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Computation of Cost-of-Living Allowances for Federal Employees in Nonforeign Areas Could Be More Accurate

FPCD-82-25 Published: Feb 08, 1982. Publicly Released: Feb 08, 1982.
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Highlights

GAO reviewed the methodology used by the Office of Personnel Management (OPM) and the Departments of State and Defense (DOD) to compute cost-of-living allowances (COLA's) for Federal personnel. Concerns have been raised by Federal personnel about the appropriateness of that methodology.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Office of Personnel Management The Director, OPM, should weight sale prices to reflect the proportion of purchases made at sale and regular prices.
Closed – Not Implemented
Adoption of the recommendation would entail additional data gathering, and the effect, if any, would probably not be significant.
Office of Personnel Management The Director, OPM, should require agencies to use a scientific sampling system to make living pattern and housing cost surveys.
Closed – Implemented
When we confirm what actions the agency has taken in response to this recommendation, we will provide updated information.

Full Report

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Topics

Civilian employeesCompensationCost of livingData integrityEvaluation methodsFederal employeesHousing allowancesPricing surveysSubsistence allowancesSurveys