[Claim for Relocation Expenses Incident to Reemployment After RIF]

An advance decision was requested as to whether it was permissible for an agency to pay only a portion of the relocation expenses of former employees who were separated as a result of a reduction in force (RIF) and rehired shortly thereafter by another federal agency. In the case in question, an employee who was separated as the result of a RIF was rehired by another agency. Prior to his relocation, the losing agency offered to pay up to $5,000 of his relocation expenses; however, the gaining agency refused to issue travel orders to employees separated through RIF actions from the losing agency. GAO stated that federal regulations provide that former employees who were separated through a RIF may be paid travel expenses in the same manner as they would have been had they been transferred in the interest of government without a break in service. Once it is determined that a transfer is in the interest of the government, the agencies involved have broad discretion in deciding whether to pay relocation expenses of employees separated by a RIF from one agency and hired by another agency. Further, the agencies have the discretion to pay such expenses in whole or in part. Therefore, GAO found that the losing agency may reimburse its former employee for some, all, or none of his relocation expenses, provided that the former employee satisfies the entitlement conditions. GAO found that the gaining agency did not abuse its discretion in its refusal to pay the relocation expenses of its new employee and others similarly situated.