Here's where it gets a little confusing. Copyright 2022 KTUU. The terrain in rural Yukon and southeastern Alaska can be brutal, even in the summer. JOINT BASE ELMENDORF-RICHARDSON, Alaska -- Starting August 16, 2015, all Department of Defense military personnel in the Anchorage area will see a decrease in Cost-of-Living Allowance pay. Published: May 14, 1981. When stationed in Alaska, you will receive a basic allowance for housing (BAH), just as you would at any other base within the continental United States. Check out the 2023 U.S. military pay scale charts for all ranks for active duty, as well as Reserve and Guard components. Maps dont do it justice: Alaska is really far away. And unless you are already stationed in the Pacific Northwest, you can add several hundred or thousand miles to that total.. Once you arrive on station in Alaska, where will you live? It does not reimburse expenses, compensate for remoteness, hardship, loss of spousal income, or non-availability of goods and services. Service Compensation Representatives of the eight Uniformed Services review and approve of all COLA changes based on LPS/RPS data. It has recommended that it be eliminated and replaced with special pay rates based on local private sector pay, where warranted. Because you will receive BAH and not OHA, whatever you dont spend on housing goes straight into your pocket. Over the last six months, in Europe has dropped between 10 and 20%. Winds SSW at 5 to 10 mph.. We have used your information to see if you have a subscription with us, but did not find one. Change the currency: (EUR), $ (USD), (GBP), AU$ (AUD), or This average is based on 7 price points. Please use the button below to manage your account. However, the differences in the methods used by State, OPM, and DOD make it difficult for Federal personnel to understand and managers to explain how COLA rates are computed. All real estate commissions are negotiable. Spot troops on your street? New incentive pay encourages Soldiers to serve in Alaska It does not reimburse expenses, compensate for remoteness, hardship, loss of spousal income, or non-availability of goods and services. Military pay benefits are constantly changing. COLA increases are implemented the next pay period. Roughly 230,000 service members receive non-taxable OCOLA on top their regular pay, to help offset the difference in cost of buying goods like groceries and clothing while serving abroad versus what they would be able to buy stateside. The Military Says You Owe Money? The current VA disability pay rates show compensation for veterans with a disability rating 10% or higher. It is determined that your primary dependent must reside in a high cost area in CONUS due to your duty location or other circumstances. The purpose of Dislocation Allowance is to partially reimburse a servicemember for expenses related to a PCS move. Heres where it gets a little confusing. At most OCONUS locations, service members receive COLA and an overseas housing allowance (OHA). The COLA is determined by the percentage increase, if any, between the average 3rd quarter Consumer Price Index (CPI) of the current year over the average 3rd quarter (CPI) of the prior year. Use the archive tools below to find historical Overseas COLA information. Once in Juneau, you can choose to continue to rest of the trip by road (plan on several more days of travel). So OCOLA reductions were and are largely being driven by higher inflation rates here in the U.S., the contiguous U.S., as compared to many of the OCONUS locations, as well as the strengthening of the U.S. dollar in foreign currencies, the official said. In Mississippi, New Jersey, and Oregon, a commission reduction may be available at closing. The military built roads, airfields, and ports still in civilian commercial use today, and invested heavily in scientific research at the University of Alaska. The allowance, which may not exceed 25 percent of base pay, is not subject to Federal income tax. The average Fedweek in Alaska is $41,000. The article also gave a bad link the military website about the new COLA rate. We have to buy them and were going to have to pay whatever the price is. An Army Couple Had Their Daughter at a Military Hospital. Understanding the military's role in Alaska's economy The basic measurement is a comparison of the difference in average costs related to purchasing essentials in CONUS and at the OCONUS location. Other terms and conditions may apply. If you choose this option, your experience will be similar to any other overseas PCS. Anchorage is about 2,200 miles from Seattle by road. Therefore, GAO believes that if its recommendation is adopted, additional special pay rates would be necessary to retain well-qualified employees in Alaska. PCSgrades fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. VA Slashes Home Loan Rates for Native American Vets on Tribal Lands. All rights reserved. To help offset the