Hawaii/Alaska locality pay


Q: How will the 2012 final year of conversion to locality pay affect federal employees who are paid at “agency discretion” under a statute which caps their pay at EX-IV, such as those in the U.S. Attorney’s Offices. Some employees’ basic pay was under the cap when the three-year conversion began.  However, in 2012, their pay would exceed the pay cap if the full amount of COLA is converted to locality pay. On the other hand, if the cap is applied, such employees will experience a reduction in gross pay, inconsistent with Congressional intent to protect employees’ pay.  See 1915(a) of NAREAA. Will the employees be treated the same as “special rate” employees?

A: Yes, they will. LIke special rate employees, their pay will be capped at Executive Level IV.


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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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