DIRECTIVE	:	UNEMPLOYMENT INSURANCE PROGRAM LETTER NO. 15-99
TO	:	ALL STATE EMPLOYMENT SECURITY AGENCIES
FROM	:	GRACE A. KILBANE Director Unemployment Insurance Service
SUBJECT	:	Revised List of Annual Salary Rates for Some General Schedule (GS) Employees in the 32 Locality Pay Areas

1. Purpose. To provide State Employment Security Agencies (SESA) with information on new special salary rates for some Federal Civilian employees to assist SESA personnel in completing UCFE Form ES-935, Claimant Statement of Federal Civilian Service.

2. References. Chapter V, Section 5, and Chapter XI, Section 1, ET Handbook No. 391.

3. Background. The locality-based comparability payments (known as locality pay) is authorized for GS employees in certain areas of the country. The Office of Personnel Management recently increased the number of areas to 32. The new pay localities are Hartford, CT and Orlando, FL. The locality rates of pay were computed based on the annual rates shown on the 1998 General Schedule and reflect the locality pay percentages authorized by the President on August 29, 1997. 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. They are NOTconsidered basic pay for other pay administration purposes. The locality pay increases became effective January 1998.

4. Instruction. SESAs should provide copies of the attached 32 Federal Locality Salary Tables to appropriate staff members engaged in UCFE claims activities.

5. Action Required. SESAs should follow the above instructions and provide the attached revised 32 Federal Locality Pay Tables to appropriate staff.

6. Inquiries. Direct questions to the appropriate Regional Office.

7. Attachment. Locality Pay Salary Tables