Relocation Policy — Nonbargaining (EAS) Employees Handbook/F-15-A Relocation Policies...Handbook...

Handbook F-15-A Relocation Policy — Nonbargaining EAS Employees

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Relocation Policy — Nonbargaining (EAS) Employees Handbook F-15-A February 2009

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Relocation Policy — Nonbargaining (EAS) Employees

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A. Purpose. Handbook F-15-A, Relocation Policy — Nonbargaining (EAS) Employees,incorporates and revises policy for nonbargaining (EAS) employees that was previously included in Handbook F-15, Travel and Relocation, Part 3.

B. Explanation. Handbook F-15 Part 3 for nonbargaining (EAS) employees was replaced to update relocation policy in keeping with the Postal Service’s strategic transformation initiatives.

C. Distribution.1. Online. Handbook F-15-A is available on the Postal Service Intranet.

a. Go to http://blue.usps.gov.b. Under “Essential Links” in the left-hand column, click on References.c. Under “Policies” on the right-hand side, click on PolicyNet.d. Click on HBKs.

D. Comments and Questions. Address any comments and questions on the content of this handbook to:

CORPORATE ACCOUNTING US POSTAL SERVICE 475 L’ENFANT PLAZA SW RM 8831 WASHINGTON DC 20260-5240

E. Effective Date. This handbook is effective immediately.

Lynn Malcolm Vice President, Controller


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Contents

1 Introduction ................................................................................................................................................................. 1 1-1 Organization........................................................................................................................................................ 1 1-2 Setting Policy, Approving Relocation, and Related Travel .................................................................................. 1

1-2.1 Role of the Postal Service .............................................................................................................................. 1 1-2.2 Role of the Relocation Management Firm ...................................................................................................... 1 1-2.3 Role of the Approving Official ......................................................................................................................... 1 1-2.4 Authorizing Relocation Benefits...................................................................................................................... 2 1-2.5 Where to Submit Authorization Form ............................................................................................................. 2

1-3 Responsibilities of the Transferee....................................................................................................................... 2 1-3.1 Signing PS Form 178, Relocation Travel Order and Relocation Agreement .................................................. 2 1-3.2 Commitment to Move and Remain at the New Duty Station .......................................................................... 3 1-3.3 Liabilities ........................................................................................................................................................ 3 1-3.4 Planning Your Travel...................................................................................................................................... 3 1-3.5 Avoid Unnecessary Expenses........................................................................................................................ 3 1-3.6 Submitting Expense Reports.......................................................................................................................... 3 1-3.7 Detail Assignment .......................................................................................................................................... 4 2 Relocation Benefits..................................................................................................................................................... 5

2-1 What This Chapter Covers.................................................................................................................................. 5 2-1.1 Benefits .......................................................................................................................................................... 5

2-2 Definitions ........................................................................................................................................................... 6 2-2.1 Approving Official ........................................................................................................................................... 6 2-2.2 Benefits .......................................................................................................................................................... 6 2-2.3 Effective Date of Transfer............................................................................................................................... 7 2-2.4 External Hire Employee.................................................................................................................................. 7 2-2.5 Home Sale Assistance Program..................................................................................................................... 7 2-2.6 Household Goods........................................................................................................................................... 7 2-2.7 Immediate Family Members ........................................................................................................................... 7 2-2.8 Mobile Homes ................................................................................................................................................ 8 2-2.9 New Duty Station............................................................................................................................................ 9 2-2.10 Principal Residence........................................................................................................................................ 9 2-2.11 Relocation eMail Address............................................................................................................................... 9 2-2.12 Relocation Consultant .................................................................................................................................... 9 2-2.13 Relocation Management Firm ........................................................................................................................ 9 2-2.14 Report-to-Work Date ...................................................................................................................................... 9 2-2.15 Spouse Employed by the Postal Service...................................................................................................... 10 2-2.16 Transferred Employee.................................................................................................................................. 10

2-3 Eligibility for Relocation Benefits ....................................................................................................................... 10 2-3.1 Distance Requirements ................................................................................................................................ 10 2-3.2 Liabilities ...................................................................................................................................................... 12

2-4 Limitations on Relocation Benefits .................................................................................................................... 12 2-4.1 Maximum Time for Completing Your Relocation .......................................................................................... 13 2-4.2 Maximum Time for Beginning the Home Purchase Program ....................................................................... 13 2-4.3 Time Extension for Military Service .............................................................................................................. 13 2-4.4 Time Extension for Duty Outside CONUS.................................................................................................... 13 2-4.5 Declining the Transfer .................................................................................................................................. 13 2-4.6 Waiving Repayment of Relocation Expenses............................................................................................... 13 2-4.7 Owning A Residence at the New Duty Station ............................................................................................. 14

2-5 Relocation Leave and Related Travel Time ...................................................................................................... 14 2-5.1 Relocation Leave.......................................................................................................................................... 14 2-5.2 Advance Round Trip Travel Time................................................................................................................. 14 2-5.3 En Route Travel Time .................................................................................................................................. 15


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2-5.4 Return Trip Travel Time to Former Residence ............................................................................................. 16 3 Expense Payments and Reimbursements .............................................................................................................. 17

3-1 What This Chapter Covers................................................................................................................................ 17 3-2 Lump Sum Allowance ....................................................................................................................................... 17

3-2.1 General Conditions....................................................................................................................................... 17 3-2.2 Authorizing the Lump Sum Allowance.......................................................................................................... 17 3-2.3 Lump Sum Allowance - Calculation and Payment........................................................................................ 18

3-3 En Route Travel Expenses ............................................................................................................................... 19 3-3.1 En Route Travel ........................................................................................................................................... 19 3-3.2 Use of a Privately Owned Vehicle (POV) for En Route Travel ..................................................................... 20 3-3.3 Claiming En Route Travel Expenses............................................................................................................ 20

3-4 Miscellaneous Expense Allowance ................................................................................................................... 21 3-4.1 Amount of Benefit......................................................................................................................................... 21 3-4.2 Requesting Payment .................................................................................................................................... 21

3-5 Use of Individually-billed Travel Card................................................................................................................ 21 3-6 Tax Assistance.................................................................................................................................................. 22

3-6.1 Explanation .................................................................................................................................................. 22 3-6.2 Relocation Expenses Subject to Income Tax ............................................................................................... 23 3-6.3 Relocation Expenses Not Subject to Income Tax Withholding..................................................................... 23 4 Movement and Storage of Household Goods......................................................................................................... 24

4-1 Making Shipping Arrangements ........................................................................................................................ 24 4-1.1 Policy............................................................................................................................................................ 24 4-1.2 RMF Services and Your Responsibilities ..................................................................................................... 24

4-2 Privately Owned Vehicle ................................................................................................................................... 25 4-2.1 What Is Included........................................................................................................................................... 25 4-2.2 Conditions for Shipping a POV..................................................................................................................... 25

4-3 Costs Associated With Moving a POV .............................................................................................................. 26 4-3.1 Driving a POV to the New Duty Station ........................................................................................................ 26 4-3.2 Costs of Shipping a POV Outside/Inside CONUS........................................................................................ 26

4-4 Receiving an Allowance to Move a Mobile Home ............................................................................................. 27 4-4.1 Computing Distances ................................................................................................................................... 27 4-4.2 Computing Benefits ...................................................................................................................................... 27 5 Residence Transactions and Lease Break.............................................................................................................. 28

5-1 Conditions and Requirements........................................................................................................................... 28 5-1.1 Settlement Expenses ................................................................................................................................... 28 5-1.2 Conditions for Reimbursement or Payment.................................................................................................. 28

5-2 Selling Your Home at the Old Duty Station ....................................................................................................... 29 5-2.1 General ........................................................................................................................................................ 29 5-2.2 Working with Real Estate Agents and Brokers............................................................................................. 30 5-2.3 RMF Marketing Assistance .......................................................................................................................... 31

5-3 RMF Home Sale Assistance Programs............................................................................................................. 32 5-3.1 General Explanation..................................................................................................................................... 32 5-3.2 Home Purchase Program............................................................................................................................. 32 5-3.3 Eligibility ....................................................................................................................................................... 32 5-3.4 Home Inspections and Disclosure Responsibility ......................................................................................... 33 5-3.5 Homes Ineligible for the Home Purchase Program ...................................................................................... 34 5-3.6 How the RMF Evaluates Your Home............................................................................................................ 36 5-3.7 Home Purchase Offer................................................................................................................................... 38 5-3.8 Costs Associated With the Home Purchase Program .................................................................................. 39 5-3.9 Receiving Equity........................................................................................................................................... 40 After you and the RMF execute the contract for the sale of your home, you receive the equity from your home, usually within seven (7) business days. ........................................................................................................................................... 40

5-4 Buyer Value Option Program ............................................................................................................................ 41 5-5 Home Finding Assistance and Mortgage Counseling........................................................................................ 41

5-5.1 Home Finding Assistance............................................................................................................................. 41 5-5.2 Home Mortgage Counseling......................................................................................................................... 42

5-6 Reimbursable and Nonreimbursable Expenses ................................................................................................ 42 5-6.1 Overall Limitations on Reimbursement......................................................................................................... 42 5-6.2 Real Estate Commissions ............................................................................................................................ 42 5-6.3 Other Advertising and Selling Expenses ...................................................................................................... 43


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5-6.4 Costs of Selling or Buying a Home............................................................................................................... 43 5-6.5 Other Settlement Costs ................................................................................................................................ 46 5-6.6 Expenses of Lease Break ............................................................................................................................ 46

5-7 Submitting for Reimbursement of Real Estate Expenses.................................................................................. 47 5-7.1 How to Apply for Reimbursement and How to Document Expenses............................................................ 47 5-7.2 How Your Claim Will Be Reviewed and Paid ............................................................................................... 48

5-8 Loss on Sale ..................................................................................................................................................... 48 5-8.1 Definition .........................................................................................................Error! Bookmark not defined. 5-8.2 Eligibility ....................................................................................................................................................... 48 5-8.3 Requesting Consideration for Reimbursement............................................................................................. 48 5-8.4 Receiving Reimbursement ........................................................................................................................... 49 6 Requesting a Deviation From Policy ....................................................................................................................... 50 7 Completing Relocation Expense Reports ............................................................................................................... 52

7-1 Using the Expense Reports Online System ...................................................................................................... 52 7-2 Supporting Documentation for Expense Reports .............................................................................................. 52

7-2.1 Organizing Receipts ..................................................................................................................................... 52 7-2.2 Miscellaneous Receipts................................................................................................................................ 52 7-2.3 Receipts for Sale or Purchase of a Residence............................................................................................. 53

7-3 Submitting Expense Reports............................................................................................................................. 53 8 Completing PS Form 178.......................................................................................................................................... 54

8-1 General ................................................................................................................Error! Bookmark not defined. 8-2 Completing PS Form 178.....................................................................................Error! Bookmark not defined. Relocation Agreement (To be read by employee).......................................................Error! Bookmark not defined.

Handbook F-15-A Relocation Policy — Nonbargaining Employees

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1 Introduction

1-1 Organization

This handbook is organized to help you find information as easily as possible. In general, procedures follow the typical step-by-step relocation sequence, from receiving authorization of benefits to completing requests for reimbursement of expenses incurred.

1-2 Setting Policy, Approving Relocation, and Related Travel

1-2.1 Role of the Postal Service Title 39, United States Code, Section 410 gives the Postal Service the authority to establish its own relocation policy. Current policy is presented in this handbook. All Postal Service relocation activities for nonbargaining (EAS) employees, and equivalent grade positions in the Inspection Service and Office of Inspector General, must comply with the policies stated in this handbook.

1-2.2 Role of the Relocation Management Firm All relocation services have been outsourced to a relocation management firm (RMF) to ensure that employees receive uniform information on authorized relocation benefits. The RMF provides guidance and assistance to transferring employees on our policy and processes, on expense reimbursement to ensure prompt payment of reimbursable expenses, and assists with arrangements for movement and storage of your household goods.

