[Federal Register Volume 62, Number 55 (Friday, March 21, 1997)]
[Rules and Regulations]
[Pages 13770-13774]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-7237]


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GENERAL SERVICES ADMINISTRATION
41 CFR Part 302-1

[FTR Amendment 64]
RIN 3090-AG44


Federal Travel Regulation; Temporary Change of Station

AGENCY: Office of Governmentwide Policy, GSA.

ACTION: Final rule.

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[[Page 13771]]

SUMMARY: This final rule amends the Federal Travel Regulation (FTR) to 
allow an agency to pay a limited set of relocation allowances in 
connection with a temporary change of station for a period of not less 
than 6, nor more than 30, months. This amendment is intended to reduce 
Government expenditures for the long-term assignment of an employee to 
a temporary official station and to increase the employee's 
satisfaction by providing an alternative to a long-term temporary duty 
travel assignment that would involve a prolonged separation from his/
her immediate family.

DATES: This final rule is effective March 22, 1997, and applies to an 
employee whose effective date of transfer (date the employee reports 
for duty at the new official station) is on or after March 22, 1997.

FOR FURTHER INFORMATION CONTACT: Robert A. Clauson, Travel and 
Transportation Management Policy Division (MTT), Washington, DC 20405, 
telephone 202-501-0299.

SUPPLEMENTARY INFORMATION: A multi-agency travel reinvention task force 
was organized in August 1994 under the auspices of the Joint Financial 
Management Improvement Program (JFMIP) to reengineer Federal travel 
rules and procedures. The task force developed 25 recommended travel 
management improvements published in a JFMIP report entitled Improving 
Travel Management Governmentwide, dated December 1995. On September 23, 
1996, the President signed into law the Federal Employee Travel Reform 
Act of 1996 (Pub. L. 104-201), which included 8 legislative changes 
recommended by the JFMIP to improve travel and the delivery of 
relocation services.
    This amendment implements section 1716 of the Act which provides 
the General Services Administration (GSA) authority to issue 
regulations permitting an agency pay a limited set of relocation 
allowances for a temporary change of station instead of paying 
temporary duty travel allowances when an employee is assigned to a 
temporary official station for a period of not less than 6, nor more 
than 30, months. This amendment is written in the ``plain English style 
of regulation writing as a continuation of GSA's effort to make the FTR 
easier to understand and to use.

What is the ``Plain English'' Style of Regulation Writing?

    The ``plain English'' style of regulation writing is a new, 
question and answer format that is simpler to read and understand. 
Questions are in the first person, and answers are in the second 
person. GSA uses a ``we'' question and a ``you'' answer when referring 
to an agency, and an ``I'' question and a ``you'' answer when referring 
to the employee.

How Does the Plain English Style of Regulation Writing Affect 
Employees?

    A question and its answer combine to establish a rule. The employee 
and the agency must follow the language contained in both the question 
and its answer.
    GSA has determined that this rule is not a significant regulatory 
action for the purposes of Executive Order 12866 of September 30, 1993. 
This final rule is not required to be published in the Federal Register 
for notice and comment. Therefore, the Regulatory Flexibility Act does 
not apply. This rule also is exempt from Congressional review 
prescribed under 5 U.S.C. 801 since it relates solely to agency 
management and personnel.

List of Subjects in 41 CFR Part 302-1

    Government employees, saved and transportation expenses.

    For the reasons set out in the preamble, 41 CFR part 302-1 is 
amended as follows:

PART 302-1--APPLICABILITY, GENERAL RULES, AND ELIGIBILITY 
CONDITIONS

    1. The authority citation for part 302-1 continues to read as 
follows:

    Authority: 5 U.S.C. 5738; 20 U.S.C. 905(a); E.O. 11609, 36 FR 
13474, 3 CFR, 1971-1975 Comp., p. 586.

Subpart A--New Appointees and Transferred Employees

    2. Section 302-1.3 is amended by revising paragraph (a)(2) to read 
as follows:


Sec. 302-1.3  General provisions.

