[Federal Register Volume 65, Number 137 (Monday, July 17, 2000)]
[Rules and Regulations]
[Pages 44101-44102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-17569]


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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: Final rule.

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SUMMARY: The Office of Personnel Management is adopting as final an 
interim increase in the cost-of-living allowance (COLA) rate for 
Honolulu. The increase was the result of our 1997 cost-of-living 
surveys in certain nonforeign areas. We are also making a change in the 
Miscellaneous Expense category we use in the COLA methodology that will 
identify education as an expense. This increase is a result of cost-of-
living surveys conducted in the summer of 1997 using our current 
methodology for calculating COLA rates. A settlement agreement that is 
currently awaiting court approval calls for OPM to use a new 
methodology in conducting future surveys and in calculating future COLA 
rates. Therefore, the survey results reflected in this rule are not an 
indication of what survey results or COLA rates would be under the new 
methodology.

DATES: Effective date: August 16, 2000.

FOR FURTHER INFORMATION CONTACT: Donald L. Paquin, (202) 606-2838; fax: 
(202) 606-4264; or email: [email protected].

SUPPLEMENTARY INFORMATION: The Federal Government pays cost-of-living 
allowances (COLAs) to General Schedule, U.S. Postal Service, and 
certain other Federal employees in Alaska, Hawaii, Guam and the 
Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. 
Virgin Islands. The Office of Personnel Management (OPM) conducts cost-
of-living surveys in each allowance area to determine whether, and to 
what degree, local living costs are higher than those in Washington, 
DC. OPM sets the COLA rate for each area based on the results of these 
surveys.
    On October 21, 1998, we published an interim rule for comment in 
the Federal Register (63 FR 56430) that--
--Increased the COLA rate for the Honolulu allowance area from 22.5 
percent to 25 percent based on the 1997 survey results, and
--Broadened the composition of the Miscellaneous Expense category used 
in the COLA methodology.

    We received one comment on the interim regulations. The commenter 
felt that the change in the Miscellaneous Expense category should 
identify education as an expense. Alternatively, the commenter thought 
we should emphasize that other expenses are possible or describe the 
kinds of expenses that may be included in the category. We agree that 
adding education to the listing would be helpful, and we have changed 
the wording as suggested.

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 adopting the interim regulations for 5 CFR part 
591 published on October 21, 1998, at 63 FR 56430 as final with one 
change, as set forth below:

[[Page 44102]]

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, life insurance, and education, are estimated 
from consumer expenditure surveys and other data appropriate for 
Federal employees for each income level.
* * * * *
[FR Doc. 00-17569 Filed 7-14-00; 8:45 am]
BILLING CODE 6325-01-P