We received notification Office of the Undersecretary of Defense/PR will not implement any COLA decreases for Hawaii. They authorized a new Living Pattern Survey, which documents members’ shopping patterns (e.g., commissary, out in town), and a new Retail Price Schedule, which provides prices members pay in the outlets where they shop. The results of both the new Living Pattern Survey and new Retail Price Schedule will be used to determine whether any change to COLA rates in Hawaii is warranted. If the results indicate a change is warranted, it will be implemented prospectively. However, no changes are being implemented at this time.
COLA focuses on the costs members incur for non-housing goods and services. Usually, variations in COLA are more directly tied to the effects of changes of prices where members shop, as shopping patterns tend to be more stable over time.
Furthermore, the goal of the Overseas COLA program is to ensure Service members stationed outside the continental U.S. maintain an equivalent level of purchasing power as their continental U.S. counterparts―not less purchasing power, but not more either.
Some of the changes we have seen in other parts of the world have stemmed from differences in local inflation rates and inflation rates for the same goods and services within CONUS. Inflation in CONUS that has risen faster than local inflation has generated decreases in COLA rates elsewhere.
We encourage every eligible individual or family to participate in the Living Pattern Survey to ensure decision makers receive accurate information to determine your COLA. We will provide more information when available.