    (a) * * *
    (2) Discretionary coverage. The head of an agency, or his/her 
designee, may authorize the payment of travel and transportation 
expenses and applicable allowances in the case of:
    (i) A new appointee, as defined in Sec. 302-1.4(d), relocating from 
his/her place of actual residence at the time of appointment (or at the 
time following the most recent Presidential election, but before 
selection or appointment, in the case of an individual who has 
performed transition activities under section 3 of the Presidential 
Transition Act of 1963 (3 U.S.C. 102 note) and who is appointed in the 
same fiscal year as the Presidential inauguration that immediately 
follows his/her transition activities) for permanent duty to an 
official station; and
    (ii) An employee authorized a temporary change of station under 
subpart C of this part in connection with the employee s long-term 
assignment to a temporary official station.
* * * * *
    3. Part 302-1 is amended by adding subparts C and D to read as 
follows:

Subpart C--Employee's Temporary Change of Station

Sec.
302-1.200  What is a ``temporary change of station (TCS)''?
302-1.201  What is the purpose of a TCS?
302-1.202  Am I eligible for a TCS?
302-1.203  Who is not eligible for a TCS?
302-1.204  Must my agency authorize a TCS when I am directed to 
perform a long-term assignment at a temporary official station?
302-1.205  Under what circumstances will my agency authorize a TCS?
302-1.206  If my agency authorizes a TCS, do I have the option of 
electing payment of temporary duty travel allowances instead?
302-1.207  How long must my assignment be for me to qualify for a 
TCS?
302-1.208  What is the effect on my TCS reimbursement if my 
assignment lasts less than 6 months?
302-1.209  What is the effect on my TCS reimbursement if my 
assignment lasts more than 30 months?
302-1.210  Is there any required minimum distance between an 
official station and a long-term assignment location that must be 
met for me to qualify for a TCS?
302-1.211  Must I sign a service agreement to qualify for a TCS?
302-1.212  What is my official station during my long-term 
assignment?

Expenses Paid Upon Assignment

302-1.213  What expenses must my agency pay for a TCS upon my 
assignment?
302-1.214  What expenses may my agency pay for a TCS upon my 
assignment?

Expenses Paid During Assignment

302-1.215  If my agency authorizes a TCS, will it pay for 
nontemporary storage of my household goods?
302-1.216  How long may my agency pay for nontemporary storage of my 
household goods?
302-1.217  Is there any limitation on the combined weight of 
household goods I may transport or nontemporarily store at 
Government expense?
302-1.218  What are the income tax consequences if my agency pays 
for nontemporary storage of my household goods?
302-1.219  Will my agency pay for property management services when 
I am authorized a TCS?
302-1.220  What is the property for which my agency will pay for 
property management services?
302-1.221  How long will my agency pay for property management 
services?

[[Page 13772]]

302-1.222  What are the income tax consequences when my agency pays 
for property management services?

Expenses Paid Upon Completion of Assignment or Upon Separation From 
Government Service

302-1.223  What expenses will my agency pay when I complete my long-
term assignment?
302-1.224  If I separate from Government service upon completion of 
my long-term assignment, what relocation expenses will my agency pay 
upon my separation?
302-1.225  If I separate from Government service prior to completion 
of my long-term assignment, what relocation expenses will my agency 
pay upon my separation?
302-1.226  If I have been authorized successive temporary changes of 
station and reassigned from one temporary official station to 
another, what expenses will my agency pay upon completion of my last 
assignment or my separation from Government service?

Permanent Assignment to Temporary Official Station

302-1.227  How is payment of my TCS expenses affected if I am 
permanently assigned to my temporary official station?
302-1.228  What relocation allowances may my agency pay when I am 
permanently assigned to my temporary official station?
302-1.229  If I am permanently assigned to my temporary official 
station, is there any limitation on the weight of household goods I 
may transport at Government expense to my official station?
302-1.230  Are there any relocation allowances my agency may not pay 
if I am permanently assigned to my temporary official station?