1-2.3 Role of the Approving Official A Postal Career Executive Service (PCES) employee must be the approving official for relocation authorizations.

As an approving official, you must review this handbook thoroughly to discuss the need for relocation benefits when interviewing potential


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candidates for vacant positions. You must be aware of your obligations and responsibilities, and that of your transferees.

1-2.4 Authorizing Relocation Benefits The appropriate approving official (PCES executive) at the relocating employee's new permanent duty station must authorize the relocation by signing the PS Form 178, Relocation Travel Order and Relocation Agreement.

The Form 178 must also be signed by the transferring employee.

Note: The approving official for an external hire is the vice president.

1-2.5 Where to Submit Authorization Form Submit the completed PS Form 178 to the ‘Relocation’ box in Outlook or fax it to 650-377-5357. Follow up the electronic submission of this form by mailing the original to the address listed on PS Form 178. Instructions for completion and submission of this form can be found in chapter 7.

Note: Relocation forms must be submitted at least 30 days prior to the transferring employee’s report-to-work date.

1-3 Responsibilities of the Transferee

Relocation benefits enable transferring employees to physically move their principal residence as quickly as possible and assume the responsibilities of their new position by assisting with duplicate housing expenses for a short period of time. You must use the same care and prudence as if you were relocating at your own expense.

Thoroughly review this guide to become familiar with your benefits and responsibilities.

1-3.1 Signing PS Form 178, Relocation Travel Order and Relocation Agreement

PS Form 178 lists relocation benefits you may be eligible to receive and is your service agreement. The appropriate approving official at the new duty station will indicate the benefits to be authorized and must sign this form before you can be reimbursed for any relocation expenses. See chapter 7 for an example of a properly prepared PS Form 178.


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1-3.2 Commitment to Move and Remain at the New Duty Station

By signing the PS Form 178, you are agreeing to:

• Physically move to the new duty station.

• Remain at the new duty station within the Postal Service for at least 12 months after the report-to-work date.

1-3.3 Liabilities If you utilize relocation benefits but decline to move to your new duty station, or do not complete your 12-month commitment, or leave the Postal Service before completing your commitment, you must repay all relocation expenses incurred by the Postal Service for you, including any relocation leave used. See section 2-4.4 - Declining the Transfer.

If you were authorized and receive benefits as an unqualified relocation in accordance with part 2-3.1.2, you must complete your 12-month commitment and move to the new community or repay all relocation expenses incurred by the Postal Service for you, including any relocation leave used. Distance moved is verified by Postal Service personnel.

1-3.4 Planning Your Travel Plan your itinerary to accomplish the relocation with minimal time and expense. Your travel schedule must be coordinated with approval from both old and new duty station officials. Select the least costly mode of transportation that provides adequate service.

1-3.5 Avoid Unnecessary Expenses Postal Service policy provides flexibility to relocating employees and will reimburse for allowable expenses. However, the RMF audits all expense reports submitted, and the Postal Service reserves the right to reduce what it determines to be excessive expenses.

1-3.6 Submitting Expense Reports Do not use eTravel to submit for relocation expense reimbursement. The RMF provides an electronic system to submit expense reports online, and you must use this system. An exception will be made for offices without Internet access to use paper vouchers supplied by the RMF.

Payments and reimbursements will be sent to you from the RMF. Your relocation consultant will discuss expense report submission and documentation with you. All relocation expenses are charged to the finance number of the new duty station listed on the Form 178. See chapter 6 for additional information.


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1-3.7 Detail Assignment If you are on a detail assignment that becomes your new duty station, regular travel benefits end on the day you are informed of the new permanent position. You should return home to make arrangements for your relocation move. If you remain in your new assignment and do not return home, your temporary quarters’ period begins the day following notification of the new position, and you will not be eligible for advance round trip and the en route travel trip. Your relocation cannot be delayed by a detail assignment as you must relocate according to Postal Service policy.


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2 Relocation Benefits

2-1 What This Chapter Covers

This chapter discusses relocation benefits available to eligible nonbargaining (EAS) employees of the Postal Service and equivalent grade employees of the Inspection Service and Office of Inspector General. The level of the targeted position that you are about to assume determines the benefits to which you are eligible.

2-1.1 Benefits You may be eligible to receive the following relocation benefits:

Benefit EAS Reference

Relocation leave1 5 days Part 2-5.1

Advance round trip travel2 8 consecutive calendar days

Part 2-5.2

En route travel to new duty station 3 Yes Part 2-5.3 and Subchapter 3-2

Return trip travel to former residence4 2 days Part 2-5.4

Lump sum allowance5 Yes Subchapter 3-3

Benefit EAS Reference

Miscellaneous expense allowance $2,500 Subchapter 3-4

Tax assistance — federal and state income tax

Yes Subchapter 3-5

Use of RMF for:

Household goods shipment Yes Chapter 4

Household goods storage6 60 days Chapter 4

Home marketing assistance Yes Subchapter 5-2

Buyer Value Option (BVO) Yes Subchapter 5-3

http://blue.usps.gov/cpim/ftp/hand/f15/travel.htm#Your Reimbursable Expenses While Traveling

http://blue.usps.gov/cpim/ftp/hand/f15/finding.htm#Return Trips to Your Former


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Home Purchase Program7 Level 19 and above Subchapter 5-4

Home finding assistance Yes Subchapter 5-5

Old home closing costs Yes Subchapter 5-6

New home closing costs Yes Subchapter 5-6

Loss on sale of home at old duty station8 Yes Subchapter 5-8

Notes:

1. Five (5) days of relocation leave is in addition to authorized travel time for advance round trip and return trip home. An actual physical move of the employee's household is a requirement for eligibility for relocation leave. Not applicable to external hires or if transferring from another government agency.

2. Travel time for one advance round trip, not to exceed eight (8) consecutive calendar days. Scheduled work days in this travel period are recorded as work hours. Your lump sum allowance is calculated to include advance round trip expenses. Not applicable to external hires or if transferring from another government agency.

3. Applicable to external hires if over 100 miles with VP approval. 4. The employee is authorized two (2) work days for return trip travel time. The remaining days of

the trip must be scheduled days off, annual leave or relocation leave. Your lump sum allowance is calculated to include return trip expenses. Not applicable to external hires or if transferring from another government agency

5. Lump sum allowance is a calculated allowance to help defray travel costs for advance round trip, return trip home and temporary quarters’ expenses. Certain restrictions apply to external hires. See 2-3.1.3.

6. Storage of household goods may be extended to a maximum of 75 days when authorized by the approving official.

7. Minimum grade level for Inspection Service is 17 (law enforcement personnel only). See 5-3.3.2 for eligibility requirements. Not applicable to external hires.

8. Not applicable to external hires.

2-2 Definitions

Unless otherwise specifically provided in these regulations, the following definitions apply to relocation:

2-2.1 Approving Official A Postal Career Executive Service (PCES) employee must be the approving official for relocation authorizations.

2-2.2 Benefits You may be eligible to receive the following relocation benefits:

http://blue.usps.gov/cpim/ftp/hand/f15/buying.htm#Costs Associated With

http://blue.usps.gov/cpim/ftp/hand/f15/buying.htm#Equity Loss


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2-2.3 Effective Date of Transfer The date your new position is effective as shown on the PS Form 50, Notification of Personnel Action (exception to SF 50).

2-2.4 External Hire Employee A new career employee hired from outside of the Postal Service or from another government agency.

2-2.5 Home Sale Assistance Program An optional part of relocation policy designed to facilitate a relatively fast, efficient means by which an employee may sell his/her home with a minimum of cost, usually accomplished by a relocation management firm.

2-2.6 Household Goods Household goods are personal property which may be transported legally in interstate commerce and which belong to you and/or your immediate family at the time you are notified of the transfer before shipment or storage begins. The term includes household furnishings, equipment and appliances, furniture, clothing, books, and similar property. You must use the RMF for movement and storage of your household goods.

It does not include items such as airplanes, recreational vehicles, camper trailers, boats over 14 feet, utility and boat trailers, storage sheds, hand guns, ammunition, pets, birds, livestock, building materials, or any collection of property such as a wine collection, classic or antique cars, food stores, any home office equipment intended for use in conducting a business, other commercial enterprise, or hobby.

2-2.7 Immediate Family Members Only those immediate family members who are a part of your household at the time you are notified of your assignment and are moving with you are eligible for relocation benefits. Your family member’s status determines eligibility for benefits. Family members may be any of the following shown in the table below:


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Family Member(s) Details

Your spouse Refers to a person of the opposite sex who is a husband or a wife.

Note: Your spouse may be eligible for certain benefits as a result of your authorized relocation if employed by the Postal Service.

Common law: Spouses of common law are covered by the term “spouse” when the state they are moving from recognizes common law marriage, and verification can be provided that all requirements of the state have been met.

Same sex: Spouses of same sex marriages are not covered by the term “spouse” when used in relocation (Public Law 104-199, Defense of Marriage Act).

Separation and Divorce: If you are currently separating or divorcing and your spouse is not relocating with you, your spouse is not eligible for benefits. This status can also affect your eligibility to home sale assistance programs. For detailed information on eligibility for residence transactions, see chapter 5-1.

Fiancée: A fiancée is not eligible for benefits. If the marriage occurs during the relocation process, your spouse may be eligible for certain relocation activities that occur after the date of marriage.

Your children Refers to your natural offspring, stepchildren, adopted children, grandchildren, legal minor wards, or other immediate family member children who are under legal guardianship of you or your spouse. Each of these children must meet one of the following criteria:

Unmarried and under 21 years of age.

Physically or mentally incapable of supporting himself or herself, regardless of age.

An unmarried full-time student under 23 years of age.

A child born after your effective date of transfer is considered a part of your immediate family.

Your immediate family member parents

Refers to your parents or your spouse’s parents who are considered part of your immediate family and receive at least 51 per cent of their support from you or your spouse.

2-2.8 Loss on Sale Loss on sale reimbursement is a payment to help offset those losses if, due to market conditions, you sell your principal residence at your old duty station for less than you paid for it.

2-2.9 Mobile Homes A type of manufactured dwelling constructed on a metal frame, designed to be mobile, and used as a residence. Manufactured/mobile homes have metal frames that are not removed and may have a vehicle identification number (VIN). Where wheels, axles, towing mechanisms or related mobility hardware


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features have been removed and the structure affixed to a foundation, it remains a mobile home.

Modular Homes

Not included in the mobile home category are modular or system-built homes that are built in a manufacturing facility in sections and then transported to a job site 70-95% complete. The sections are lifted onto the home's foundation by crane. Modular homes are not constructed on frames and are often considered higher quality than “stick-built” homes due to the controlled conditions at the factory.

2-2.10 New Duty Station The ‘permanently assigned location’ listed on the PS Form 50 where an employee regularly reports for work.

2-2.11 Principal Residence Principal residence means your main home. It does not include other homes that are owned or kept up by you or members of your immediate family. It does not include seasonal or second homes, such as a beach home. It is the old residence before leaving for the new job location. It is the new home within the area of your new job location.

2-2.12 Relocation eMail Address An email address used by transferring employees or hiring managers to obtain relocation information. You may contact the Relocation Unit by typing Relocation into the address line in Outlook or by typing [email protected] from an outside server. Relocation information may also be obtained by dialing 202-268-8700.

2-2.13 Relocation Consultant The RMF will assign a relocation consultant to assist you with your move. The relocation consultant will explain your available relocation benefits and answer questions relative to each phase of your relocation.

2-2.14 Relocation Management Firm The RMF is a firm contracted by the Postal Service to provide counseling on postal relocation policy and services for residential transactions, movement of household goods, and relocation expense reimbursements.

2-2.15 Report-to-Work Date The date an employee reports for duty at the new duty station.

mailto:[email protected]


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2-2.16 Short Sale A loss mitigation solution when you find yourself “underwater” or upside down on your mortgage, meaning your home is worth less than the amount you currently owe on your loan note to your mortgage lender(s).

