Troops stationed in U.K. getting less money

Troops stationed in U.K. getting less money
By Geoff Ziezulewicz, Stars and Stripes
European edition, Tuesday, October 2, 2007

RAF MILDENHALL, England — Despite a declining dollar, troops stationed in the U.K. can expect a smaller paycheck because of a drop in the cost-of-living allowance that went into effect Monday.

The COLA index, used to calculate the overseas pay supplement, is dropping by 4 points at various duty stations in England. One index point generally averages to about $25, meaning some U.K. military members could see $100 less a month as a result of the change.

Rates remained unchanged Monday for troops in Germany and Italy.

Changes to allowances are based on value fluctuations of foreign currency and other considerations, according to the Defense Department’s Per Diem, Travel and Transportation Allowance Committee’s Web site. The latest U.K. COLA swing is based on a dollar’s value rising from 0.468 to 0.4935, according to the committee’s Web site. The U.K. COLA rate was last adjusted on Aug. 1.

While the COLA Web site cited a rising dollar value against the pound as a reason for the latest pay drop, the DOD’s Community Bank has set exchange rates based on the falling value of the dollar in recent months. The British sterling has been worth roughly $2 for much of this year. Community Bank reported exchange rates of $2.03 for one British pound on June 1, $2.08 on Aug. 1 and $2.09 on Oct. 1.

Air Force officials in the U.K. were unavailable Monday to explain the discrepancy in the conversion rates by Stars and Stripes’ deadline.


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uhc coment: What's the driver for reducing pay in Great Britain? Is is part of a move to pay for the occupation or is it something else?

Lower COLA for U.K. troops due to overpayment
By Geoff Ziezulewicz, Stars and Stripes
European edition, Wednesday, October 3, 2007


RAF MILDENHALL, England — The cost-of-living allowance cut for U.K. troops announced Monday is a result of servicemembers being overpaid for their COLA in the past few months, a balancing of the system that Air Force officials said is a standard piece of the COLA supplement.

Before Monday’s adjustment, the COLA rate for the U.K. was last changed on Aug. 1. From August to Sept. 30, COLA payments were based on a set exchange rate of about $2.14 to the British pound, which is more than the military bank exchange rate ever reached between those dates.

In effect, troops were receiving more money than what the exchange rate warranted, according to Air Force Maj. Brian Kehl, chief of the Accounting and Finance Operations Branch for U.S. Air Forces in Europe.

The lowering of the rate Monday by the Defense Department’s Per Diem, Travel and Transportation Allowance Committee was part of balancing that overpayment, he said.

“The per diem committee in Washington, D.C., makes a conscious decision to overpay servicemembers half the year and underpay servicemembers half the year so that (troops) can have a stable budget,” he said. “(U.K.-based troops) were being paid at a $2.14 exchange rate since Aug. 1. It (the exchange rate) never got that high.”


Rest of article at: http://stripes.com/article.asp?section=104&article=49224