cost of living inhigher cost areas, military membersmay be eligible for a Cost-of-Living Allowance (COLA). Your COLA should help make those price differences a little less painful on your wallet. Therefore a smaller base with less exchange and commissary facilities may have a higher COLA than a base in the same country with better on-base shopping facilities. For example, Germany had largely already absorbed their decreases, and so what we are seeing with more locations in [the Indo-Pacific region] this time around, its just kind of a natural next step to making sure that were ensuring parity across all of the theaters.. CONUS COLA base monthly payments range from $33 to $59 monthly for members with dependents and $22 to $45 monthly for those without dependents. TMO will also arrange for one vehicle to be shipped to your new location in Alaska., Whatever you dont pack in one of these shipments goes in your luggage, which you will take with you on the aircraft., TMO will also make your flight arrangements. The Department of Defense released updates to the Overseas Cost-of-Living Allowance (OCOLA) adjustment process which details how future OCOLA adjustments will be applied for locations outside the contiguous U.S. (OCONUS) based on a new statute outlined in the National Defense Authorization Act (NDAA) for Fiscal Year (FY) 2023. This final index indicates how much more expensive it is to purchase COLA types of goods and services in an overseas OCONUS location than it is to purchase the same level of goods and services in average CONUS (e.g., an index of 120 at an overseas OCONUS location means that it is 20 percent more expensive to purchase COLA types of goods and services than in average CONUS.). This article may not be republished, rebroadcast, rewritten or otherwise distributed without written permission. For COLA surveys the Country Allowance Coordinator should: a. Off-base housing might include rental apartments, townhomes, or single-family housing. Important COLA Details CONUS COLA is based on the ZIP code of your duty station, not your home address. Connect with us on Facebook, Instagram, or Twitter and share your tips! However, there are additional pays and allowances you may receive during your time overseas above your regular basic pay. The rate varies by geographic location, rank, years of service and dependency status. While increases have continued during that 90-day pause, the official said that Singapore specifically is due for an increase with Mays new levels. 5 Rules to Fight Apocalyptically Dangerous Debt. 1 dependent is $24 daily, 2 is $27/ day, 3 is $28/ day, 4 is $31/ day, and 5 dependents would be . If you own a larger, single-family home, you can expect staggering utility bills. Refer to the DoD Financial Management Regulation (FMR), Vol. Service Compensation Representatives of the eight Uniformed Services review all COLA changes based on currency fluctuations. Military service members are paid a cost of living allowance in Alaska and in other places where it's expensive to live. Energy costs in Alaska are about double what you pay in the continental U.S. According to Cristina Martin Firvida, Vice President of Government Affairs with AARP, that means on average, Alaskans receiving social security benefits will get an additional $129 each month. Were breaking down the basics you need to know before your PCS to Alaska. Even with a ferry trip, you have options.. Retired military pay, VA disability pay, federal retirement and Social Security payment increases coming in 2023. 7A, DoD Overseas Station and Housing Allowance Process Guide [PDF, 25 pages], Overseas COLA Adjustment Process One Pager (Overview) [PDF, 1 page], Implementation of Overseas COLA Changes, Examples [PDF, 2 pages], DoD FMR, Volume 7A, Chapter 68 [PDF, 47 pages], Hosted by Defense Media Activity - WEB.mil, 1. All rights reserved. This article may not be republished, rebroadcast, rewritten or otherwise distributed without written permission. To reprint or license this article or any content from Military.com, please submit your request. An official website of the United States government, Retirement Cost of Living Adjustments (COLA), Hosted by Defense Media Activity - WEB.mil. Which Loans Are OK, and Which Are Bad or Downright Crazy. COLA is not generally taxable by the federal government, but may be subject to income tax for Hawaii state residents. If youre PCSing in the winter or spring, road travel isnt just ill-advised; its often impossible. Indices alphabetically list all OCONUS areas with authorized COLAs for the period selected. Many roads are inadequately maintained, with few to no services for miles. The COLA index is highly dependent on the proportion of shopping done in on-base facilities. Most on-base communities either cover utilities in your rent or offer subsidies to help offset utility costs. Under present law, certain civilian employees in Alaska and other nonforeign