2-2.17 Spouse Employed by the Postal Service If you are authorized for relocation benefits, and your spouse is also employed by the Postal Service, only you will be authorized for relocation benefits. Your spouse will be afforded advance round trip travel time and en route travel time if your authorization includes these benefits. The spousal travel benefits must be completed within your relocation time period.

2-2.18 Transferred Employee An employee transferred from one official duty station to another for permanent duty.

2-3 Eligibility for Relocation Benefits

2-3.1 Distance Requirements To qualify for relocation benefits, you must meet the following distance requirement.

• The distance between your old residence and your new duty station must be at least 50 miles greater than the distance between your old residence and your old duty station. This is known as the IRS “50-mile rule.”

• The Postal Service also requires that you physically move your household to the new duty station. Distance moved is verified by Postal Service personnel using various mapping tools on the world-wide web and this determination is final. See the illustration and formula below to determine how the rule works.


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2-3.1.1 Exception to the Distance Requirement

As a transferring employee, if the district manager or area vice president requires that you move into your new community, you do not have to comply with the IRS’s 50-mile rule to be authorized relocation benefits. You must move to the new community since your move is considered “unqualified” by the IRS and all expenses paid to you or on your behalf are considered taxable income. See subchapter 3-6 for income tax withholding requirements related to an unqualified relocation move.

Note: A transferring employee must meet the distance requirement in section 5-3.3.2 (bullet item number 3) to be eligible for the home purchase program.

2-3.1.2 Eligibility of External Hires for Benefits

Employees hired from outside of the Postal Service must meet the IRS 50 mile rule. Benefits can only be authorized by the appropriate officer of the Postal Service. Eligibility to relocation benefits is not automatic.

Old residence

Old permanent duty station

New permanent duty station

New permanentduty station

3 Miles

38 Miles

Distance Test isNOT Met

38- 3

3535 is less than 50

Distance Test IS Met

58 - 3 55

55 is greater than 50

Formula:

Distance between old residence & new duty

station —

Distance between old residence & old

duty station

Miles from work

58Miles


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If the move is within IRS guidelines but less than 100 miles, the officer may authorize any of the following benefits:

• Buyer Value Option (BVO) home sale assistance program (certain requirements must be met).

• Direct Reimbursement of costs associated with home sale.

• Reimbursement of new home closing costs.

• Movement of household goods by the RMF.

• Miscellaneous expense allowance.

If the move meets IRS guidelines and is greater than 100 miles, the officer may authorize any of the above benefits plus:

• En route travel to the new duty station.

• Advance round trip for house hunting purposes.

• Temporary quarters allowance while locating permanent housing.

Advance round trip and temporary quarters allowance will be paid as a calculated lump sum.

Note: Return trip home and the home purchase program are not available to external hires.

2-3.1.3 Requirement for Spouse Employed by the Postal Service

If you and your spouse are employed by the Postal Service, only you will receive full relocation benefits. Your spouse is eligible as a family member only if they are moving with you. The spouse is eligible for advance round trip travel time for the purpose of seeking a permanent residence and en route travel when leaving the former residence and traveling to the new duty station. Time spent for these trips are to be charged as work hours.

2-3.2 Liabilities If you do not meet the distance rule as required by policy or do not physically move your household to the new duty station, you are not eligible to receive relocation benefits. You must repay any relocation expenses incurred by the Postal Service for you, including any relocation leave used.

2-4 Limitations on Relocation Benefits

Relocation benefits are provided to help move you quickly to the new duty station to assume the responsibilities of your new position by assisting in offsetting duplicate housing expenses for a short period of time. It is to your advantage to complete your move as quickly as possible.


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2-4.1 Maximum Time for Completing Your Relocation The maximum time to complete your move and receive reimbursements is two years from the date you report to work. All allowable travel and residence transactions must be completed and reimbursed to you within two years from your reporting date to your new duty station. Relocation benefits must not be delayed.

2-4.2 Maximum Time for Beginning the Home Purchase Program

If you are eligible to participate in the Home Purchase Program, you must notify your relocation consultant within 45 days of your report-to-work date to begin the process. The 45 day period for this program will not be extended.

2-4.3 Time Extension for Military Service The period for completing your relocation may be extended for any time you spend in active military service.

2-4.4 Time Extension for Duty Outside CONUS If you are reporting for duty outside the continental United States (CONUS), the period may be extended for any time lost as a result of shipping restrictions.

2-4.5 Declining the Transfer If you decline the transfer after you receive relocation funds from the RMF or incur a relocation-related expense paid on your behalf by the Postal Service, you must repay it, including any relocation leave used.

2-4.6 Waiving Repayment of Relocation Expenses If you are transferred to a new duty station for the benefit of the Postal Service before completing your 12-month commitment, a letter waiving repayment of all expenses, including any relocation leave used, must be submitted by the gaining Area Finance manager or functional Headquarters manager to the manager, Corporate Accounting (Headquarters). An executed PS Form 178 signed by the functional vice president authorizing the new move must accompany the waiver letter. All current fiscal year expenses for the cost of the original move will be transferred to the gaining area office.

If you do not obtain a waiver, an employee receivable will be established for the repayment of all expenses associated with the previous move.

Note: If you are in the process of relocating and choose to accept a new position that requires a new move, any unused relocation benefits from the current relocation will end upon receipt of the authorization for new benefits.


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2-4.7 Owning A Residence at the New Duty Station If you are transferring to a new duty station and own a home there that will become your principal residence, relocation benefits will be limited.

2-5 Relocation Leave and Related Travel Time

If you are authorized for relocation benefits, relocation-related leave and travel may occur as follows.

2-5.1 Relocation Leave You are eligible for a maximum of up to five days of relocation leave (code 80). This leave is in addition to any other authorized travel time. It may be taken consecutively or as individual days but must be used by the time you settle into your new home. An actual physical move of the employee's household is a requirement for eligibility for relocation leave.

Your spouse may be eligible for relocation leave if the following conditions are met:

• Employed by the Postal Service.

• Moving with you.

• Awarded a position competitively.

• Successful candidate for a bid position at the new location if a bargaining employee.

Note: Not applicable to external hires or if transferring from another government agency.

2-5.2 Advance Round Trip Travel Time Advance round trip travel time to the new duty station is for the purpose of seeking a new residence at the new duty station. The approving official can authorize one trip, with a maximum of eight consecutive calendar days (including travel time and holidays/scheduled days off).

When circumstances warrant, the Postal Service reserves the right to consider the distances between old and new duty stations and the mode of transportation to be used. In no case may the Postal Service authorize a trip of more than eight consecutive calendar days for advance round trip.

The following conditions apply:

• You must take the trip before you report to your new duty station.


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• Time will be recorded as work hours for scheduled work days during the period of absence for the approved advance round trip and you will not be charged leave.

• Expenses for this trip are included in the lump sum allowance (subchapter 3-2).

• You may drive your POV, if the mileage is less than 300 miles. The most direct route must be taken so as to limit the amount of time in travel status.

• If your spouse is employed by the Postal Service and moving with you, the spouse may take this trip with you or instead of you. Your spouse will be paid work hours on scheduled work days while on the advance round trip and will not be charged leave. However, your spouse must take this trip before your family moves to the new duty station.

Note: Travel time for advance round trip is not applicable to external hires or if transferring from another government agency.

2-5.3 En Route Travel Time

The approving official may authorize en route travel time for a one-way trip from the former residence to the new duty station. Use the en route trip when reporting to work. The following conditions apply:

• Your travel schedule must be coordinated with both your old and new duty station officials.

• You will be in work status for scheduled work days while traveling en route, and you will not be charged leave.

• Employees obtain expense reimbursement by submitting an online expense report as described in subchapter 3-2. Do not submit for reimbursement for relocation benefits through the eTravel system.

• Use of a privately owned vehicle (POV) for traveling to the new duty station is encouraged, and is considered advantageous to the Postal Service. You are required to drive your POV when the mileage to the new duty station is less than 800 miles. The most direct route must be taken so as to limit the amount of time in travel status.

• You and your family must drive a minimum of 300 miles per day. If your travel time exceeds that which would be applied to the most direct route or you do not drive at least 300 miles per day, any additional travel time used will be charged to relocation leave or annual leave.

• If your actual travel involves departure and/or destination points other than the old and new residence, the travel time authorized for en route travel cannot exceed that which would be applied to the most direct route from the old duty station to the new duty station. Any additional travel time used will be charged to relocation leave or annual leave.


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• If your spouse is employed by the Postal Service and moving with you, your spouse will be in work status while traveling en route and will not be charged leave for scheduled work days.

Note: Only applicable for an external hire if distance is over 100 miles to new duty station with VP approval.

2-5.4 Return Trip Travel Time to Former Residence You may be authorized for one round trip from the new duty station to your former residence. Your travel schedule must be approved by your new duty station officials. The following conditions apply to the return trip:

• The trip must be used to conclude relocation-related business or to accompany your family to the new duty station when they vacate the old residence.

• The return trip to your former residence must be used by the time you settle into your new home.

• Two work days are authorized as travel time. The remaining days of the trip must be scheduled days off, annual leave or relocation leave.

• If driving, the most direct route must be taken to limit the amount of time in travel status.

• Expenses covered during return trip are for transportation only and are included in the lump sum allowance (subchapter 3-3).

• A spouse who is employed by the Postal Service may take this trip instead of you.

Note: Not applicable to external hires.


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3 Expense Payments and Reimbursements

3-1 What This Chapter Covers

This chapter explains the calculation and payment of the lump sum allowance, expense reimbursement for en route travel, payment of the miscellaneous expense allowance, and payment of tax assistance. It also covers use of the individually-billed travel card when utilized for relocation expenses.

3-2 Lump Sum Allowance

3-2.1 General Conditions If authorized, you will receive a calculated lump sum allowance intended to assist in offsetting expenses related to:

• one advance round trip for home finding purposes,

• a temporary quarters (TQ) allowance and

• one return trip to the old residence.

3-2.2 Authorizing the Lump Sum Allowance The approving official determines whether you receive each of the lump sum components listed on PS Form 178, Relocation Travel Order and Relocation Agreement:

• advance round trip,

• temporary quarters (TQ) allowance,

• and return trip to the former residence.

The decision to authorize a component can be influenced by a factor such as a prolonged detail to the new duty station.


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The advance round trip from the old duty station enables you and/or one of your immediate family members to locate permanent housing at the new duty station.

The TQ allowance enables you to obtain temporary lodging from commercial sources until you can move into your new residence.

A return trip to the old residence is provided to conclude relocation-related business.

3-2.3 Lump Sum Allowance - Calculation and Payment The lump sum calculation is based on the following factors:

• your family composition,

• whether you are a homeowner or non-homeowner at the old duty station,

• and the distance to your new duty station.

The lump sum amount is calculated and paid by the RMF based on the GSA travel rates published for your new duty station. Your PS Form 178 and PS Form 8059 must be received and processed by Accounting Services in San Mateo prior to payment. You must request payment of your lump sum allowance through the expense report online system on the RMF’s website

When authorized, your lump sum amount may include the following components:

a. Advance round trip component includes:

• per diem and lodging at 100 percent of the GSA rate at the new duty station for eight days/seven nights;

• per diem at 100 percent of the GSA rate at the new duty station for eight days/seven nights for one immediate family member (if moving with you);

• airfare for one round trip at the GSA city pairs rate;

• airfare for one round trip at the GSA city pairs rate for one immediate family member (if moving with you);

• car rental allowance at the government/military contract rate for eight days;

• child care expenses of $50 each day for each child under 17 years of age with a maximum of $150 per day

Note: If the new duty station is less than 300 miles from your old residence, you will receive an amount equal to round trip mileage plus 100 miles in lieu of the car rental allowance and airfare.

The per diem and mileage rates used are the current rate published on the GSA.gov website under Most Requested Links.


