81_FR_86479 81 FR 86249 - Prevailing Rate Systems; Redefinition of the New York, NY, and Philadelphia, PA, Appropriated Fund Federal Wage System Wage Areas

81 FR 86249 - Prevailing Rate Systems; Redefinition of the New York, NY, and Philadelphia, PA, Appropriated Fund Federal Wage System Wage Areas

OFFICE OF PERSONNEL MANAGEMENT

Federal Register Volume 81, Issue 230 (November 30, 2016)

Page Range86249-86250
FR Document2016-28769

The U.S. Office of Personnel Management (OPM) is issuing a final rule to redefine the geographic boundaries of the New York, NY, and Philadelphia, PA, appropriated fund Federal Wage System (FWS) wage areas. The final rule will address an anomalous situation affecting Joint Base McGuire-Dix-Lakehurst. Portions of the Joint Base are currently defined to the Philadelphia wage area and to the New York wage area. OPM has developed a new criterion for defining wage areas to address this unique situation so that the entire Joint Base is covered by a single wage schedule.

Federal Register, Volume 81 Issue 230 (Wednesday, November 30, 2016)
[Federal Register Volume 81, Number 230 (Wednesday, November 30, 2016)]
[Rules and Regulations]
[Pages 86249-86250]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28769]



========================================================================
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.

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Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / 
Rules and Regulations

[[Page 86249]]



OFFICE OF PERSONNEL MANAGEMENT

5 CFR Part 532

RIN 3206-AN29


Prevailing Rate Systems; Redefinition of the New York, NY, and 
Philadelphia, PA, Appropriated Fund Federal Wage System Wage Areas

AGENCY: U.S. Office of Personnel Management.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The U.S. Office of Personnel Management (OPM) is issuing a 
final rule to redefine the geographic boundaries of the New York, NY, 
and Philadelphia, PA, appropriated fund Federal Wage System (FWS) wage 
areas. The final rule will address an anomalous situation affecting 
Joint Base McGuire-Dix-Lakehurst. Portions of the Joint Base are 
currently defined to the Philadelphia wage area and to the New York 
wage area. OPM has developed a new criterion for defining wage areas to 
address this unique situation so that the entire Joint Base is covered 
by a single wage schedule.

DATES: Effective date: This regulation is effective on November 30, 
2016.
    Applicability date: This change applies on the first day of the 
first applicable pay period beginning on or after December 30, 2016.

FOR FURTHER INFORMATION CONTACT: Madeline Gonzalez, by telephone at 
(202) 606-2838 or by email at [email protected].

SUPPLEMENTARY INFORMATION: On July 20, 2016, OPM issued a proposed rule 
(81 FR 47049) to redefine the Joint Base McGuire-Dix-Lakehurst portions 
of Burlington County, NJ, and Ocean County, NJ, that are currently 
defined to the Philadelphia, PA, wage area to the New York, NY, wage 
area so that the entire Joint Base is covered by a single FWS wage 
schedule. This change is based on a majority recommendation of the 
Federal Prevailing Rate Advisory Committee (FPRAC), the national labor-
management committee responsible for advising OPM on the administration 
of the FWS.
    The 30-day comment period ended on August 19, 2016. OPM received 
comments from several hundred Federal employees, several Members of 
Congress, and one agency. Public comments supported defining the Joint 
Base McGuire-Dix-Lakehurst portions of Burlington County and Ocean 
County currently defined to the Philadelphia wage area to the New York 
wage area.
    Employees stationed at Tobyhanna Army Depot in northeastern 
Pennsylvania asked that OPM also consider redefining Monroe County, PA, 
from the Scranton-Wilkes-Barre, PA, wage area to the New York wage 
area. FPRAC made a separate recommendation by majority vote in January 
2016 that OPM redefine Monroe County to the New York wage area. FPRAC's 
recommendation, and the public comments regarding Tobyhanna Army Depot, 
is beyond the scope of this rule. The intent of this rule is to address 
an anomalous situation created when a contiguous Joint Base overlaps 
two metropolitan areas and two FWS wage areas. The proposed rule's new 
criterion for defining FWS wage area boundaries has limited 
applicability and was not intended to address any other situation.
    An agency suggested that instead of defining a single contiguous 
Joint Base that overlaps two wage areas to the wage area with the most 
favorable payline, OPM should in the future consider basing the wage 
area definition for a Joint Base on the part of the Joint Base with the 
largest FWS employment count. The agency expressed concerns that Joint 
Bases were established in part to save costs and the proposed new 
criterion would result in higher wage costs. Although OPM considered 
this option when developing the proposed rule, it was not adopted 
because the new proposed criterion follows a protocol already 
established in similar FWS special wage schedule regulations as an 
equitable method for compensating employees stationed at a small 
contiguous installation.
    In addition, several commenters questioned the effective date of 
the proposed change recommending retroactive applicability. OPM defines 
wage areas through regulations in 5 CFR part 532. Changes in OPM's 
regulations are prospective, not retroactive, following an appropriate 
period for public comment. This change will apply on the first day of 
the first applicable pay period beginning on or after 30 days following 
publication of the final regulations.

