COLA to be reduced in Anchorage

  • Published
  • By Alaskan Command Public Affairs
Starting August 16, 2015, all Department of Defense military personnel in the Anchorage area will see a decrease in Cost-of-Living Allowance pay.

A 45-day information campaign window has been given to notify all affected personnel and allow time to financially prepare for the decrease.

It was recently detected by the Defense Travel Management Office Allowances Branch at DoD Headquarters that military personnel in the Anchorage area were coded with an erroneous index higher than what is authorized. Those stationed in the Anchorage area were receiving an additional cold-weather allowance that was not authorized. In order to correct this error, the Military Advisory Panel and all uniformed services have concurred to a six-point decrease in COLA. There will be no retroactive recoupment of funds already paid however.

Alaskan Command recognized the COLA issue early and requested that an out-of cycle Living Pattern Survey be conducted. DTMO granted this survey and it will be conducted this fall. Previously, the next survey was not due to be conducted until 2017. Although the survey this fall will not prevent the August COLA reduction, it has the potential to increase or decrease COLA rates starting in 2016. Therefore it is vital that all personnel complete the survey once available.

"Each member should actively participate in the surveys and accurately input data as requested, similar to a housing allowance survey," said Senior Master Sgt. Maryann Navarro-Davis, Alaskan Command Joint Manpower and Personnel Division superintendent. "The more members that participate, the bigger the pool of data is to accurately substantiate an increase or decrease in pay. Failure to participate in these surveys can have negative ramifications on everyone's financial status."

The value of a COLA point varies based on rank, years of service and number of dependents. The average COLA point is approximately $15.38 during a single pay period. For example, an E6 with 10 years' time-in-service with three dependents will receive an approximate decrease of $184.56 per month:

$15.38 x 2 pay periods = $30.76 decrease for a single COLA point
$30.76 x 6 point decrease = $184.56 approximate decrease per month

If you would like to calculate your approximate new rate starting August 16, follow these steps:

Step 1: find current pay using the DTMO COLA Calculator http://www.defensetravel.dod.mil/site/colaCalc.cfm
*Note: current pay only reflects a single pay period

Step 2: take your current COLA rate and multiply by 2 (pay periods); this will equal your current COLA per month

Step 3: take your current monthly COLA value and divide by 24 (current index is .24); call this value "x" (note that this is your daily value)

Step 4: take value "x" and multiply by 18 (new index is .18); this will be your approximate new monthly COLA starting August 16

Civilian and military retiree pay rates will not change as a result of this action.

For questions or concerns, please contact Senior Master Sgt. Maryann Navarro-Davis, Alaskan Command Joint Manpower and Personnel Division superintendent at 907-552-4841 or visit http://www.defensetravel.dod.mil/site/cola.cfm.