How can I calculate my overseas COLA rate?
How can I calculate my overseas COLA rate?
Overseas COLA Calculator. To calculate your Overseas COLA rate, select the Year, Month, Period, Locality Name or Code, and Member Information from the drop-downs below. Click Calculate when complete. NOTE: The location drop-down menu below contains only current locations. Use the LOCALITY CODE LOOK UP for all previous location codes.
How does the cost of living affect Cola?
The result of this comparison is an index that reflects a cost of living. If prices in CONUS are rising at a greater rate than those overseas, COLA will decrease. If prices overseas are rising at a greater rate than those in CONUS, COLA will increase.
How is the cost of Living Allowance ( COLA ) calculated?
It is calculated by comparing the prices of goods and services overseas with average prices for equivalent goods and services in CONUS. The result of this comparison is an index that reflects a cost of living. If prices in CONUS are rising at a greater rate than those overseas, COLA will decrease.
How does the Office of Personnel Management calculate COLA rates?
To set the COLA rates, the Office of Personnel Management (OPM) surveyed the prices of over 300 items, including goods and services, housing, transportation, and miscellaneous expenses. OPM conducted these surveys in each of the COLA areas and in the Washington, DC, area.
How is the Cola calculated for the military?
Estimate of income calculated by years of service and dependency status; updated with each pay increase. Spendable income is derived from Bureau of Labor Statistics Consumer Expenditure Survey (BLS CES) data and carefully details how military families allocate their spendable income across all COLA types of goods and services.
How is the Cola calculated on a Cola index?
COLA is paid as a percentage of spendable income. An index of 110 would result in an annual COLA of 10 percent of the spendable income corresponding to the member’s grade, years of service, and family size.