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Title 5: Administrative Personnel
CHAPTER I: OFFICE OF PERSONNEL MANAGEMENT
SUBCHAPTER B: CIVIL SERVICE REGULATIONS
PART 591: ALLOWANCES AND DIFFERENTIALS
Subpart B: Cost-of-Living Allowance and Post Differential-Nonforeign Areas
: Cost-Of-Living Allowances
591.206 - How does OPM establish COLA areas
(a) OPM designates, within nonforeign areas, areas where agencies pay employees a COLA by virtue of living costs that are substantially higher than those in the Washington, DC, area. In establishing the boundaries of COLA areas, OPM considers?
(1) The existence of a well-defined economic community,
(2) The availability of consumer goods and services,
(3) The concentration of Federal employees covered by this subpart, and
(4) Unique circumstances related to a specific location.
(b) If a department or agency wants OPM to consider establishing or revising the definition of a COLA area, the head of the department or agency or his or her designee must submit a request in writing to OPM.
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