Exchange rate boosts COLA for Turkey

  • Published
  • By 1st Lt. Rose Richeson
  • 39th Air Base Wing Public Affairs
INCIRLIK AIR BASE, Turkey --  Clothing and groceries and cleaning supplies, oh my. There are so many things to buy in Turkey but are you getting the most return on your dollar? 

Since February you may have noticed some extra cash in your account and if you checked your Leave and Earnings Statement you would have seen more money each paycheck listed under Cost of Living Allowance. It's not that Turkey started receiving COLA, more so, it is because COLA is an ever-fluctuating number crunching game and lately the numbers have been working in your favor. 

"COLA is affected by two variables: the purchasing power of the dollar relative to the Turkish Lira and a market basket of goods equivalent to products purchased in the U.S.," said 1st Lt. Chris Collins, 39th Comptroller Squadron Financial Services officer. "Basically, we track how much shopping is done on the local economy, and how much is done at the Commissary, Base Exchange or on the Internet so we can offset any overseas added costs." 

Due to the currency exchange rate, COLA, which is reevaluated every two weeks, has not affected U.S. military members' paychecks since May 2006. Some may have noticed single digit deposits for COLA while others are receiving closer to $50 on any given Leave and Earnings Statement. 

"It varies depending on rank, location, number of dependents and time in service," said Lieutenant Collins. "That's why it's important to update your dependency status with Finance. In turn, your COLA rate will be automatically updated in the system and affect your pay." 

One way base members influence COLA is by participating in periodic Living Pattern Surveys. A total of 671 Team Incirlik members completed the LPS in January by taking the online survey about which local economy outlets they use when they shop for food items, clothing and many other goods and services, such as hair care, child care and auto repair. 

Following the LPS, eight Team Incirlik members conducted a Retail Price Survey collecting data from the local area to include the M-1 mall and the Alley. The purpose of the RPS was to take the information provided in the survey about where people shop and then price items at those locations. 

"During the LPS you're also trying to find the same standard of items you'd find in the U.S.," said Lieutenant Collins. 

The survey results for each area are then provided to the Department of Defense Per Diem, Travel and Transportation Allowance Committee in Virginia, where they are computed into a Cost of Living index reflecting the difference. 

The COLA survey does not necessarily increase the COLA entitlement; it is intended to reflect the correct COLA entitlement. If a COLA adjustment is necessary, the adjustment is determined by the Military Advisory Panel which will convene May 8. 

A helpful tool is available for those who are interested in checking COLA rates on a regular basis in order to pre-plan their budget. Incirlik members can log on to https://secureapp2.hqda.pentagon.mil/perdiem/ocform.html to view their pro-rated COLA. You can search your personal rate by using the drop-down boxes and filling in the Location Name (Turkey, Incirlik AB, TU001) or Locality Code (TU001) for Incirlik Air Base.