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Nonforeign Area COLA Rate Changes

Thursday, August 10, 2006
CPM 2006-04
From: 
NANCY H. KICHAK ASSOCIATE DIRECTOR STRATEGIC HUMAN RESOURCES POLICY
Subject: 
Nonforeign Area COLA Rate Changes

This memorandum announces the changes in nonforeign area cost-of-living allowance (COLA) rates. On August 2, 2006, the Office of Personnel Management (OPM) published in the Federal Register at 71 FR 43897 a final rule that changed COLA rates in eight COLA areas. COLA rates remain unchanged in three COLA areas. The changes are effective the first day of the first pay period beginning 30 days on or after the publication date. For most agencies, the effective date will be September 3, 2006. The following table shows the current and new COLA rates.

COLA Rates

 

Allowance Area/Category

Old Rates

New Rates

Puerto Rico

11.5%

10.5%

U.S. Virgin Islands

22.5%

23.0%

Anchorage, Alaska

25.0%

24.0%

Fairbanks, Alaska

25.0%

24.0%

Juneau, Alaska

25.0%

24.0%

Rest of the State of Alaska

25.0%

25.0%

Honolulu County, Hawaii

25.0%

25.0%

Hawaii County, Hawaii

16.5%

17.0%

Kauai County, Hawaii

23.25%

25.0%

Maui County, Hawaii

23.75%

25.0%

Guam and the Northern Mariana Islands

25.0%

25.0%

The new COLA rates are based on surveys OPM conducted in 2002, 2003, and 2004, using a new methodology adopted pursuant to the settlement of Caraballo, et al. v. United States, No. 1997-0027 (D.V.I.), August 17, 2000. If you have any questions concerning the rate changes or the COLA program, contact Kurt Springmann, COLA Team, by phone at 202-606-2838, by facsimile at 202-606-4264, or by email at cola@opm.gov.