Subpart D--Agency Responsibilities for Temporary Change of Station

Sec.
302-1.300  How should we administer our TCS program?
302-1.301  What governing policies must we establish for our TCS 
program?
302-1.302  What factors should we consider in determining whether to 
authorize a TCS for a long-term assignment?

Subpart C--Employee's Temporary Change of Station

    Note to subpart C: Use of the pronouns ``I'' and ``you'' 
throughout this subpart refers to the employee.


Sec. 302-1.200  What is a ``temporary change of station (TCS)''?

    TCS means the relocation of an employee to a new official station 
for a temporary period while the employee is performing a long-term 
assignment, and subsequent return of the employee to the previous 
official station upon completion of that assignment.


Sec. 302-1.201  What is the purpose of a TCS?

    TCS provides agencies an alternative to a long-term temporary duty 
travel assignment to increase employee satisfaction and enhance morale, 
reduce the employee's income tax liability, and save the Government 
money.


Sec. 302-1.202  Am I eligible for a TCS?

    Yes, if you are an employee who is directed to perform a long-term 
assignment at a temporary location, and you otherwise would be eligible 
for payment of temporary duty travel allowances authorized under 
chapter 301 of this subtitle. For exceptions, see Sec. 302-1.203.


Sec. 302-1.203  Who is not eligible for a TCS?

    The following individuals are not eligible for a TCS:
    (a) A new appointee;
    (b) An employee assigned to or from a State or local Government 
under the Intergovernmental Personnel Act (5 U.S.C. 3372, et. seq.);
    (c) An individual employed intermittently in the Government service 
as a consultant or expert and paid on a daily when-actually-employed 
(WAE) basis;
    (d) An individual serving without pay or at $1 a year; or
    (e) An employee assigned under the Government Employees Training 
Act (5 U.S.C. 4109).


Sec. 302-1.204  Must my agency authorize a TCS when I am directed to 
perform a long-term assignment at a temporary official station?

    No. Your agency determines the conditions under which a TCS is 
necessary to accomplish the purposes of the Government effectively and 
economically.


Sec. 302-1.205  Under what circumstances will my agency authorize a 
TCS?

    Your agency will authorize a TCS when:
    (a) You are directed to perform a long-term assignment at another 
duty station;
    (b) Your agency otherwise could authorize temporary duty travel and 
pay travel allowances, including payment of subsistence expenses, under 
chapter 301 of this subtitle for the long-term assignment;
    (c) Your agency determines it would be more advantageous, cost and 
other factors considered, to authorize a TCS; and
    (d) You meet any additional conditions your agency has established.


Sec. 302-1.206  If my agency authorizes a TCS, do I have the option of 
electing payment of temporary duty travel allowances instead?

    No.


Sec. 302-1.207  How long must my assignment be for me to qualify for a 
TCS?

    Not less than 6 months, nor more than 30 months.


Sec. 302-1.208  What is the effect on my TCS reimbursement if my 
assignment lasts less than 6 months?

    Your agency may authorize a TCS only when a long-term assignment is 
expected to last 6 months or more. If your assignment is cut short for 
reasons other than separation from Government service, you will be paid 
TCS expenses.


Sec. 302-1.209  What is the effect on my TCS reimbursement if my 
assignment lasts more than 30 months?

    If your assignment exceeds 30 months, your agency must permanently 
assign you to the temporary official station or return you to your 
previous official station. Your agency may not pay for nontemporary 
storage or property management services incurred after the last day of 
the thirtieth month. Your agency must pay the expenses of returning you 
and your immediate family and household goods to your previous official 
station unless you are permanently assigned to your temporary official 
station.


Sec. 302-1.210  Is there any required minimum distance between an 
official station and a long-term assignment location that must be met 
for me to qualify for a TCS?

    No. Your agency may establish the area within which it will not 
authorize a TCS.


Sec. 302-1.211  Must I sign a service agreement to qualify for a TCS?

    No.


Sec. 302-1.212  What is my official station during my long-term 
assignment?

