Exchange rates changing overseas COLA - Around the Fleet - cost of living allowance

All Hands, March, 2004 by Lily Daniels

The recent fluctuations in the exchange rates of various currencies in Europe may have Sailors within the theater thinking their pockets are a little lighter than they would like.

But the Overseas Cost of Living Allowance (COLA) fluctuates just as the exchange rates fluctuate. Overseas COLA is a supplemental pay service members receive in addition to their basic pay. This helps offset the difference in purchase prices between state side and overseas locations.

Country allowance coordinators note the daily exchange rate set by military banking facilities throughout the theater. They provide this information to the Per Diem, Travel and Transportation Allowance Committee (PDTATAC.)

This committee charts and monitors the data daily, and they review any significant changes in the exchange rate twice a month. The COLA will be increased or decreased depending on the review.

"Even though the exchange rate has been rising, it may take a pay period before the COLA rate is changed to reflect the new exchange rate," said Chief Personnelman (AW) Brian Held, personnel officer for Personnel Support Detachment, London. "The graph goes up and down throughout the year, but in the end, your pay balances out with the exchange rates."

In addition to currency fluctuation, other factors go into calculating an individual's COLA, such as pay grade, years of service, dependency status and geographic location.

Every duty station has a city location COLA index that is established from living pattern and market basket surveys. These tools are very important, because they help determine the most current differences in purchasing prices.

Sailors can check their local and worldwide COLA rates, as well as Per Diem and Overseas Housing Allowance rates, at the PDTATAC Web page at www.dtic.mil/perdiem.

For related news, visit the Naval Forces Europe Navy NewsStand page at www.news.navy. mil/local/naveur.

Story by JO2 Lily Daniels, who is assigned to the public affairs office, Commonder, U.S. Naval Forces Europe.