RELOCATION BENEFITS WHEN
YOU ARE REASSIGNED
Presented by
MIKE GALLAGHER
EASTERN REGIONAL COORDINATOR
RELOCATION
BENEFITS
Who is Eligible for Relocation
Benefits?
To qualify for relocation allowances, the distance
between your new duty station and your old residence
must be at least 50 miles greater than the distance
between your old duty station and your old residence.
Example
Former Duty Station
Former Residence
50 Mile Rule: 58 Miles
- 5 Miles
53 Miles
New Duty
Station
SIGNING A
SERVICE AGREEMENT
• You must agree to enter into a Service Agreement
to remain in the USPS for at least 1 year or Form
178 will not be approved.
• You are liable to repay the Service for all RELO
expenses you received or were paid to others on
your behalf if you decline to accept or to complete
the reassignment (only exception may be if retreat
rights are offered and utilized).
HOUSE HUNTING
A. One trip, not to exceed 9 nights and 10
days total (work status for scheduled
work days)
B. Reimbursement of actual lodging expenses
and full per diem rate for employee
C. Reimburse 75% of employee’s per diem
rate for one family member when
traveling with employee
D. Employee must take trip prior to
reporting
E. Must be authorized and Form 178 must be
on file
ENROUTE TRIP
(To Report for Duty )
Amount of allowable subsistence expense
for en route travel include expenses for
lodging and per diem (must drive 300
miles per day to be eligible for lodging).
You and your family together, or your
spouse and your family traveling
without you, are entitled to actual
expenses for lodging, plus the
following:
AMOUNT OF ALLOWABLE
SUBSISTENCE EXPENSE FOR
EN ROUTE TRAVEL
a. For you: Appropriate per diem rate
based on new duty station.
b. For your immediate family members: 75
percent of your per diem rate.
c. You must drive at least 300 miles per day to
be eligible for lodging.
d. Reimbursement for Personally Owned
Vehicle (POV) at IRS mileage rate
(currently $0.50 CPM)
WHAT ARE TEMPORARY
QUARTERS?
A. Lodging obtained from commercial sources
B. Temporary quarters authorized for up to 30
consecutive days only
C. You and your family must occupy temporarily
D. You cannot take delivery of your household
goods into them
E. Not temporary if signed lease is for more than
90 days
F. Used only until you move into permanent
residence or TQ benefit expires
WHAT ARE TEMPORARY
QUARTERS? (Cont’d)
G. Must begin temporary quarters no later
than 30 days from reporting date
H. OR when your family vacates old
residence at your old official duty to
come to the new duty station
ONLY INTERRUPTION
OF 30 CONSECUTIVE DAYS
(Exceptions)
A. Time spent in official travel
B. Scheduled vacation that
employee cannot change
C. Extenuating circumstances
(e.g., death in family)
TEMPORARY QUARTERS
(Cont’d)
Allowable Expenses:
TQ allowances are capped; you will be reimbursed
for either your actual expenses or the maximum
allowable amount based on the following:
Allowance covers for up to 30 consecutive calendar days,
• commercial lodging,
• meals,
• grocery shopping expenses,
• dry cleaning and laundry expenses.
Itemized receipts are required for all of the above regardless
of cost.
Other expenses such as meals require an itemized receipt only
when the expense exceeds $50. Keeping a TQ log is required.
TEMPORARY QUARTERS
Allowable Expenses Cont’d:
1. Daily rate for the First 10-days :
a. For you, 75% of the sum of the daily per
diem ($46) and the standard lodging rate
($70) = $116
b. For each member of your immediate family,
two-thirds of the rate established for you
TEMPORARY QUARTERS
Allowable Expenses Cont’d:
2. Daily rate for the Second 10-days :
a. For you, two thirds of the daily rate
established in 1.a.
b. For each member of your immediate family,
two-thirds of the rate established in 1.b.
TEMPORARY QUARTERS
Allowable Expenses Cont’d:
3. Daily rate for the Third 10-days:
a. For you, one-half of the daily rate
established in 1.a.
b. For each member of your immediate family,
one-half of the rate established in 1.b.
