American Samoa, the Commonwealth of Puerto Rico, the
Commonwealth of the Northern Mariana Islands, the Territory of Guam,
the U.S. Virgin Islands, and all other U.S. possessions listed in 5 CFR
591.205, applicable on the first day of the first pay period beginning
on or after January 1, 2011.
DATES: Effective Date: The regulations are effective November 1, 2010.
Applicability Date: The regulations apply on the first day of the
first pay period beginning on or after January 1, 2011.
Comment Date: We must receive comments on or before November 29,
2010.
ADDRESSES: Send or deliver comments to Jerome D. Mikowicz, Deputy
Associate Director for Pay and Leave, Office of Personnel Management,
Room 7H31, 1900 E Street, NW., Washington, DC 20415-8200; FAX: (202)
606-4264; or e-mail: pay-performance-policy@opm.gov.
FOR FURTHER INFORMATION CONTACT: Allan Hearne, (202) 606-2838; FAX:
(202) 606-4264; e-mail: pay-performance-policy@opm.gov.
SUPPLEMENTARY INFORMATION: Section 5304 of title 5, United States Code,
authorizes locality pay for General Schedule (GS) employees with duty
stations in the United States and its territories and possessions. The
Non-Foreign Area Retirement Equity Assurance Act of 2009 (NAREA),
Public Law 111-84, title XIX, subtitle B (October 28, 2009), extended
locality pay to the States of Alaska and Hawaii and the U.S.
territories and possessions effective in January 2010. While the
statute included a sense of Congress that one locality pay area cover
the entire State of Alaska and one cover the entire State of Hawaii, it
did not actually establish any new locality pay areas.
Section 5304(f) of title 5, United States Code, authorizes the
President's Pay Agent (the Secretary of Labor, the Director of the
Office of Management and Budget, and the Director of the Office of
Personnel Management) to determine locality pay areas. The boundaries
of locality pay areas must be based on appropriate factors, which may
include local labor market patterns, commuting patterns, and the
practices of other employers. The Pay Agent must give thorough
consideration to the views and recommendations of the Federal Salary
Council (Council), a body composed of experts in the fields of labor
relations and pay policy and representatives of Federal employee
organizations. The President appoints the members of the Council, which
submits annual recommendations to the Pay Agent about the locality pay
program.
The Federal Salary Council has been unable to meet to consider what
locality pay areas should be established for the States of Alaska and
Hawaii and the U.S. territories and possessions. Since establishing
locality pay areas by regulation takes a substantial amount of time, we
are publishing this interim rule now, even though the Council has not
yet met, to insure these new locality pay areas are established in time
for the January 2011 pay adjustments. We are hopeful the Council will
be able to meet during the comment period for these regulations to
formulate and submit recommendations.
In the absence of Council recommendations, the Pay Agent has
concluded that separate locality pay areas should be established for
the States of Alaska and Hawaii. We have non-Federal salary survey data
collected under the National Compensation Survey (NCS) that can be used
to set and adjust locality pay rates for these locations. This is the
same survey source currently used in the other locality pay areas. In
fact, the Council's recommendation letter of November 4, 2009, included
a pay disparity for Alaska (based on a survey of Anchorage) of 54.98
percent and a pay disparity for Hawaii (based on a survey of Honolulu)
of 38.41 percent. These measures were generated using the methodology
adopted by the Council and the Pay Agent and salary surveys conducted
by the Bureau of Labor Statistics (BLS) and both are well above the
Rest of U.S. locality pay area pay disparity of 27.81 percent included
in our 2009 annual report to the President. Establishing single pay
areas for all of Alaska and all of Hawaii also coincides with a sense
of Congress provision that these locations each be covered by a single
separate locality pay area. Since it is not feasible for BLS to conduct
salary surveys using the current survey methods at current budget
levels in additional locations in Alaska, Hawaii, or the U.S.
territories and possessions, the Pay Agent concludes Alaska and Hawaii
should become whole-State locality pay areas and the other locations
should be part of the Rest of U.S. (RUS) locality pay area. This
decision may be revisited if the Federal Salary Council makes a
different recommendation when it next convenes.
