Non-Foreign Area Retirement Equity Assurance Act of 2008 or the Non-Foreign AREA Act of 2008 - Revises federal employee locality-based comparability payments provisions to include U.S. territories and possessions, including the Commonwealth of Puerto Rico and the Commonwealth of the Northern Mariana Islands, within a pay locality. Sets forth maximum rates of pay for Senior Executive Service (SES) personnel in such areas.
Revises the calculation of allowances based on living costs and conditions of environment for pay of employees stationed outside the continental United States or in Alaska to apply it only to areas designated as of December 31, 2008. Provides a formula for adjustment of such rate using a transition schedule for calendar years 2009-2011.
Requires adjustment of special rates of pay in such areas in accordance with regulations prescribed by the Director of the Office of Personnel Management (OPM) or by the Department of Veterans Affairs (VA) for VA personnel. Allows a temporarily raised limitation on the amount of special rates during the transition period.
Expresses the sense of Congress that application of this Act to an employee should not result in a decrease in take home pay.
Expresses the sense of Congress that: (1) the Bureau of Labor Statistics will conduct separate surveys pursuant to the establishment by the President's Pay Agent of one new locality area for each of the entire state of Hawaii and the entire state of Alaska; and (2) upon the completion of the phase-in period no employee shall receive less than the rest of the U.S. locality pay rate.
Describes application of this Act to postal employees.
Defines as covered employees for purposes of this Act those who are or will be eligible for a cost-of-living allowance (COLA).
Allows an employee subject to this Act's transition schedule and who retires from service during the period from January 1, 2009, through December 31, 2011, to elect to have the COLA paid during that period considered as basic pay for purposes of annuity computation.