Relocating Federal Employees

U.S. General Services Administration

Office of Governmentwide Policy

Handbook for

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 Federal Travel

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.

Relocating Federal Employees

Table of Contents

PART 1. GENERAL INFORMATION

FOR ALL RELOCATIONS

I. Introduction 3

II. Employee Roles and Responsibilities 4

III. Limitations on Whether the

Government Will Pay for Relocation 5

I V. Service Agreements 5

PART 2. INFORMATION ON

TYPES OF RELOCATIONS

V. Categories of Relocation:

Temporary Change of Station (TCS)

and Permanent Change of Station (PCS) 7

VI. Categories of Relocating Employees:

New Appointee and Tr ansf eree 7

VII. Benefits and Limitations for New Appointees 8

VIII. Benefits and Limitations for Transferees 9

IX. Benefits and Limitations for Special Types

of PCS Relocations 10

PART 3. INFORMATION ABOUT

SPECIFIC RELOCATION BENEFITS

X. Transportation of People 13

XI. Per Diem 13

XII. Househunt ing Trip (HHT) 14

XIII. Temporary Quarters Subsistence

Expenses (TQSE) 15

XIV. Transportation and Temporary Storage

of Household Goods (HHG) 16

X V. Extended Storage of HHG 17

XVI. Transportation and Storage of

a Privately Owned Vehicle (POV) 18

XVII. Residence Transactions 18

XVIII. Use of a Relocation Services Company (RSC) 22

XIX. Home Marketing Incentive Payments 23

XX. Allowance for Property Management Services 24

XXI. Miscellaneous Expenses Allowance (MEA) 25

XXII. Taxes on Relocation Benefits 28

Relocating Federal Employees

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 Federal Travel 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.

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

Relocating Federal Employees

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.

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

Relocating Federal Employees

demonstrate that you are making a good effort to limit future

relocation costs.

III. Limitations on Whether

the Government Will Pay for Relocation

(a) Did your job announcement specify

relocation entitlements would be paid?

To qualify for relocation benefits, your vacancy announcement

must have addressed whether or not relocation benefits would

be provided. Relocation is not something that can be decided

or negotiated after you have accepted a new position.

(b) What is the standard for determining whether or not

the Government will fund my relocation?

For the Government to authorize a relocation, it must be in the

Government’s interest and not primarily for your convenience.

The purpose of your relocation is to place you into a specific

job rapidly and easily so that you may quickly function in your

new job for the benefit of the Federal government.

(d) What if the relocation is primarily for my convenience?

The FTR does not authorize any relocation at Government

expense that is made primarily for your convenience.

Relocations are conducted in the best interest of the

Government.

IV. Service Agreements

(a) What is a service agreement?

A service agreement is a written agreement between you and

your agency that is required by statute. You sign it, as does an

agency representative. It states that you will remain in the

service of the Government (not a particular agency) for a

specified period of service and that you are receiving no other

funds from any other source Federal or non-Federal in paying

for the relocation. Under statute and the FTR, this period of

service must be at least 12 months following effective date of

transfer. Your agency has the option of setting this period of

service between 12 and 36 months under certain

circumstances.

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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.

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.

Relocating Federal Employees

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 for TCS.

(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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(b) What is the definition of a transferee?

A transferee is a person officially transferred from one official

work site to another or an employee separated as a result of

reduction in force or transfer of functions who is re-employed

within one year after such separation.

VII.Benefits and Limitations for New Appointees

(a) What are my relocation benefits if I am a new

appointee, moving for the first time, to a continental

United States (CONUS) work site and relocation has

been authorized?

Relocation benefits for new appointees are limited. For

CONUS relocations, your benefits are:

• Transportation of you and your immediate family;

• Per diem only for you while traveling;

• Transportation and storage of household goods (HHG);

• Extended storage when assigned to an isolated official

work site, pursuant to FTR Chapter 302-8;

• Transportation of a mobile home or boat used as a

primary residence instead of a HHG shipment; and

• ***Shipment of a privately owned vehicle (POV).

