1. Purpose.To ensure state workforce agencies (SWAs) are aware of locality-based salary rates for some Federal civilian employees that SWA personnel may use in completing Unemployment Compensation for Federal Employees Form ES-935, Claimant Statement of Federal Civilian Service.
2. Reference. Chapter V, Section 5, and Chapter XI, Section 1, ET Handbook No. 391.
3. Background. The locality-based comparability payment (known as locality pay) is authorized for GS employees in certain areas of the country. There are 31 locality pay areas (including the Rest of U.S. area). Locality pay areas were reduced from 32 to 31 for 2005. The boundaries of most of the 31 separate locality pay areas have been expanded, effective with the first pay period beginning on or after January 1, 2005, to reflect the new definitions of Metropolitan Statistical Areas established by the Office of Management and Budget and the application of new criteria for evaluating counties adjacent to locality pay areas for inclusion in the pay area. The locality rates of pay were computed based on the annual rates shown on the 2005 General Schedule and reflect the across the board pay increase authorized by the President on December 30, 2004. The locality rates of pay are considered basic pay for retirement, life insurance, premium pay, and severance pay purposes and for advances in pay. They are also used to compute worker's compensation payments and lump-sum payments for accrued and accumulated annual leave. The locality pay increases became effective the first day of the first applicable pay period beginning on or after January 1, 2005.
Additional information about the 2005 Annual Salary Rates can be found at the Office of Personnel Management (OPM) Web site at: http://www.opm.gov/oca/payrates/index.asp.
4. Instruction. SWAs should provide this information to appropriate staff members engaged in UCFE claims activities.
5. Inquiries. Direct questions to the appropriate Regional Office.
| RESCISSIONS | EXPIRATION DATE |
| None | January 31, 2006 |