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 affect only Federal agencies and employees.

Executive Order 13563 and Executive Order 12866

    This final rule has been reviewed by the Office of Management and 
Budget in accordance with Executive Order 13563 and Executive Order 
12866.

List of Subjects in 5 CFR Part 532

    Administrative practice and procedure, Freedom of information, 
Government employees, Reporting and recordkeeping requirements, Wages.


U.S. Office of Personnel Management.
Beth F. Cobert,
Acting Director.

    Accordingly, OPM amends 5 CFR part 532 as follows:

PART 532--PREVAILING RATE SYSTEMS

0
1. The authority citation for part 532 continues to read as follows:

    Authority: 5 U.S.C. 5343, 5346; Sec.  532.707 also issued under 
5 U.S.C. 552.

Subpart B--Prevailing Rate Determinations

0
2. Section 532.211 is amended by adding a new paragraph (f) to read as 
follows:


Sec.  532.211  Criteria for establishing appropriated fund wage areas.

* * * * *
    (f) A single contiguous military installation defined as a Joint 
Base that would otherwise overlap two separate wage areas shall be 
included in only a single wage area. The wage area of such a Joint Base 
shall be defined to be the wage area with the most favorable payline 
based on an analysis of the simple average of the 15 nonsupervisory

[[Page 86250]]

second step rates on each one of the regular wage schedules applicable 
in the otherwise overlapped wage areas.

0
3. Appendix C to subpart B is amended by revising the wage area listing 
for the New York, NY, and Philadelphia, PA, wage areas to read as 
follows:

Appendix C to Subpart B of Part 532--Appropriated Fund Wage and Survey 
Areas

 
 
 
 
                                * * * * *
                                NEW YORK
 
                                * * * * *
                                New York
 
                               Survey Area
 
New Jersey:
  Bergen
  Essex
  Hudson
  Middlesex
  Morris
  Passaic
  Somerset
  Union
New York:
  Bronx
  Kings
  Nassau
  New York
  Orange
  Queens
  Suffolk
  Westchester
 
                 Area of Application. Survey area plus:
 
New Jersey:
  Burlington (Joint Base McGuire-Dix-Lakehurst portion only)
  Hunterdon
  Monmouth
  Ocean
  Sussex
New York:
  Dutchess
  Putnam
  Richmond
  Rockland
Pennsylvania:
  Pike
 
                                * * * * *
                              PENNSYLVANIA
 
                                * * * * *
                              Philadelphia
 
                               Survey Area
 
New Jersey:
  Burlington (Excluding the Joint Base McGuire-Dix-Lakehurst portion)
  Camden
  Gloucester
Pennsylvania:
  Bucks
  Chester
  Delaware
  Montgomery
  Philadelphia
 
                 Area of Application. Survey area plus:
 
New Jersey:
  Atlantic
  Cape May
  Cumberland
  Mercer
  Warren
Pennsylvania:
  Carbon
  Lehigh
  Northampton
 
                                * * * * *
 

[FR Doc. 2016-28769 Filed 11-29-16; 8:45 am]
BILLING CODE 6325-39-P



                                                                                                                                                                                                  86249

                                              Rules and Regulations                                                                                         Federal Register
                                                                                                                                                            Vol. 81, No. 230