*** Items are at the discretion of the agency and are not mandatory(b) What are my

relocation benefits if I am a new appointee relocating to a work site outside the

continental United States (OCONUS)?

If you are a new appointee relocating OCONUS, you are

authorized:

• Transportation of you and your family

• Per diem for only you while traveling

• Transportation and temporary storage of HHG;

• Extended storage of your HHG, pursuant to FTR

Chapter 302-8; and

• ***Payments for temporary quarters and other

allowances.

*** Items are at the discretion of the agency and are not mandatory

VIII. Benefits and Limitations for Transferees

(a) What are my relocation benefits if I am a transferee?

If you are a transferee, you may be authorized more extensive

benefits than those of the new appointee class listed above.

Relocating Federal Employees

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.

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;

Relocating Federal Employees

• 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 a TQSE. 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

Relocating Federal Employees

• ***Transportation of a mobile home/boat, if applicable

under FTR part 302-10.

*** Items are at the discretion of the agency and are not mandatory

(b) Return from OCONUS for Separation

What are my benefits if I am returning from OCONUS for

separation to my residence of record?

When returning from OCONUS for separation at your

residence, the benefits you are authorized to receive are:

• Transportation of you and your family

• Transportation and storage of HHG

• Per diem for you only; and

• ***Shipment of a POV.

*** Items are at the discretion of the agency and are not mandatory

Act (5 U.S.C. 4109)

What are my relocation benefits if I am assigned under the

Government Employees Training Act (5 U.S.C. 4109)?

If you are assigned relocation under 5 U.S.C. 4109, the

maximum benefits you may be authorized are:

• Transportation for yourself and immediate family;

• Per diem for yourself while relocating; and

• Shipment and temporary storage of your HHG.

Please note that agencies have the authority to pay all, some,

or none of these benefits under this Act, depending on whether

it is determined to be a PCS move or not.

(d) Tour Renewal Agreement Travel

What are my benefits if I serve a complete tour OCONUS and

sign for another full OCONUS tour?

If you finish a full tour at an OCONUS post, not including

Alaska or Hawaii, and agree to serve another tour at the same

or a different OCONUS post, your benefits are transportation

for yourself and immediate family from post to your home of

record and then on to the next assignment, plus per diem for

you only during this travel to and from post.

Alaska and Hawaii are more problematic because, to be

guaranteed tour renewal travel, you had to be serving prior to

September 9, 1982. If your tour began after that date, your

agency must determine whether tour renewal travel is merited

for recruiting and retention.

Relocating Federal Employees

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.

Relocating Federal Employees

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 for TDY. 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.

Relocating Federal Employees

official work site?

For the trip from the old to the new official work site located in

CONUS, per diem is at the standard CONUS rate established

by GSA. For OCONUS work sites, per diem will be at the

rates established by the Department of Defense for non

foreign OCONUS locations and the rate established by the

Department of State for foreign OCONUS sites.

XII.Househunting Trip (HHT)

(a) Is a HHT a mandatory benefit?

No, this is a discretionary item. Your agency will determine

when it is in the Government’s best interest to authorize you a

HHT and the procedures you must follow if it is authorized.

(b) If my agency authorizes a HHT, may I take all of my

immediate family at Government expense?

No, only you and/or your spouse may travel on a HHT at

Government expense.

Yes, however, your reimbursement will be limited to the cost

that would have been incurred if you and your spouse had

traveled together on one round trip.

(d) What transportation expenses will my agency pay?

Your agency will authorize you to travel by the transportation

mode(s) (e.g., airline, train, or privately owned automobile) it

determines to be advantageous to the Government. Your

agency will pay for your transportation expenses by the

authorized mode(s). If you travel by any other mode(s), your

agency will pay your transportation expenses not to exceed the

cost of transportation by the authorized mode(s).

(e) May I use the HHT to help me decide whether or not

to accept the transfer?