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b. Return trip component includes:

• transportation expenses to and from the terminals and airfare for one round trip at the GSA city pairs rate or

• round trip mileage at the current travel rate if the new duty station is less than 300 miles from the old location.

c. Temporary quarters’ component includes:

• 30 days per diem and lodging at 100 percent of the GSA rate at the new duty station if you are a non-homeowner in the old location or

• 60 days per diem and lodging at 100 percent of the GSA rate at the new duty station if you are a homeowner at the old duty station.

Note: The actual number of trips or days spent in TQ will not change the basis for the calculation of the lump sum allowance.

3-3 En Route Travel Expenses

3-3.1 En Route Travel En route travel occurs when you and/or your family leave your old residence to report to the new duty station. You must utilize the en route trip to report to work or to accompany your family to the new duty station when they vacate the old residence. Your family may travel with you or separately at a later date.

3-3.1.1 Expenses for Transportation, Lodging, and Per Diem

If authorized, you and your family are eligible for reasonable lodging expenses, POV mileage, coach air or train fare and, transportation to and from terminals, plus the following:

• For you: 75 percent of the daily per diem rate of your new duty station for the first and last day of travel. 100 percent of the daily per diem rate for all other days you are in a travel status.

• Your spouse: 75 percent of your per diem rate if traveling with you; or the same percentage as you of the daily per diem rate of your new duty station if traveling alone.

• For each of your other immediate family members: 75 percent of your per diem rate.

3-3.1.2 Exclusion for the 12-hour Rule

The limitation provision that disallows per diem for travel less than 12 hours does not apply to en route travel when the total distance traveled is greater than 100 miles.


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3-3.1.3 En Route Travel Completed in One Day

When en route travel is completed in one day, per diem will be applied as follows:

a. For you: 75 percent of the daily per diem rate of your new duty station.

b. For your spouse and immediate family members: 75 percent of your daily per diem.

c. If your spouse does not accompany you and travels alone: 75 percent of the daily per diem rate of the new duty station.

3-3.2 Use of a Privately Owned Vehicle (POV) for En Route Travel

3-3.2.1 Use of POV

Use of a privately owned vehicle (POV) for traveling to the new duty station is required if the distance from the old residence is less than 800 miles. The Postal Service will reimburse mileage at the same rates listed on the GSA.gov website.

3-3.2.2 Minimum Travel Distance Requirement

You must drive a minimum of 300 miles per day. You must use the most direct route when traveling from the old residence to the new duty station or residence. If you deviate from the most direct route, you will be responsible for any additional expenses or time incurred.

3-3.2.3 Computing Per Diem Rates Based on Minimum Driving Distance

The RMF calculates the maximum number of days allowed for travel by dividing your one way mileage by 300 miles. The per diem percentages in part 3-3.1.3 apply to the result.

3-3.2.4 Deviating From the Most Direct Route

If the actual travel involves departure and/or destination points other than the old and new residence, the mileage, lodging, and per diem reimbursement may not exceed the amount paid for the travel from the old duty station to the new duty station.

3-3.2.5 Use of Government or Postal Service Owned Vehicle

Use of a government or Postal Service owned vehicle for any relocation-related travel is not authorized.

3-3.3 Claiming En Route Travel Expenses Request reimbursement for expenses by submitting a claim using the expense reporting online system provided through the RMF. Do not use eTravel for reimbursement of relocation expenses.


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Your relocation consultant will discuss expense report submission requirements with you. Expense report submission and receipt requirements can be found in chapter 6 of this handbook.

3-4 Miscellaneous Expense Allowance

3-4.1 Amount of Benefit You may claim $2,500 as your miscellaneous expense allowance (MEA), regardless of marital or family status. This benefit is intended to cover any relocation-related expenses not otherwise covered by postal policy. No itemization is required when requesting reimbursement. However, the following criteria must be met:

3-4.2 Requesting Payment The following criteria must be met:

• Your SF Form 50 is processed by Human Resources.

• Accounting Services in San Mateo notifies the RMF that the SF Form 50 has been processed.

o One of the following triggering events has occurred:You have sold your old residence or broken your lease.

o You have completed a contract for the purchase or lease of a new residence at the new duty station.

o You have scheduled movement of your household goods.

• The RMF receives a request for payment of the MEA from the employee through the expense report online system.

3-5 Use of Individually-billed Travel Card

Do not use the eTravel system for reimbursements or payments of relocation-related expenses. If you use your individually-billed travel card to purchase meals, lodging or transportation, you are responsible for payment directly to the travel card issuer.

You must make your travel arrangements and those for authorized family members as you would if you were traveling for official Postal Service business. To obtain government rate air fares you must charge them to the individually-billed travel card.

Additionally, you may use your travel card for temporary quarters’ expenses pending occupancy of a permanent residence at the new duty station.


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You may not use your individually-billed travel card for any other non-travel related relocation expenses including

• residence transactions;

• any deposits, for lodging or otherwise, which will be returned to you;

• or shipment of household goods.

Note: Requests for reimbursement of relocation expenses are submitted through the RMF. Do not use the eTravel system. Once you receive reimbursement, you are responsible for payment directly to the travel card issuer.

3-6 Tax Assistance

3-6.1 Explanation For tax purposes, some reimbursements paid to you or payments made on your behalf for your relocation expenses are considered part of your taxable income.

Tax assistance is an amount the Postal Service pays directly to the Internal Revenue Service (IRS) for federal taxes, to the Social Security Administration and to your state of residence on your behalf as an estimate of the income tax you will owe for certain relocation expense reimbursements and payments.

Tax assistance is calculated based on your new annual salary and family status information provided on PS Form 178, Relocation Travel Order and Relocation Agreement. You are responsible for paying any additional tax owed that is not included in the estimated amount paid by the Postal Service.

The RMF must use the state tax code currently contained in your employee master file record in Eagan. Employees are responsible for maintaining their correct state code for state income tax purposes in their record by filing a PS Form 1198, Request for State Income Tax Withholding. Complete and mail the form to the following:

GREENSBORO HR SHARED SERVICES CENTER

7023 ALBERT PICK RD

GREENSBORO NC 27409-9900

The Postal Service does not assist for Medicare taxes, the home sale incentive bonus or local income taxes.


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3-6.2 Relocation Expenses Subject to Income Tax

3-6.2.1 Transactions Reported as Income

The Postal Service will report the following transactions related to relocation as income on your Form W-2:

• En route trip expenses for all meals and a percentage of the mileage reimbursement based on IRS guidelines.

• The lump sum allowance.

• Residence expenses involving the sale of your old residence and the purchase of your new residence that may be taxable, including the home sale incentive payment and lease break expenses.

• The miscellaneous expense allowance.

• The expense of storing household goods over 30 days

• All tax assistance.

3-6.2.2 Reporting Moving Expenses and Withholding Taxes

The RMF calculates and the Postal Service pays taxes at your estimated federal and state tax rate, rounded to the nearest dollar. You, the IRS, and your state tax authority determine your actual tax liability at the time you file your tax returns. Your relocation payments and all Postal Service-paid tax assistance will appear on your regular Form W-2, Wage and Tax Statement.

The RMF also provides a courtesy relocation summary package (RSP) itemizing all payments made to you or paid to a third party on your behalf at or around the time you receive your W-2 forms from the Postal Service.

3-6.3 Relocation Expenses Not Subject to Income Tax Withholding

If your move is considered a qualified relocation by the IRS, certain expenses are not subject to federal income tax withholding. They are:

• Expenses for moving household goods and personal effects from the former residence to the new residence at the new duty station.

• Expenses reimbursed for lodging and a portion of your POV mileage allowance that you and your immediate family incur while en route to the new residence.

• Expense for the first 30 days of household goods’ storage.

Note: These expenses are subject to income tax withholding if the relocation is considered to be unqualified by the IRS as described in Part 2-3.1.1.


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4 Movement and Storage of Household Goods

4-1 Making Shipping Arrangements

4-1.1 Policy You must use the services of the relocation management firm (RMF) for the transportation and storage of your household goods. Your relocation consultant will discuss with you what can and cannot be shipped or stored.

4-1.2 RMF Services and Your Responsibilities

4-1.2.1 RMF Services

The Postal Service has a contract with a RMF to provide relocation moving services to Postal Service employees. The Postal Service pays the cost for transporting your household goods in one lot from your old residence to your new residence at the new duty station.

The RMF will coordinate activities associated with the shipment of household goods to your new duty station, such as the following:

• Appointing a consultant to review procedures with the transferee and establishing a moving date.

• Selecting a qualified van line and/or agent.

• Determining appropriateness of what can and cannot be shipped or stored.

• Monitoring packing, loading, and arrival schedules.

• Resolving and processing any damage claims.

• Shipping household goods up to a total net weight of 18,000 pounds.

• Providing $180,000 (maximum) current replacement value insurance on household goods.

• Providing a $2,000 (maximum) allowance for crating and uncrating items requiring this service as identified by the RMF agent or van line.


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• Providing a $350 (maximum) allowance for disassembly and assembly of recreational items such as pool tables or game tables.

• Storing household goods up to 60 days, if necessary. The approving official may authorize up to 15 additional days. No additional extensions may be authorized.

4-1.2.2 Your Responsibilities

You are responsible for the following:

• Ensuring that only your immediate family’s personally-owned household goods are shipped.

• Paying for and making your own arrangements for shipping airplanes, collectible or antique cars, camper trailers, boats over 14 feet that do not fit in the moving van, utility and boat trailers, storage sheds, hand guns, ammunition, pets, birds, livestock, building materials, or any collection of property intended for use in conducting business, other commercial enterprise, or a hobby.

• Paying for additional insurance and for all excess charges and special packing, crating, and handling of weight additive or household goods items beyond the limits authorized by the Postal Service in section 4-1.2.1.

• Paying for and making your own arrangements for shipping any household goods obtained en route to the new duty station, or household goods that are not appropriate for shipping as identified by the RMF consultant or van line agent.

• Paying for an extra pick up or extra drop off of household goods within a reasonable distance to authorized departure/destination locations.

4-2 Privately Owned Vehicle

4-2.1 What Is Included A POV includes a passenger automobile, light truck, or other similar vehicle that is used primarily for personal transportation to and from work on a daily basis. Excluded is any vehicle intended for commercial or recreational use, including automobiles classified as ‘collectible’ or ‘classic.’

4-2.2 Conditions for Shipping a POV Authorization for shipping a POV by car carrier will be considered only if you owned the POV before you became aware that you would be assigned to a new duty station and the following conditions are met:


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• one POV may be shipped by car carrier if the mileage from your old residence to your new duty station is over 800 miles

• two POVs may be shipped by car carrier if your mileage is over 800 miles and your immediate family moving with you has more than one licensed driver

• Under no circumstances will shipment by car carrier be authorized for more than two POVs.

If either the old or new duty station is outside the continental United States (CONUS) (i.e., Hawaii, Guam, Puerto Rico, U.S. Virgin Islands) a maximum of one POV may be authorized for shipment, regardless of the number of licensed drivers in your immediate family.

4-3 Costs Associated With Moving a POV

4-3.1 Driving a POV to the New Duty Station Use of a privately owned vehicle (POV) for traveling to the new duty station is required if the distance from the old residence is less than 800 miles. The most direct route must be taken when driving to the new duty station. When you or a member of your immediate family drives an authorized POV to the new duty station, mileage reimbursement for each authorized POV will be at the rate listed for vehicle type on the GSA.gov travel website.

An employee without immediate family moving with them may claim reimbursement for driving one POV to the new duty station.

An employee with immediate family moving with them may claim reimbursement for driving as many POVs as there are licensed drivers to the new duty station.

4-3.2 Costs of Shipping a POV Outside/Inside CONUS When it is necessary to ship a POV from outside CONUS to the mainland and vice versa, the Postal Service will allow all necessary and customary preparation expenses, including crating, packing expenses, shipping charges, and port charges for readying the POV to be shipped from the port of embarkation. Customary preparation expenses at the port of debarkation, including uncrating will also be allowed. If you must drive the POV to a port that is not your origin or destination point to deliver or pick up the POV, the Postal Service will authorize reimbursement of the one-way transportation costs or one-way mileage.