                                                                                                                                                            Wednesday, November 30, 2016



                                              This section of the FEDERAL REGISTER                    FWS wage schedule. This change is                     retroactive applicability. OPM defines
                                              contains regulatory documents having general            based on a majority recommendation of                 wage areas through regulations in 5 CFR
                                              applicability and legal effect, most of which           the Federal Prevailing Rate Advisory                  part 532. Changes in OPM’s regulations
                                              are keyed to and codified in the Code of                Committee (FPRAC), the national labor-                are prospective, not retroactive,
                                              Federal Regulations, which is published under           management committee responsible for                  following an appropriate period for
                                              50 titles pursuant to 44 U.S.C. 1510.
                                                                                                      advising OPM on the administration of                 public comment. This change will apply
                                              The Code of Federal Regulations is sold by              the FWS.                                              on the first day of the first applicable
                                              the Superintendent of Documents. Prices of                 The 30-day comment period ended on                 pay period beginning on or after 30 days
                                              new books are listed in the first FEDERAL               August 19, 2016. OPM received                         following publication of the final
                                              REGISTER issue of each week.                            comments from several hundred Federal                 regulations.
                                                                                                      employees, several Members of
                                                                                                                                                            Regulatory Flexibility Act
                                                                                                      Congress, and one agency. Public
                                              OFFICE OF PERSONNEL                                     comments supported defining the Joint                    I certify that these regulations will not
                                              MANAGEMENT                                              Base McGuire-Dix-Lakehurst portions of                have a significant economic impact on
                                                                                                      Burlington County and Ocean County                    a substantial number of small entities
                                              5 CFR Part 532                                          currently defined to the Philadelphia                 because they will affect only Federal
                                              RIN 3206–AN29                                           wage area to the New York wage area.                  agencies and employees.
                                                                                                         Employees stationed at Tobyhanna                   Executive Order 13563 and Executive
                                              Prevailing Rate Systems; Redefinition                   Army Depot in northeastern                            Order 12866
                                              of the New York, NY, and Philadelphia,                  Pennsylvania asked that OPM also
                                              PA, Appropriated Fund Federal Wage                      consider redefining Monroe County, PA,                  This final rule has been reviewed by
                                              System Wage Areas                                       from the Scranton-Wilkes-Barre, PA,                   the Office of Management and Budget in
                                                                                                      wage area to the New York wage area.                  accordance with Executive Order 13563
                                              AGENCY:  U.S. Office of Personnel                                                                             and Executive Order 12866.
                                                                                                      FPRAC made a separate
                                              Management.
                                                                                                      recommendation by majority vote in                    List of Subjects in 5 CFR Part 532
                                              ACTION: Final rule.                                     January 2016 that OPM redefine Monroe                   Administrative practice and
                                              SUMMARY:   The U.S. Office of Personnel                 County to the New York wage area.                     procedure, Freedom of information,
                                              Management (OPM) is issuing a final                     FPRAC’s recommendation, and the                       Government employees, Reporting and
                                              rule to redefine the geographic                         public comments regarding Tobyhanna                   recordkeeping requirements, Wages.
                                              boundaries of the New York, NY, and                     Army Depot, is beyond the scope of this
                                                                                                      rule. The intent of this rule is to address           U.S. Office of Personnel Management.
                                              Philadelphia, PA, appropriated fund
                                              Federal Wage System (FWS) wage areas.                   an anomalous situation created when a                 Beth F. Cobert,
                                              The final rule will address an                          contiguous Joint Base overlaps two                    Acting Director.
                                              anomalous situation affecting Joint Base                metropolitan areas and two FWS wage                     Accordingly, OPM amends 5 CFR part
                                              McGuire-Dix-Lakehurst. Portions of the                  areas. The proposed rule’s new criterion              532 as follows:
                                              Joint Base are currently defined to the                 for defining FWS wage area boundaries
                                              Philadelphia wage area and to the New                   has limited applicability and was not                 PART 532—PREVAILING RATE
                                              York wage area. OPM has developed a                     intended to address any other situation.              SYSTEMS
                                              new criterion for defining wage areas to                   An agency suggested that instead of
                                                                                                      defining a single contiguous Joint Base               ■ 1. The authority citation for part 532
                                              address this unique situation so that the                                                                     continues to read as follows:
                                              entire Joint Base is covered by a single                that overlaps two wage areas to the wage
                                              wage schedule.                                          area with the most favorable payline,                   Authority: 5 U.S.C. 5343, 5346; § 532.707
                                                                                                      OPM should in the future consider                     also issued under 5 U.S.C. 552.
                                              DATES: Effective date: This regulation is
                                                                                                      basing the wage area definition for a
                                              effective on November 30, 2016.                         Joint Base on the part of the Joint Base              Subpart B—Prevailing Rate
                                                 Applicability date: This change                      with the largest FWS employment                       Determinations
                                              applies on the first day of the first                   count. The agency expressed concerns
                                              applicable pay period beginning on or                                                                         ■ 2. Section 532.211 is amended by
                                                                                                      that Joint Bases were established in part             adding a new paragraph (f) to read as
                                              after December 30, 2016.                                to save costs and the proposed new
                                              FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                            follows:
                                                                                                      criterion would result in higher wage
                                              Madeline Gonzalez, by telephone at                      costs. Although OPM considered this                   § 532.211 Criteria for establishing
                                              (202) 606–2838 or by email at pay-leave-                option when developing the proposed                   appropriated fund wage areas.
                                              policy@opm.gov.                                         rule, it was not adopted because the                  *      *     *    *     *
                                              SUPPLEMENTARY INFORMATION: On July                      new proposed criterion follows a                         (f) A single contiguous military
                                              20, 2016, OPM issued a proposed rule                    protocol already established in similar               installation defined as a Joint Base that
sradovich on DSK3GMQ082PROD with RULES




