Federal Travel Regulation; Temporary Change of Station

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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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?

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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

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(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.

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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]

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