In June 2020, in response to congressional language from the House Appropriations Committee, the Office of Personnel Management delivered a report regarding: Effect of Locality Pay Adjustments on Salaries and Retirement Benefits Non-Foreign Areas Compared to Contiguous U.S.
In the report, OPM is analyzing the calculation of locality pay (5 USC 5304) in salary and benefit adjustments for employees living in non-foreign areas (5 CFR 591.205). The report also assesses how the calculations compare with those of Federal employees living in the rest of the United States to determine if there are any inequities in such calculations. In
addition, the report includes information on the differential in pay received by retirees in these locations who did not receive consideration of full locality pay amounts in their high-3 earnings on which annuities are calculated and of survivor annuitants of such Federal employees. Congress also directed that the report include recommendations
for Congress to consider, and they are listed in the report.
DOWNLOAD .pdf VERSION: OPM Report to Congress June 2020