Note: Consideration will be given to the cost of shipping the POV vs the actual blue book value of the POV.


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4-4 Receiving an Allowance to Move a Mobile Home

If you are eligible for shipment of household goods, as an alternative you may choose to take an allowance for moving a mobile home for use as your new residence (within CONUS only). The RMF does not arrange for shipment of mobile homes. You must make your own arrangements. Benefits for moving mobile homes are in lieu of shipment of household goods and in addition to payment of en route travel.

Note: Before you can receive this allowance, your PS Form 178 must reflect that you (and your immediate family) will live in the mobile home at your new duty station.

4-4.1 Computing Distances In the event you choose to move a mobile home either by commercial carrier or by towing it with a POV, your mileage reimbursement will be calculated based on the mileage via the most direct route from your former residence to your new residence.

4-4.2 Computing Benefits

4-4.2.1 How Much You May Claim

The total amount authorized for reimbursement for moving a mobile home will be no more than the maximum amount that would have been allowed for moving up to 18,000 pounds of household goods and storing them for a maximum of 60 days.

4-4.2.2 Non reimbursable Items

Benefits do not include costs of maintenance, repairs, storage, insurance for valuing the home above the carriers' maximum responsibility, or certain charges designated in the tariffs as "Special Service." (These would include such special services as packing and unpacking, which are necessary or desirable but which, unlike pilot cars required by state law, are not essential to transporting a mobile home from point to point.)

4-4.2.3 Transportation by Other Than Commercial Carrier

If, instead of using a commercial carrier, you tow the mobile home with a POV, the Postal Service will pay 11 cents per mile above the IRS mileage rate to cover all transportation costs for the mobile home. Thus, you would not claim fares for, bridge, road, tunnel tolls, ferries, and other charges as separate expenses. If you have not already been paid for en route travel to your new duty station, you may claim the standard mileage rate for the POV in addition to the 11 cents per mile for the mobile home.

4-4.2.4 Mixed Method Transportation

If you use a commercial carrier and towing for transportation, you must follow the rules in sections 4-4.2.1 and 4-4.2.2 for determining reimbursement.


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5 Residence Transactions and Lease Break

5-1 Conditions and Requirements

5-1.1 Settlement Expenses Postal Service policy allows for reimbursement of the following authorized settlement expenses:

• Certain fees for selling your principal residence at your old duty station.

• Certain fees for buying or constructing your principal residence at your new duty station (in association with obtaining financing only).

• Certain fees for breaking a lease for your principal residence at your old duty station.

• Certain fees for obtaining rented quarters as your principal residence at your new duty station (certain high cost metropolitan areas as determined by the Postal Service).

5-1.2 Conditions for Reimbursement or Payment To be eligible for reimbursement or payment on your behalf, you must satisfy all of the following conditions:

• The title to the residence (which may be a mobile home) at the old or new duty station, or the interest in a cooperatively-owned dwelling or an unexpired lease, meets one of the following criteria:

(1) Is in your name alone.

(2) Is jointly in your name and in the name of one or more members of your immediate family.

(3) Is solely in the name of one or more members of your immediate family.

• The title cannot be held in a trust.

• For disposition of property at the old duty station, you or your immediate family must have acquired the title or interest in the property before you were informed of the transfer.


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• For acquisition of property at the new duty station, you or your immediate family must acquire title or interest after you were informed of the transfer.

• The expenses of selling or of settling the lease are for your principal residence at the time you were informed of your transfer to your new duty station.

• The settlement dates for the sale and purchase, or for terminating the lease, are not later than two years after your report-to-work date at your new duty station.

• The expenses were actually paid by you and you occupied the home.

• If the residence is a multiple-occupancy dwelling and you occupy only part of it, your expenses will be reimbursed or paid on a prorated basis. In addition, your expenses will be limited to a reasonable amount required for the residence site.

• Expenses will not be reimbursed or paid for the purchase and/or sale of more than 5 acres.

Note: Noncompliance with the above conditions may result in an adjustment to your reimbursable settlement costs.

5-2 Selling Your Home at the Old Duty Station

5-2.1 General If you elect to sell your home at your old duty station due to relocation, there are three options offered to affect the sale.

Buyer Value Option Program (BVO) – This is a home sale assistance program available to all levels of nonbargaining employees but does not provide you with a “guaranteed buyout.” You must list the home and find a buyer on your own. You verbally negotiate an acceptable offer with the buyer then turn it over to the RMF to close the sale. DO NOT SIGN THE PURCHASE OFFER PRESENTED BY THE PROSPECTIVE BUYER. Notify the RMF immediately. The RMF will purchase your home from you based on the terms you have negotiated, resulting in a non-taxable transaction to you, similar to an amended sale. This program is described in detail in section 5-4.

Home Purchase Program – This home sale assistance program is provided by the RMF and is available to employees EAS 19 and above. You must list the home within 45 days of your report-to-work date and request that the RMF begin the program. Once the appraisals and inspections have been completed, the RMF purchases your home from you through a “guaranteed buyout” offer. The offer price is determined by averaging two appraisals. However, before accepting the buyout and while the home is listed, if you receive an acceptable purchase offer from an outside buyer and you would


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like the RMF to handle the sale, DO NOT SIGN THE PURCHASE OFFER WITH THE PROSPECTIVE BUYER. Notify the RMF immediately and turn the sale over to the RMF to close. The RMF will “amend” its guaranteed buyout offer to the negotiated price and buy your home from you before selling it to the outside buyer.

Both home sale assistance programs meet IRS guidelines as “third party” transactions and do not result in taxable income to you.

You are encouraged to use these programs if you are eligible. Both programs require that the home be listed with a licensed real estate brokerage until the home is sold.

Direct Reimbursement – This option to sell your home is not part of the home sale assistance programs. It allows you to sell your home, with or without the assistance of the RMF. There are no inspections other than those required by any potential buyer. After the sale is closed, you must submit a request for reimbursement through the expense report online system at the RMF.

This option results in additional costs for the Postal Service as well as creating taxable income to you and is reflected in your W-2 at year end. However, some homeowners prefer to sell the home on their own.

5-2.2 Working with Real Estate Agents and Brokers To participate in either the Home Purchase Program or the Buyer Value Option program, you are required to list your home for sale and keep it on the market for at least 30 days before the RMF is permitted to purchase it. You can choose a sales agent independent from the RMF, or if you wish, your RMF consultant will help you select a relocation network broker to give you home marketing advice. The choice is yours. Choosing an independent agent does not affect your eligibility for benefits.

However, if you are eligible to participate in either the RMF Home Purchase Program (subchapter 5-3.2) or the Buyer Value Option Program (subchapter 5-4) and select an independent agent, you must protect yourself against a possible real estate commission claim. When interviewing or selecting your agent, the agent must be willing to include a “no obligation for commission statement” in the Listing Agreement. The statement is included in Exhibit 5-2.3.1.


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Exhibit 5-2.3.1

Listing Agreement

This Listing Agreement is subject to the following provisions:

It is understood and agreed that regardless of whether or not an offer is presented by a ready, willing, and able buyer:

1) No commission or compensation will be earned by, or be due and payable to the broker until the sale of the property has been consummated between seller and buyer, the deed delivered to the buyer, and the purchase price delivered to the seller and

2) The sellers reserve the right to sell the property to (Name of Relocation Company or Employer) or (Name of any other party to be covered by this exclusion clause, individually and collectively a “Named Prospective Purchaser”) at any time. Upon the execution by a Named Prospective Purchaser and me (us) of an Agreement of Sale with respect to the property, this listing agreement shall immediately terminate without obligation on my (our) part or on the part of any Named Prospective Purchaser to either pay commission or to continue the listing.

You may assure the broker that if an offer presented by him results in an “amended sale” to the RMF, it will not affect the payment of the real estate commission. In an “amended sale,” the commission is paid by the RMF, not you, the seller. So if you receive an acceptable purchase offer from your listing with the broker and you would like the RMF to handle your sale, DO NOT SIGN THE PURCHASE OFFER. Contact your RMF consultant immediately.

Note: If the broker refuses to include the statement in exhibit 5-2.3.1 in the listing agreement, contact the RMF consultant before signing any listing agreement.

5-2.3 RMF Marketing Assistance Marketing assistance is an optional service available to all nonbargaining (EAS) employees and can start as soon as your initial contact with the RMF. The RMF will help you select a broker of your choice to provide home marketing advice to help sell your home. The goal is to help you get the best possible price for your home in a reasonable period of time.


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5-3 RMF Home Sale Assistance Programs

5-3.1 General Explanation There are two optional home sale assistance programs provided by the RMF, both resulting in the RMF purchasing your principal residence at the old duty station directly from you BEFORE selling it to an outside buyer. If eligible, you are encouraged to participate in these programs. Both programs result in a tax-protected “third party” transaction in accordance with IRS guidelines, and provide considerable tax savings to the Postal Service and you.

5-3.2 Home Purchase Program The “Home Purchase Program” enables employees to relocate quickly and assume the duties of the new position at the new duty station by extending a guaranteed buyout offer to you. The RMF purchases the home from you on behalf of the Postal Service.

This benefit must be initiated within 45 days of your report-to-work date to your new assignment.

This program meets IRS guidelines as a tax-protected “third-party transaction”. The transaction is non-taxable to you since you do not incur a broker’s commission or seller’s closing fees. Participation in this program is optional to eligible employees.

Note: Any eligible employee whose home qualifies to participate in the Home Purchase Program who obtains an outside sale for their home before accepting the RMF’s guaranteed buyout offer can earn an incentive payment. If the sale closes with that outside buyer, the RMF will send you a payment of two percent of the purchase price of the home (up to $5,000). The incentive payment is not tax-assisted.

If you receive an offer you would like to accept, DO NOT SIGN ANY DOCUMENTS with the buyer or buyer’s agent--immediately contact your RMF consultant.

5-3.3 Eligibility

5-3.3.1 Requirements for the Home Purchase Program

This program may be authorized for nonbargaining (EAS) personnel level 19 or above and Inspection Service personnel level 17 (law enforcement only).

To begin this home purchase program:

• you must list and market your home for sale with a licensed real estate broker/agent and include the “no obligation for commission” clause as shown in Exhibit 5-2.3.1 until a sale is made and


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• you must begin this program no later than 45 days from your report-to-work date to your new assignment.

You and your new manager must ensure adherence to this 45-day time frame.

5-3.3.2 Criteria The following criteria must be met:

• The home must be your principal residence and can be no more than a two-family residence. If the home is a two-family residence, it must be occupied only by you and your immediate family, as defined in part 2-2.7.

• The title to the home must comply with the conditions stated in part 5-1.2.a.

• The distance between your new duty station and your old residence must be at least 100 miles greater than the distance between your old duty station and your old residence.

• The home must be listed for sale through a broker or agent of your choice before initiating the Home Purchase Program and must remain on the market for sale for at least 30 days before the RMF is permitted to purchase the home.

• The home must have an anticipated sale value of no less than $50,000 and no more than $1,000,000 (as determined by the Postal Service). A broker’s market analysis will be ordered by the RMF to determine whether the home meets the minimum and maximum value criteria before the home purchase process can begin.

• The home must be situated on no more than five acres of land. (An exception for a lot size up to 10 acres may be considered if required by local zoning or covenants and it is common for the area.)

5-3.4 Home Inspections and Disclosure Responsibility Homes that are eligible for the Home Purchase Program are subject to inspections through the RMF. You are provided written notification by the RMF for:

• any inspections to be ordered,

• any potential for program ineligibility because of a disqualifying condition (based on exhibit 5-3.4),

and disclosure issues you may have when selling the home.

You must ensure that all repairs for any known disqualifying conditions are corrected at your expense before initiating the Home Purchase program and before the end of your 45 day initiation period. You must decide whether to pursue qualification for the Home Purchase Program.


