H.R. 6516, The Non-Foreign AREA Act of 2008

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H.R. 6516 would provide for retirement equity for Federal employees in nonforeign areas outside the 48 contiguous States and the District of Columbia.

Detailed Summary

Non-Foreign Area Retirement Equity Assurance Act of 2008 or the Non-Foreign AREA Act of 2008 - Revises federal employee locality-based comparability payments provisions to include U.S. territories and possessions, including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands, within a pay locality. Revises the calculation of allowances based on living costs and conditions of environment for pay of employees stationed outside the continental United States or in Alaska to apply it only to areas designated as of December 31, 2008. Provides a formula for adjustment of such rate using a transition schedule for calendar years 2009-2011.

Requires adjustment of special rates of pay in such areas in accordance with regulations prescribed by the Director of the Office of Personnel Management (OPM) or by the Department of Veterans Affairs (VA) for VA personnel. Allows a temporarily raised limitation on the amount of special rates during the transition period.

Expresses the sense of Congress that application of this Act to an employee should not result in a decrease in take home pay.

Defines as covered employees for purposes of this Act those who are or will be eligible for a cost-of-living allowance (COLA).

Allows an employee subject to this Act's transition schedule and who retires from service during the period from January 1, 2009, through December 31, 2011, to elect to have the COLA paid during that period considered as basic pay for purposes of annuity computation.

Provides procedures for employees to make an irrevocable election to be covered by this Act.

Status of the Legislation

Latest Major Action: 7/23/2008: Referred to House subcommittee. Status: Referred to the Subcommittee on Federal Workforce, Post Office, and the District of Columbia.

Points in Favor

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Points Against

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