Actual Residence Determination for Travel Allowance

An opinion was requested as to whether a retired Panama Canal Commission employee may be reimbursed the constructive cost of transportation, shipment of household goods, and travel expenses to his actual place of residence at the time of employment. The employee was originally recruited from his actual place of residence and employed as a contract foreign laborer. The agency reported that the employee continuously worked for 39 years, first as a contract laborer and then as a regular Federal employee. He retired and traveled at his own expense to the United States, where he now resides. The employee claimed reimbursement for the travel costs that would have been incurred had he elected to be repatriated to his actual place of residence at the time of employment incident to his separation for purposes of retirement. Had the employee in fact returned to his actual place of residence, his entitlement under the contract would have made such travel and transportation expenses reimbursable. Therefore, the employee was only entitled to expenses for separation travel to the country of actual residence at the time of employment. However, the agency should determine if the employee was entitled to negotiate a transportation agreement in connection with his regular Federal employment and, if so, whether the actual residence had changed to the location in the continential United States.