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Exhibit 5-3-4.1 lists some of the inspections that may be performed.

Exhibit 5-3.4.1

Inspections That May Be Performed

Inspection Condition

Toxic Substances and Mold1

If suspected or disclosed by any party, you must decide whether or not to continue with the Home Purchase Program since an inspection is mandated. Positive test results will permanently disqualify the home from the Home Purchase Program and must be disclosed to any potential buyers.

Pest With the exception of condos, all homes are inspected for pests. A positive test result requires remediation at your expense to continue in the Home Purchase Program.

Structural Homes 25 years or older or if a problem is observed or disclosed by any party.

Roof Any roof 10 years or older, any other than asphalt shingles regardless of age, or if a problem is observed.

Special conditions

Presence of any/all of the following mandates an inspection: in-ground pools, hot tubs, septic systems, wells and underground storage tanks. Note: If you have an underground storage tank on your property, it must be removed at your expense prior to testing the soil for any contamination from the tank.

Condos Any inspection recommended by appraisers or the RMF due to potential issues disclosed by any party.

Other inspections

Any inspection recommended by appraisers or the RMF due to potential issues disclosed by any party.

Note: The RMF provides a radon gas contamination warranty to the buyer of any home purchased through the Home Purchase Program instead of inspecting the home. However, if you know your home is contaminated with radon gas you must fix the condition at your expense prior to initiating the program.

5-3.5 Homes Ineligible for the Home Purchase Program Homes with disqualifying conditions listed in exhibit 5-3.4.1 are not eligible to participate in either the Home Purchase Program or the Buyer Value Option program.

1 Remediation is required at your expense for any inspection resulting in a positive finding to remain in the Home Purchase Program with the exception of toxic mold. A positive toxic mold result permanently eliminates the home from both home sale assistance programs. Remediation of mold is not permitted.


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5-3.5.1 Notification of Disqualifying Conditions

• Once you initiate the Home Purchase program, you will be notified in writing if any disqualifying conditions are identified by the RMF during inspections.

Some disqualifying conditions can be corrected. You must repair the disqualifying condition(s) at your expense and in coordination with the RMF using a licensed qualified provider within the 60-day acceptance period following the date of written notification of value.

You must provide any requested repair warranty to qualify your home for the program. The RMF determines whether the disqualifying condition has been repaired.

Homes identified with toxic substance contamination (i.e. mold) cannot be repaired and are permanently disqualified.

Exhibit 5-3.5.3 Homes Ineligible for the Home Sale Assistance Programs

Homes Ineligible for the Home Purchase Program Mobile homes, houseboats

and yachts. Uninsurable homes. Homes that cannot be

financed. Homes that are not in

marketable condition as determined by the Postal Service.

Homes with structural defects or a roof life of less than 5 years as determined by the Postal Service.

Homes on which construction has not been completed.

Seasonal homes, farms or properties zoned agricultural.

Homes contaminated with radon gas, lead paint, mold, asbestos, urea formaldehyde foam insulation (UFFI), synthetic stucco, and other toxic or hazardous substances.

Homes that produce income. Two-family residences not

occupied by immediate family. Any multi-family residence.

Homes that do not comply with state and local codes.

Homes on leased land or cooperatively owned.

Homes with an outbuilding other than a garage used for parking your personal vehicle. (See section 5-3.3.2 for exception).

Homes where title is not clear or title is in the name of a person other than the employee or immediate family member.

Homes held in trusts. Homes involved in litigation or

included in current or pending divorce or separation property settlements.

Homes with active pest infestations such as termites.

Homes with deferred maintenance. Homes with values under $50,000 or

over $1,000,000 as determined by the Postal Service.

Other similar residences with any condition that will adversely impact sale of the home by, or create a known financial liability for the Postal Service.

Homes located on over five acres of land.


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5-3.5.2 Outbuilding Exception

An exception to homes with an outbuilding other than a garage can be made if the type of outbuilding is customary to the area with the understanding that you will be liable and/or responsible for the following:

• Expenses incurred for any additional inspections and/or appraisal required on the additional outbuilding as determined by the RMF.

• Any expenses for required repairs as a result of these inspections.

• Completing the repairs prior to the RMF purchasing the home.

5-3.6 How the RMF Evaluates Your Home

5-3.6.1 Evaluation of Your Home

The RMF offers a complete evaluation of your home. This evaluation process is typically completed within 35 days and is performed as follows:

• You select two primary appraisers and one alternate from a list provided by the RMF. The RMF will notify your choices to contact you to set up the appointment date and time.

• The two primary appraisers evaluate your home to provide an “anticipated sales price” based on a forecasted 90 to 120-day marketing period. The alternate appraiser would be used only if one of your primary choices is not available or a third appraisal is required.

• In addition to performing the appraisals, the RMF will appoint a real estate broker to make an assessment of your home and a property inspector to check for structural and other defects. If structural or other defects are discovered, you are responsible to complete required repairs at your expense before the RMF can purchase the home.

• After receipt and review of the appraisals and any inspections required, your RMF consultant will contact you to deliver your appraised value.

Delays in delivering your appraised value may occur because of the following:

• The two appraised values averaged together result in a variance of more than five percent thus creating the need for a third appraisal.

• If further inspections are required.

• Other extenuating circumstances.


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The following factors affect the appraised value of your home:

• Comparable sales values in your area.

• Current real estate market conditions in your area.

• Resale time projections common for the area.

If you have information on comparable sales in the immediate surrounding area of your home that you would like considered in the appraisers’ evaluations, complete a comparable sales form found in the RMF’s online program. The RMF consultant can discuss the form requirements with you.

5-3.6.2 Determining the Appraised Value

The two appraisals are reviewed by the RMF and the values are averaged together. This value is your guaranteed buyout offer and is referred to as your “appraised value”. If the difference between the two appraisals is greater than five percent, a third appraisal must be ordered and is performed by the alternate appraiser, if available. Until the third appraisal is received and reviewed, your consultant is not permitted to release any of the values to you. The appraised value of your home then becomes the result of the average of the two appraisals closest in value.

5-3.6.3 Request to Reevaluate Appraisals

If you or your agent provides factual data to address information you find to be in error in the appraisals, a corrective adjustment may be requested. Contact your RMF consultant and follow the established process to make your request. You must submit the supporting data to the appraisers who performed the analysis through your consultant at the RMF within 14 calendar days of the date you receive the written offer. You will be given up to 14 calendar days to review the results if a correction is suggested or necessary. The corrective adjustment may result in an increase or decrease to the appraised value, depending on market timing. The request for reevaluation and your review of the results must be completed within the 60-day acceptance period following the NOV.

Note: “Errors of fact” may or may not have an impact or contributory value on the anticipated sales price indicated in the appraisal in question.

5-3.6.4 Deferred Maintenance

Deferred maintenance is maintenance work or repairs that a prudent property owner would do but has not done.

If you purchased a home with deferred maintenance, and do not perform the repairs to correct the condition, the Postal Service will not purchase the home in the same condition. Postal Service policy requires that all maintenance work, including deferred maintenance, be performed to remedy the maintenance before the home can be purchased through the Home Purchase Program.


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5-3.6.5 Residences With Structural Defects and Other Deficiencies

If structural defects or other deficiencies are discovered before you vacate your home, an offer will not be made for the home until after the structural or other defects are repaired by you. If you receive your guaranteed buyout offer and must make repairs, the offer is contingent on those repairs being completed by you.

Bids from commercial sources for repairs must be submitted and approved by the RMF before any work may begin. Paid receipts are required to clear the contingency and re-inspections may be required.

If structural or other defects are discovered after you vacate, you are responsible for paying the RMF for repairs and subsequent re-inspections. Structural defects include those not readily visible during the appraisal process and during the initial structural inspection and assessment. Deficiencies include, but are not limited to, excessive cleanup costs.

5-3.7 Home Purchase Offer

5-3.7.1 Receiving a Home Purchase Offer

Your relocation consultant will contact you within five (5) days of completion of the appraisal process and advise you of the appraised value of your home. This advisement is referred to as the “notification of value” (NOV). The purchase offer (the “contract”), will be posted to your MyMove website for your review and download, along with copies of the appraisals. You will be given 60 days from the NOV date to accept the guaranteed offer.

The RMF may not purchase your home until your home has been continually listed for showings for a total of at least 30 days.

If you decline the purchase offer at any time, or do not accept the RMF’s purchase offer within the 60-day offer acceptance period, your participation in the Home Purchase Program ends.

Note: There are no provisions for readmission to the Home Purchase Program in postal policy.

5-3.7.2 Receiving an Amended Offer

If you are eligible to participate in the Home Purchase Program and receive a purchase offer from a potential buyer that you would like to accept after you receive your NOV, you should contact your consultant at the RMF immediately. Do not sign or initial the potential buyer’s documents.

• The RMF will review the purchase offer to ensure that it is a bona fide offer.

• Once the RMF determines the outside offer is bona fide, and all contingencies have been met, the RMF will amend the guaranteed buyout offer to reflect the outside offer price.

• When you sign the (amended) contract with the RMF, you have agreed to sell your home to the RMF.


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• The RMF then signs the amended contract effectively transferring the sale with the outside buyer to the RMF.

• The RMF executes the contract, effectively purchasing your home from you.

• The RMF completes the sale of the home to the potential buyer.

5-3.7.3 Receiving a Sales Incentive

If you are eligible to participate in the Home Purchase Program and receive a purchase offer from a potential buyer that the RMF closes, you may be eligible to receive a sales incentive.

• If you are successful in obtaining an amended sale, you are eligible to receive up to two percent of the purchase price of your home, not to exceed $5,000. The RMF must close the property with that outside buyer in order for you to receive the sales incentive.

• The RMF will automatically process the incentive for payment when the closing is completed and the file audited.

Note: If the sale falls through, you are not eligible for the sales incentive.

5-3.8 Costs Associated With the Home Purchase Program

5-3.8.1 Accepting the RMF’s Appraised Value Offer

You must vacate the property within 45 days after accepting the guaranteed buyout offer. The costs associated with the sale will be separated into those that the RMF will pay (and subsequently bill the Postal Service), and those that are your responsibility. Your costs will appear as deductions on the property equity statement and include the following:

• Interest on the mortgage, property taxes, homeowners association (HOA) dues, and operating and maintenance costs up to the date you contract with the RMF or your vacate date, whichever is later.

• Insurance, including policies for personal liability, damage, or loss of property. You will be responsible for insuring your home up to the date you contract with the RMF or your vacate date, whichever is later.

• Repair of structural defects or other deficiencies that are discovered after you vacate. Structural defects include those not readily visible during the appraisal process and during the initial structural inspection. Deficiencies include but are not limited to excessive cleanup costs.

• Title defects uncovered when processing purchase documents.


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5-3.8.2 Accepting an Amended Sale

If you accept an amended sale, you are responsible for costs as listed above for the home purchase program plus the following:

a. Any repair or improvement expense agreed upon during contract negotiations.

b. Any settlement costs or concessions which you have agreed to pay that are not normally a seller’s responsibility.

5-3.9 Receiving Equity After you and the RMF execute the contract for the sale of your home, you receive the equity from your home, usually within seven (7) business days.

5-3.9.1 Requesting Equity in Advance

Once you have received the RMF’s purchase offer for your home, you may request to receive equity in advance for the minimum down payment needed to hold a new home or for closing costs required to purchase your new residence at your new duty station. Employees must exercise discretion when requesting advanced equity, keeping in mind that your gaining office pays the prime interest rate on all equity released early and must do so until the home is resold to a third party.

To receive equity in advance from your old home during the 60-day acceptance period, you must do the following:

a. Submit an executed purchase agreement for your new home and a good faith estimate of closing costs.

b. Sign and submit the required RMF contract and promissory note provided to you by the RMF.

Upon receipt of all required paperwork by the RMF, you will receive your equity, usually within seven business days.

The remainder of the equity will be released when you vacate the property and it has been inspected and confirmed “broom clean” by the RMF’s agent.

