To provide that Federal employees in high-cost urban and suburban areas be compensated at rates of basic pay adjusted to reflect the generally higher costs of living within their particular areas.

[AI summary unavailable — showing source text] Requires the Director of the Office of Personnel Management to report to the Congress on a plan to subject General Schedule employees to a locality pay system by October 1, 1990, to ensure that employees working in high-cost areas are compensated at basic pay rates commensurate with the costs of living in such areas. Requires such report to include: (1) the number of employees likely to receive locality pay and the implementation costs during the first three years of such plan; (2) any benefits resulting from such plan; (3) a description of which aspects of the plan may be implemented under existing law; and (4) proposals for any legal action which may be necessary.…