Relocating Federal Employees: A Handbook on Federal Civilian Transfers and Benefits, Study notes of Marketing

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U.S. General Services Administration Office of Governmentwide Policy

Handbook for

Relocating Federal Employees

Handbook for

Relocating Federal Employees

Summer 2011

Foreword

The General Services Administration (GSA), Office of Governmentwide Policy, is pleased to issue this relocation handbook for Executive Branch employees. GSA developed this Handbook to help Federal employees understand the relocation process and how their own particular circumstances fit into the Federal method of conducting relocation. To enhance readability, we have chosen to provide very few cross-references between this handbook and the FederalTravel Regulation (FTR) (available at www.gsa.gov/ftr.). However, the FTR is written in a plain language, question-and-answer format that we hope makes it easy to find what you need there. This is one of three relocation guidance documents published by GSA. The other two are:

- “Relocation Policy Guide for Federal Civilian Agencies” - “Glossary of Acronyms and Terms for Federal Civilian Relocation” We have not sought in this handbook to define every term used here; please refer to the Glossary for definitions. Also, in this handbook, “you,” “your,” “I,” and their variants refer to the employee. Please note that this is not a regulatory document. Chapter 302—Relocation Allowances of the FTR (41 Code of Federal Regulations 302 or 41 CFR 302) contains the actual rules for relocation of Federal civilian transferees. The FTR and not this guide is the controlling source for rules governing Federal civilian relocations.

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PART 1.

GENERAL INFORMATION FOR ALL RELOCATIONS

I. Introduction

(a) What is the purpose of this guide?

This guide is intended to assist you in preparing for relocation. It should help you identify the benefits you are entitled to and what options you have. It should also help you when talking to your agency and/or agency contracted counselors about aspects of your relocation that depend on your agency’s specific relocation policies.

(b) What are the limitations of this guide? Please note that this is not a regulatory document. Chapter 302—Relocation Allowances of the FederalTravel Regulation (FTR) (41 Code of Federal Regulations 302 or 41 CFR 302) contains the actual rules for relocation of Federal civilian transferees. The FTR and not this guide is the controlling source for rules governing Federal civilian relocations. The FTR creates a framework which prescribes Governmentwide requirements. However, the FTR leaves many relocation questions and answers up to the agencies, so you must consult your agency-specific policies to reach a complete understanding of the rules that apply to your particular relocation.

(c) Does this guide help me if my relocation is governed by the Joint Federal Travel Regulations (JFTR) for uniformed services or the Department of State Standardized Regulations (DSSR) for Foreign Service officers? No, if your move is under the auspices of the JFTR or DSSR, this guide will not help you. You'll need to consult with DoD

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and/or DOS, as these relocations and the rules governing them are outside of GSA's authority.

(d) Does this relocation guide help me if I am under the Joint Travel Regulations (JTR) as a Department of Defense civilian employee? Yes, it does because the FTR is the operating authority for the JTR. However, you must consult the JTR and DoD for specific policies related to your relocation.

II. Employee Roles and Responsibilities

(a) What standard of care must I exercise in incurring expenses? While relocating, you must exercise the same care in incurring expenses that a prudent person would exercise if traveling on personal business.

(b) Will the Federal government cover all my expenses and remove all my inconveniences in the relocation? No, because no relocation policy can or should cover all of the expenses or remove all of the inconveniences that might be involved in a relocation. The assumption is that you understand this and have weighed the professional and personal options involved when you accepted the relocation.

(c) Am I expected to be a participant in my relocation?

Yes, you are expected to be an active participant in all phases of your relocation. A successful relocation involves a partnership among the agency, contractors, and the employee being relocated. During a relocation, you will have the opportunity to keep costs low and service high by involving yourself in the various aspects of a relocation.

