Saber's COLA rate increases Published Aug. 9, 2007 By Staff Sgt. Tammie Moore 52nd Fighter Wing Public Affairs SPANGDAHLEM AIR BASE, Germany -- Spangdahlem Airmen will notice an increase in their Aug. 15 paycheck due to an increase in their cost and living allowance. In order for the COLA rate to change, the dollar must increase, or decrease, five percent against the Euro, which recently happened, increasing COLA for all of U.S. Air Forces in Europe, said Staff Sgt. Al Jervier, 52nd Comptroller Squadron customer service supervisor. The rate is evaluated bi-monthly on the 15th and 30th of each month. If the change is within five percent of the dollar, there will be an increase, or decrease, in the COLA rate. In addition to the strength of the dollar compared to the Euro, two types of surveys also have an impact on the COLA rate. "We do market-basket COLA surveys," Sergeant Jervier said. "We go out on the economy price checking, to see how the different items on the economy compare to what can be bought at the commissary. Based on that, the COLA will also change." The market-basket survey is conducted annually through a random sampling of those serving overseas. "If everyone does not participate, then we don't have enough information to correctly evaluate the COLA and whether or not it should go down," Sergeant Jervier said. "If someone has the opportunity to participate in a COLA survey, do so because it will affect their cost of living and the amount of money they get in their paycheck every month." In addition to the market basket survey, the Per Diem Committee conducts a living pattern survey once every three years. This survey samples all members with command-sponsored dependents assigned to each location to determine which off-base stores they use and how much of their market-basket items are purchased on and off-base. According to the Per Diem Committee Web site, the COLA index is highly dependent on the proportion of shopping done in on-base facilities. In general, the higher the proportion of on-base shopping, the lower the index. Once the COLA rate has been determined factors that impact the amount paid to servicemembers include their location, rank, number of years in service and number of dependants. "The cost of living is a lot higher out here compared to the dollar, so if the COLA is low then you are paying out of pocket more than what you normally would," Sergeant Jervier said. "If the COLA goes up, then the government is giving you more money to off set your cost of living on the economy; you are not really feeling the burden of the exchange rate as much." For more information about COLA rates, visit the per diem Web site at https://secureapp2.hqda.pentagon.mil/perdiem/allowcol.html. To view the video story, click here.