5-3.9.2 Repayment of Equity

If you have received equity in advance and do not accept the RMF’s purchase offer for your home within the 60-day acceptance period, or the RMF disqualifies your home from the Home Purchase Program, you must immediately repay the full amount of the advanced equity in accordance with your promissory note prior to the 60-day expiration date of the acceptance period. Refusal or failure to repay the equity advance may result in an employee receivable being created by your gaining office or legal action, such as a lien being placed on your new home. Refusal to accept the RMF’s purchase offer or disqualification of your home ends your participation in the Home Purchase Program and there are no provisions for re-initiation in postal policy.


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5-3.9.3 Receiving Equity After Accepting the RMF Offer

Once you accept the RMF’s guaranteed buyout offer on your home, you may request to receive up to 95 percent of the equity in your home. The following events must occur:

• You must establish a date to vacate the home; this date must be within 45 days of the date you accept the offer.

• The RMF must confirm that all aspects of the sale are in order and all necessary documents have been executed and received.

• The holdback portion (5 percent) of your equity will be released after you vacate the property and it has been inspected and confirmed “broom clean” by the RMF’s agent.

5-4 Buyer Value Option Program

The Buyer Value Option Program (BVO) is available to all nonbargaining (EAS) employees. This is a home sale assistance program whereby the buyer sets the value of the home rather than appraisals.

To participate in the BVO program, you must market your home through a licensed real estate broker/agent of your choice and include the “No obligation for commission clause” in your listing agreement. When you receive an offer from an outside buyer you would like to accept, contact your relocation consultant at the RMF immediately. DO NOT SIGN any documents or the purchase offer with the potential buyer. The RMF will handle the sale for you, much like an “amended sale”.

Once the RMF determines the sale is a bona fide offer, the RMF will contract with you to purchase the home. You are legally and financially responsible for your home until the RMF executes the contract with you or until you actually vacate the property, whichever is later.

The details of this process are listed in 5-3.8.1. This program allows you to obtain your equity when the RMF accepts the sales offer and receives all required financial data.

Homes are excluded from the BVO program if any of the conditions listed in exhibit 5-3.4 are present.

5-5 Home Finding Assistance and Mortgage Counseling

5-5.1 Home Finding Assistance To help you find a new home at your new duty station, the RMF consultant contacts the broker you wish to use at the new duty station or recommends a real estate broker to work with you. The broker will provide information on


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your new location, including such information as real estate markets and comparative conditions. If necessary the broker may meet you in your new location, and give you a tour of neighborhoods.

5-5.2 Home Mortgage Counseling You may find your own mortgage lender for your new home or you can get mortgage counseling assistance through the RMF. The RMF mortgage counseling program includes counseling, information on available mortgages and kinds of mortgages (rates, fees and lender requirements), prequalification and referral to appropriate lending sources.

5-6 Reimbursable and Nonreimbursable Expenses

If authorized for residence transactions, you may be eligible to be reimbursed certain costs when buying a home at the new duty station or selling your home at the old duty station.

5-6.1 Overall Limitations on Reimbursement

5-6.1.1 Limit of l0 Percent of Sales Price

The Postal Service will reimburse you for allowable expenses incurred in connection with selling your residence at the old duty station. The amount of this reimbursement, however, cannot be more than 10 percent of the actual sales price.

5-6.1.2 Limit of 5 Percent of Purchase Price

The Postal Service will reimburse you for allowable expenses incurred in connection with buying a residence at your new duty station. The amount of this reimbursement, however, cannot be more than 5 percent of the purchase price.

5-6.2 Real Estate Commissions The Postal Service will reimburse a real estate commission that you paid for selling your residence as long as the commission does not exceed customary rates for that locality. No such commission or broker’s fee is reimbursable when you buy a home at your new duty station. If you or a member of your immediate family receives any compensation for performing brokerage/real estate services, you must deduct that compensation from the amount that you claim.


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5-6.3 Other Advertising and Selling Expenses The Postal Service will reimburse the costs of advertising (newspaper, bulletin board, multiple-listing services, or other advertising) to sell your residence at your old duty station if you have not paid for those services as part of a real estate commission.

5-6.4 Costs of Selling or Buying a Home

5-6.4.1 Costs of Selling or Buying a Home

The Postal Service may reimburse certain costs of selling or buying a home. The costs must meet all of the following conditions:

a. They have not been included in expenses claimed elsewhere.

b. They are customarily paid by the seller in the area of the old duty station, or by the buyer in the area of the new duty station.

c. They are not more than the amounts customarily charged in the locality of the residence.

5-6.4.2 Closing Costs for Selling a Home at the Old Duty Station

Certain closing costs related to the sale of your home at the old duty station may be reimbursed if they are customarily paid by the seller. These costs must appear on the Form HUD-1, Settlement Statement, and are included in the maximum reimbursement up to 10 percent of the selling price.

Some costs are not reimbursed. Exhibit 5-6.4.2 provides the HUD-1 settlement statement reference, a description of costs that may be reimbursed within authorized limits, and costs that are not reimbursed.


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Exhibit 5-6.4.2 HUD-1 Settlement Statement Reference List — Old Duty Station

HUD-1 Reference Description May be

Reimbursed 700/703 Sales/Broker’s Commission Yes 800 Items Payable in Connection with Loan No 900 Items Required by Lender No 1000-1008 Reserves Deposited with Lender For Hazard Insurance,

Mortgage Insurance, City/County Taxes, Assessments No

1101 Settlement or Closing Fee Yes 1102 Abstract or Title Search1 Yes 1103 Title Examination Yes 1104 Title Insurance Binder No 1105 Document Preparation Yes 1106 Notary Fee Yes 1107 Attorney/Closing Agent Fees2 Yes 1109 Title Insurance — Lender Coverage No 1110 Title Insurance — Owner Coverage1 Yes 1201 Recording/Filing Fees — Deed/Mortgage/Releases3 Yes 1202 City/county tax/stamps: Deed/Mortgage4 Yes 1203 State tax/stamps: Deed/Mortgage4 Yes 1301 Survey No 1302 Inspections — pest only Yes

Other Costs: Home Warranty No Transfer Fees No

Express Mail and Messenger Fees5 Yes Notes:

1. Seller normally furnishes an abstract or title opinion. In some areas, the seller provides title insurance-owner coverage. If you paid both the abstract/title opinion, and Title insurance — Owner Coverage, the Postal Service will reimburse the greater of the two charges, but not both.

2. Attorney services required at settlement must appear on the closing statement and will be reimbursed up to $500. Attorney services of more than $500, or attorney services not on the closing statement must be accompanied by (a) an itemized breakdown for the services provided, (b) the fees for each item of service, and (c) a statement indicating why an attorney was required for each service provided. Litigation and negotiation costs are not reimbursed.

3. Seller normally pays to record the deed and the buyer pays for recording mortgage and releases.

4. Seller normally pays for deed tax/stamps and the buyer pays mortgage tax/stamps. 5. Maximum reimbursement is $60.

5-6.4.3 Closing Costs for Buying a Home at the New Duty station

Certain closing costs associated with the purchase of a home at the new duty station may be reimbursed if they are customarily paid by the buyer. These costs are included in the maximum reimbursement up to 5 percent of the purchase price and must appear on the HUD-1 settlement statement. See Exhibit 5-6.4.3 for a list of settlement costs.


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Exhibit 5-6.4.3 HUD-1 Settlement Statement Reference List — New Duty Station

HUD-1 Reference Description May be

Reimbursed

801 Loan Origination Fee1 Yes 802 Loan Discount Fee No 803 Appraisal Yes 804 Credit Report Yes 805 Lender’s Inspection Fee2 Yes 806 Mortgage Insurance Application Fee No 807 Assumption Fee /Buy-down No 808 Commitment Fee No 809 Loan Processing Fee Yes 810 Flood Certification Yes 811 Underwriting Fee Yes 812 Tax Service Fee Yes 902 Mortgage Insurance (PMI)/Escrow No 904 Flood Insurance No 1003 Taxes Due/Escrow No 1101 Settlement or closing fee Yes 1102 Abstract or title search3 Yes 1103 Title Examination/Other Statutory Title Fees3 Yes 1104 Title Insurance Binder Yes 1105 Document Preparation Yes 1106 Notary Fee Yes 1107 Attorney/Closing Agent Fees4 Yes 1109 Title Insurance — Lender Coverage Yes 1110 Title Insurance — Owner Coverage3 Yes 1111 Escrow Fee Yes 1201 Recording Fees: Mortgage/Releases5 Yes 1202 City/county tax/stamp: Deed/Mortgage6 Yes 1203 State tax/stamps: Deed/Mortgage6 Yes 1301 Survey7 Yes 1302 Inspections — pest only Yes 1302 Inspections — all other8 No

Other Costs: Transfer Fees No

Express Mail and Messenger Fees9 Yes Loan Assumption Fee No VA or FHA Funding Fee1 Yes Loan Application Fee Yes


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Notes: 1. Maximum reimbursement is 1% for either the loan origination fee or VA/FHA funding fee. If

you paid both of these fees, you will be reimbursed for one fee with a maximum reimbursement of 1%.

2. Maximum reimbursement is $100. 3. Reimbursement is available for the greater of either title examination/title

search/abstract/other statutory title fees or title insurance — owner coverage. You cannot claim both.

4. Attorney services required at settlement must appear on the closing statement and will be reimbursed up to $500. Attorney services more than $500, or attorney services not on the closing statement must be accompanied by (a) an itemized breakdown for the services provided, (b) the fees for each item of service, and (c) a statement indicating why an attorney was required for each service provided. Litigation and negotiation costs are not reimbursed.

5. The buyer normally pays for recording mortgage and releases, and the seller pays to record the deed.

6. The buyer normally pays for mortgage tax/stamps and the seller pays for deed tax/stamps. 7. Maximum reimbursement is $500. 8. Inspections required by the lender or required by federal, state or local statue/ordinance

may be reimbursed. You must provide documentation stating the inspection was required. 9. Maximum reimbursement is $60.

5-6.5 Other Settlement Costs

5-6.5.1 Finance charges under the Truth in Lending Act and Regulation Z

The Postal Service will not reimburse any fee, cost, charge, or expense it determines is part of the finance charge under the Truth in Lending Act and Regulation Z.

5-6.5.2 Constructing a House

If you are constructing a house, the Postal Service will reimburse expenses comparable to the expenses that would be reimbursable if you were buying an existing house.

5-6.6 Expenses of Lease Break

5-6.6.1 Reimbursement for Lease Break

Certain expenses you incur for breaking a lease (including month-to-month rental) on residence quarters you occupied at your old duty station may be reimbursable. These expenses may include broker's fees for obtaining a sublease or the cost of advertising an unexpired lease. Expenses are reimbursable up to a maximum of 6 months rent if all the following conditions are met:

• You did not contribute to the cost by failing to give prompt and appropriate notice that you were terminating the lease after finding out that you were being transferred to a new duty station.

• The applicable laws or the terms of the lease provide for payment of breaking the lease.

• The costs cannot be avoided by subleasing or other arrangements.


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• The broker's fees or advertising charges do not exceed those typically charged for comparable services in that locality. You must itemize these expenses and enter the total amount on an expense report.

5-6.6.2 Claim for Lease Break Expenses

You must submit this expense report separately from the claim you make for expenses related to buying a home. You must support each item with a copy of the lease agreement and proof of payment.

5-7 Submitting for Reimbursement of Real Estate Expenses

You may submit a claim for reimbursement of authorized expenses that were paid by you for the sale of your home at the old duty station, or purchase of your home at the new duty station.

5-7.1 How to Apply for Reimbursement and How to Document Expenses

5-7.1.1 Claim for Reimbursement of Real Estate Expenses

The RMF will provide expense reports online and you must use these reports. If your new office does not have access to the Internet, the RMF will supply a manual expense report. You will need to submit documents and/or receipts showing that you paid the expense. The RMF consultant will discuss expense report submission and receipt requirements with you.