areas outside the continental United States are authorized to receive cost-of-living allowances (COLA) when living costs are substantially higher than those in Washington, D.C. The Military Says You Owe Money? . new restrictions on allowance fluctuations, Housing allowances are about to go up for more than 100K troops. The program is not available for employer- sponsored relocations or transactions in Iowa or outside the United States. Rates are updated once a year by law (37 USC 403b) and take effect January 1. Get the latest on pay updates, benefit changes and award-winning military content. But it also mightnot be., Third, your drive will take you through another country and some very rough terrain. ANCHORAGE, Alaska (KTUU) - The Social Security Administration announced an 8.7% increase in the Cost of Living Allowance (COLA) to begin in January of 2023. PDF DoD Overseas Station and Housing Allowance Process Guide Service members in Cordova, Homer and Bethel will also see reduced COLAs. And yes, lots of snow.. The following Military Housing Areas (MHAs), with their COLA percentages multipliers, are eligible for CONUS COLA in 2023. PCSing to Alaska: 5 Things Military Families Should Know Data is obtained from the Bureau of Labor Statistics Consumer Expenditure Survey, which details how U.S. military families allocate their spendable income across all COLA types of goods and services, to set weights or levels of importance within the COLA market basket. Locations approved for COLA Unique Expenses are listed in Table 68-2 of the DoD FMR, Volume 7A, Chapter 68 [PDF, 47 pages]. basic allowance for subsistence has increased roughly 11%. If the percent determined above is greater than 1 percent, the COLA for REDUX retirements will be reduced by 1 percent. Here's What to Do. There are surveys done annually to determine the costs of goods such as groceries, services, fuel and other necessities of life. In some states a gift card or commission reduction at closing may be provided in lieu of the cash back bonus. Overseas COLA | Military.com The current cost is approx. Those who live on base will forfeit their entire BAH, but many families consider it an affordable option. Please check with a program Customer Service Representative for details. As a full-time writer, Becca works closely with several nonprofit organizations and is a passionate advocate for human rights and military families. Nonforeign Areas Overview. 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The actual amount you receive is based on the purchase and/or sale price of your home. The following is a summary of the Overseas Cost of Living Allowance: The average supplement is $300 per month. Its likely a parade, not martial law. Your current subscription does not provide access to this content. Becca Stewart is an Air Force Spouse, mother of two, freelance writer, and sufferer of Wanderlust. Please use the button below to verify an existing account or to purchase a new subscription. Subscribe to Military.com to receive updates on all of your military pay and benefits, delivered directly to your inbox. The COLA payment depends on your pay grade, the number of command-sponsored dependents you are authorized, your location and if you live shipboard or in the barracks. Although it's a significant increase, this month's change doesn't reverse the deep cuts in Alaska COLA rates caused by costs surveys done in 2014 that the military now considers inaccurate. We want to hear about your Alaskan experience! In addition to the basic pay raise, housing allowances have increased in several locations, and basic allowance for subsistence has increased roughly 11%. The article also gave a bad link the military website about the new COLA rate. There are differing limits on COLA payments. The military will then reimburse you for the move.Contact your TMO for more information about a PPM to Alaska. Alaska is considered an OCONUS (Outside the Continental U.S.) location. The U.S. inflation rate and the strengthening of the dollar versus other currencies in recent years has driven decreases in the allowance, but late last year, Congress stepped in to restrict the Defense Department to implementing decreases only once every six months. By law, OPM COLA rates must be based on Washington, D.C. prices, while the DOD statute does not specify a base. Overseas COLA Tables | Defense Travel Management Office What You Need to Know About Military Home Buying in a Wild Market (Michelle Crumley, Caliber Home Loans Mortgage Expert). Retirement Cost of Living Adjustments (COLA) - Military Compensation It impacts 320,000 members at approximately 600 locations overseas, including Alaska and Hawaii. Your options will vary depending on where you are stationed. Wednesday's article"Most Alaska soldiers, airmen to get pay bump from COLA calculation" misstated that Valdez was the only Alaska city that had a reduced cost of living allowance. COLA