(d) What is my responsibility if I relocate often and choose to rent or lease a residence? You have a responsibility, if you think you might be relocating in the future, to minimize costs for the Government by requesting placement of a “cancellation clause” in any rental or lease agreement that you sign. This is a clause that negates any penalties if the Government relocates you to a new permanent duty station. This is something that is good for you, because it will make everything easier when leaving, and it will

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(b) Must I sign a service agreement prior to receiving any relocation benefits? Yes, you must sign a service agreement prior to receiving any relocation benefits.

(c) If I violate my service agreement, will I be penalized? Yes, if you violate a service agreement (other than for reasons that are beyond your control and accepted by your agency), you will have incurred a debt due to the Government. You must then reimburse all costs that your agency has paid towards your relocation expenses, including any withholding tax allowance (WTA) and relocation income tax allowance (RITA).

(d) Do I violate my service agreement if I retire before the expiration of my service agreement? Yes, unless the agency approves the retirement as acceptable.

(e) Do I have to sign a service agreement for a Senior Executive Service (SES) last move home relocation?

No, you do not need to sign a service agreement for an SES last move home relocation.

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PART 2.

INFORMATION ON TYPES OF RELOCATIONS

V. Categories of Relocation:

Temporary Change of Station (TCS)

and Permanent Change of Station (PCS)

(a) What is a TCS?

ATCS is relocation from one official work site to another, and then back to the original official work site, within a period of 6 to 30 months. While nearly all Government relocations are permanent changes of station, the authority for a temporary change of station exists for use in the proper situations and when determined to be in the best interest of the Government. New appointees and several other narrowly defined categories are not eligible forTCS.

(b) What is a PCS? A PCS is the transfer of an employee from one official work site to another or the assignment of a new employee to their first assignment site on a permanent basis.The majority of Government relocations are PCS.

VI. Categories of Relocating Employees:

New Appointee and Transferee

(a) What is the definition of a new appointee? A new appointee is a person hired by the Government for the first time, an employee who has returned to Government after a break in service (with certain exceptions), or a student trainee assigned to the Government upon completion of college.

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Whether the transfer is OCONUS or CONUS, your benefits may include:

- Transportation and per diem for you and your immediate family; - Miscellaneous moving expenses (subject to FTR Part 302-16); - Transportation and temporary storage of your HHG; - Shipment of a POV; and - Relocation income taxes allowance (RITA).

(b) What residence transaction benefits will I be reimbursed for as a transferee relocating in CONUS? Your agency will reimburse you for the allowable costs that you incur, up to a maximum of ten percent of the actual sale price for your residence at your old official work site and up to five percent of the actual purchase price for your residence at your new official work site.

(c) What benefits depend upon my agency policy for a transferee relocating to a CONUS location? Depending upon your agency policy, you may be reimbursed for:

- A househunting trip (HHT) including per diem for you and your spouse; - Temporary quarters subsistence expense (TQSE); - Shipment of up to 2 POVs; - Use of a relocation services company (RSC); - Home marketing incentives; - Property management services expenses in lieu of selling your home at your old official work site, pursuant to FTR 302-15.17; and - Transportation of a mobile home/boat, if applicable under FTR part 302-10.

(d) What benefits depend upon my agency policy for a transferee relocating to an OCONUS location? This varies greatly depending upon whether your agency uses the FTR or has chosen to adopt the Department of State Standardized Regulations (DSSR) for OCONUS foreign moves. Other benefits you may receive under the FTR, depending upon your agency policy are:

- Shipment of a POV;

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- A foreign transfer allowance; - Property management services for your residence at your last official work site; and - Extended storage of your HHG when necessary, pursuant to FTR Chapter 302-8. Under the DSSR, you may also receive aTQSE. If this is applicable to your relocation, please contact DOS for guidance. For relocations to Alaska and Hawaii your agency may allow the use of a RSC and/or home marketing incentives.