Impact and Implementation
This rule will affect rates of pay for about 44,100 civilian white-
collar employees in the States of Alaska and Hawaii, the Commonwealths
of Puerto Rico and the Northern Mariana Islands, Guam, the U.S. Virgin
Islands, and other U.S. possessions. Under the rule, approved locality
pay rates would likely be higher than in the RUS locality pay area for
employees in Alaska and Hawaii. Federal civilian white-collar employees
in the U.S. territories and possessions will be covered by the RUS
locality pay rate.
Waiver of Notice of Proposed Rulemaking
Pursuant to 5 U.S.C. 553(b)(3)(B), I find that good cause exists
for waiving
[[Page 60286]]
the general notice of proposed rulemaking. Notice is being waived to
comply with the intent of Congress that employees affected by the NAREA
in Alaska and Hawaii have separate locality pay areas established for
January 2011 pay adjustments. In addition, notice is being waived to
ensure that employees in the U.S. territories and possessions who are
affected by the NAREA are included in the RUS locality pay area in time
for the January 2011 pay adjustments. I find that provision of the
general notice of proposed regulations is both impracticable and
unnecessary in this instance because Congress has indicated its intent
that these changes be effected in time for the January 2011 pay
adjustments, and because the process of promulgating proposed and final
rules to establish these changes would introduce unnecessary delay
resulting in effecting these changes beyond the date on which the
January 2011 pay adjustments take effect. In addition, since the latest
available data indicates that, for Alaska and Hawaii, the locality pay
rates will be higher than that for the RUS locality pay area, the
process of promulgating proposed and final rules would be contrary to
the public interest in that it would cause unnecessary delay in
applying the higher locality pay rates in these areas in time for the
January 2011 pay adjustments.
E.O. 12866, Regulatory Review
The Office of Management and Budget has reviewed this rule in
accordance with E.O. 12866.
Paperwork Reduction Act
This document does not contain proposed information collection
requirements subject to the Paperwork Reduction Act of 1995, Public Law
104-13.
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.
John Berry,
Director, U.S. Office of Personnel Management.
0
Accordingly, OPM amends 5 CFR part 531 as follows:
PART 531--PAY UNDER THE GENERAL SCHEDULE
0
1. The authority citation for part 531 continues 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, 3 CFR, 1991 Comp., p.
316; Subpart B also issued under 5 U.S.C. 5303(g), 5305, 5333,
5334(a) and (b), and 7701(b)(2); Subpart D also issued under 5
U.S.C. 5335 and 7701(b)(2); Subpart E also issued under 5 U.S.C.
5336; Subpart F also issued under 5 U.S.C. 5304 and 5305; E.O.
12883, 58 FR 63281, 3 CFR, 1993 Comp., p. 682; and E.O. 13106, 63 FR
68151, 3 CFR, 1998 Comp., p. 224.
Subpart F--Locality-Based Comparability Payments
0
2. 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 purposes of this
subpart:
(1) Alaska--consisting of the State of Alaska;
(2) Atlanta-Sandy Springs-Gainesville, GA-AL--consisting of the
Atlanta-Sandy Springs-Gainesville, GA-AL CSA;
(3) Boston-Worcester-Manchester, MA-NH-RI-ME--consisting of the
Boston-Worcester-Manchester, MA-RI-NH CSA, plus Barnstable County, MA,
and Berwick, Eliot, Kittery, South Berwick, and York towns in York
County, ME;
(4) Buffalo-Niagara-Cattaraugus, NY--consisting of the Buffalo-
Niagara-Cattaraugus, NY CSA;
(5) Chicago-Naperville-Michigan City, IL-IN-WI--consisting of the
Chicago-Naperville-Michigan City, IL-IN-WI CSA;
