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Servicemembers will soon have the opportunity to impact their Cost of Living Allowance when Germany’s Living Pattern Survey kicks off.
The Web-based LPS is conducted every three years and is a chance for military members to affect the amount of COLA they receive. The LPS began Thursday and ends Oct. 31 with responses evaluated by the Per Diem, Travel and Transportation Allowance Committee in Washington, D.C. The survey will assist in determining COLA rates for members living in overseas.
The LPS questionnaire is open to all members with command-sponsored dependents assigned in Germany who have been on station at least three months. All eligible military members regardless of branch of service should complete the questionnaire and preferably the spouse who normally does most of the shopping. If a servicemember is deployed the spouse should complete the survey on behalf of the member.
The LPS is extremely important in the COLA determination process and has been called the “building block” of COLA. The LPS determines shopping habits of Service Members since the questionnaire asks which local stores they shop in and how much (the percentage) they purchase on the economy, the commissary, or the base exchange. For example, the LPS may show that servicemembers typically buy half their clothing in local stores (with foreign currency) and half at the base exchange (with U.S. dollars).
Using information from the LPS, price collectors follow-up with an additional survey called the Retail Price Schedule each year, pricing approximately 120 commonly purchased goods and services. Items such as electronics, appliances, clothing, and groceries are priced.
In addition, costs for services such as auto maintenance, childcare, or entertainment are collected from the specific stores identified by the LPS. Finally, prices from the local cost surveys are compared with prices in the United States for equivalent goods and services at the same point in time.
If the overseas market basket cost is greater than the U.S. cost, a COLA is paid. The survey might show, for example, that in November the market basket items in the United States cost $100 compared to $130 at your overseas duty station. The cost of living is 30 percent higher in your area therefore you would receive COLA to help pay the extra costs associated with the higher cost of living overseas.
The Web-based questionnaire takes 30 minutes to complete and can be done from any computer. The questionnaire can be found at www.hqusareur.army.mil. Questions can be addressed to the 86th Comptroller Squadron’s Financial Services Office at 480-5548. Additional answers pertaining to COLA can be found at the COLA FAQ’s Web site at www.defensetravel.dod.mil/perdiem/faqcola.html.
(Courtesy of the 86th Comptroller Squadron)
