Emmy
09-02-2008, 10:16 AM
:suspect
Due to a stronger U.S. Dollar, military personnel stationed in the Kaiserslautern Military Community (KMC) will experience a decrease in their cost-of-living allowance (COLA). Effective 1 Sep 08, the OSD level Per Diem, Travel and Transportation Allowance Committee changed the rate COLA is paid at from 0.62 Euros per dollar (overpayment of COLA given the current exchange rate of 0.66) to 0.6751 Euros per dollar (underpayment of COLA). The Per Diem Committee intentionally under/over pays service members COLA throughout the year in order to provide pay stability, with the over/under payments averaging out throughout the course of the year.
How will the change affect you? Effective 1 Sept, COLA rates dropped by 15% for all military members. To find your new daily COLA rate you can go to the Per Diem Committees webpage at http://perdiem.hqda.pentagon.mil/perdiem/ocform.html and enter you specific information, like time in service and number of dependents. For example, the daily COLA payment for an E-5 living in the KMC, with 10 years of service and three dependents decreased from $32.22 a day to $27.39 a day.
Your Overseas Housing Allowance (OHA) dollars will also be affected, although in a more indirect way. OHA rates, which are delineated in Euro’s, are not changing; however, the rate used by the Per Diem Committee to compute COLA is also used to convert your OHA Euro’s to Dollars. The new COLA rate means that the number of OHA dollars you will receive will be about 8.2% less in Sept than what it was in August. For example, and E-5 with dependents receives a max OHA of 1,794 Euros for housing and utilities in both August and September. In August, those 1,794 Euros converted to $2,893.54, and in September they will convert to $2,657.38 - a reduction of $236.16.
The 435th Comptroller Squadron is providing this information via the KA and through command channels in order to prepare service members for the reduction. It’s important to make changes to your spending patterns now so you are not caught short when your mid-month pay hits your account on 15 Sept.
AWESOME! Not..
Due to a stronger U.S. Dollar, military personnel stationed in the Kaiserslautern Military Community (KMC) will experience a decrease in their cost-of-living allowance (COLA). Effective 1 Sep 08, the OSD level Per Diem, Travel and Transportation Allowance Committee changed the rate COLA is paid at from 0.62 Euros per dollar (overpayment of COLA given the current exchange rate of 0.66) to 0.6751 Euros per dollar (underpayment of COLA). The Per Diem Committee intentionally under/over pays service members COLA throughout the year in order to provide pay stability, with the over/under payments averaging out throughout the course of the year.
How will the change affect you? Effective 1 Sept, COLA rates dropped by 15% for all military members. To find your new daily COLA rate you can go to the Per Diem Committees webpage at http://perdiem.hqda.pentagon.mil/perdiem/ocform.html and enter you specific information, like time in service and number of dependents. For example, the daily COLA payment for an E-5 living in the KMC, with 10 years of service and three dependents decreased from $32.22 a day to $27.39 a day.
Your Overseas Housing Allowance (OHA) dollars will also be affected, although in a more indirect way. OHA rates, which are delineated in Euro’s, are not changing; however, the rate used by the Per Diem Committee to compute COLA is also used to convert your OHA Euro’s to Dollars. The new COLA rate means that the number of OHA dollars you will receive will be about 8.2% less in Sept than what it was in August. For example, and E-5 with dependents receives a max OHA of 1,794 Euros for housing and utilities in both August and September. In August, those 1,794 Euros converted to $2,893.54, and in September they will convert to $2,657.38 - a reduction of $236.16.
The 435th Comptroller Squadron is providing this information via the KA and through command channels in order to prepare service members for the reduction. It’s important to make changes to your spending patterns now so you are not caught short when your mid-month pay hits your account on 15 Sept.
AWESOME! Not..