Federal white-collar employees1 paid under the General Schedule (GS), Foreign Service Schedule, and Veterans Health Administration Schedule are intended by law to receive an annual pay adjustment and a locality-based comparability payment, effective in January of each year, under Section 529 of P.L. 101-509, the Federal Employees Pay Comparability Act (FEPCA) of 1990.2 Although the annual adjustment and the locality payment are sometimes referred to as cost-of-living adjustments, neither is based on measures of the cost of living. FEPCA has never been implemented as originally enacted. The annual pay adjustment was not made in 1994; in 1995, 1996, and 1998, reduced amounts of the annual adjustment were provided. For 1995 through 2005, reduced amounts of the locality payments were provided and are being provided for 2006.