(6) Cincinnati-Middletown-Wilmington, OH-KY-IN--consisting of the
Cincinnati-Middletown-Wilmington, OH-KY-IN CSA;
(7) Cleveland-Akron-Elyria, OH--consisting of the Cleveland-Akron-
Elyria, OH CSA;
(8) Columbus-Marion-Chillicothe, OH--consisting of the Columbus-
Marion-Chillicothe, OH CSA;
(9) Dallas-Fort Worth, TX--consisting of the Dallas-Fort Worth, TX
CSA;
(10) Dayton-Springfield-Greenville, OH--consisting of the Dayton-
Springfield-Greenville, OH CSA;
(11) Denver-Aurora-Boulder, CO--consisting of the Denver-Aurora-
Boulder, CO CSA, plus the Ft. Collins-Loveland, CO MSA;
(12) Detroit-Warren-Flint, MI--consisting of the Detroit-Warren-
Flint, MI CSA, plus Lenawee County, MI;
(13) Hartford-West Hartford-Willimantic, CT-MA--consisting of the
Hartford-West Hartford-Willimantic, CT CSA, plus the Springfield, MA
MSA and New London County, CT;
(14) Hawaii--consisting of the State of Hawaii;
(15) Houston-Baytown-Huntsville, TX--consisting of the Houston-
Baytown-Huntsville, TX CSA;
(16) Huntsville-Decatur, AL--consisting of the Huntsville-Decatur,
AL CSA;
(17) Indianapolis-Anderson-Columbus, IN--consisting of the
Indianapolis-Anderson-Columbus, IN CSA, plus Grant County, IN;
(18) Los Angeles-Long Beach-Riverside, CA--consisting of the Los
Angeles-Long Beach-Riverside, CA CSA, plus the Santa Barbara-Santa
Maria-Goleta, CA MSA and all of Edwards Air Force Base, CA;
(19) Miami-Fort Lauderdale-Pompano Beach, FL--consisting of the
Miami-Fort Lauderdale-Pompano Beach, FL MSA, plus Monroe County, FL;
(20) Milwaukee-Racine-Waukesha, WI--consisting of the Milwaukee-
Racine-Waukesha, WI CSA;
(21) Minneapolis-St. Paul-St. Cloud, MN-WI--consisting of the
Minneapolis-St. Paul-St. Cloud, MN-WI CSA;
(22) New York-Newark-Bridgeport, NY-NJ-CT-PA--consisting of the New
York-Newark-Bridgeport, NY-NJ-CT-PA CSA, plus Monroe County, PA, Warren
County, NJ, and all of Joint Base McGuire-Dix-Lakehurst;
(23) Philadelphia-Camden-Vineland, PA-NJ-DE-MD--consisting of the
Philadelphia-Camden-Vineland, PA-NJ-DE-MD CSA excluding Joint Base
McGuire-Dix-Lakehurst, plus Kent County, DE, Atlantic County, NJ, and
Cape May County, NJ;
(24) Phoenix-Mesa-Scottsdale, AZ--consisting of the Phoenix-Mesa-
Scottsdale, AZ MSA;
(25) Pittsburgh-New Castle, PA--consisting of the Pittsburgh-New
Castle, PA CSA;
(26) Portland-Vancouver-Hillsboro, OR-WA--consisting of the
Portland-Vancouver-Hillsboro, OR-WA MSA, plus Marion County, OR, and
Polk County, OR;
(27) Raleigh-Durham-Cary, NC--consisting of the Raleigh-Durham-
Cary, NC CSA, plus the Fayetteville, NC MSA, the Goldsboro, NC MSA, and
the Federal Correctional Complex Butner, NC;
(28) Richmond, VA--consisting of the Richmond, VA MSA;
(29) Sacramento--Arden-Arcade--Yuba City, CA-NV--consisting of the
Sacramento--Arden-Arcade--Yuba City, CA-NV CSA, plus Carson City, NV;
[[Page 60287]]
(30) San Diego-Carlsbad-San Marcos, CA--consisting of the San
Diego-Carlsbad-San Marcos, CA MSA;
(31) San Jose-San Francisco-Oakland, CA--consisting of the San
Jose-San Francisco-Oakland, CA CSA, plus the Salinas, CA MSA and San
Joaquin County, CA;
(32) Seattle-Tacoma-Olympia, WA--consisting of the Seattle-Tacoma-
Olympia, WA CSA, plus Whatcom County, WA;
(33) Washington-Baltimore-Northern Virginia, DC-MD-VA-WV-PA--
consisting of the Washington-Baltimore-Northern Virginia, DC-MD-VA-WV
CSA, plus the Hagerstown-Martinsburg, MD-WV MSA, the York-Hanover-
Gettysburg, PA CSA, and King George County, VA; and
(34) Rest of U.S.--consisting of those portions of the United
States and its territories and possessions as listed in 5 CFR 591.205
not located within another locality pay area.
[FR Doc. 2010-24495 Filed 9-29-10; 8:45 am]
BILLING CODE 6325-01-P