LOA and Exchange rates?

[Zorro]

Can anyone tell me exactly what LOA is for? The reason I ask is because of the drop in the value of the pound, exchange rates are taking a hammering. I am in an overseas post and the amount of local currency we are now getting for our £ is down by approx 20% (and going down!).

We have just qualified for LOA which if you have no kids = nothing, but if you are lucky and have kids you get about an extra £20 a month

I am generalising here but my 'spending power' has reduced by approx £500 - 700 a month depending upon which monthly rate you use, but LOA only 'compensates?' me with an extra 20 quid? The cost of local food has also increased by approx 30% in the same time.

I was under the impression that LOA was supposed to balance out these issues but there appears to be a huge difference here. Any clues?

 

[one-flew-over]

That does not sound right Zorro.

LOA is calculated by rank and family size on the additional cost of an "average" shopping basket at your location. Therefore LOA does adjust with exchange rates (ffr not commercial).

I have never known LOA at under GBP1 perday if as a married accompanied, no kids, that is what you get.

Speak to your RAO and check you are on the right LOA.

 

[heard_it_all_before]

Not sure where you are, but the FFR for Euro is €1.31 to the GBP. However, in the money markets the GBP is currently only worth €1.18

Allowances are pants. MMA has been calculated at the same rate for years, and despite the rising cost of fuel, never budged and inch.

 

[chocolate_frog]

20 quid a month more for having a kid, they must be rolling in it. Do they light their cigars with 20s?

LOA is an allowance that takes in to account the added expense of living where you do. You don´t qualify for it, you get it on posting in to that theatre.

If the price of your shopping basket in theatre is higher than in UK, you will receive an allowance to pay for this. It also covers extra calls home, insurance, BFG Lights tc.

I think it is checked quarterly. So until the next check it is stuck.

If you now see your cost of living is up (genuinely and you aren´t just frittering cash on beer because you can for example) then you will see LOA go up next quarter.

LOA isn´t neccesarily affected by exchange rates.

Where are you at the moment and what is your rank? Because, I can´t think of an LOA rate that is nothing for being married with none.

 

[bitterandtwisted]

LOA is mainly effected by economic logarythms spending and the mean average of the monthly exchange rate taken in 30 day month. That is how the FFR is calculated, so when the UK exchange rate average does go down the LOA will increase that month and vicea versa.

eg day one £1 = $2.00

day two £1 = $1.50

etc

therefore FFR would be £1 = $1.75 as an average.

LOA is as said above to recompensate you for the cost of living within that country.

The LOA team review anually and the basis is taken the average of 27 year old man with 2 children who drive 1.8l car

Things that LOA is into account when assesed: there are appox 20ish areas. But the list gives you drift of where I am coming from.

Car Insurance
Fuel
Car repairs
Toys
Clothes ( Uk prices based on M&S comparative)
Food ( Uk prices based on tesco comparative) eg where I by imported Iceland potatos at £1 in UK it costs me nearly £4 here where I am based.

Respite break 9 days a year, this can vary, dependant on the theatre you live in though. It was going to get sacked once.

The LOA is also assesed at the rank of Cpl and Capt and those people are interviewed Married/Single/MU

LOA is not for loss of earnings for spouses or for just living abroad. Its just to bring up to the standards of living as you would in the UK.
OP's dont count becuase thats what we get paid the good old X factor for.

If you need any more info PM me. But Id hate to bore you.


Regards Bitter

 

[ghost_face_killa]

JSP752 states what LOA is for and what it’s calculated against. SPVA have just published the NEW LOA rates for all euro zone countries and on it is the NEW FFR which as long as I have been in the job was privileged info until the day before any change but SPVA seem to be exempt that rule and let everyone with JPA access see any change 4 days before the end of month letting the dishonest amongst us play the currency markets.

PM me if you want the exacts of what and how LOA is calculated.

 

[chocolate_frog]

JSP752 states what LOA is for and what it’s calculated against. SPVA have just published the NEW LOA rates for all euro zone countries and on it is the NEW FFR which as long as I have been in the job was privileged info until the day before any change but SPVA seem to be exempt that rule and let everyone with JPA access see any change 4 days before the end of month letting the dishonest amongst us play the currency markets.

PM me if you want the exacts of what and how LOA is calculated.

Still ten days to late to affect the pay run.....

 

[ghost_face_killa]

JSP752 states what LOA is for and what it’s calculated against. SPVA have just published the NEW LOA rates for all euro zone countries and on it is the NEW FFR which as long as I have been in the job was privileged info until the day before any change but SPVA seem to be exempt that rule and let everyone with JPA access see any change 4 days before the end of month letting the dishonest amongst us play the currency markets.

PM me if you want the exacts of what and how LOA is calculated.

Still ten days to late to affect the pay run.....

for this month yes but Dec pay will be affected and we can but hope SPVA put the new LOA rates on the system or we will get the same problem we had in Apr / Jun when the FFR went down and LOA up they did the first (LOA down) but forgot to do the LOA till the following month lol

 

[daylightshrubbery]

FFR for the Eurozone is going down to €1.17 from €1.31 as of 01 Dec 08, so feel free to move money about now if you can !!

LOA is going up to compensate as well, but I don't have the rates to hand, although I am going up about £7 a day - which is nice.

We will have to wait and see how much it changes in Jan when the proposed decrease takes place (if it still does)

 

[jonah1163]

any know wot the loa is for a cpl with 2 kids on the new rate cheers

 

[VicMackey]

How does this work?

I have been incorrectly paid the wrong LOA for the past 3 months and now I am owed about £1200 (Which I was hoping to see this month but once again it has failed to happen).

Now that the FFR is about to drop it appears that I will receive considerably less € for my money! (About €168 by my quick calculations), surely that as that is by no fault of my own I should not be out of pocket.

Anyone advice will be appreciated, before I pay the Admin office a visit!