---
kind: "section"
citation: "5 C.F.R. § 591.206"
title: "5"
number: "591.206"
heading: "How does OPM establish COLA areas?"
url: "https://uscodex.org/cfr/5/591.206"
---

# §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.

## Notes

### Authority

Authority: 5 U.S.C. 5941; E.O. 10000, 3 CFR, 1943-1948 Comp., p. 792; and E.O. 12510, 3 CFR, 1985 Comp., p. 338.

### Source

Source: 67 FR 22340, May 3, 2002, unless otherwise noted.