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NAF Atsugi to See COLA Decrease

Navy NewsStand

Story Number: NNS090812-32
Release Date: 8/12/2009 9:44:00 PM

By Sandra Arnold, Naval Air Facility Atsugi, Japan Public Affairs

ATSUGI, Japan (NNS) -- Naval Air Facility Atsugi, Japan, Sailors and Department of Defense employees will see a decrease in the cost of living allowance rate beginning Oct. 1. according to an Aug. 6 Per Diem, Travel and Transportation Allowance Committee (PDTATAC) message.

"On August 6 PDTATAC principals approved decreases in COLA rates for 11 locations throughout Japan," said Commanding Officer Capt. Eric Gardner, NAF Atsugi. "NAF Atsugi is scheduled to receive a six-point deduction, meaning people can expect to see a loss of approximately $25 per point/per pay period implemented by the end of the year, with changes varying with the member's grade, family status and years of service."

The first adjustment of two points will be effective Oct. 1 and will progress at the rate of two points per month until the six-point adjustment is complete in December.

"The COLA drop may seem unfair to most service members," said Housing Director Jeff Baulknight,
"however, the purpose of COLA is to compensate members when the cost of consumables is higher in an overseas area."

Baulknight explained that price comparisons are needed to equalize purchasing power between Continental United States-based members and their overseas counterparts and that prices in Japan have recently dropped for most consumable items.

The cost index for Atsugi is 136, meaning that the average purchase price for items are 36 percent higher than CONUS averages.

"Sailors and DoD employees need to be aware of the upcoming decrease in COLA pay so that it does not come as a surprise on Oct. 1," said Gardner. "It will likely be a significant decrease in their biweekly paychecks, and they need to begin preparing for this difference now."

The adjustment rates were made based on an analysis of the April and May 2009 Retail Price Schedule reports that surveyed 10 locations in Japan.

To calculate current COLA rates, visit http://www.defensetravel.dod.mil/perdiem/ocform.html.

For more news from Naval Air Facility Atsugi, Japan, visit www.navy.mil/local/nafatsugi/.