Methodology for Calculating Locality Pay Rates Clause Samples

Methodology for Calculating Locality Pay Rates. The FDIC will use the methodology set forth below to update annually the LPI used to determine locality pay adjustments for all FDIC locations (all calculations will be made to the nearest four decimal places). a. Using data from the National Compensation Survey (“NCS”) published annually by the Bureau of Labor Statistics on the target gap for the Federal Government’s “ Rest of U.S.” (“RUS”) locality pay area, calculate a three- year average NCS RUS target gap from the official published results for the three most recent NCS annual surveys available (for 2010, the surveys covering the GS locality pay for 2009-2011). Determine the percentage change between this new three-year average NCS RUS target gap and the three-year average NCS RUS target gap from the three NCS annual surveys last used as the basis for calculating the FDIC’s LPI, using the following formula (to update the LPI for 2010, use the three-year average NCS RUS target gap from the official published results from the 2005 through 2007 NS surveys): (1 + most recent three-year average NCS RUS target gap)÷ (1 + 2005-2007 average NCS RUS target gap) = Percentage Change from Previous Three-Year Average NCS RUS Target Gap 2010 EXAMPLE (using 2009-2011 NCS data): 1. 2277 ÷ 1.1641 = 1.0546 b. Multiply the current FDIC RUS target gap (for 2010, use the 3.0 percent target gap previously established by the FDIC and NTEU as the basis for calculating the FDIC's 2007- 2009 LPI) by the percentage calculated in a., above, to determine a new three-year average FDIC RUS target gap to be used as the basis for the annual LPI update, using the following formula: Quotient from Step a. × (1 + current FDIC RUS target gap) = New FDIC RUS Target Gap 2010 EXAMPLE (using 2009-2011 NCS data): 1. 0300 x 1.0546 = 1.0862 c. For each of the Federal Government’s non-RUS locality pay areas in which the FDIC currently has an office, calculate three-year average NCS target gaps using the official published results from the three most recent NCS annual surveys available. Determine the ratio of the three-year average NCS target gaps for each of those locality pay areas to the three-year average NCS RUS target gap calculated in Step a., using the following formula: (1 + Three-Year NCS Average Target Gap for Individual Non-RUS Locality Pay Area) ÷ (1 + Most Recent Three-Year Average RUS Target Gap)=Ratio (NCS Target Gap for Individual Non-RUS Location to NCS RUS Target Gap) 2010 EXAMPLE (Washington, DC): 1. 5724 ÷ 1.2277 = 1.2808 d. F...

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