[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