    Your official station is the location of your long-term assignment.

Expenses Paid Upon Assignment


Sec. 302-1.213  What expenses must my agency pay for a TCS upon my 
assignment?

    Your agency must pay the following:
    (a) Travel, including per diem, for you and your immediate family 
under part 302-2 of this chapter;
    (b) Transportation and temporary storage of your household goods 
under part 302-8 of this chapter;
    (c) Transportation of a mobile home instead of transportation of 
household goods under part 302-7 of this chapter;
    (d) A miscellaneous expenses allowance under part 302-3 of this 
chapter;
    (e) Transportation of a privately owned vehicle(s) under part 302-
10 of this chapter; and

[[Page 13773]]

    (f) A relocation income tax allowance under part 302-11 of this 
chapter for additional income taxes you incur on payments your agency 
makes under the authority of this section and Sec. 302-1.214 for your 
relocation expenses.


Sec. 302-1.214  What expenses may my agency pay for a TCS upon my 
assignment?

    Your agency may pay the following:
    (a) Househunting trip expenses under part 302-4 of this chapter; 
and
    (b) Temporary quarters subsistence expenses under part 302-5 of 
this chapter.

Expenses Paid During Assignment


Sec. 302-1.215  If my agency authorizes a TCS, will it pay for 
nontemporary storage of my household goods?

    Yes, when nontemporary storage is necessary. Nontemporary storage 
expenses include necessary packing, crating, unpacking, uncrating, 
transporting to and from place of storage, charges while in storage, 
and other necessary charges directly related to storage.


Sec. 302-1.216  How long may my agency pay for nontemporary storage of 
household goods?

    For the duration of your long-term assignment.


Sec. 302-1.217  Is there any limitation on the combined weight of 
household goods I may transport or nontemporarily store at Government 
expense?

    Yes, the maximum combined weight is 18,000 pounds net weight. If 
you transport and/or nontemporarily store household goods in excess of 
the maximum weight allowance, you will be responsible for any excess 
cost.


Sec. 302-1.218  What are the income tax consequences if my agency pays 
for nontemporary storage of my household goods?

    You will be taxed on the amount of nontemporary storage expenses 
your agency pays. However, your agency will pay you a relocation income 
tax allowance under part 302-11 of this chapter for substantially all 
of the additional Federal, State and local income taxes you incur on 
the expenses your agency pays.


Sec. 302-1.219  Will my agency pay for property management services 
when I am authorized a TCS?

    Yes. Your agency will reimburse you directly for expenses you incur 
or make payments on your behalf to a relocation services company, if 
you so choose. The term ``property management services'' refers to a 
program provided by a private company for a fee, which assists you in 
managing your residence at your previous official station as a rental 
property. Services provided by the company may include, but are not 
limited to, obtaining a tenant, negotiating a lease, inspecting the 
property regularly, managing repairs and maintenance, enforcing lease 
terms, collecting the rent, paying the mortgage and other carrying 
expenses from rental proceeds and/or funds of the employee, and 
accounting for the transactions and providing periodic reports to the 
employee.


Sec. 302-1.220  What is the property for which my agency will pay for 
property management services?

    Only your residence at your previous official station.


Sec. 302-1.221  How long will my agency pay for property management 
services?

    For the duration of your long-term assignment.


Sec. 302-1.222  What are the income tax consequences when my agency 
pays for property management services?

    You will be taxed on the amount of property management expenses 
your agency pays, whether it reimburses you directly for your expenses 
or pays a relocation services company to manage your residence. 
However, your agency will pay you a relocation income tax allowance 
under part 302-11 of this chapter for substantially all of the 
additional Federal, State and local income taxes you incur on the 
expenses your agency pays. You may wish to consult with a tax advisor 
to determine whether you will incur any additional tax liability, 
unrelated to your agency s payment of your property management 
expenses, as a result of maintaining your residence as a rental 
property.

Expenses Paid Upon Completion of Assignment or Upon Separation From 
Government Service


Sec. 302-1.223  What expenses will my agency pay when I complete my 
long-term assignment?

