Payment of Relocation Expenses Incident To Change of Official Duty Station

An agency requested a decision concerning reimbursement of expenses incurred in the sale of an employee's residence incident to a transfer of duty station. The agency also requested a determination as to whether it may properly seek recovery of the amounts reimbursed to the employee for travel and relocation expenses incident to her transfer. The employee was transferred from Florida to Alaska in the continued service of the agency. After 10 months she requested and was granted leave without pay for 3 months; at the end of that period she resigned from Government service. The agency contended that the employee failed to provide the required 12-month Government service agreement, and that her time spent in the leave-without-pay status did not constitute creditable service in terms of the required agreement. GAO held that there is an obligation to serve the Government for 12 months following the effective date of a transfer which controls an employee's entitlement to relocation allowances provided by statute. The controllng issue in this case was whether or not the employee satisfied the 12-month Government obligation. Previously GAO has held that the leave-without-pay status of a civilian employee is partially creditable for certain purposes, and that an employee on this status remains on the rolls of the Federal agency as an employee until he or she is separated from the service. In the instant case, the employee's leave-without-pay status constituted creditable service within the meaning of the law, and she fulfilled her 12-month Government service obligation. It was determined that reimbursement may be made of the expenses incurred in the sale of the employee's residence incident to her transfer, and that no action should be taken to recover previously reimbursed relocation expenses.