TEMPORARY QUARTERS
Allowable Expenses
Example: Employee plus two
dependents ($70 lodging)
First 10
Days
Second 10 Third 10
Days
Days
Employee @
75%
$87 per
day
$58 per
day
$43.50
per day
Spouse plus
one dependent
$58 per
day
$38.68
per day
$29 per
day
TEMPORARY QUARTERS
1st 10 days:
•Employee (¾ of $116 = $ 87) X 10 = $870
•Spouse
(2/3 of $87 = $ 58) X 10 = $580
•Child
(2/3 of $87 = $ 58) X 10 = $580
•Maximum allowance for 1st 10 days
$2,030
TEMPORARY QUARTERS
2nd 10 days:
•Employee (2/3 of $87 = $ 58) X 10
= $580.00
•Spouse
(2/3 of $58 = $ 38.67) X 10 = $386.70
•Child
(2/3 of $58 = $ 38.67) X 10 = $386.70
•Maximum allowance for 2nd 10 days
$1,353.40
TEMPORARY QUARTERS
3rd 10 days:
• Employee (1/2 of $87 = $43.50) X 10 = $435.00
• Spouse
(1/2 of $58 = $29) X 10
= $290.00
• Child
(1/2 of $58 = $29) X 10
= $290.00
Maximum allowance for 3rd 10 days
$1,051.00
• Total allowance for employee and 2 dependents =
$4,398.40. Maximum allowance for any 30 day
period of TQ is capped at $5,000
Miscellaneous Expense
Allowance
Form 4871 - Allowed
Allowance given to help defray
costs:
Application fees to management companies
that are not refundable
Telephone calls in connection to relocation
Fees for turning on & off utilities
Miscellaneous Expense
Allowance
Form 4871 - Allowed
 Cutting and fitting rugs, draperies, curtains
moved from one residence to the other
 Forfeiture losses on medical, dental and
food locker contracts that are not
transferable
 Auto registration, driver’s license, use taxes
imposed when bringing autos into other
jurisdictions, emission controls and state
inspection
Miscellaneous Expense
Allowance
Form 4871 - Allowed
 Non refundable/transferable contracts for
private institution for handicapped dependents
All requests for miscellaneous expense allowance
or any payments go through Cartus, the
relocation management firm (RMF).
You are encouraged to itemize. You must make
a choice-whether to take a flat allowance:
Miscellaneous Expense
Allowance
Form 4871 - Allowed
1. $150 for single employee
2. $300 for employee and
immediate family
Or receipt for your expenses incurred.
Maximum amount of allowance (receipted):
Employee only – 1 weeks salary
Employee and immediate family – 2 weeks
salary
Miscellaneous Expense
Allowance
Form 4871 - Disallowed
Higher real estate, income, sales
or other taxes
Fines for traffic infractions while en route
Accident insurance premiums
Losses resulting from selling or disposing
of personal property
Miscellaneous Expense
Allowance
Form 4871 - Disallowed
 Damage or loss of clothing, luggage or personal effects
 Expenses greater than maximum allowable limits
 Cost of additional insurance on household goods
 Medical expenses while en route
 Cost of newly acquired items
RELOCATION GUIDELINES
FOR BARGAINING UNIT
EMPLOYEES
REAL ESTATE TRANSACTIONS
Form 4877 used to claim expenses
The USPS will reimburse you for allowable
settlement expenses for:
 Selling your principal residence at your
old official station
 Buying or constructing a new principal
residence at your new official station.
RELOCATION GUIDELINES
FOR BARGAINING UNIT
EMPLOYEES
REAL ESTATE TRANSACTIONS
Form 4877 used to claim expenses
 Settling an unexpired lease at your old
official station either for the house in
which you lived or for a lot on which you
had a mobile home used as a residence.
 To be eligible for reimbursement you
must satisfy all of the conditions listed in
F-12, Section 612.
RELOCATION GUIDELINES
FOR BARGAINING UNIT
EMPLOYEES
REAL ESTATE TRANSACTIONS
Form 4877 used to claim expenses
Overall limitations on reimbursement:
10% of sales price
5% of purchase price
Note:
Bargaining unit employees are not reimbursed for loan
origination fee. If a loan origination fee is incurred a
deviation can be requested from Headquarters.
Broker’s fees, real estate
commissions, legal and related
costs of selling or buying a home
• USPS will reimburse a broker’s fee or real
estate commission that you paid for selling
your residence
• USPS will reimburse reasonable Legal and
related costs of selling or buying a home
Other advertising and
selling expenses
• USPS will reimburse the costs of
advertising (newspaper, bulletin board,
multiple-listing services, or other
advertising) to sell your residence at your
old official station if you have not paid for
those services as part of a broker’s fee or
real estate commission.
Reimbursable Costs
•
•
•
•
•
a. Title search.
b. Preparing an abstract.
c. Title opinion.
d. Lender’s title insurance policy.
e. Preparing conveyances, contracts, and other
legal documents.
• f. Notary and recording fees.
• g. Surveys.
Reimbursable Costs
• h. Drawings or plans required for legal or
financing purposes.
• i. Customary appraisal costs.
