Claim for Relocation Benefits Incident to Transfer

GAO was asked whether a recently retired employee of the Army could be paid relocation benefits incident to a transfer from overseas to the United States that were in excess of the return travel and transportation expenses to her designated place of residence in the United States, even though the employee did not execute an agreement to remain in Government service for at least 1 year after her transfer. Because the form that authorized her transfer travel indicated that she had signed an agreement to remain in Government service for 1 year after being relocated, some of her relocation benefits were paid. The employee retired approximately 6 weeks after beginning her work at her new duty station in the United States. A finance and accounting officer questioned his authority to pay the relocation claims as well as unpaid claims for a temporary quarters allowance and the expenses of picking up the employee's automobile at a U.S. port, because the employee had never signed a service agreement. GAO has held that an agency has the authority to refuse to authorize or approve payment of any relocation expenses in connection with a transfer until the employee executes an agreement to remain in Government service for a specified period of time. By completing her agreed tour of overseas duty, the employee was entitled to reimbursement for relocation expenses to her actual place of residence in the United States. However, by failing to execute the service agreement and serve the required year at her new duty station, she could not be paid additional relocation benefits. Accordingly, her constructive return expenses must be limited to those applicable to her actual place of residence in the United States. Any claimed relocation expenses in excess of the constructive return expenses may not be paid, and any relocation expenses that were paid in excess of those constructive expenses should be collected. Her expenses for picking up her automobile at the port should be considered and reimbursed, if otherwise proper.