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Cost Of Living Allowance Change (COLA)

Purpose

  1. This is a monthly allowance the army pays based on the cost of living in a particular area. COLA in Europe is figured twice each month (1st and 16th) base on the exchange rate of the Euro.
  2. The amount of COLA that you receive is based upon where you live (barracks or housing, including private rental) and how many dependents you have. The chart below gives the available codes.
      Code   Represents
       0     Housing, no dependents
       1     Housing, one dependent
      	(usually wife)
       2     Housing, two dependents
      	(ussually wife and one child)
       3     Housing, three dependents
       4     Housing, four dependents
       5     Housing, five dependents
       6     Housing, six dependents
       7     Housing, seven dependents
       8     Housing, eight dependents
       9     Barracks
  3. Your COLA rate is displayed on the LES just below the State Tax area. Your COLA location is located in the block labeled JFTR. It should be your zip code. If you are overseas you can look you code up on the DFAS website. The code from the table above is shown in the block to the right of the COLA location.
  4. Any changes to the amount of COLA will have supporting documentation. This would be a birth certificate, approved command sponsorship, rental agreement with letter from housing allowing single soldiers to move off post.
  5. If the change in COLA is based upon a soldier getting married, the effective date of the COLA change is different depending on your situation. For those CONUS, the effective date is the date of marrage. For those OCONUS, the effective date of the approved command sponsorship. If the change in COLA is based on the birth of a new dependent, the effective date of the COLA is the date of birth of the child. If the effective date of the COLA change is more then 90 days past, then a letter of lateness signed by the company commander is required.

Approving Authority
Company Commander.

Supporting Documents

  1. Approved Command Sponsorship, Birth Certificate, or Rental agreement with approval from housing to move off post.

Work Flow

Who What
Soldier Obtains needed documents to support change in COLA
Unit Prepares DA 4187 for individual and commanders signature
S1 Forwards DA 4187 to Finance
Finance Starts/Changes COLA

Example
Example (fillable PDF)