DoD Calls for Change to Overseas COLA

Week of August 11, 2008

A study commissioned by the Defense Department recommends fixing the cost-of-living allowance for troops and their families overseas to ensure they won't receive less money if they shop on base. Under the current overseas COLA system, when prices increase off base, servicemembers do more of their shopping on base, and that ends up decreasing their COLA, said Jan D. "Denny" Eakle, director of the 10th Quadrennial Review of Military Compensation -- a study that is required by Congress. The Defense Department will consider this and the study's other recommendations over the next six to 12 months.

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