5 C.F.R. § 591.202 Why does the Government pay COLAs?
Title 5 - Administrative Personnel
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.
Title 5: Administrative Personnel
PART 591—ALLOWANCES AND DIFFERENTIALS
Subpart B—Cost-of-Living Allowance and Post Differential—Nonforeign Areas
Cost-of-Living Allowances and Post Differentials
§ 591.202 Why does the Government pay COLAs?