Comptroller explains COLA policies

  • Published
  • By Airman 1st Class Maeson L. Elleman
  • 18th Wing Public Affairs
KADENA AIR BASE, Japan --  Cost of Living Allowance is given to service members stationed in areas with a high cost of living to offset the financial burden of the weakening dollar.

In Okinawa where inflation has caused the yen to outweigh the American dollar by roughly 25 percent, Airmen are given COLA from the date they arrive on station.

"It's to offset the cost of living," said Tech. Sgt. Sharon Westerkamp, 18th Comptroller Squadron NCO in charge of customer service. "It's a higher cost for the goods we normally live with back home."

Westerkamp said several factors contribute to the COLA rate for each Airman, including family size and the national economy.

"Also, with the exchange rate fluctuations, that's when you'll see the COLA fluctuations," said Westerkamp. "If the dollar drops, our COLA rate will go up; if the dollar climbs, then of course it's cheaper for us buying yen, so our COLA rate will go back down."

Being overseas can take its toll on families, so many take leave to visit hometowns or favorite vacation spots in the continental U.S., or CONUS, each year. However, as it stands, taking leave for more than 30 days back home will cost families the money they are allotted through COLA until they return to home station.

"The thing about COLA is, when you're on leave or if your dependents are on leave ... for more than 30 days CONUS, that's when your COLA is affected," said Staff Sgt. Mark Simpson, 18th Comptroller Squadron relocation supervisor. "So if they're gone for more than 30 days, on the 31st day, your COLA will have to be adjusted."

Simpson said because the stipend is given to each of five family members and the service member sponsor, the decrease, though a relatively small change per person is determined for each individual who stays in the U.S. longer than a month.

That's why Simpson said if a service member or their family is going on ordinary leave to the U.S. for more than the month-long limit, service members should notify Kadena's finance office of the dates of departure and return so the allotment can be adjusted accordingly.

If the finance office never receives notification before or after the return from leave, Westerkamp said the service member could face criminal charges.

"If you're caught, you could be put under investigation for fraud," said Westerkamp.

But besides the potential reprimand, Simpson said service members should use the "honor system."

"You don't want to be caught doing the wrong thing," he said.