                                              (81 FR 47049) to redefine the Joint Base                FWS special wage schedule regulations                 would otherwise overlap two separate
                                              McGuire-Dix-Lakehurst portions of                       as an equitable method for                            wage areas shall be included in only a
                                              Burlington County, NJ, and Ocean                        compensating employees stationed at a                 single wage area. The wage area of such
                                              County, NJ, that are currently defined to               small contiguous installation.                        a Joint Base shall be defined to be the
                                              the Philadelphia, PA, wage area to the                     In addition, several commenters                    wage area with the most favorable
                                              New York, NY, wage area so that the                     questioned the effective date of the                  payline based on an analysis of the
                                              entire Joint Base is covered by a single                proposed change recommending                          simple average of the 15 nonsupervisory


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                                              86250        Federal Register / Vol. 81, No. 230 / Wednesday, November 30, 2016 / Rules and Regulations

                                              second step rates on each one of the                      Atlantic                                            Agencies’ rules exempted, among other
                                              regular wage schedules applicable in the                  Cape May                                            loan types, transactions of $25,000 or
                                              otherwise overlapped wage areas.                          Cumberland                                          less, and required that this loan amount
                                                                                                        Mercer                                              be adjusted annually based on any
                                              ■ 3. Appendix C to subpart B is
                                                                                                        Warren
                                              amended by revising the wage area                       Pennsylvania:
                                                                                                                                                            annual percentage increase in the
                                              listing for the New York, NY, and                         Carbon                                              Consumer Price Index for Urban Wage
                                              Philadelphia, PA, wage areas to read as                   Lehigh                                              Earners and Clerical Workers (CPI–W).
                                              follows:                                                  Northampton                                         If there is no annual percentage increase
                                                                                                                                                            in the CPI–W, the OCC, the Board and
                                              Appendix C to Subpart B of Part 532—                      *           *          *           *          *     the Bureau will not adjust this
                                              Appropriated Fund Wage and Survey                                                                             exemption threshold from the prior
                                                                                                      [FR Doc. 2016–28769 Filed 11–29–16; 8:45 am]
                                              Areas                                                                                                         year. The final rule will memorialize
                                                                                                      BILLING CODE 6325–39–P
                                                                                                                                                            this as well as the agencies’ calculation
                                                                                                                                                            method for determining the adjustment
                                                 *         *       *                *            *
                                                                                                                                                            in years following a year in which there
                                                                NEW YORK                              DEPARTMENT OF THE TREASURY
                                                                                                                                                            is no annual percentage increase in the
                                                 *         *         *              *            *    Office of the Comptroller of the                      CPI–W. Based on the CPI–W in effect as
                                                                 New York                             Currency                                              of June 1, 2016, the exemption threshold
                                                                Survey Area                                                                                 will remain at $25,500 through 2017.
                                              New Jersey:                                             12 CFR Part 34                                        DATES: This final rule is effective
                                                Bergen                                                                                                      January 1, 2017.
                                                Essex                                                 [Docket No. OCC–2015–0021]                            FOR FURTHER INFORMATION CONTACT:
                                                Hudson                                                RIN 1557–AD99                                         OCC: MaryAnn Nash, Counsel,
                                                Middlesex                                                                                                   Legislative and Regulatory Activities
                                                Morris                                                FEDERAL RESERVE SYSTEM                                Division, (202) 649–6287; for persons
                                                Passaic
                                                                                                                                                            who are deaf and hard of hearing TTY,
                                                Somerset
                                                Union
                                                                                                      12 CFR Part 226                                       (202) 649–5597. Board: Lorna M. Neill,
                                              New York:                                                                                                     Senior Counsel, Division of Consumer
                                                                                                      [Docket No. R–1443]
                                                Bronx                                                                                                       and Community Affairs, Board of
                                                Kings                                                 RIN 7100–AD 90                                        Governors of the Federal Reserve
                                                Nassau                                                                                                      System, at (202) 452–3667; for users of
                                                New York                                              BUREAU OF CONSUMER FINANCIAL                          Telecommunications Device for the Deaf
