Presentation on theme: "RELOCATION BENEFITS WHEN YOU ARE REASSIGNED Presented by MIKE GALLAGHER EASTERN REGIONAL COORDINATOR."— Presentation transcript:
RELOCATION BENEFITS WHEN YOU ARE REASSIGNED Presented by MIKE GALLAGHER EASTERN REGIONAL COORDINATOR
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 50 Mile Rule: 58 Miles - 5 Miles 53 Miles 5 Miles 58 Miles Former Residence Former Duty Station 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.
First 10 Days Second 10 Days Third 10 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 Example: Employee plus two dependents ($70 lodging) TEMPORARY QUARTERS Allowable Expenses
1st 10 days: TEMPORARY QUARTERS 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
2nd 10 days: TEMPORARY QUARTERS 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
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 TEMPORARY QUARTERS
Miscellaneous Expense Allowance 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 Form 4871 - Allowed
Miscellaneous Expense Allowance 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 Form 4871 - Allowed
Miscellaneous Expense Allowance 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: Form 4871 - Allowed
Miscellaneous Expense Allowance 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 Form 4871 - Allowed
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 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. REAL ESTATE TRANSACTIONS Form 4877 used to claim expenses
RELOCATION GUIDELINES FOR BARGAINING UNIT EMPLOYEES 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. REAL ESTATE TRANSACTIONS Form 4877 used to claim expenses
RELOCATION GUIDELINES FOR BARGAINING UNIT EMPLOYEES Overall limitations on reimbursement: 10% of sales price 5% of purchase price REAL ESTATE TRANSACTIONS Form 4877 used to claim expenses 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
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 Settlement Costs
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
Advance round trip En route travel Transportation of POVs Temporary quarters Transportation of mobile homes Allowable expenses that you can get advance funds for:
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.
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 that are 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. RELO Benefits not subject to Federal Income Tax withholding
OVERVIEW OF RELOCATION BENEFITS For Bargaining Unit Employees Relocation BenefitBargaining Employee Reassigned more than 50 miles from current commute Entitled to RELO Benefits Must sign Service Agreement prior Yes Advance house hunting1 Trip – 10 days Spouse on tripYes Entitled to Lodging and Per DiemYes Temporary quarters30 days Entitled to Lodging and Per DiemYes – 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 PurchaseNo Residence transactions – Selling 10% - Buying 5% Yes Equity Loss considerationNo Settling and unexpired leaseYes
OVERVIEW OF RELOCATION BENEFITS For Bargaining Unit Employees Brokerage Fees & CommissionsYes Legal FeesYes Advertising and Selling FeesYes Settlement CostsYes Shipment of Household GoodsYes Relocation Leave5 days Advance FundsYes (receipt or pay back)
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. F47R00@usps.gov Relocation Unit phone number is 202- 268-8700 RELOCATION information Is available to You