Readers' Comments
Total Comments: 12
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COLA's, Housing Costs and Lawsuits: How Pay is Determined for Some Federal Employees
Total Comments: 12
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March 20, 2010
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It all depends
DOD
Tue Aug 1, 2006 9:20 AM
Post Reply
I live in a high cost area too, and if you move here from a low cost area, you're in for sticker shock on houses.
Let's be honest though, if you bought a house 20+ years ago in a high cost area you're milking the system (you probably paid 1/3 as much rent, mortgage, etc than today). A saving grace anyway, 20+ years ago interest was 10% and it was a huge hardship buying for many years, now you can finally "reap the harvest".
OPEM did the Survey - I would bet it is not even close!
US Marines
Tue Aug 1, 2006 9:34 AM
Post Reply
Any government agency, especially OPEM is doing the survey, I would bet it is not accurate since I do live in a high-cost area and the COLA does not reflect the true offset, let alone the 15-20% inflation this year which the government has lied about.
High cost of living
DOD
Tue Aug 1, 2006 10:19 AM
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I work in one of the highest cost of living areas of the nation: by every survey we pay more for housing, gasoline, insurance, etc. While we do get a COLA but it is far from being one of the highest. Add that we seem to be working 1 - 2 grades below our counterparts in many other regions of the country we actually do the same job for less. I am not complaining, my weather is much better than most and that is one of the things that enter in the equation. We call it "Sunshine dollars". "They' know we will work for less because if we don't someone else will. Many retired military have a second check coming so can do this. It is just hard on those of us who could not buy a house 10 years ago or are doing it on one income.
A few comments regarding the COLA study. Part 1
DOD
Tue Aug 1, 2006 11:55 AM
Post Reply
1. If there is little change or difference from the Washington D.C. market and the Anchorage market, then why is the federal government paying higher wages in the D.C. area to compensate for the high cost of living? This is without regard to locality pay. An HR specialist, 0201 series may be a GS-12/13 in the D.C. area while in Alaska the same position, with a similar PD may only be rated at a GS-11 or 12.
Although I do realize that this maybe a classification issue, it is relevant as agencies in the D.C. area tend to grade a like position higher (GS-12/13) than the rest of the country with the intent to attract and compensate employees for the high cost of living in the D.C. area.
A few comments regarding the COLA study. Part 2
DOD
Tue Aug 1, 2006 11:55 AM
Post Reply
2. The COLA system is an outdated form of compensation. Many federal employees in Alaska would like to see locality pay established. It is the belief by many federal employees in Alaska that locality pay would be higher than COLA using the current formulas used by OPM. Locality pay would also count toward retirement.
3. If Locality Pay is not feasible, then have COLA count for retirement benefits in Alaska. Currently they are not and a federal employee upon that magical date of retirement automatically receives a 25% reduction in benefits because COLA is not use to figure retirement benefits. This forces many federal employees to leave Alaska to seek their high 3 in the lower 48 states. This creates a experience level deficit in the Alaskan workforce.
COLA in Hawaii/Alaska
IRS
Tue Aug 1, 2006 1:19 PM
Post Reply
In my mind, your article misses the point on the fairness of the COLA system. COLA is an ok system as is and it is not necessary for rates to be readjusted (although housing factors should be given more consideration as not only do ours cost more we also get less square footage for a higher cost).
The real problem is that COLA localities cannot, by law, participate in the locality pay program. Although that is not a COLA killer, the problem is that even though we cannot participate in locality pay, we still support the locality pay system. By my recollection, we have given up 1% of our pay raise annually to support locality without being able to participate in this system (1.4% in one year). It is not fair for us to support locality pay when we cannot participate in it. Locality pay has been around approaching 20 years. When you consider the compounding effect of loosing 1% of our pay raise and the related loss of 25% COLA on the raise, our compensation level would be about 26% less after 20 years. COLA used to be an incentive to work in diffcult to hire areas. It is now a dis-incentive to work for the Federal government in COLA areas and many employees consider moving to get away from this inequitable treatment.
New Job?
DOD in Mississippi
Tue Aug 1, 2006 8:18 PM
Post Reply
First and foremost, I understand what the complaint is and I feel you guys have a legitimate complaint. With that being said, if you think you are being screwed, try to find a job in CONUS or leave the federal service and find a better job somewhere else. The big machine (fed govt) ain't gonna change directions. You knew when you knew the rules when you were hired or when you moved to your position outside CONUS so you really have no grounds to complain. There are many of us here in Mississsipi who would love to make the money you guys are. If it's too expensive, come on down here to Mississippi, I got a couple of cheap houses for sale or rent.