    Your agency will pay the following expenses in connection with your 
return to your previous official station:
    (a) Travel, including per diem, for you and your immediate family 
under part 302-2 of this chapter;
    (b) Transportation and temporary storage of your household goods 
under part 302-8 of this chapter;
    (c) Transportation of a mobile home instead of transportation of 
your household goods under part 302-7 of this chapter;
    (d) Temporary quarters subsistence expenses under part 302-5 of 
this chapter;
    (e) A miscellaneous expenses allowance under part 302-3 of this 
chapter;
    (f) Transportation of a privately owned vehicle(s) under part 302-
10 of this chapter; and
    (g) A relocation income tax allowance under part 302-11 of this 
chapter for additional income taxes you incur on payments your agency 
makes under the authority of this section for your relocation expenses.


Sec. 302-1.224 If I separate from Government service upon completion of 
my long-term assignment, what relocation expenses will my agency pay 
upon my separation?

    The same relocation expenses it would have paid had you not 
separated from Government service upon completion of your long-term 
assignment.


Sec. 302-1.225  If I separate from Government service prior to 
completion of my long-term assignment, what relocation expenses will my 
agency pay upon my separation?

    If the separation is for reasons beyond your control that are 
acceptable to your agency, your agency will pay the same relocation 
expenses it would pay under Sec. 302-1.224 if you separated from 
Government service upon completion of the long-term assignment. If this 
is not the case, the expenses your agency pays may not exceed the 
reimbursement that you would have received under chapter 301 of this 
subtitle had you been auhorized to perform temporary duty travel for 
the duration of the long-term assignment.


Sec. 302-1.226  If I have been authorized successive temporary changes 
of station and reassigned from one temporary official station to 
another, what expenses will my agency pay upon completion of my last 
assignment or my separation from Government service?

    Your agency will pay the expenses authorized in Sec. 302-1.223 for 
your relocation from your current temporary official station to your 
last permanent official station.

Permanent Assignment to Temporary Official Station


Sec. 302-1.227  How is payment of my TCS expenses affected if I am 
permanently assigned to my temporary official station?

    Payment of TCS expenses stops once your temporary official station 
becomes your permanent official station. Your agency may not pay any 
TCS expenses incurred beginning the day your temporary official station 
becomes your permanent official station.

[[Page 13774]]

Sec. 302-1.228  What relocation allowances may my agency pay when I am 
permanently assigned to my temporary official station?

    Your agency may pay the following:
    (a) Travel, including per diem, under part 302-2 of this chapter 
for one round trip between your temporary official station and your 
previous official station for you and members of your immediate family 
who relocated to the temporary official station with you. Your agency 
may also pay the same expenses for a one-way trip from the previous 
official station to the new permanent official station for any 
immediate family members who did not accompany you to the temporary 
official station.
    (b) Residence transaction expenses under part 302-6 of this 
chapter;
    (c) Property management expenses under part 302-14 of this chapter;
    (d) Residence-related relocation services expenses, (e.g. expenses 
under a homesale program, expenses for homefinding assistance, and 
property management services) under part 302-12 of this chapter;
    (e) Temporary quarters subsistence expenses under part 302-5 of 
this chapter;
    (f) Transportation of household goods not previously transported to 
the temporary official station under part 302-8 of this chapter; and
    (g) Transportation of a privately owned vehicle(s) not previously 
transported to the temporary official station under part 302-10 of this 
chapter.


Sec. 302-1.229  If I am permanently assigned to my temporary official 
station, is there any limitation on the weight of household goods I may 
transport at Government expense to my official station?

    Yes. You are limited to 18,000 pounds net weight. This maximum 
weight will be reduced by the weight of any household goods transported 
at Government expense to your temporary official station under your TCS 
authorization. Subject to the 18,000 pound limit, your agency will pay 
to transport any household goods in nontemporary storage to your 
official station. Additionally, if you change your residence as a 
result of your permanent assignment to your temporary official station, 
your agency may pay for transporting your household goods, subject to 
the 18,000 pound limit, between the residence you occupied during your 
temporary assignment and your new residence.


