B-230698, Nov 25, 1988

B-230698: Nov 25, 1988

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The employee is entitled to reimbursement of only 50 percent of the lease termination expenses incurred incident to his transfer. Even though he may have paid all the expenses. Is entitled to only 50 percent of the lease termination expenses he incurred when he changed his permanent duty station. /1/ Mr. He incurred expenses of $788.05 for terminating his apartment lease which was in his name and the name of another person with whom he shared the premises. Who was not a member of his immediate family. If a person who is not a member of the employee's immediate family has a joint interest in the leasehold.

B-230698, Nov 25, 1988

CIVILIAN PERSONNEL - Relocation - Residence transaction expenses - Leases - Termination costs - Reimbursement DIGEST: An employee and another adult shared an apartment for which both signed the lease. The employee is entitled to reimbursement of only 50 percent of the lease termination expenses incurred incident to his transfer, even though he may have paid all the expenses. See Federal Travel Regulations, Paras. 2-6.1.c and f.

Steven K. Peacock - Lease Termination Expenses - Apartment Sharing:

This decision holds that Mr. Steven K. Peacock, an employee of the Bureau of Reclamation, Department of the Interior, is entitled to only 50 percent of the lease termination expenses he incurred when he changed his permanent duty station. /1/

Mr. Peacock transferred to a new duty station in Phoenix, Arizona, on September 25, 1987. Incident to the transfer, he incurred expenses of $788.05 for terminating his apartment lease which was in his name and the name of another person with whom he shared the premises. Since he shared the apartment with this adult, who was not a member of his immediate family, the Bureau of Reclamation reimbursed only 50 percent of this amount, or $394.03. Mr. Peacock states that he paid all of the apartment expenses and should be reimbursed the entire amount.

In order for an employee to receive reimbursement of the expenses he incurs for the settlement of an unexpired lease, the lease must be in his name alone or in the joint names of the employee and a member of his immediate family. Federal Travel Regulations (FTR), Para. 2-6.1.c (Supp. 4, August 23, 1982). If a person who is not a member of the employee's immediate family has a joint interest in the leasehold, such as here, then the employee may be reimbursed only for the expenses he incurs commensurate with his interest in the leasehold. See FTR, Para. 2-6.1.f (Supp. 4, August 23, 1982); B-182276, Apr. 10, 1975; see also Anthony Stampone III, B-223018, Sept. 30, 1986. Accordingly, the agency correctly reimbursed Mr. Peacock 50 percent of the lease termination expenses.

/1/ Ms. Amy F. Mitchell, Authorized Certifying Officer, Bureau of Reclamation, requested our decision.

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