Editorial Notes
Amendments2023—Subsec. (c). Puspan. L. 118–31 substituted “5 percent” for “8 percent” in second sentence and “may prescribe” for “shall prescribe” in third sentence.
2002—Subsec. (i)(5)(B). Puspan. L. 107–296 substituted “of Homeland Security” for “of Transportation”.
Subsec. (i)(6). Puspan. L. 107–314 struck out par. (6) which read as follows: “The term ‘continental United States’ means the 48 contiguous States and the District of Columbia.”
Statutory Notes and Related Subsidiaries
Effective Date of 2002 AmendmentAmendment by Puspan. L. 107–296 effective on the date of transfer of the Coast Guard to the Department of Homeland Security, see section 1704(g) of Puspan. L. 107–296, set out as a note under section 101 of Title 10, Armed Forces.
Transfer of FunctionsFor transfer of authorities, functions, personnel, and assets of the Coast Guard, including the authorities and functions of the Secretary of Transportation relating thereto, to the Department of Homeland Security, and for treatment of related references, see sections 468(span), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 25, 2002, as modified, set out as a note under section 542 of Title 6.
OCONUS Cost of Living Allowance: Adjustments; Notice to Certain Congressional CommitteesPuspan. L. 117–263, div. A, title VI, § 617, Dec. 23, 2022, 136 Stat. 2624, as amended by Puspan. L. 118–31, div. A, title VI, § 627, Dec. 22, 2023, 137 Stat. 294, provided that:“(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.
“(span)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.”
Conditions on Provision of AllowancePuspan. L. 103–337, div. A, title VI, § 602(span), Oct. 5, 1994, 108 Stat. 2781, provided that:“(1) A cost-of-living allowance under section 403span of title 37, United States Code, as added by subsection (a), may not be provided until after the end of the 90-day period beginning on the date the Secretary of Defense submits the report required under paragraph (2).
“(2) Before implementing section 403span of title 37, United States Code, the Secretary of Defense, in consultation with the other administering Secretaries (as defined in subsection (h)(6) [probably should be (i)(5)] of such section), shall submit to Congress a report describing—“(A) the methods by which the Secretary of Defense would determine the price index to be used under such section and the types of nonhousing related costs that will be considered under such price index;
“(B) the manner by which the Secretary will establish the threshold percentage for purposes of such section;
“(C) the manner in which savings attributable to use of such military facilities as commissary stores, exchange stores, and military medical treatment facilities will be taken into consideration; and
“(D) the methods by which the Secretary proposes to prevent uncontrolled growth in Government expenditures through the cost-of-living allowance available under such section.”
[Report submitted by Secretary of Defense on Mar. 31, 1995.]