Sec. 302-1.230  Are there any relocation allowances my agency may not 
pay if I am permanently assigned to my temporary official station?

    Your agency may not pay for the following:
    (a) Expenses of a househunting trip for you and your spouse to your 
temporary official station under part 302-4 of this chapter; or
    (b) Residence transaction expenses for selling a residence or 
breaking a lease at the temporary official station under part 302-6 of 
this chapter.

Subpart D--Agency Responsibilities for Temporary Change of Station

    Note to subpart D: Use of the pronouns ``we'' and ``you'' 
throughout this subpart refers to the agency.


Sec. 302-1.300  How should we administer our TCS program?

    To minimize your travel and relocation costs.


Sec. 302-1.301  What governing policies must we establish for our TCS 
program?

    Policies and procedures that govern:
    (a) When you will authorize a TCS, including whether you will 
impose a minimum distance between the employee s current official 
station and the proposed temporary official station for an employee to 
qualify for a TCS; and
    (b) Who will determine whether authorization of a TCS is 
appropriate in each situation.


Sec. 302-1.302  What factors should we consider in determining whether 
to authorize a TCS for a long-term assignment?

    You should consider the following factors in determining whether to 
authorize a TCS:
    (a) Cost considerations. You should consider the cost of each 
alternative. A long-term temporary duty travel assignment requires the 
payment of either per diem or actual subsistence expenses for the 
entire period of the assignment. This could be very costly to the 
agency over an extended period. A TCS will require fairly substantial 
relocation allowance payments at the beginning and end of the 
assignment, and less substantial payments for nontemporary storage and 
property management services, when authorized, during the period of the 
assignment. Agencies should estimate the total cost of each alternative 
and authorize the one that is most advantageous for the agency, cost 
and other factors considered.
    (b) Length of the long-term assignment. You should consider the 
length of the long-term assignment. The purpose of temporary duty 
travel allowances is to reimburse an employee for additional costs, 
including subsistence costs, incurred as a result of performing 
official business away from his/her official station. An employee 
receives a salary intended to cover his/her living expenses, including 
subsistence costs, at the official station. When an employee performs a 
long-term assignment and obtains extended stay living accommodations 
with facilities not unlike those the employee has at the official 
station, the assignment characteristics may be more similar to 
subsisting at the official station than at a temporary duty station. 
When this situation occurs, payment of temporary duty travel allowances 
in addition to payment of salary creates an inequitable reimbursement 
situation between an employee performing official travel and an 
employee officially stationed at the same location. In this situation, 
you should strongly consider authorizing a TCS for a long-term 
assignment.
    (c) Tax considerations. An employee who performs a temporary duty 
travel assignment exceeding one year at a single location is subject to 
income taxation of his/her travel expense reimbursements. An employee 
who is authorized and performs a TCS also will be subject to income 
taxation of some, but not all, of his/her TCS expenses. You will pay an 
offsetting relocation income tax allowance on an employee's TCS expense 
reimbursements but unless specifically authorized by statute, you do 
not have authority to pay such an allowance for income taxes incurred 
on temporary duty travel reimbursements. You, therefore, should 
authorize a TCS if a long-term temporary duty assignment will result in 
an unreimbursable income tax liability on an employee.
    (d) Employee concerns. The long-term assignment of an employee away 
from his/her official station and immediate family may negatively 
affect the employee's morale and job performance. Such negative effects 
may be alleviated by authorizing a TCS so the employee can transport 
his/her immediate family and/or household goods at Government expense 
to the location where he/she will perform the long-term assignment. You 
should consider the effects of a long-term temporary duty travel 
assignment on an employee when deciding whether to authorize a TCS.

    Dated: March 18, 1997.
Thurman M. Davis, Sr.,
Acting Administrator of General Services.
[FR Doc. 97-7237 Filed 3-20-97; 8:45 am]
BILLING CODE 6820-34-P