Public Affairs 
October 24, 2005

Pay allowance changes affecting USAREUR Soldiers

USAREUR Public Affairs
  

SCHWETZINGEN, Germany – Some U.S. Army, Europe Soldiers may see changes in their housing allowances this month as the Department of Defense implements new housing allowance policy.

These changes stem from legislation that changes the way housing allowances are computed.  Essentially, the changes related to the Overseas Housing Allowance.  Previously, OHA contained a basic allowance for housing (called BAH Type II for locations outside the continental U.S.) and a supplement to reimburse for cost of housing.  The changes eliminate BAH Type II as an allowance, and bases OHA totally on reimbursable housing costs.  Soldiers who were receiving only BAH II will lose this allowance, beginning this month. 

USAREUR-based Soldiers in the following categories may see pay changes in their October Leave and Earnings Statement: 

  • Soldiers living off post with no lease registered with the housing office;
  • Single Soldiers living in economy housing who subsequently deploy and do not retain their off-post lease agreement;
  • Soldiers who perform an Early Return of Dependents (ERD) at their own expense.

Also, single Soldiers drawing any BAH differential allowance for child support will see a change in their January 2006 LES. 

These new rules have been published in the Joint Federal Travel Regulation and the Department of Defense Financial Management Regulation.  More information is available on the 266th Finance Command website at https://www.266fc.hqusareur.army.mil/.  *

Soldiers who share rent should make sure their rental agreement is on file with the local housing office.  Soldiers must have an approved rental agreement to receive. The BAH II Soldiers have previously received is no longer authorized as an allowance. 

If you are a single Soldier living in off-post (“on the economy”) quarters and are in receipt of temporary change of station deployment orders, you will continue to receive OHA only if your off-post lease agreement is approved through the housing office. Soldiers who live off-post and do not have a housing-approved lease should register with their supporting housing office now to ensure they are eligible for the appropriate housing allowances.

Since Sept. 30, Soldiers who complete an early return of dependents at their own expense will continue to receive OHA if they retain off-post quarters at their permanent duty station.  No other housing allowance will be authorized for dependents at any other location.  Soldiers who receive an approved authorization for an ERD will be entitled to a housing allowance at the dependents’ location based on the ERD order.

Beginning Dec. 31, Basic Allowance for Housing, Differential (an allowance for child support) will be eliminated for single Soldiers residing in economy quarters.  Soldiers stationed OCONUS will receive OHA at the with-dependent rate.  Single Soldiers residing in single type government quarters (barracks) will continue to receive BAH Diff.    

Soldiers can now receive OHA at the with-dependent rate for dependents, even if they are not command sponsored.  The command sponsorship requirement still remains for receiving the with-dependent OCONUS Cost of Living Allowance.   

As of Oct. 1, OCONUS COLA and OHA stop when a Soldier departs the OCONUS duty station for a new CONUS duty station.  Previously, COLA and OHA could continue for 60 days if family members remained at the OCONUS duty station.  New procedures require approval by Headquarters, Department of the Army G1 to continue OHA in this instance.

For more detailed information regarding these housing allowance changes and other financial issues, click on the 266th Finance Command website at https://www.266fc.hqusareur.army.mil/.  *

* The 266th Finance Command link can only be accessed from a .mil domain.