USCG Pay & Personnel Center             

 

Introduction

This topic provides the SPO/PSI data entry technician with general information and links to step-by-step procedures to properly record entitlement to OUTCONUS Cost of Living Allowance.

Regulations

The information in this topic is provided to help you familiarize you with OUTCONUS Cost of Living Allowance entitlement rules and terms. This information is only introductory. Refer to the references list below for official guidance on this entitlement.

References

(a)	DOD FMR, VOL 7A, Chapter 68 - Overseas COLA and Temporary Lodging Allowance (TLA)
(b)	Coast Guard Supplement to the JTR, COMDTINST M4600.17 (Series), Chapter 9

Entitlement

Per reference (a), OUTCONUS COLA is authorized to assist a member in maintaining the purchasing power of the discretionary portion of spendable income while assigned to an OCONUS PDS

There are five types of OUTCONUS COLA:

1.    OUTCONUS COLA With Dependents.  This is a daily allowance paid to a member with dependents who:

a.    Is permanently assigned to a high cost area overseas; or

b.    Has dependents residing in a high cost area overseas; or

c.    Is a reservist on certain active duty orders whose principal place of residence is a high cost area overseas.

Note that only command sponsored dependents are OCOLA eligible dependents.

2.    OUTCONUS COLA Without Dependents.  This is a daily allowance paid to:

a.     Members assigned to a high cost area overseas where government quarters and messing are unavailable, and the member:

(1)  Has no dependents; or

(2)  Has dependents, but the member is serving in an unaccompanied status at the overseas duty station.

(3) When a member is entitled to Reduced OUTCONUS COLA but the CO determines that use of a government dinning facility is impractical. See "Reduced OUTCONUS COLA below.

b.    Reservists without dependents on certain active duty orders whose principal place of residence is a high cost area overseas.

3.   Reduced OUTCONUS COLA.  This is a daily allowance paid to members without dependents assigned to a high cost area overseas where government quarters and messing are provided.

Note:  A member Without Dependents assigned to government quarters whose Commanding Officer has provided a statement that using the Government dining facility is impractical due to mission or operational needs is authorized OCONUS COLA Without Dependents. Any SPO submitted tickets requesting PPC (MAS) to credit these members OCONUS COLA Without Dependents shall have a signed memo from the CO or the ticket will be returned and the SPO will have to re submit with the proper documentation.

The CO's statement shall be in CG Memo format and will include the following information:

From CO, Unit

To: SPO

Subj: OCONUS COST OF LIVING ALLOWANCE (COLA) FOR PERSONNEL RESIDING IN GOVERNMENT LEASED QUARTERS OFF-BASE

Ref:   (a) DOD FMR, VOL 7A, Chapter 68 - Overseas COLA and Temporary Lodging Allowance (TLA)

1.In accordance with reference (a), unaccompanied members attached to [Unit Name] who reside in government leased quarters off-base are authorized OCONUS COLA at the without dependent rate. While government messing is available at the Permanent Duty Station (PDS), the use of such messing is impractical given the distance and travel time to/from the cutter.

2.By accepting OCONUS COLA at the without dependent rate, members are expected to cook and consume a majority of their meals in government leased quarters off base.

3.For any questions or concerns please contact [enter POC].

4.    Fractional COLA.  This is a per-meal allowance paid to members without dependents who are normally provided government messing, but the member’s duties preclude the member from eating one or more meals.

5.    COLA Unique.  This is a one-time payment to members with or without dependents who are assigned to an overseas area where the member incurs a unique mandatory or excessive expense (such as a specific tax). 

OUTCONUS COLA With Dependents

For OUTCONUS COLA purposes, a member with dependents is one who:

1.  Has dependents residing at or in the vicinity of the member’s OUTCONUS duty station; or
2.  Has been authorized, by PSC-psd-fs, to have dependents reside in an OUTCONUS area as a “designated place”.
   Note that only command sponsored dependents are OCOLA eligible dependents.

The amount of COLA With Dependents is based on a member’s:

1.  Location.
2.  Pay grade.
3.  Years of service for pay purposes.
4.  Number of dependents.

A member’s entitlement to OUTCONUS COLA With Dependents changes to OUTCONUS COLA Without Dependents if:

• The member loses his/her last dependent (due to divorce, death, reaching age of majority, etc.)
• All dependents permanently return to CONUS (including return to attend school).
• All dependents temporarily return to CONUS for over 30 days.
• Dependents are evacuated from the overseas duty station

OUTCONUS COLA Without Dependents

OUTCONUS COLA Without Dependents is payable to the following members, and is payable only if government quarters and messing are unavailable for the member:

1.  Members with no dependents.
2.  Members with dependents, but those dependents have not accompanied the member to the overseas duty station.
3.  Members receiving BAH with dependents solely on the basis of paying child support.

