Feds in Anchorage, Fairbanks and Juneau, Alaska, will have to tighten their belts a little after Dec. 3. That is the day those employees’ cost-of-living allowances will drop from 24 percent to 23 percent, the Office of Personnel Management said in a Nov. 3 Federal Register notice.
The reductions are based on cost-of-living surveys OPM conducted in 2006.
And the COLA in those cities could drop even further. OPM in August proposed reducing the allowance to 22 percent. That reduction would not occur until December 2009 at the earliest.
The COLA for federal employees in other parts of Alaska will remain unchanged at 25 percent.
