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
Juneau, Alaska
Rest of the State of Alaska
Honolulu County, Hawaii
Hawaii County, Hawaii
16.5%
17.0%
Kauai County, Hawaii
23.25%
Maui County, Hawaii
23.75%
Guam and the Northern Mariana Islands
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.
