The Senate Homeland Security and Governmental Affairs committee has approved S-507, which would replace on a phased-in basis the non-foreign area cost-of-living allowance system with locality pay. While the COLAs, which primarily affect employees in Alaska and Hawaii, are non-taxable, they do not count toward retirement benefits and are also capped at a maximum of 25 percent above the base GS salary schedule, whereas there is no cap on locality pay and locality pay does count toward retirement. The measure would phase in the change with guarantees that employees would not come out behind. Meanwhile, the Senate has approved the nomination of John Berry to head OPM.