KADENA AIR BASE, Japan -- Kadena Airmen may see a lower Overseas Cost of Living Allowance than usual starting this pay period, based on a decision from the Office of the Secretary of Defense.

Designed to off-set overseas prices of goods and services, the O-COLA rate has been reduced due to a decrease in COLA-type items being purchased. These goods include spending for transportation, household furnishings, food at home and away, recreation, clothing, household help, personal care, tobacco and alcohol, telephone and medical.

Although the overall O-COLA rate has been reduced, most Kadena Airmen won't notice a big pay change due to the current exchange rate and value of the dollar.

"Because of the yen vs. dollar currency fluctuations, and the dollar weakening, the noticeable change to your average Airman will be minimal, if any," said. Lt. Col. Seung Paik, 18th Comptroller Squadron commander. "This is a downward baseline adjustment ... but a weak dollar causes [an] upward COLA adjustment per month."

According to the Defense Travel Management Office, $2 billion is spent annually on the monthly allowance, benefiting more than 250,000 service members and their families.
More information about COLA can be found at http://www.defensetravel.dod.mil/site/cola.cfm.