The amount of COLA Without Dependents is based on the member’s:

1.  Location.
2.  Pay grade.
3.  Years of service for pay purposes.

Reduced COLA

Partial COLA is paid to members without dependents (and members with dependents in an unaccompanied status) who have government quarters and government messing available.  Partial COLA is paid at 63 percent of the COLA Without Dependents rate.

The following members are not subject to Partial COLA even though government quarters and messing are available – these members are entitled to OUTCONUS COLA Without Dependents instead:

1.  A member married to another member with no other dependents who: (a) maintains a joint residence with the member spouse; or (b) both spouses are assigned to sea duty and the COLA-eligible spouse occupies private sector housing.
2.  A member in pay grade E-4 and above assigned to a ship who is authorized to not occupy government quarters and in fact occupies private sector housing.
3.  A member in pay grade E-6 and above assigned to a shore station who is authorized to not occupy government quarters and in fact occupies private sector housing

 There is no direct relationship between Partial COLA entitlement and Basic Allowance for Subsistence nor Basic Allowance for Housing entitlements. 

OUTCONUS COLA is not authorized for members in the Accession Pipeline:

DOD FMR, VOL 7A, Chapter 68 - Overseas COLA and Temporary Lodging Allowance (TLA) "COLA is authorized to assist a member in maintaining the purchasing power of the discretionary portion of spendable income while assigned to an OCONUS PDS." 

There is no provision in DOD FMR, VOL 7A, Chapter 68 - Overseas COLA and Temporary Lodging Allowance (TLA) for OCONUS-COLA for newly-accessed members not assigned to a PDS and currently undergoing initial training (Accession Pipeline).

Servicemembers in the Accession Pipeline (e.g., undergoing basic training and any additional training (such as Class A School) prior to assignment to their first PDS) do not have a PDS and therefore are not authorized OCONUS-COLA.  The dependents of members in the Accession Pipeline who reside in OCONUS locations are not there as a result of military orders and thus are not command-sponsored.  Per DOD FMR, VOL 7A, Chapter 68 - Overseas COLA and Temporary Lodging Allowance (TLA), OCONUS-COLA at the with dependent rate is only payable for command-sponsored dependents. 

Without express authorization in the DOD FMR Vol 7A for OCONUS-COLA on behalf of members in the Accession Pipeline whose dependents reside in an OCONUS location, OCONUS-COLA is not authorized. 

Reserve Component Members

Reservists will be paid OUTCONUS COLA as follows:

1. If ordered to active duty in support of a contingency operation, OUTCONUS COLA will be paid based on the location of the member’s residence, if the residence is a high cost area overseas.  OUTCONUS COLA begins on the first day of active duty and continues for the duration of active duty.

2.  If ordered to active duty for less than 31 days, and the orders are not in support of a contingency operation, then OUTCONUS COLA is not payable.

3. If ordered to non-contingency active duty of 31 or more days, and the reservist’s primary residence is a high cost area overseas, OUTCONUS COLA begins on the first day of active duty.  OUTCONUS COLA continues to be paid based on the reservist’s residence unless the reservist is issued permanent change of station (PCS) orders and authorized PCS household goods transportation. 

1.  Reservists will be issued PCS orders and authorized PCS household goods transportation if the orders are ADT orders for 140 or more days, or ADOT orders for 181 or more days.

2.  In these instances, the reservist:
   1.  Receives OUTCONUS COLA at the residence locale effective the first active duty day.
   2.  That rate terminates on the day before the reservist reports to the PCS duty station.
   3.  Effective the date the reservist reports to the PCS duty station, OUTCONUS COLA is payable at that locale if the locale is a high cost area overseas.

If a reservist is issued active duty orders of less than 31 days, and then receives an order modification extending the active duty period, OUTCONUS COLA is payable if the prospective new active duty period, based on the orders amendment, results in active duty of 31 or more days.  Example:  Reservist is issued ADOS (non-contingency) active duty orders for 14 days from 10/1/2011 through 10/14/2011.  Effective 10/12/2011, the orders are modified to end on 11/30/2011 instead of 10/14/2011.  The reservist becomes entitled to OUTCONUS COLA effective 10/12/2011, the date the orders are modified to cover a period of 31 or more days.

Dual COLA Entitlements

Normally, a member is only entitled to one type of OUTCONUS COLA, i.e.:

1. OUTCONUS COLA With Dependents; or
2. OUTCONUS COLA Without Dependents; or
3. Partial COLA.

However, a member may be authorized by PSC-psd-fs to receive OUTCONUS COLA With dependents along with either OUTCONUS COLA Without Dependents or Partial COLA when:

1. Both the member and dependents are outside CONUS; and
2. The dependents were transported to the OUTCONUS location at Government expense; and
3. The member is ordered on a permanent change of station to an OUTCONUS unaccompanied tour.

