COLA dropping for many service members in Germany

Maj Private RallyPoint Member — Thu, 01 May 2014 06:12:04 -0400

Some service members in Germany could see their overseas cost of-living allowance drop by more than $200 per month under new COLA rates set to take effect on May 16, according to U.S. military officials in Europe.

The allowance is being reduced in many locations in Germany because the 2013 Retail Price Schedule found that the costs for recreation, childcare, household help, telephone service, Internet and other services have gone down, according to a news release Wednesday from U.S. Army Europe.

Apparently there is some magical location in Germany where the cost of all of these things has gone down. I have not seen this at all. If the price has gone down the Euro rate has gone up and therefore we are still paying the same if not more in DOLLARS for the same services.

The average service member will see a drop of more than $200 a month. That will definitely hurt some families that depend on it for basic necessities.

http://www.armytimes.com/article/20140424/BENEFITS02/304240043/COLA-dropping-many-troops-Germany

Response by TSgt Private RallyPoint Member made May 1 at 2014 6:24 AM

TSgt Private RallyPoint Member — Thu, 01 May 2014 06:24:10 -0400

You bring up a significant point, considering that we completed the COLA survey only three months ago, how could these results have been computed/analyzed and acted upon during such a short period?

Response by 1SG Private RallyPoint Member made May 1 at 2014 6:32 AM

1SG Private RallyPoint Member — Thu, 01 May 2014 06:32:21 -0400

Sir, there is no magical location anywhere. I spent 13 years in Germany, and ever year they send out surveys for people receiving OHA. They choose that crowd (I assume) as they are most likely to have to use the economy more. I remember it being a nightmare for the 1SG trying to get everybody to do the survey. Yes the 1SG had a way of tracking completion percentage within his company I guess.

Regardless, the reduction I feel is a result of our own laziness and/or the entitled Society thinking "the Army sent me here they have to pay this or that" well we are seeing the effects of that now. Sorry for you Sir but at least you still get the better housing being Air Force! LOL

Response by SSgt Private RallyPoint Member made May 1 at 2014 6:45 AM

SSgt Private RallyPoint Member — Thu, 01 May 2014 06:45:28 -0400

Politics. Like all these other issues like Generals say that SM would welcome a decrease in pay and benefits. Yeah that makes a lot of sense to me.

Response by MAJ Private RallyPoint Member made May 1 at 2014 6:59 AM

MAJ Private RallyPoint Member — Thu, 01 May 2014 06:59:25 -0400

Wouldn't current rates be grandfathered in? I know our rates in DC have change multiple times over the last 6 years (and are lower now than when I first PCS'd here), but I was never hit with a reduction.

Response by CSM Michael J. Uhlig made May 1 at 2014 7:01 AM

CSM Michael J. Uhlig — Thu, 01 May 2014 07:01:10 -0400

great relevant topic, especially for our Warriors in Europe. I understand I will lose $346 monthly from COLA however, my concern is far removed from me - it is focused on my Soldiers! I cannot emphasize enough the importanace of completing these surveys and I believe it was mentioned before.

We provide the specifics within our surveys of what we are paying for goods and services and based on our responses the formulas are calcualted as to identify the need to help offset the burden of the exchange rate and to live at a comparable "average cost of living" within the USA.

Here's an example of the impact (at the personal level): I entered into a contract cell phone which cost's 118 Euros per month (equals approximately $168 per month), for one phone! The family plan we have back home covers 5 phones with unlimited data and minutes for $240 per month (my individual phone in Germany is about the same as 4 phones back home). My point is if this is impacting me at my level, my real concern is the adjustment and hardship of my Soldiers.

Best practice is to always live below your means, do not get yourself into bills/payments that require your entire paycheck. Always strive to set aside at least 20% of your pay for emergencies and savings.

Response by SFC Private RallyPoint Member made May 1 at 2014 8:31 AM

SFC Private RallyPoint Member — Thu, 01 May 2014 08:31:12 -0400

I would sure like to know where they get these numbers from, doing just about anything on the economy is pretty darned expensive, and the Dollar is just not strong enough to make this legitmate.