• j. Title insurance purchased by the buyer
• k. Inspection fees (radon, termite, structural,
etc.) required by the lender as a prerequisite to
loan approval or required by Federal, State, or
local statute or ordinance.
Reimbursable Costs
• l. Postage/messenger fees charged for the
delivery of documents up to a maximum
of $60.00.
• m. Attorney’s fees for services required in
the sale or purchase of the home.
• n. Similar legal costs as described in a-h.
Settlement Costs
The USPS will reimburse the following settlement
costs:
• a. FHA or VA loan application fee.
• b. Costs of preparing a credit report.
• c. Mortgage and transfer taxes.
• d. State revenue stamps and similar fees and
charges.
• e. Mortgage title insurance required by the
lending institution to obtain a mortgage loan
Settlement Costs
The USPS will not reimburse the following
settlement costs:
• a. Owner’s title insurance
• b. “Record Title” policy.
• c. Insurance against damage or loss of property.
• d. Interest on loans, points, and mortgage
discounts.
• e. Loan commitment fee.
Settlement Costs
• f. Loan origination fee (bargaining unit
employees).
• g. Loan assumption or transfer fee.
• h. Property taxes.
• i. Operating or maintenance costs.
• j. Tax services.
• k. VA funding fee
Making Shipping Arrangements
• Since outsourcing relocation benefits on
April 29, 2002, Cartus, the relocation
management firm (RMF), now provides a
moving van line to pack, load and ship your
household goods to the new destination.
• You are eligible for temporary storage up to
a maximum of 60 days.
Relocation Leave
• 5 days of Administrative Leave
• Used immediately before or after physically
moving your household
• Must be used for relocation events only
• Make arrangements with your supervisors
before taking relocation leave
Allowable expenses that you can
get advance funds for:
•
•
•
•
•
Advance round trip
En route travel
Transportation of POVs
Temporary quarters
Transportation of mobile homes
RELO Benefits are subject to
income tax withholding
At year end, the USPS will provide you with a W-2
indicating moving expenses that have been paid to
you or on your behalf. The RMF also provides a
Relocation Summary Package (RSP) indicating each
payment and the taxes withheld.
• Relocation payments. Transactions related to
relocation, including payments made by the Postal
Service to the relocation management firm (RMF) on
your behalf, will be reported as income on your
relocation Form W-2.
RELO Benefits that are subject to
Federal Income Tax withholding
Other reimbursements that are reported on your W-2
include:
a. Advance round trip expenses to seek housing;
b. Temporary quarters expenses;
c. En route travel expenses are partially taxable. Part
of your mileage you may be paid is excludable from
income as well as any lodging you take on your trip.
d. Real estate expenses involving the purchase of
your new residence (and sale of your old residence);
e. Miscellaneous expense allowance payment;
RELO Benefits not subject to
Federal Income Tax withholding
•
•
Expenses for moving your household
goods and the first thirty days of storage
Part of your mileage rate while on your en
route trip to report to duty is excludable
from income, as well as lodging expenses
on the en route trips.
OVERVIEW OF
RELOCATION BENEFITS
For Bargaining Unit Employees
Relocation Benefit
Bargaining Employee
Reassigned more than 50 miles
from current commute
Entitled to RELO
Benefits
Must sign Service Agreement
prior
Yes
Advance house hunting
1 Trip – 10 days
Spouse on trip
Yes
Entitled to Lodging and Per Diem
Yes
Temporary quarters
30 days
Entitled to Lodging and Per Diem
Yes – 3-10 day periods
OVERVIEW OF
RELOCATION BENEFITS
For Bargaining Unit Employees
Misc. expense allowance
(receipted)
1 week pay
(single)
2 weeks pay
(married)
Misc. expense allowance
(unreceipted)
$300 (married)
$150 (single)
Movement & storage of household
goods through the Relocation Mgmt.
Firm
60 days
Home Purchase
No
Residence transactions –
Selling 10% - Buying 5%
Yes
Equity Loss consideration
No
Settling and unexpired lease
Yes
OVERVIEW OF
RELOCATION BENEFITS
For Bargaining Unit Employees
Brokerage Fees & Commissions
Yes
Legal Fees
Yes
Advertising and Selling Fees
Yes
Settlement Costs
Yes
Shipment of Household Goods
Yes
Relocation Leave
5 days
Advance Funds
Yes (receipt or pay
back)
RELOCATION information
Is available to You
•
•
•
From a postal computer, simply type
RELOCATION in the address line.
You may reach from your home or an
outside computer by typing
F47R00@usps.gov in the address line.
Relocation Unit phone number is 202268-8700