Falling COLA is causing hardship in BritainBy Mark Abramson, Stars and Stripes
European edition, Wednesday, February 4, 2009
Civilians and servicemembers alike say although the dollar has gotten stronger against the British pound in recent months, it still feels like Uncle Sam is shortchanging them when it comes to their cost-of-living allowance.
Civilian workers have seen their adjustment, known as post allowance, plummet more than $250 a paycheck since August as the dollar-to-pound exchange rate has gone from $1.8633 to $1.4143. The last time the pound was below $1.50 was on June 24, 2002. The last time it was below $1.40 — a mark it hit last month — was on June 14, 2001.
Post allowance is going down throughout Europe. Workers in Germany and Belgium will lose about $50 per paycheck and people in Italy and the Netherlands will lose about $70 a paycheck.
Despite the stronger dollar, shopping and eating out off base in England can be a bit pricey. For example, a burger in some restaurants around RAF Mildenhall and RAF Lakenheath can cost more than 7 pounds, or almost $10. Those prices can be hard to swallow for both civilian employees and servicemembers.
On Aug. 31, a civilian employee making $45,000 to $47,999 a year with three dependents was getting $311.54 in post allowance in his paycheck. Under the new rates that took effect Sunday, that same worker is getting just $51.92.Rest of article at:
http://www.stripes.com/article.asp?section=104&article=60456
Printer-friendly format
Email this thread to a friend
Bookmark this thread
(1000+ posts)
Send PM |
Profile |
Ignore