No, you may not. The purpose of a HHT is to help an employee

who has accepted an assignment locate housing to make the

transition easier and to reduce overall costs for the

Government. Your agency cannot authorize an HHT until after

you have accepted the new position, signed a service

agreement, and have a reporting date.

Relocating Federal Employees

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 a TQSE 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.

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 claiming TQSE.

(e) What types of TQSE exist?

There are two types of TQSE: actual expense and lump sum

(fixed amount).

All agencies offer actual expense TQSE, which is based upon

the standard CONUS per diem with deductions based upon

the number of days in TQSE. The maximum number of days

you can be in actual expense TQSE 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

Relocating Federal Employees

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 18,000

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.

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

Relocating Federal Employees

your family truly want and need could help eliminate any

payment for exceeding the weight limit for the shipment.

Moreover, even if you are well under the 18,000 net weight

limitation, you will be acting as a prudent employee by saving

overall costs for the Government.

(e) Must my relocation orders specify that HHG be

transported from the specified origin to destination?

Yes, your orders will specify the origin and destination of the

move. You may choose to add extra pick-ups or change the

origin or destination of the HHG shipment. However, the

Government will only reimburse you for the equivalent cost of

moving one lot of up to 18,000 pounds net from your old official

work site to your new official work site.

(f) Must I use the method selected by my agency for

transporting my HHG, transporting PBP&E, and storage

in transit?

No, you do not have to use the method selected by your

agency, and you may pursue other methods. However, your

reimbursement should be limited to the actual cost incurred,

not to exceed what the Government would have incurred using

their method of shipment. Contact your agency on their

specific guidance if you choose to select a different method of

transportation. Also, please note that any reimbursement for

storage over 30 days is taxable income to you.

XV. Extended Storage of HHG

(a) When may extended storage of my HHG be

authorized?

Your agency may authorize extended storage of HHG in lieu of

shipment under the following circumstances:

1. ATCS;

2. When you are assigned to an isolated official work site

within CONUS;

3. An OCONUS official work site where your agency

limits the amount of HHG you may transport to that

location; or

4. An OCONUS official work site for which your agency

determines extended storage is in the Government’s

interest or is cost effective to do so.

Relocating Federal Employees

(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.

Relocating Federal Employees

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

Employees Training Act (5 U.S.C. 4109).

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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circumstances, reimbursed for settlement expenses for an

unexpired lease, including but not limited to broker’s fees for

obtaining a sublease or charges for advertising. Please see

FTR § 302-11.7.

(f) Must I sell a residence at the old official work site to be

eligible to purchase a residence at the new official work

site?

No, you do not have to sell the residence at your old official

work site to be eligible for residence purchase transactions at

your new official work site.

(g) Will my agency reimburse me for any losses I incur on

the sale of a residence?

No, your agency will not reimburse you for any losses incurred

on the sale of a residence.

(h) How long do I have to complete my residence

transactions?

You have one year to complete your residence transactions. In

exceptional cases your agency may grant an extension not to

exceed one additional year.

(i) To receive full reimbursement for any residence

transactions must I or members of my immediate family

hold title to the property?

Yes, you or an immediate family member must hold title to the

property for you to receive full reimbursement for the residence

transactions. If you or an immediate family member does not

hold the full title to the property, your reimbursement will be in

proportion to the percentage of the property to which you hold

the title.

(j) When may my reimbursement for loan assumption fees

or other similar fees exceed the one percent?

Reimbursement may exceed one percent only when you

provide evidence that the higher rate does not include prepaid

interest, points, or a mortgage discount, and only when such

loan assumption fees or other similar fees are customarily

charged in the locality where the residence is located.

(k) Am I responsible for terms in my mortgage agreement?

Yes, you have a responsibility to plan ahead and not sign for

items that clearly are not prudent or will cost the Government

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in a future move. For example, regardless of the rate one can

receive on a mortgage, anyone under a mobility agreement or

who has other knowledge that they are going to be moved in

the future should not sign a mortgage with prepayment

penalties for paying off the mortgage early. When you move,

these penalties can cost the Government, the relocation

contractors, and you.

