Locality pay


Q: Now that the Defense Authorization Bill has been passed stating that federal
employees overseas will be paid “Locality Pay” as opposed to a Cost of Living Allowance, when will we begin to receive the locality pay?

A: Under Public Law 111-84, in calendar year 2010, affected employees will receive one-third of the locality rate paid in the “rest of the U.S.” locality; in 2011, two-thirds of the otherwise applicable comparability payment for each nonforeign area; and in 2012 and after, the full amount of the otherwise applicable comparability payment. Since the 2010 locality rate has not yet been announced by the president, you’ll have to wait and see what the amount of that adjustment will be.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to fedexperts@federaltimes.com.

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