5 C.F.R. § 591.202

Why does the Government pay COLAs?

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The Government pays COLAs as additional compensation to certain civilian Federal employees in specified nonforeign areas in consideration of higher living costs in the local area compared with living costs in the Washington, DC, area.

Notes of Decisions
Cited in 1 case, 1989–1989 · leading case: Cost of Living Allowances for Employees on Pay Retention (OLC 1989).
Cost of Living Allowances for Employees on Pay Retention (OLC 1989). “" The only justification offered for this result was that 5 C.FR. § 591.202 authorized COLAs as a percent of the “rate of basic pay.”
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