Review of the Department of Defense Overseas Cost-of-Living Allowance
June 2000
US Department of Defense
The overseas cost of living allowance is a biweekly payment provided to approximately 280,000 members of the Uniformed Services stationed at one of 600 locations outside of the continental United States. Its purpose is to compensate members for differences in the cost of living between the continental United States (CONUS) and the their assigned location outside of the continental United States (OCONUS). This paper summarizes a review of the current system conducted by The Lewin Group. The review extended from the conceptual or theoretical premises of the current system to technical improvements in the methods of implementing the system.