CFR > Title 5 - Administrative Personnel > CHAPTER I—OFFICE OF PERSONNEL MANAGEMENT > SUBCHAPTER B—CIVIL SERVICE REGULATIONS (parts 110 to 990) > PART 591—ALLOWANCES AND DIFFERENTIALS > SUBPART B—Cost-of-Living Allowance and Post Differential—Nonforeign Areas (§591.201 to §591.244) > 591.206—How does OPM establish COLA areas?

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.