COLA changes in Europe bring mixed news

[unhappycamper]

COLA changes in Europe bring mixed news
By Matt Millham, Stars and Stripes
European edition, Thursday, May 1, 2008

The cost-of-living allowance given to troops in Germany topped the allowance paid to troops in the United Kingdom on Thursday as COLA rates on the Continent seesawed.

A weakening British pound and strengthening euro led the Per Diem, Travel and Transportation Allowance Committee to cut the COLA given to U.S. troops in the U.K. at the same time it increased the allowance for those in Germany and in parts of Italy, Spain and the Netherlands. The changes mean that a soldier in Germany will see $50 extra in his pocket, while a servicemember in the U.K. will see $50 less per month.

The committee, which can change COLA rates as often as two times a month, left rates unchanged in most other European locations and at the biggest bases in Italy.

Baffled by the formula used to calculate COLA adjustments, U.K.-based troops said they can’t understand why they get less when the dollar is even weaker against the pound than it is against the euro.

“I don’t know what to say to that. It’s unbelievable,” said Master Sgt. Terrence Banfield, with the 48th Maintenance Operations Squadron at RAF Lakenheath.


Rest of article at: http://www.stripes.com/article.asp?section=104&article=54464