COLA decreases in U.K.
U.S. military members living in the United Kingdom will see a smaller paycheck during the peak of the holiday shopping season.
The strengthening dollar is to blame for the decrease in the cost-of-living allowance, according to the Pentagon’s Per Diem, Travel and Transportation Allowance Committee.
In calculating COLA rates for midmonth, the per diem committee raised the dollar-to-pound exchange to .6804, from the previous .6282.
The British pound last week weighed in at $1.54, its lowest level in almost six years.
U.K. troops will see COLA drop from four to six points, depending on location. One point is equal to about $25 a month, meaning that troops will lose somewhere between $100 to $150 a month in COLA.
The dollar is also gaining slightly on the euro, but not enough to make a real dent in COLA. Most locations in Italy and Germany will see no change in COLA for the next pay period. The exceptions are La Maddalena in Italy, and Berlin, Hamburg, and Potsdam in Germany, where COLA will drop by two points.
To determine one’s COLA, go to: http://perdiem.hqda.pentagon.mil/perdiem/ocform.html