37 U.S.C. § 403b : US Code - Section 403B: Cost-of-living allowance in the continental United States

Search 37 U.S.C. § 403b : US Code - Section 403B: Cost-of-living allowance in the continental United States

(a) Payment Authorized. - The Secretary concerned may pay a cost-
of-living allowance to the eligible members of a uniformed service
under the jurisdiction of the Secretary.
(b) Eligible Members. - The following members are eligible to
receive a cost-of-living allowance under this section:
(1) A member assigned to a high cost area in the continental
United States.
(2) A member assigned to an unaccompanied tour of duty outside
the continental United States if the primary dependent of the
member resides in a high cost area in the continental United
States.
(3) A member assigned to duty in the continental United States
if the Secretary of the uniformed service concerned determines
that -
(A) the primary dependent of the member must reside in a high
cost area in the continental United States by reason of the
member's duty location or other circumstances; and
(B) it would be inequitable for the member's eligibility for
the allowance to be determined on the basis of the duty
location of the member.
(c) High Cost Area Defined. - An area is a high cost area for a
fiscal year for purposes of this section if the uniformed services
cost of living for that area for the base period exceeds the
average cost of living in the continental United States for such
base period by at least the threshold percentage. The Secretary of
Defense, in consultation with the other administering Secretaries,
shall establish the threshold percentage, except that the threshold
percentage may not be less than 8 percent. The administering
Secretaries shall prescribe a higher threshold percentage to be
applied for a fiscal year when it is necessary to do so in order to
ensure that the total amount of the payments of the cost-of-living
allowance made to members of the uniformed services under this
section for such fiscal year does not exceed the total amount
available to all uniformed services for that fiscal year for paying
such allowance.
(d) Amount of Allowance. - The cost-of-living allowance that may
be paid to a member for a high cost area for a fiscal year shall be
the amount that is equal to the product of -
(1) the amount of the average spendable income determined
applicable for the regular military compensation level of such
member under subsection (g); and
(2) the percentage equal to the excess of -
(A) the percentage by which the uniformed services cost of
living for the member's high cost area for the base period
exceeds the average cost of living in the continental United
States for such base period, over
(B) the threshold percentage applicable to such fiscal year
under subsection (c).
(e) Limitation to One Allowance. - If primary dependents of a
member reside separately in different high cost areas -
(1) the member may be paid only one cost-of-living allowance
under this section; and
(2) the cost-of-living allowance payable to the member shall be
the highest of the amounts computed under this section for such
high cost areas.
(f) Service Not Covered. - (1) A cost-of-living allowance may not
be paid a member under this section for the days authorized for
travel of the member in connection with a permanent change of duty
station.
(2) A member of a reserve component is not eligible for a cost-of-
living allowance under this section unless the member is on active
duty under a call or order to active duty that -
(A) specifies a period of 140 days or more; or
(B) states that the call or order to active duty is in support
of a contingency operation.
(g) Average Spendable Income. - The Secretary of Defense shall
determine, using a methodology and assumptions that the Secretary
considers appropriate, the amounts of average spendable income of
members of the uniformed services for various ranges of regular
military compensation. For purposes of this subsection, spendable
income is the total amount of regular military compensation that is
available for purchase of goods and services after allocation of
amounts for taxes, insurance, housing, gifts and contributions, and
savings.
(h) Joint Regulations. - The Secretary of Defense and the other
administering Secretaries shall jointly prescribe regulations to
carry out this section.
(i) Other Definitions. - In this section:
(1) The term "primary dependent", with respect to a member,
means -
(A) the member's spouse; or
(B) in the case of an unmarried member, a dependent described
in paragraph (2) or (4) of section 401(a) of this title.
(2) The term "cost of living" means a price index selected by
the Secretary of Defense, in consultation with the other
administering Secretaries, from among the following indices:
(A) The Consumer Price Index (all items-United States city
average) published monthly by the Bureau of Labor Statistics.
(B) Any other index developed in the private sector that the
Secretary of Defense, in consultation with the other
administering Secretaries, determines is comparable to the
Consumer Price Index and is appropriate for use for purposes of
this section.
(3) The term "uniformed services cost of living" means the
price index selected as described in paragraph (2) and adjusted
as the Secretary of Defense, in consultation with the other
administering Secretaries, considers appropriate to reflect
variations between expenses of members of the uniformed services
(as offset by the basic allowance for subsistence) and the
corresponding expenses of persons not members of the uniformed
services with regard to the following:
(A) Nonhousing costs (including costs of transportation,
goods, and services, taking into consideration savings
attributable to use of such military facilities as commissary
stores and exchange stores).
(B) Average income tax paid.
(C) Cost of health care.
(4) The term "base period", with respect to a fiscal year,
means the 12-month period ending on June 30 of the year in which
such fiscal year begins.
(5) The term "administering Secretaries" means the following:
(A) The Secretary of Defense, with respect to the armed
forces (other than the Coast Guard when it is not operating as
a service in the Navy).
(B) The Secretary of Homeland Security, with respect to the
Coast Guard when it is not operating as a service in the Navy.
(C) The Secretary of Commerce, with respect to the National
Oceanic and Atmospheric Administration.
(D) The Secretary of Health and Human Services, with respect
to the Public Health Service.