Surveys. PDF Locality Pay Fact Sheet (January 2021) COLA/Locality Pay for Federal Proposed legislation would empower the President to establish locality rates of pay for General Schedule employees and would eliminate the nonforeign area COLA program. Originally from Colorado, she enjoys anything outdoors, especially if theres snow involved. Overseas cost of living allowance decreases coming back in May As of this writing, there are 20 such locations (military housing areas, or MHAs) in the U.S. You are assigned to an unaccompanied tour of duty outside the continental United States if the primary dependent of the member resides in a high cost area in the continental United States. The new rates implemented this month will hold steady until November, the official said. In accordance with the FY23 NDAA, COLA decreases are implemented once every 6 months. That means everyone in the car will need passports, and your pet(s) will need all necessary paperwork. While there were two different COLA rates, now there is just one rate for the State of Alaska Locality Pay. Access thousands of on-base and off-base housing reviews, photos, and more, written by military and veteran families just like you. She covers operations, policy, personnel, leadership and other issues affecting service members. ANCHORAGE, Alaska (KTUU) - The Social Security Administration announced an 8.7% increase in the Cost of Living Allowance (COLA) to begin in January of 2023. Or, if youd rather continue by ferry, you can travel from Juneau, through several other ports, until you arrive at Whittier, AK, just an hour south of Anchorage. WASHINGTON -- Soldiers being stationed in Alaska can now receive up to $4,000 to help offset the initial cost of items needed to live in the "Last Frontier" state. However, youre going to need whats leftover from your BAH to pay for utilities. Stay informed as we add new reports & testimonies. These military pay tables apply to active members of the Navy, Marine Corps, Army, Air Force, Coast Guard and Space Force. This is to preclude the advantage of receiving a retirement based on both a new pay raise and full COLA in the first year of retirement. Download all CONUS COLA rates [ZIP] in the American Standard Code . To find a locality code, use the lookup tool below. So, most service members will still have a higher take-home pay, even with OCOLA reduction, than what they had in 2022.. Right in your inbox. View more newsletters on our Subscriptions page. For most of Alaska, rates went up two percent. Learn more about currency fluctuations and adjustments. OCOLA increases will continue to be implemented when warranted during the year. So this is a part of the program thats vital to making sure that people can continue to make ends meet, even when theres high inflation.. Some will no longer receive the payments, while others will begin receiving them. Government Travel Charge Card Regulations , Overseas COLA Spendable Income Tables Alt, Hosted by Defense Media Activity - WEB.mil. Congratulations! PDF VOLUME 7A, CHAPTER 68 - U.S. Department of Defense The monthly payments will disappear in all 20 counties that aren't part of MHAs where members received them in 2022, as well as in three MHAs. The correct link is. Meghann Myers is the Pentagon bureau chief at Military Times. By participating in the program you agree to have your information shared with a participating Real Estate Agent and they may contact you by phone, email, or text message including by automated means about real estate services. GAO has long been concerned about the appropriateness of paying COLA in nonforeign areas. If you choose to drive your vehicle, youll need to come fully prepared, with a spare tire (or two) and other supplies in case of emergency. Follow him on Twitter: @FDNMoutdoors. $1 billion annually. COLA is computed separately for members with and without dependents. What Financing Option Is Best for Your Home Improvement Project? Fixed expenses, such as car payments, should be based on what a Service member can afford without the allowance. The payments are to account for the fact that a dollar doesn't go as far in Alaska as it would go in a typical base in the Lower 48. Cost-of-Living Allowance Program in Alaska | U.S. GAO Then scroll down to find your current pay grade: E1-9, W1-5, or O1-10. This article may not be republished, rebroadcast, rewritten or otherwise distributed without written permission. Allowances are not authorized for blue-collar employees since their pay is based on prevailing local rates. Military pay benefits are constantly changing. Verify your free subscription by following the instructions in the email sent to: A 4.6% pay raise has been proposed for 2023, but will it keep up with inflation? 