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Understand your COLA

  • Published
  • By 35th Comptroller Squadron
  • 35th Comptroller Squadron
MISAWA AIR BASE, Japan --  Overseas Cost of Living Allowance is a non-taxable supplemental pay allowance, designed to offset overseas prices of non-housing goods and services.

In most cases, a member with dependents is authorized COLA based on the number of command-sponsored dependents at the permanent duty station. The following exceptions apply:

· For any day in excess of 30 consecutive calendar days that a member accompanied by all dependents is on leave in the continental United States.

· When any dependent returns to CONUS for a temporary period in excess of 30 consecutive calendar days, the COLA payment beginning on the 31st day a dependent is in CONUS is reduced to the rate specified for the number of dependents remaining at the PDS.

· When a dependent departs the PDS vicinity and returns to CONUS to attend school, the payment is reduced as of the day following the departure day to the rate specified for the number of dependents remaining at the PDS.

· When one or more, but not all, dependents depart the PDS vicinity and early/advance-return to CONUS, the outside the continental United States COLA payment is reduced as of the day following the dependents' departure to the rate specified for the number of dependents remaining. If all the dependents early/advance-return to CONUS, the member becomes a member without dependent and the OCONUS COLA at the with-dependent rate terminates the day before the dependents depart the member's PDS.

· When in a confinement status as a result of disciplinary action, the member is authorized COLA for dependents only at the rate for the number of dependents who continue to reside in the PDS vicinity.

Remember, if any of the above situations apply to a military member, the member must notify the finance office immediately.

Members whose status of dependents has changed or who have questions concerning COLA should contact Finance Customer Service to ensure they are receiving correct allowances and entitlements.