(l) What residence transaction expenses are not

allowable?

Your agency will not pay:

1. Any fees that have been inflated or are higher than

normally imposed for similar services in the locality;

2. Broker fees or commissions paid in connection with the

purchase of a home at the new official work site;

3. Owner’s title insurance policy, “record title” insurance

policy, mortgage insurance or insurance against loss or

damage of property and optional insurance paid for by

you in connection with the purchase of a residence for

your protection;

4. Interest on loans, points, and mortgage discounts;

5. Property taxes;

6. Operating or maintenance costs;

7. Any fee, cost, charge, or expense determined to be part

of the finance charge under the Truth in Lending Act,

Title I, Pub. L. 90-321, as amended, and Regulation Z

issued by the Board of Governors of the Federal

Reserve System (12 CFR part 226), unless specifically

authorized in accordance with the FTR;

8. Expenses that result from construction of a residence,

except those which are comparable to expenses that are

reimbursable in connection with the purchase of an

existing residence; and

9. Financial losses on the sale or purchase of a qualified

residence.

(m) Is there a limit on how much my agency will reimburse

me for residence transactions?

Yes, your agency will reimburse you no more than ten percent

of the actual sales price for the sale of your residence at the old

official work site and no more than five percent of the actual

purchase price of the residence for the purchase of a residence

at the new official work site.

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XVIII. Use of a Relocation Services Company

(RSC)

(a) Who determines if I may use a RSC?

Your agency determines if you may use a RSC.

(b) For what relocation services expenses will

my agency pay?

Your agency will pay the RSC’s fees/expenses for the services

you are authorized to use depending on your entitlements and

your agency policy.

sell or purchase a residence for which I and/or a

member(s) of my immediate family do not have full title?

If you use a RSC to sell or purchase a residence for which you

and/or a member(s) of your immediate family do not have full

title, your agency will pay the portion of the RSC’s fee

attributable to your pro rata share of the residence. You are

responsible for any portion of the fee attributable to other than

your pro rata share of the residence.

(d) What are the income tax consequences if I use a RSC?

The tax consequences of any relocation transaction are under

the auspices of the IRS. Relocation contracts are designed to

reflect current tax policy. However, any direct answer must

come from the IRS.

(e) What is a homesale program?

A homesale program is a program offered by an agency

through a contractual arrangement with a RSC. The program

provides for buyer value option sales, amended sales, and

appraised value purchases by the RSC.

(f) If my agency authorizes me to enter a homesale

program, must I accept a buyout offer from the RSC?

No, if your agency authorizes you to enter a homesale program,

your agency must give you the option to accept or reject an

offer from the RSC.

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XIX. Home Marketing Incentive Payments

(a) Must my agency pay me a home marketing incentive?

No, your agency determines when it is in the Government’s

interest to offer you a home marketing incentive.

(b) Under what circumstances may I receive a home

marketing incentive payment?

You will receive a home marketing incentive payment when:

1. You enter your residence in your agency’s homesale

program;

2. Your agency has established a home marketing

incentive program;

3. You independently and aggressively market your

residence;

4. You find a bona fide buyer for your residence as a result

of your independent marketing efforts;

5. You transfer the residence to the RSC;

6. Your agency pays a reduced fee or reduced expenses to

the RSC as a result of your independent marketing

efforts; and

7. You meet any additional conditions your agency has

established, which may include mandatory marketing

periods, list price guidelines, closing requirements, and

residence value caps.

marketing incentive?

Your agency will determine the amount of your home marketing

incentive payment. However, the incentive payment may not

exceed the lesser of:

1. Five percent of the price the RSC paid when it

purchased the residence from you; or

2. The savings your agency realized from the reduced fee

or reduced expenses it paid as a result of you finding a

bona fide buyer.

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XX. Allowance for Property Management Services

(a) Is my agency required to authorize payment for

property management services?

