U.S. Office of Personnel Management - Ensuring the Federal Government has an effective civilian workforce
CPM 2006-04
August 10, 2006
MEMORANDUM FOR HUMAN RESOURCES DIRECTORS
FROM: |
NANCY H. KICHAK |
|---|---|
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.
Attachment: Final Regulations: COLA Rate Changes 
[128 KB]
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