Dual entitlement will arise when either: (a) the member is receiving OUTCONUS COLA With Dependents and then is issued PCS orders to an unaccompanied tour at a different OUTCONUS location; or (b) the member is issued orders to an unaccompanied tour at an OUTCONUS location and receives authorization from PSC-psd-fs to move the dependents to a different COLA-eligible locale as a “designated place”.

OUTCONUS COLA for Members Married to Members

The following rules apply when both husband and wife are members of the service:

1.  When both husband and wife are members and assigned OUTCONUS, and separate households are maintained, each is individually authorized OUTCONUS COLA.  OUTCONUS COLA for each member will be With or Without Dependents, depending on whether each individual member has other dependent(s) living with him/her.
2.  If a joint household is maintained by a military husband and wife, only one member is authorized to receive OUTCONUS COLA With Dependents (if there are dependents in addition to the spouse); the other member is paid OUTCONUS COLA Without Dependents.

OUTCONUS COLA and Retirement or Separation

Entitlement to OUTCONUS COLA stops effective the date a member:

1. separates / retires, (Note: The system will automatically shut down the entitlement in connection with the separation) or

2. SPOs/(PSI) P&As MUST manually stop OUTCONUS COLA upon the member’s departure from the unit on Terminal Leave (with no intention to return)

Whichever is earlier.

Fractional COLA

A member without dependents who is receiving Partial COLA, and whose duties require the member to be absent from the duty station during one or more meals, is entitled to Fractional COLA.  This allowance is paid in addition to Partial COLA.

The Fractional COLA amount payable is a percentage of the applicable COLA rate for a Member Without Dependents as follows:

1. Breakfast – 7%
2. Lunch – 15%
3. Dinner – 15%

COLA Unique

COLA Unique is reimbursement for mandatory and excessive expenses members incur at certain overseas locations.  In order to receive this payment all of the following conditions must be met:

1. Incurred by a clear majority of members assigned at a duty station, and
2. An item/expense that exceeds 1% of Spendable Income for the member, and
3. An item/expense that is not purchased or paid by CONUS-based members, and
4. Specifically authorized/approved by the Per Diem, Travel, and Transportation Allowance Committee (PDTATAC), and
5. Verified by a valid receipt, and
6. Paid on or after 1 July 2006.  No expenses paid before this date can be reimbursed.

At the present time, only one location is eligible for COLA Unique:

1. Singapore – Road Tax and Vehicle Registration/Transfer Fee.

To receive COLA Unique, the member must submit a claim to PPC (MAS) on Form CG-7270.

Concurrent Payment Restrictions

A member may not be paid the following concurrently:

1. OUTCONUS COLA at the with-dependent rate and CONUS COLA  at the with-dependent rate.
2. OUTCONUS COLA at the without-dependent rate and CONUS COLA at the without-dependent rate.
3.  OUTCONUS COLA at the with-dependent rate and BAH at the without-dependent rate.
4. OUTCONUS COLA at the with-dependent rate and BAH-DIFF.
5. OUTCONUS COLA at the with-dependent rate and BAH at the with-dependent rate if that BAH is based solely on the basis of paying child support..

 

PSC Approval

1.  PSC-psd-fs may authorize a member to receive OUTCONUS COLA With Dependents based on the location of the dependents in the following cases:

a.   The dependents are authorized to reside in a “designated location”.

b.   The dependents are authorized to travel to the member’s OUTCONUS permanent duty station locale in advance of the member.

c.   The dependents are authorized to temporarily remain at the OUTCONUS locale after a member’s departure on PCS orders, or after the member’s departure on terminal leave.

OUTCONUS COLA Rates

Use the Overseas COLA Calculator to calculate the COLA rate.

OUTCONUS COLA Taxability

All five types of OUTCONUS COLA are non-taxable.

Auto Start/Stops

Entitlement: OUTCONUS Cost of Living Allowance With Dependents	Automatic?	Effective Date/Notes
Manual or Auto Start?	M	The member AND all OCOLA eligible dependents addresses should be updated to reflect the OCOLA locality. Within DA, this can be completed under HR Data Shortcuts > Personal Information and Dependent Information. This is important for audit and verification of the OCOLA entitlement. See the DOD FMR VOL 7A, paragraph 680302 for guidance on determining the correct date to start OUTCONUS COLA.   Note that only command sponsored dependents are OCOLA eligible dependents.
Auto Stop PCS PERMDU/ TEMDU Departing?	Y	Day Prior to Departure -Unless a member is ordered to PCS unit within close proximity between old unit and new unit OCONUS.  OCOLA can continue from detachment from the OLD unit through reporting to the new unit PCS.
Auto Stop PCS PERMDU/ TEMDU Reporting?	N
Auto Start TDY Reporting	N
Auto Stop TDY Reporting	N
Auto Stop While in TDY Status	N
Auto Stop TDY Departing	N
Auto Stop RELAD?	See Notes	Entitlement to OUTCONUS COLA stops effective the date a member: separates / retires, (Note: The system will automatically shut down the entitlement in connection with the separation) or SPOs/(PSI) P&As MUST manually stop OUTCONUS COLA upon the member’s departure from the unit on Terminal Leave (with no intention to return) Whichever is earlier.
Auto Stop Discharge?
Auto Stop Retirement?
Auto Stop Death?	Y	Date of Death

