37 U.S.C. § 403b: Cost-of-living allowance in the continental United States

The Secretary concerned may pay a cost-of-living allowance to the eligible members of a uniformed service under the jurisdiction of the Secretary. A member assigned to a high cost area in the continental United States. A member assigned to an unaccompanied tour of duty outside the continental United States if the primary dependent of the member resides in a high cost area in the continental United States. the primary dependent of the member must reside in a high cost area in the continental United States by reason of the member’s duty location or other circumstances; and it would be inequitable for the member’s eligibility for the allowance to be determined on the basis of the duty location of the member. An area is a high cost area for a fiscal year for purposes of this section if the uniformed services cost of living for that area for the base period exceeds the average cost of living in the continental United States for such base period by at least the threshold percentage. The Secretary of Defense, in consultation with the other administering Secretaries, shall establish the threshold percentage, except that the threshold percentage may not be less than 5 percent. The administering Secretaries may prescribe a higher threshold percentage to be applied for a fiscal year when it is necessary to do so in order to ensure that the total amount of the payments of the cost-of-living allowance made to members of the uniformed services under this section for such fiscal year does not exceed the total amount available to all uniformed services for that fiscal year for paying such allowance. the amount of the average spendable income determined applicable for the regular military compensation level of such member under subsection (g); and the percentage by which the uniformed services cost of living for the member’s high cost area for the base period exceeds the average cost of living in the continental United States for such base period, over the threshold percentage applicable to such fiscal year under subsection (c). the member may be paid only one cost-of-living allowance under this section; and the cost-of-living allowance payable to the member shall be the highest of the amounts computed under this section for such high cost areas. A cost-of-living allowance may not be paid a member under this section for the days authorized for travel of the member in connection with a permanent change of duty station. specifies a period of 140 days or more; or states that the call or order to active duty is in support of a contingency operation. The Secretary of Defense shall determine, using a methodology and assumptions that the Secretary considers appropriate, the amounts of average spendable income of members of the uniformed services for various ranges of regular military compensation. For purposes of this subsection, spendable income is the total amount of regular military compensation that is available for purchase of goods and services after allocation of amounts for taxes, insurance, housing, gifts and contributions, and savings. The Secretary of Defense and the other administering Secretaries shall jointly prescribe regulations to carry out this section. the member’s spouse; or in the case of an unmarried member, a dependent described in paragraph (2) or (4) of section 401(a) of this title . The Consumer Price Index (all items–United States city average) published monthly by the Bureau of Labor Statistics. Any other index developed in the private sector that the Secretary of Defense, in consultation with the other administering Secretaries, determines is comparable to the Consumer Price Index and is appropriate for use for purposes of this section. Nonhousing costs (including costs of transportation, goods, and services, taking into consideration savings attributable to use of such military facilities as commissary stores and exchange stores). Average income tax paid. Cost of health care. The term “base period”, with respect to a fiscal year, means the 12-month period ending on June 30 of the year in which such fiscal year begins. The Secretary of Defense, with respect to the armed forces (other than the Coast Guard when it is not operating as a service in the Navy). The Secretary of Homeland Security, with respect to the Coast Guard when it is not operating as a service in the Navy. The Secretary of Commerce, with respect to the National Oceanic and Atmospheric Administration. The Secretary of Health and Human Services, with respect to the Public Health Service. 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. 10 OCONUS COLA index points; or 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. a change in the rate of exchange of foreign currencies; or a permanent change of station for a covered member. The Secretary may phase in a reduction under this subsection. The Secretary may increase an OCONUS COLA at any time. The areas outside the continental United States subject to such a reduction or increase. E-6; and O-4. The number of OCONUS COLA index points by which a new OCONUS COLA index differs from such previous index. The number of members of the uniformed services affected by each such reduction or increase. Costs of local transportation in the area surrounding the duty station of a member. Costs of travel from such duty station to the United States. Other costs the Secretary determines appropriate. The term ‘continental United States’ has the meaning given such term in section 101 of title 37 , United States Code. who is assigned to a permanent duty station located outside the continental United States; or whose dependents reside outside the continental United States but not withing the vicinity to permanent duty station of such member. 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. 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. 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.” A cost-of-living allowance under section 403b 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). 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; the manner by which the Secretary will establish the threshold percentage for purposes of such section; 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 the methods by which the Secretary proposes to prevent uncontrolled growth in Government expenditures through the cost-of-living allowance available under such section.”