IX. Benefits and Limitations

for Special Types of PCS Relocations

(a) Senior Executive Service (SES)

1. What are my relocation benefits as an SES employee? As an SES employee, you are entitled to the same relocation benefits as any other new appointee or transferee depending on your status as a transferee or a new hire. 2. As an SES employee, how do I qualify for the last move home benefit? To qualify for a last move home benefit as an SES employee, you must be a career SES employee who transferred or accepted a geographical reassignment from one official work site to another in the Government’s interest at Government expense for permanent duty. Other more complicated qualifications for relocation benefits may exist in special cases. For these cases you should check with your agency human resources office or the FTR 302-3.304 through 302-3.307. 3. If I am an SES career employee who qualifies for last move home, what are my relocation benefits? You are authorized to receive: - Transportation of you and your immediate family to the place in CONUS that you have elected to reside; - Per diem for only yourself while traveling; - Transportation and temporary storage of HHG; - Transportation of a mobile home or boat used as a primary residence instead of an HHG shipment; - ***Shipment of a POV; and

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If your agency follows the Department of State guidelines set forth in the DSSR, these benefits may be different. The DSSR differs from the FTR in many respects because it is designed for Foreign Service officers and concentrates on overseas postings.

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PART 3.

INFORMATION ABOUT SPECIFIC RELOCATION BENEFITS

X. Transportation of People

(a) Are my family and I always authorized transportation to the new post while relocating?

Yes, if the Government authorizes relocation, it will pay for transportation of you and your family to the new official work site.The one exception is an unaccompanied tour to a foreign post of duty; then, only you are authorized transportation.

(b) Is the reimbursement rate for my driving a POV in a PCS the same as the rate for using a POV for temporary duty travel (TDY)? No, the rate for using a POV during a PCS is not the same as the rate for using a POV forTDY. The rate for using your POV during a PCS is the same as the Internal Revenue Service rate for using an automobile for moving purposes.

XI. Per Diem

(a) What is per diem? Per diem is the daily amount that your agency will reimburse you for lodging, meals and incidental expenses.

(b) Do I always receive per diem for myself while relocating? Yes, if the Government authorizes relocation, you will always receive per diem for yourself while being transported to the new official work site. Your family may or may not be authorized per diem depending upon the type of relocation and whether you are a new appointee or a current employee being transferred.

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XIII. Temporary Quarters Subsistence Expenses

(TQSE)

(a) Do I always receive a TQSE benefit? No, your agency determines when it is in the Government’s interest to authorize you aTQSE and the procedures you must follow if it is authorized.

(b) Who may occupy temporary quarters at Government expense? Only you and/or your immediate family may occupy temporary quarters at Government expense.

(c) May my immediate family and I occupy temporary quarters at more than one location?

Yes, you can. For example, if you must vacate your home at the old official work site and report to the new official work site, and your family remains behind until the end of the school year, you may need to occupy temporary quarters at the new official work site while your family occupies temporary quarters at the old official work site.

(d) What is the rule concerning where my immediate family and I may occupy temporary quarters? You and/or your immediate family may occupy temporary quarters at Government expense within reasonable proximity of your old and/or new official work sites. Neither you nor your immediate family may be reimbursed for occupying temporary quarters at any other location, unless justified by special circumstances that are reasonably related to your transfer. You must vacate your old residence prior to claimingTQSE.

(e) What types of TQSE exist? There are two types ofTQSE: actual expense and lump sum (fixed amount). All agencies offer actual expenseTQSE, which is based upon the standard CONUS per diem with deductions based upon the number of days inTQSE. The maximum number of days you can be in actual expenseTQSE is 60 days. Your agency may authorize up to an additional 60 day extension for acceptable extenuating circumstances Lump sumTQSE (fixed amount) is based upon a reduction of the locality per diem rate but can only be offered for a

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maximum of 30 days. Some agencies offer lump sum only for periods of less than 30 days. For you to receive lump sum TQSE, your agency must offer it to you, and you must choose to accept it.

XIV. Transportation and Temporary Storage of

Household Goods (HHG)

(a) What is my mandatory benefit for the transportation and storage in transit of HHG? Unless you are going to an OCONUS, isolated CONUS or a furnished space at your new location where there is limited room to fit the maximum amount of HHG, your agency is required to pay for shipment of up to 18,000 pounds net weight and for storage in transit (SIT) SIT is limited to 60 days initially with an additional 90 days upon agency approval with extenuating circumstance. If you are limited by defined post conditions to less than this weight, the balance can be stored in extended storage at Government expense. The employee is financially responsible for any HHG amount over the 18, pounds net weight.

