Study on locality pay Department of Defense employees
Division A — Department of Defense Authorizations › Title XI — Civilian Personnel › Subtitle A — General Provisions
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(a) In general The Secretary of Defense, in consultation with the Director of the Office of Personnel Management, shall conduct a study on locality pay Department of Defense employees, including locality pay under subchapter I of chapter 53 of title 5, United States Code. Such study shall include the following: (1) A review of current methodologies used to determine locality pay adjustments and their alignment with actual cost of living and labor market data. (2) An evaluation of regional disparities that impact recruitment and retention of Federal employees in defense-related roles. (3) Consideration of alternative models, including adjustments based on broader economic indicators, private-sector wage comparisons, and regional housing market trends. (4) Recommendations for legislative or administrative changes necessary to improve the accuracy, fairness, and effectiveness of locality pay adjustments. (b) Report Not later than April 1, 2026, the Secretary shall submit to Congress a report on the study conducted under subsection (a).