Payment in Lieu of Cost-of-Living Allowance to Employees Whose Pay Is Administratively Fixed

An opinion was requested as to whether employees whose pay was set administratively rather than by statute could be paid an amount representing an allowance for higher costs of living in Alaska. An amount in lieu of the cost-of-living allowance may be paid to employees of the Federal Railroad Administration in Alaska whose pay is fixed administratively since the statutory provisions limiting the salaries of those employees to amounts not in excess of salaries of specified grades under the General Schedule refer to the basic compensation rates, not to allowances.