No, your agency is not required to authorize payment for

property management services.

(b) What are property management services?

Property management services are programs provided by

private companies, for a fee, which help an employee to

manage his/her residence as a rental property at the old official

work site. These services typically include, but are not limited

to:

1. Obtaining a tenant;

2. Negotiating the lease;

3. Inspecting the property regularly;

4. Managing repairs and maintenance;

5. Enforcing lease terms;

6. Collecting the rent;

7. Paying the mortgage and other carrying expenses from

rental proceeds and/or funds of the employee;

8. Accounting for the transactions; and

9. Providing periodic reports to the employee.

management services?

The purposes of the allowance for property management

services are to:

1. Reduce overall Government relocation costs when used

instead of sale of the employee’s residence at

Government expense; and/or

2. Relieve the employee of the costs of maintaining a home

in the United States while stationed at a foreign area

post of duty.

(d) Am I eligible for payment for property management

services?

Yes, you are eligible for payment for property management

services (if authorized by your agency) when you transfer in the

interest of the Government and you and/or a member(s) of your

immediate family hold(s) title to a residence which you are

eligible to sell at Government expense.

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(e) Who is not eligible for payment for property

management services?

New appointees, employees assigned under the Government

Employees Training Act (5 U.S.C. 4109), and employees

transferring entirely within a foreign area are not eligible for

payment for property management services. However,

relocations entirely outside the United States or from one

foreign area to a different foreign area do not affect previously

authorized property management services as long as the

employee continues to meet agency eligibility requirements.

(f) For what property may my agency authorize property

management services?

Your agency may authorize property management services only

for your residence in the United States at the last official work

site from which you transferred.

XXI. Miscellaneous Expenses Allowance (MEA)

(a) Must my agency authorize payment of an MEA?

Yes, if you meet all of the applicable eligibility conditions in

FTR 302-16.3, your agency must authorize payment of a MEA.

(b) Am I eligible for a MEA?

You are eligible for an MEA if:

1. Your agency authorized/ approved a PCS or TCS;

2. You discontinued and established a residence in

connection with your PCS or TCS;

3. You meet the general eligibility for relocation conditions

listed in FTR Chapter 302-1 and Chapter 302-16; and

4. You signed a service agreement.

You are ineligible for an MEA if you are a new appointee, an

SES authorized for last move home benefits, an employee

assigned under the Government Employees Training Act (5

U.S.C. 4109), or an employee returning from an overseas

assignment for separation.

(d) What is the purpose of the MEA?

The MEA is intended to help defray some of the costs incurred

during relocation. The MEA is related to expenses that are

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common to living quarters, furnishings, hook up and

disconnect of household appliances, and to other general types

of costs inherent in relocation not covered by other relocation

benefits.

(e) What amount may my agency reimburse me for

miscellaneous expenses?

The following amounts will be paid for miscellaneous expenses

without support or documentation of expenses:

1. If you have no immediate family relocating with you,

either $650 or the equivalent of one week basic gross

pay, whichever is the lesser amount; or

2. If you have immediate family members relocating with

you, $1,300 or the equivalent of two weeks basic gross

pay, whichever is the lesser amount.

(f) May I claim an amount in excess of the amounts shown

above?

Yes, you may claim an amount in excess of that shown above, if

you are authorized to do so by your agency, and the following

conditions are met:

1. Your claim must be supported by acceptable statements

of fact, paid bills or other acceptable evidence justifying

the amounts claimed; and

2. The aggregate amount must not exceed your basic

gross pay at the new station for one week, if you are

relocating without an immediate family, or two weeks if

you are relocating with an immediate family.

(g) Is a limitation placed on the amount I may receive that

is in excess of the general MEA?

Yes, regardless of how much you spend, the amount authorized

cannot exceed the basic pay rate of a GS-13 step 10 provided in

5 U.S.C. 5332 at the time you reported for duty at your new

official work site.

(h) Must I document my miscellaneous expenses to

receive reimbursement?