                                                Orange                                                PROTECTION                                            (TDD) only, contact (202) 263–4869.
                                                Queens                                                                                                      Bureau: Jaclyn Maier, Counsel, Office of
                                                Suffolk                                               12 CFR Part 1026                                      Regulations, Consumer Financial
                                                Westchester
                                                                                                      [Docket No. CFPB–2016–0035]                           Protection Bureau, at (202) 435–7700.
                                                 Area of Application. Survey area plus:
                                                                                                                                                            SUPPLEMENTARY INFORMATION:
                                              New Jersey:                                             RIN 3170–AA68
                                                Burlington (Joint Base McGuire-Dix-                                                                         I. Background
                                                  Lakehurst portion only)                             Appraisals for Higher-Priced Mortgage
                                                Hunterdon
                                                                                                                                                               The Dodd-Frank Wall Street Reform
                                                                                                      Loans Exemption Threshold                             and Consumer Protection Act of 2010
                                                Monmouth
                                                Ocean                                                 AGENCY:  Board of Governors of the                    (Dodd-Frank Act) amended the Truth in
                                                Sussex                                                Federal Reserve System (Board); Bureau                Lending Act (TILA) to add special
                                              New York:                                               of Consumer Financial Protection                      appraisal requirements for ‘‘higher-risk
                                                Dutchess                                              (Bureau); and Office of the Comptroller               mortgages.’’ 1 In January 2013, the
                                                Putnam                                                                                                      Agencies issued a joint final rule
                                                Richmond
                                                                                                      of the Currency, Treasury (OCC).
                                                                                                                                                            implementing these requirements and
                                                Rockland                                              ACTION: Final rules, official
                                                                                                                                                            adopted the term ‘‘higher-priced
                                              Pennsylvania:                                           interpretations and commentary.
                                                Pike
                                                                                                                                                            mortgage loan’’ (HPML) instead of
                                                                                                      SUMMARY:    The OCC, the Board, and the               ‘‘higher-risk mortgage’’ (the January
                                                 *         *         *      *                    *    Bureau are finalizing amendments to the               2013 Final Rule).2 In July 2013, the
                                                               PENNSYLVANIA                           official interpretations for their                    Agencies proposed additional
                                                                                                      regulations that implement section                    exemptions from the January 2013 Final
                                                 *         *         *              *            *    129H of the Truth in Lending Act                      Rule (the 2013 Supplemental Proposed
                                                                Philadelphia                          (TILA). Section 129H of TILA                          Rule).3 In December 2013, the Agencies
                                                                Survey Area                           establishes special appraisal                         issued a supplemental final rule with
                                              New Jersey:                                             requirements for ‘‘higher-risk                        additional exemptions from the January
                                                Burlington (Excluding the Joint Base                  mortgages,’’ termed ‘‘higher-priced                   2013 Final Rule (the December 2013
                                                  McGuire-Dix-Lakehurst portion)                      mortgage loans’’ or ‘‘HPMLs’’ in the                  Supplemental Final Rule).4 Among
                                                Camden                                                                                                      other exemptions, the Agencies adopted
                                                Gloucester
                                                                                                      agencies’ regulations. The OCC, the
                                                                                                      Board, the Bureau, the Federal Deposit                an exemption from the new HPML
                                              Pennsylvania:
sradovich on DSK3GMQ082PROD with RULES




                                                Bucks                                                 Insurance Corporation (FDIC), the                     appraisal rules for transactions of
                                                Chester                                               National Credit Union Administration
                                                                                                                                                              1 Public Law 111–203 section 1471, 124 Stat.
                                                Delaware                                              (NCUA) and the Federal Housing
                                                                                                                                                            1376 (2010), codified at TILA section 129H, 15
                                                Montgomery                                            Finance Agency (FHFA) (collectively,                  U.S.C. 1639h.
                                                Philadelphia                                          the Agencies) issued joint final rules                  2 78 FR 10368 (Feb. 13, 2013).
                                                 Area of Application. Survey area plus:               implementing these requirements,                        3 78 FR 48548 (Aug. 8, 2013).

                                              New Jersey:                                             effective January 18, 2014. The                         4 78 FR 78520 (Dec. 26, 2013).




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Document Created: 2016-11-30 02:17:44
Document Modified: 2016-11-30 02:17:44
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule.
ContactMadeline Gonzalez, by telephone at (202) 606-2838 or by email at [email protected]
FR Citation81 FR 86249 
RIN Number3206-AN29
CFR AssociatedAdministrative Practice and Procedure; Freedom of Information; Government Employees; Reporting and Recordkeeping Requirements and Wages

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