[Former HUD Employee's Entitlement to Relocation Expenses]

A former Department of Housing and Urban Development (HUD) employee requested a decision concerning his entitlement to relocation expenses incident to his transfer to a new duty station even though he did not complete the required term of government service at the new station. GAO noted that: (1) the employee signed a travel request which required that he remain in government service for 12 months following his transfer in order to receive reimbursement for relocation expenses; and (2) 1 week after the employee reported to his new duty station, he requested to be released from his 12-month service agreement so that he could retire at age 62. GAO has held that: (1) an employee's voluntary separation upon satisfying age and service requirements for optional retirement may be considered beyond the employee's control; and (2) voluntary separation for optional retirement is an acceptable reason for release from a service agreement. GAO found that: (1) HUD failed to apply its own regulation that the employee's voluntary separation for optional retirement was an acceptable reason for release from the service agreement; and (2) the failure to release the employee from his service obligation was arbitrary. Accordingly, the employee may be reimbursed relocation expenses to the extent legally authorized.