Entitlement: OUTCONUS COLA Without Dependents	Automatic	Effective Date/Notes
Manual or Auto Start?	M	See the DOD FMR VOL 7A, paragraph 680302 for guidance on determining the correct date to start OUTCONUS COLA.
Auto Stop PCS PERMDU/ TEMDU Departing?	Y	Day Prior to Departure  -Unless a member is ordered to PCS unit within close proximity between old unit and new unit OCONUS.  OCOLA can continue from detachment from the OLD unit through reporting to the new unit PCS.
Auto Stop PCS PERMDU/ TEMDU Reporting?	N
Auto Start TDY Reporting	N
Auto Stop TDY Reporting	N
Auto Stop While in TDY Status	N
Auto Stop TDY Departing	N
Auto Stop RELAD?	See Notes	Entitlement to OUTCONUS COLA stops effective the date a member: separates / retires, (Note: The system will automatically shut down the entitlement in connection with the separation) or SPOs/(PSI) P&As MUST manually stop OUTCONUS COLA upon the member’s departure from the unit on Terminal Leave (with no intention to return) Whichever is earlier.
Auto Stop Discharge?
Auto Stop Retirement?
Auto Stop Death?	Y	Date of Death

Navigation for SPO/PSI Users

OUTCONUS COLA:

1. Portal Pagelet: Active & Reserve Pay Shortcuts > Cost of Living Allowance

2. Menu Path: Global Payroll & Absence Mgmt > Payee Data > USCG Active Duty Reserve > Cost of Living Allowance

COLA Unique:

1. Portal Pagelet: Payroll Requests > COLA Unique

2. Menu Path: Human Resources Requests > COLA Unique

Entitlement	Approvals	Where to Stop Payroll Element	Where to Change Begin Date	Where to Change End Date	Where to Delete Submission	Credits & Debits	Legacy JUMPS
OUTCONUS COLA	SPO - CGHRSUP in CGHRS department PPC - CGHRSICSUP	Cost of Living Allowance Page	Cost of Living Allowance Page	Cost of Living Allowance Page	Delete Row in Cost of Living Allowance Page	Via OTPI - Must enter COLA Type, Zip Code & Dependents	Segment 29 Object Codes: 12401 12451 COLA W/1 DEP 12402 12452 COLA W/2 DEP 12403 12453 COLA W/3 DEP 12404 12454 COLA W/4 DEP 12405 12455 COLA W/5 DEP 12406 12456 COLA W/6+ DEP
COLA Unique	PPC CGHRSUP	N/A - One Time Payment	N/A - One Time Payment	N/A - One Time Payment	One Time (Positive Input)	Via OTPI

Procedures for SPO/PSI Users

LPC Rows

A Legislative Pay Change (LPC) for Housing Allowance & COLA pages should never be deleted, unless it is immediately replaced with a corrected LPC row.

 

Topic	User Guide (PDF)
OUTCONUS COLA	OUTCONUS COLA This guide provides the procedures for a SPO to start, stop, correct, and approve OUTCONUS COLA transactions in Direct Access (DA). This guide also provides the procedures to confirm OUTCONUS COLA corrections were processed accurately in DA.
Tools	SPO OCOLA 31-Day Worksheet

Known Issues

The following are known issues with OUTCONUS Cost of Living Allowance and Direct Access Global Payroll:

1. Even though pay grade might be incorrect on the OCOLA box the correct rate will pay out. Always compare DTMO website to pay calcs to verify OCOLA entitlement being paid out correctly.
   
   Example:  Member advanced to E3 and when SPO tried to put in the OCOLA row effective date of advancement, the “latest calendar results for current row box” didn’t update the member’s paygrade until the LPC row was put in.  Even though the wrong pay grade was displayed the correct E3 amount paid out.
    

2. SPO must input stop manually for members taking terminal leave.

3. If the member has dependents but is NOT entitled to OCOLA with dependents, DO NOT populate dependents  the "OUTCONUS COLA Dependent Beneficiaries" field of the OCOLA transaction in DA. You must select COLA Type: "OUTCONUS COLA W/O Dependents" and leave the Dependent Beneficiaries section blank.
   
   Failure to follow this procedure will result in erroneous overpayment of OCOLA.

Frequently Asked Questions (FAQ)

See the Defense Travel Management Office "COLA FAQs" page for more  questions and answers.