Sec. 617. OCONUS COST OF LIVING ALLOWANCE: ADJUSTMENTS; NOTICE TO CERTAIN CONGRESSIONAL COMMITTEES
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## SEC. 617 OCONUS COST OF LIVING ALLOWANCE: ADJUSTMENTS; NOTICE TO CERTAIN CONGRESSIONAL COMMITTEES **[**[37 U.S.C. 403b note](/us/usc/t37/s403b)**]** ###
(a)Reductions The Secretary of Defense may reduce an OCONUS COLA in accordance with this subsection. ####
(1)Frequency The Secretary may not announce a reduction to an OCONUS COLA for a location outside the continental United States more than twice per calendar year. ####
(2)Maximum reduction A reduction to an OCONUS COLA may not exceed the lesser of— #####
(A)10 OCONUS COLA index points; or #####
(B)the number of OCONUS COLA index points by which the cost of living of the permanent duty station of the covered member exceeds the average cost of living index in the continental United States. ####
(3)Limitations Paragraphs
(1)and
(2)shall not apply to a reduction on the basis of— #####
(A)a change in the rate of exchange of foreign currencies; or #####
(B)a permanent change of station for a covered member. ####
(4)Implementation The Secretary may phase in a reduction under this subsection. ###
(b)Increases The Secretary may increase an OCONUS COLA at any time. ###
(c)Reporting Not later than February 1 of each year, the Secretary shall submit to the Committees on Armed Services of the Senate and House of Representatives a report regarding reductions and increases to OCONUS COLAs during the previous calendar year. Such report shall include the following elements: ####
(1)The areas outside the continental United States subject to such a reduction or increase. ####
(2)The previous and new amounts of an adjusted OCONUS COLA for a member with three dependents, 10 years of service, and in grade— #####
(A)E-6; and #####
(B)O-4. ####
(3)The number of OCONUS COLA index points by which a new OCONUS COLA index differs from such previous index. ####
(4)The number of members of the uniformed services affected by each such reduction or increase. ####
(5)The assessment of the Secretary of the calculation of an OCONUS COLA. In making such assessment, the Secretary shall consider factors including— #####
(A)Costs of local transportation in the area surrounding the duty station of a member. #####
(B)Costs of travel from such duty station to the United States. #####
(C)Other costs the Secretary determines appropriate. ###
(d)Definitions In this section: ####
(1)The term “continental United States” has the meaning given such term in section 101 of title 37, United States Code. ####
(2)The term “covered member” means a member of the uniformed services— #####
(A)who is assigned to a permanent duty station located outside the continental United States; or #####
(B)whose dependents reside outside the continental United States but not withing the vicinity to permanent duty station of such member. ####
(3)The term “OCONUS COLA” means a cost-of-living allowance paid to a member of the uniformed services on the basis that such member is a covered member. ####
(4)The term “OCONUS COLA index” means the index computed by the Secretary of the weighted average prices of goods and services (excluding housing costs) in a location outside the continental United States, relative to the weighted average of prices of the same goods and services in the continental United States. ####
(5)The term “OCONUS COLA index point” means 1 percent of the OCONUS COLA index for the weighted average prices of goods and services (excluding housing costs) in a location in the continental United States. ## Subtitle C Travel and Transportation Allowances
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Sec. 617
OCONUS COST OF LIVING ALLOWANCE: ADJUSTMENTS; NOTICE TO CERTAIN CONGRESSIONAL COMMITTEES
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