You must show documentation of your miscellaneous expenses

only when an amount exceeds the $650 or $1300 MEA limits

shown in paragraph (e).

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(i) Are there any restrictions to the types of costs the

agency may cover?

Yes, your MEA cannot be used to reimburse:

1. Costs or expenses incurred that exceed maximums

provided by statute or in FTR Chapter 302;

2. Costs or expenses incurred but disallowed elsewhere in

FTR Chapter 302;

3. Costs reimbursed under other provisions of law or

regulations;

4. Costs or expenses incurred for reasons of personal

taste or preference and not required because of the

move;

5. Losses covered by insurance;

6. Fines or other penalties imposed upon the employee or

members of his/her immediate family;

7. Judgments, court costs, and similar expenses growing

out of civil actions; or

8. Any other expenses brought about by circumstances,

factors, or actions in which the move to a new official

work site was not the proximate cause.

(j) What are examples of frequently occurring costs that

arise during the relocation process that are not covered by

the MEA?

Examples of costs that are not reimbursable from this

allowance are:

1. Losses in selling or buying real and personal property

and cost related to such transactions;

2. Cost of additional insurance on household goods while

in transit to the new official work site or cost of loss or

damage to such property;

3. Additional costs of moving household goods caused by

exceeding the maximum weight limitation;

4. Costs of newly acquired items, such as the purchase or

installation cost of new rugs or draperies;

5. Higher taxes (income, real estate, sales, or other) as the

result of establishing residence in the new locality;

6. Fines imposed for traffic infractions while en route to

the new official work site locality;

7. Accident insurance premiums or liability costs incurred

in connection with travel to the new official work site

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locality, or any other liability imposed upon the

employee for uninsured damages caused by accidents

for which he/she or a member of his/her immediate

family is held responsible;

8. Losses as a result of sale or disposal of items of

personal property not considered convenient or

practicable to move;

9. Damage or loss of clothing, luggage, or other personal

effects while traveling to the new official work site

locality;

10. Subsistence, transportation, or mileage expenses in

excess of the amounts reimbursed as per diem or other

allowances under this regulation;

11. Medical expenses due to illness or injuries while en

route to the new official work site or while living in

temporary quarters at Government expense under the

provisions of this chapter; or

12. Costs incurred in connection with structural alterations

(remodeling or modernizing of living quarters, garages

or other buildings to accommodate privately owned

automobiles, appliances or equipment; or the cost of

replacing or repairing worn-out or defective appliances,

or equipment shipped to the new location).

XXII.Taxes on Relocation Benefits

(a) Is any part of my relocation taxable?

Yes, unlike most temporary duty travel, relocation is not

considered a standard business practice and is therefore

taxable in accordance with U.S. tax law.

(b) Does the government reimburse the taxes that I will

incur?

Yes, the government will reimburse you for substantially all of

the taxes that you incur as a result of your relocation benefits.

exactly all, of the additional tax?

Congress has determined that, because of the complexity of

the calculations, which involve not only Federal income tax but

also the income tax rates of all the states and localities, as well

as the unique circumstances of each relocation, it is not

reasonable or necessary for the Government to compute the

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exact impact of relocation on every affected employee’s taxes.

That is, Congress has determined that making a good faith

effort to reimburse substantially all additional taxes is

sufficient.

(d) Who is eligible for reimbursement of taxes on

relocation benefits?

You are eligible for tax reimbursement if your agency is

transferring you from one permanent duty station to another in

the interest of the Government, and your agency is reimbursing

you for relocation expenses that you incurred.

(e) Who is not eligible for reimbursement of taxes on

relocation benefits?

You are not eligible if you are:

1. A new hire;

2. Assigned under the Government Employees Training

Act; or

3. Returning from an overseas assignment for the purpose

of separation from Government service.

(f) How does my agency calculate my tax benefits?

The processes for calculating your tax benefits are beyond the

scope of this handbook. Please see FTR 302-17 for detailed

information.

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