§ 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:
(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—
(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
(e)
Limitation to One Allowance.—
If primary dependents of a member reside separately in different 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.
(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:
(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:
(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:
(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).