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Service members in the KMC will notice a pay decrease effective March 16 based on the results of a recent cost of living allowance survey and Retail Price Schedule study.
The COLA index for all KMC members will decline by two points; however, the COLA decrease will vary from person to person based on individual categories, resulting in less pay for KMC members.
“There are many factors that go into how much COLA an individual receives,” said Senior Airman Richard Narvaez, 86th CPTS financial service journeyman. “The pay difference will depend on time in service, number of dependents, marital status and so on. It won’t be the same for everyone.”
The RPS study and COLA survey are conducted annually to adjust COLA values based on the cost of living in the area.
“The RPS is used to compare the price of goods and services overseas with the average prices for equivalent goods and services in the U.S.,” said Master Sgt. Kevin Hazen, 86th Comptroller Squadron chief of customer service. “The result of this comparison is an index that reflects a cost of living.”
The exchange rate is also a determining factor in how COLA fluctuates.
“COLA will constantly change since it will adjust to how well the U.S. dollar is doing compared to the euro,” Narvaez said. “It’s best to understand the types of services that banks offer that will most closely match the current exchanges.”
For more information on COLA, visit www.defensetravel.dod.mil/site/colaCalc.cfm or contact your base finance office.