(b) May the 18,000 pounds net weight limitation be increased? No, the 18,000 pound HHG net weight limitation is mandated by statute and cannot be exceeded.

(c) What must I do if professional books, papers and equipment (PBP&E) cause me to exceed the 18,000 pounds HHG net weight? If your agency agrees that your PBP&E are required for you to accomplish your government job, the PBP&E is generally considered to be part of the 18,000 pounds net limit. However, if the PBP&E weight causes your lot to be more than the statutory limit, then your agency may choose to transport any of your preapproved PBP&E that is over the18,000 pounds net that is necessary for your Government job as an administrative expense.

(d) Should my family and I sort through our HHG prior to a relocation? It is always a good idea to sort through your belongings prior to moving. In any relocation, moving only the items that you and

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(b) Is the SES employee on last move home authorized extended storage? No, extended storage of HHG is not permitted for a career SES employee using their last move home benefits.

XVI. Transportation and Storage of a Privately

Owned Vehicle (POV)

Is the transportation and emergency storage of my POV a mandatory relocation benefit? No, the transportation of your POV in connection with a PCS and emergency storage of your POV incident to an evacuation from your duty assignment are not mandatory benefits. These benefits depend upon agency policy and are within agency discretion.

XVII. Residence Transactions

(a) Am I eligible to receive an allowance for expenses incurred in connection with my residence transactions (e.g., selling my old home and/or buying a new one)? You are eligible to receive an allowance for expenses incurred in connection with your residence transactions if you have signed a service agreement and you are performing a PCS where:

1. Your old and new official work sites are within the United States; or 2. You transferred from an official work site in the United States to a foreign area, and you are now transferring back to the United States. If your transfer falls into the first category above, then: You must be in conformance with the distance test guidelines in Internal Revenue Service Publication 521, Moving Expenses. The distance test is met when the new official station is at least 50 miles further from your current residence than the old official station is from the same residence. For example, if the old official station is 3 miles from the current residence, then the new official station must be at least 53 miles from that same residence in order to receive relocation expenses for residence transactions.The distance between the official station and residence is the shortest of the commonly traveled routes between them.The distance test does not take into consideration the location of a new residence.

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If your transfer falls into the second category above, then you must also:

1. Have completed your service agreement time period for your overseas tour of duty.

(b) Who is not eligible to receive an allowance for expenses incurred in connection with residence transactions? You are not eligible to receive an allowance for expenses incurred in connection with residence transactions if you are a new appointee or an employee assigned under the Government EmployeesTraining Act (5 U.S.C. 4109).

(c) To be reimbursed for expenses incurred in residence transactions, must I occupy the residence at the time I am notified of my transfer? Yes, to be reimbursed for expenses incurred in your residence transactions, you must occupy the residence at the time you are notified of your transfer. More precisely, you may receive reimbursement for the one residence from which you regularly commuted to and from work on a daily basis and that was your residence at the time you were officially notified by competent authority to transfer to a new official work site. The only exception to this rule is that you may be reimbursed for residence transaction expenses if your transfer is from a foreign area to an official work site within CONUS other than the one you left when you transferred OCONUS.

(d) To be reimbursed for expenses incurred in my residence transactions, must I commute from the residence that I purchase? Yes, for the Government to pay for a residence transaction, it must be incident to the move. The residence that you purchase must be one from which you will commute to the new official work site on a daily basis. You are not entitled to move to a different house in the same general area just because a new job has relocation benefits.

(e) Am I eligible for unexpired lease settlement expenses? Yes, if you are under a lease and are authorized reimbursement for residence transactions, then you are eligible for unexpired lease settlement expenses. When your unexpired lease (including a month-to-month lease) is for residence quarters at your old official work site, you may be, depending on certain

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