COLA going down for troops in Korea - Army News | News from Afghanistan & Iraq - Army Times

COLA going down for troops in Korea

The senior U.S. commander in South Korea has alerted service members and their families to an impending major reduction in the cost of living allowance throughout the command.

While rates vary for different locations, they average out to sizable decreases across the peninsula.

Gen. B.B. Bell, commander in chief of U.S. Forces Korea, said that as a result of pricing surveys conducted in May and June in Seoul, Pyongtaek, Taegu, Chinhae and at Osan Air Base, “service members will see a downward four-point adjustment” in their COLAs this fall.

Because the reduction is so sharp, pay adjustments will be made in two phases, beginning with a two-point reduction Oct. 1, and another two-point deduction Nov. 1.

For example, an O-3 with six years of service will incur a monthly COLA reduction of $104.94 per month if single, or $131.26 if married with two dependents. Average decreases for O-4s with four years of service are $68.30 for single soldiers, sailors, airmen and Marines, or $85.62 per month if the service member has two dependents. Click here for a detailed breakout of this example.

The COLA is a supplement to regular pay that compensates service members for the higher cost of goods and services overseas. Rates are reviewed periodically, and adjusted to reflect changes in costs, as well as foreign currency exchange rates.

Bell said the results of this year’s survey showed that while the cost of living increased in Korea, the cost of comparable goods and services in the U.S. increased at an even greater rate during the same time period.

This in turn will result in a COLA decrease, as required by federal and Defense Department regulations, he said.

Service members, regardless of overseas location, can compute their COLA by using a calculator on the Pentagon Web site.