7A, for source guidance on military pay policy, including: Service members serving outside of the continental United States (OCONUS) where the cost of living is higher than CONUS receive an Overseas Cost-of-Living Allowance (COLA). DOD Releases 2020 CONUS COLA Rates - U.S. Department of Defense One of the architects of the covert U.S. strategy against the Soviets in Afghanistan has published a new memoir. GSA sets per diem rates for the contiguous 48 States and the District of Columbia. PCSing in a Roller-Coaster Housing Market: Should You Rent or Buy? Even those locations where OCOLA rates will start to decline, pay in 2023 is still higher than it was in 2022, the official said, citing this year 4.6% increase in basic pay across the services. Click here to view the Department of Defense's (DoD) official COLA calculator. Please log in, or sign up for a new account and purchase a subscription to continue reading. The following Military Housing Areas (MHAs), with. Alaska COLA and Alaska Locality Pay Rates - Plan Your Federal Retirement There were no casualties or damage, Moscow Mayor Sergei Sobyanin said. 2023 CONUS COLA Rates > U.S. Department of Defense > Release The travel office can help you make these reservations., If youre driving, you can do a partial or full personally procured move (PPM, formerly a DITY move). This year, the department has been ordered to increase that threshold to 150%, increasing the estimated number of families who benefit to about 2,400. All OCOLA decreases over 2 points will be implemented in 50% increments on May 16 and November 16. DOD uses environmental factors in its COLA rate computation, while they are not considered in other COLA programs. Lookup rates using the Overseas COLA Calculator. Troops stationed outside the contiguous United States will see a drop in their overseas cost-of-living allowances this month, as the Pentagon implements new restrictions on allowance fluctuations and makes up for lost time following a 90-day pause. Per Diem Rate Lookup | Defense Travel Management Office Overseas COLA spendable income tables are now updated by calendar year and published on January 1. Make sure you're up-to-date with everything you've earned. Learn about, Spendable income is Regular Military Compensation minus housing, taxes, savings, life insurance, gifts and contributions, Spendable income varies from member to member based on rank, years of service, and number of dependents. Here's What to Do. Military Cost Of Living Allowance For Fairbanks Alaska 2023 Military Benefits Changes & Updates Program terms and conditions are subject to change at any time without notice. A PPM allows you to take your items with you instead of waiting for them to arrive via a military-contracted mover.. Rate reductions based on the annual cost-of-living assessment (greater than 2 index points) will be implemented in 50% increments while OCOLA decreases based on currency fluctuations will be implemented in full each cycle. Rates are determined by a survey to gather data on where service members and their families are shopping, as well as country-specific fluctuations in currency and buying power, then tiered based on paygrade, time in service and number of dependents. CONUS COLA is based on the ZIP code of your duty station, not your home address. Many homes heat with oil or wood as electricity is very expensive. Many homes are paired or row homes, which helps save on energy costs. For Putin, the summit presents an opportunity to show he is in control. Since the expenses are not incurred in the CONUS, they cannot be a part of the ordinary COLA index calculation. There are plenty of ways to reduce your utility bills if you live off-base. Human Remains Have Likely Been Recovered from the Titan Submersible Wreckage, US Coast Guard Says, Navy Recruiters Will Work 6-Day Weeks, Face Changes to Orders Amid Recruiting Struggle, Soldier Crashed Helicopter Before Running to and Crashing a Second in 2022 Suicide, Investigators Find, The Man Who Started to Transform the Marine Corps Leaves with 'No Regrets at All', NATO Again Extends Stoltenberg's Mandate, Happy With a Safe Pair of Hands as the War Drags on, He Was the CIA Whiz Kid in 'Charlie Wilson's War.' The COLA rates for service members were just raised on Feb. 1, so military personnel can expect to see a little bit more in their paycheck this month. Leon Gautier, last member of French D-Day military commando unit, dies. For more information, see: The Department collects shopping data directly from Service members through a Living Pattern Survey (LPS). . However, if you plan to live off base, ask the locals about their energy costs and budget accordingly., You can contact the military housing office (MHO) at your new location for more information about renting or buying off base.. For an O3 with two . In Depth Alaska: COLA increase and what it means for Alaskans View more newsletters on our Subscriptions page. CONUS Cost-of-Living Allowance | Military.com A 45-day information campaign window has been given to notify all affected personnel and allow time to financially prepare for the decrease.