Posted on May 1, 2014
COLA dropping for many service members in Germany
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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
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
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Edited >1 y ago
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Responses: 6
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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.
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.
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MSG Wade Huffman
Very good points CSM Uhlig. We experienced a similar even when the Euro was adopted with drastically changing COLAs. The major difference then was that there was a logical explanation and change was expected. Typically we could always do a decent job of predicting near future COLA rates based on the current exchange rate trends.
With a change this drastic, I really have to question the validity of the survey conducted of goods and services.
With a change this drastic, I really have to question the validity of the survey conducted of goods and services.
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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?
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Maj (Join to see)
That is a great point. It is likely the 2011 or 2012 numbers they are looking at to make changes to 2014 rates.
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1SG (Join to see)
not everybody there completed the survey they were sent, bringing the percentage way down. I spent 13 years there, it is a back and forth
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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.
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