5 C.F.R. § 9901.332 Local market supplements.
Title 5 - Administrative Personnel
(a) The Secretary may establish local market supplements that apply in specified local market areas whose boundaries are set at the Secretary's sole and exclusive discretion, subject to paragraph (b) of this section and §9901.105(d)(4). Local market supplements apply to employees whose official duty station is located in the given local market area. The Secretary may establish standard or targeted local market supplements. (b)(1) The establishment or modification of geographic area boundaries for standard local market supplements by the Secretary will be effected by regulations which, notwithstanding 5 U.S.C. 553(a)(2), will be promulgated in accordance with the notice and comment requirements of 5 U.S.C. 553. As provided by the non-waived provisions of 5 U.S.C. 5304(f)(2) (modified here to apply to DoD regulations issued under the authority of this paragraph), judicial review of any such regulation is limited to whether or not it was promulgated in accordance with such requirements. (2) Notwithstanding paragraph (b)(1) of this section, the Secretary's establishment of a standard local market area boundary or boundaries identical to those used for locality pay areas established under 5 U.S.C. 5304 does not require separate DoD regulations. (c) Local market supplements are considered basic pay for only the following purposes: (1) Retirement deductions, contributions, and benefits under 5 U.S.C. chapter 83 or 84; (2) Life insurance premiums and benefits under 5 U.S.C. chapter 87; (3) Premium pay under 5 U.S.C. chapter 55, subchapter V, or similar payments under other legal authority, including this subpart; (4) Severance pay under 5 U.S.C. 5595; (5) Cost-of-living allowances and post differentials under 5 U.S.C. 5941; (6) Overseas allowances and differentials under 5 U.S.C. chapter 59, subchapter III, to the extent authorized by the Department of State; (7) Recruitment, relocation, and retention incentives, supervisory differentials, and extended assignment incentives under 5 U.S.C. chapter 57, subchapter IV, and 5 CFR part 575; (8) Lump-sum payments for accumulated and accrued annual leave under 5 CFR 550, subpart L; (9) Determining the rate of basic pay upon conversion to the NSPS pay system as provided in §9901.373(b); (10) Other payments and adjustments authorized under this subpart as specified by implementing issuances; (11) Other payments and adjustments under other statutory or regulatory authority for which locality-based comparability payments under 5 U.S.C. 5304 are considered part of basic pay; and (12) Any provisions for which DoD local market supplements are treated as basic pay by law.
Title 5: Administrative Personnel
PART 9901—DEPARTMENT OF DEFENSE HUMAN RESOURCES MANAGEMENT AND LABOR RELATIONS SYSTEMS
Subpart C—Pay and Pay Administration
Local Market Supplements
§ 9901.332 Local market supplements.