5-7.1.2 Documentation Required to Support Real Estate Expenses

Each item of expense you claim must be supported by documents showing the expense was paid. These documents include a copy of the following:

• A fully executed purchase agreement, including any addendum pages.

• A fully executed sales agreement, including any addendum pages.

• Signed HUD-1 settlement statement for a sale of your home at the old duty station or purchase of a home at the new duty station.

• Invoices or receipts for expenses paid and which are not included on the HUD-1 statement.


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• Disclosure statement required by Regulation Z issued by the Board of Governors of the Federal Reserve System and the Truth in Lending Act, Title I, Public Law 90–321, for all charges made by the lending institution toward the purchase of a new residence. Exception: A disclosure statement as stipulated under the Truth in Lending Act is not required when assuming the loan from the seller. You must add a statement to this effect to your expense report.

5-7.2 How Your Claim Will Be Reviewed and Paid Support documents for your online expense report, or your manual report if your office does not have access to the Internet, must be submitted to the RMF at the address provided in subchapter 6-3. Expenses claimed which are not authorized in this handbook will not be paid.

5-8 Loss on Sale

5-8.1 Loss on sale is a loss incurred as a result of economic conditions when selling your principal residence at the former duty station. It is the difference between the original sale price when you bought your principal residence and the total selling price (the amount you received) at resale. In the case of new construction, the basis would be the cost of the land, if purchased separately, plus the cost to build your residence.

5-8.2 Eligibility All nonbargaining (EAS) employees are eligible for the loss on sale benefit.

Note: External hires are not eligible for this benefit.

5-8.3 Requesting Consideration for Reimbursement To be considered for loss on sale reimbursement, the loss must have occurred as a direct result of conditions defined as slow, declining, or oversupplied in the area of your home at the time you sell it as determined by the USPS. The Postal Service will not consider loss on sale reimbursement if the Postal Service determines that the value of the home, when sold, was affected by lack of care or deferred maintenance, existing or pre-existing, on the part of the homeowner.


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5-8.3.1 Calculating Loss on Sale

Loss on sale is based on the difference between the original purchase price of your principal residence and the contracted sales price as indicated on the Form HUD-1 or RMF equity statement if you sold your home to the RMF. The table below will be used to determine the amount of your reimbursable loss.

5-8.4 Receiving Reimbursement

5-8.4.1 Submitting for a Loss on Sale Reimbursement

Write a memo that specifically outlines your reasons for requesting reimbursement, include the total amount you are requesting to be reimbursed and submit the following documentation following the instruction for requesting a deviation to relocation policy in 5-8. You must include the following documentation with your request:

• a copy of the original HUD1 settlement statement from the original purchase

• A copy of the HUD1 or the Final Equity Statement for the sale of the property.

5-8.4.2 Reviewing the Request

The manager of Corporate Accounting (Headquarters) will review the request and notify you of the outcome. If the request is approved you must request reimbursement through the expense report online system at RMF.

Loss on sale ($) Reimbursement @ (%)

From $1 to $25,000 100 From $25,001 to $50,000

50

Over $50,001 25


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6 Requesting a Deviation from Policy

Requests for deviations where specific allowance parameters exist in this handbook will not be considered. Deviations are approved only in extreme circumstances. If an unusual situation arises which is not directly addressed in this handbook (the case must be unique and beyond your control such as a natural disaster), a deviation request will be considered. To request a deviation, you must write a memo and submit it through your immediate supervisor with supporting documentation. Your memo must explain specifically your reasons for requesting the deviation. Pleading ignorance of the limitations stipulated in this handbook does not justify approval for a deviation. The process to request a deviation is as follows:


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Quick Step Details

Employee initiates request

1 Write a memo that specifically explains why you are requesting a deviation.

2 Attach supporting documentation to the memo and submit to the following:

• Field personnel forward their request to the district finance manager.

• Headquarters employees forward to their approving official.

Review

• For field personnel, the district finance manager will consult with the area finance manager who will evaluate the request.

• For Headquarters employees, the approving official evaluates the request and forwards the recommendation for approval or denial to the functional vice president; after further review, the functional vice president recommends approval or denial.

The area finance manager or the functional vice president forwards those requests for which he/she is recommending approval, with all supporting documentation, to the manager of Corporate Accounting (Headquarters).

Evaluation and response

1 The manager of Corporate Accounting (Headquarters) evaluates the request and makes the final determination.

2 The area finance manager or approving official receives a written response from Headquarters and notifies the relocating employee of the decision.

3 If the deviation request is approved, Headquarters notifies both the Accounting Service Center and the RMF. The RMF will process your claim after notification of approval and after receipt of your expense report online (with receipts/documentation, if required).


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7 Completing Relocation Expense Reports

7-1 Using the Expense Reports Online System

The RMF expense reports online system allows you to submit expense reports for payment of authorized relocation benefits, to review previously submitted expense reports, and to update or review your personal profile information. You must use this expense report service. An exception will be made if your office does not have access to the Internet. Your RMF consultant will explain how the expense reports online system works, or provide instructions for expense report submission if your office does not have access to the Internet.

7-2 Supporting Documentation for Expense Reports

7-2.1 Organizing Receipts Receipts should be attached to an 8 ½” by 11” letter size paper with tape for ease in handling. Make sure that you have all required receipts before submitting expense reports. Submit original receipts as indicated in 6-2.2. Documents pertaining to the sale or purchase of your residence transactions may be copies.

7-2.2 Miscellaneous Receipts

7-2.2.1 Receipts That Are Always Required

You must always have original receipts for the following items:

• Passenger tickets for air, rail, or bus.

• Lodging.

• Rental car.

• The mandatory fee associated with obtaining rented quarters in certain high cost metropolitan areas that can be claimed in addition to the Miscellaneous Expense Benefit.


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Air travel tickets must show the passenger name, class, flight, date, and price charge. Itemized lodging invoices must show a zero balance due. If the balance is not zero, you must provide proof of payment in addition to the lodging invoice.

Car rental company receipts must be the final receipt. You are expected to use the most economic means to refuel a rental car, such as a service or gas station, and you must provide a receipt.

7-2.2.2 Other Expenditures

You must attach original receipts for allowable expenditures that are more than $50, including any applicable tax.

7-2.3 Receipts for Sale or Purchase of a Residence Each item of expense you claim must be supported by documents showing the expense was in fact paid. These documents would include a copy of the following:

• A fully executed purchase agreement, including any addendum pages.

• A fully executed sales agreement, including any addendum pages.

• Signed Form HUD-1, Settlement Statement.

• Invoices or receipts for bills paid by you for authorized expenditures that do not appear on the settlement statement.

• Disclosure statements (required by Regulation Z and the Truth in Lending Act), as specified in section 5-6.7.2.

7-3 Submitting Expense Reports

Use the expense reports online system through your MyMove website to submit electronic expense reports. Submit your original receipts, other supporting documents, and manual expense reports if you do not have access to the address provided by the RMF.

Submit a separate expense report for your en route travel, miscellaneous expense allowance and your residence transactions. All subsequent expense reports which refer to the same type of expense must reference the original report submitted, i.e., if you amend your claim for en route travel expenses, refer to the first report you submitted. You should keep a copy of all expense reports and documents for your files.


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8 Completing PS Form 178 and PS Form 8059

8-1 General

This chapter contains instructions for completion of the following forms:

• PS Form 178, Relocation Travel Order and Relocation Agreement.

• PS Form 8059, Request for Relocation Management Firm (RMF) Services.

Relocation-related services will not be activated, nor will claims be processed, until the Relocation Management Unit receives both forms.

8-2 Completing PS Form 178

This subchapter shows you how to fill out PS Form 178. The steps are referenced to the sections in exhibit 7-2. You should type or print the following information:

This Blank . . . Is For This Information . . . a. Employee Name Enter employee's first name, middle initial and

last name. b. Employee

Identification Number or social security number

Enter the employee's 8-digit employee identification number or social security number for external hire.

c. Level of New Position Enter the level of the employee’s new position. d. Issuing Office (Name

and Location) Name and location of office issuing PS Form 178.

e. Employee Category Check the employee category at the new duty station.

f. Signature of Employee

Employee signature indicating they have read and understood the relocation agreement.

g. Date Completed Date employee signs relocation agreement section.

h. Official Duty Station Enter name and address of the employee’s new


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(Name and Address) — New

duty station.

i. Official Duty Station (Name and Address) — Old

Enter name and address of the employee’s old duty station.

j. Finance Number Enter the funding finance number. k. Reporting Date Enter date the employee reports for work at the

new duty station. l. Is the Employee

Currently on Detail at the New Station

Check “Yes” or “No” as applicable.

m. Transfer Authorization Check appropriate transfer authorization. n. Family Members Document the names of the employee's

immediate family relocating with the employee, their relationship to the employee, and age.

o. Allowable Expenses Postal Service will reimburse allowable expenses associated with the following: The approving official checks the benefits allowed for the transferee.

p. Old Duty Station Residential Status

Check the employee’s appropriate residential status at the old duty station

q. Signature of Authorized Official

Signature of authorized approving official.

r. Title Enter title of authorized approving official. s. Date The date the approving official signs the form.

Forward the originals of the forms 178 and 8059 to:

RELOCATION MANAGEMENT SECTION ACCOUNTING SERVICES U S POSTAL SERVICE 2700 CAMPUS DR SAN MATEO CA 94497-9420

The issuing office keeps a copy of PS Form 178 and gives a copy to the employee.


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Exhibit 7-2 PS Form 178, Relocation Travel Order and Relocation Agreement (DRAFT)


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Relocation Travel Order & Relocation Agreement Payee Name (First, M.I., Last) Employee Identification Number (EIN or SSN)

EIN/SSN __ __ __ __ __ __ __ __ __

Level of New Position

Hiring Office (Name and Location) New Salary Employee Category:

PCES Non-Bargaining Bargaining OIG

Relocation Agreement (To be read by employee)

Employees and new hires of the United States Postal Service (USPS) are required to execute this service agreement before they may receive any relocation benefits authorized by USPS regulations for permanent change of duty station in the interest of the Postal Service. 1. In consideration of my receiving the benefits provided by Handbook F-15A, F-15B, or F-15C, Relocation, as applicable, I hereby agree to report to and

remain at my newly assigned duty station as an employee of the USPS for a period of twelve (12) months following the effective date of my transfer. I understand the date of my transfer to be the date I report for work at my new duty station. I also agree to physically relocate my primary residence within the area of the new duty station.

2. I understand and agree that, if I violate this agreement, all money paid to me or to third parties by the USPS as benefits, and any relocation leave used by me in connection with my transfer, shall be recoverable from me as a debt owed to the USPS.

3. I further understand that the provisions of paragraphs 1 and 2 of this agreement will not apply if I am separated for reasons beyond my control and acceptable to the USPS or if I am transferred to a new duty station for the benefit of the Postal Service, as determined by an Officer.

4. I have read the appropriate sections of Handbook F-15A, F-15B or F-15C, as applicable, relating to relocation benefits.

Signature of Employee (Retired PCES and PCES Surviving Spouse do not sign)

Date Completed

New Official Duty Station (Name and Address)

Old Official Duty Station/Old Address (Name and Address)

Finance No. Reporting Date

Is the Employee Currently on Detail at the New Duty Station?

Yes No

Transfer Authorization:

Change in Official Duty Station Retired PCES, Surviving Spouse

New Hire

Immediate Family Members Moving With You:

Name: Relation: Age

Postal Service will reimburse allowable expenses associated with the following:

Advance Round Trip (Home finding)

En Route Travel to new duty station

Temporary Quarters

Return Trip

Shipment/Storage of Household Goods

Residence Transactions

Miscellaneous Expense Allowance

Spousal Job Search (PCES Only)

Spouse /////// Old Duty Station Residential Status: Homeowner Non-Homeowner

Signature of Authorizing Official

Printed Name and Title Date

The collection of this information is authorized by 39 USC 1001 and 2008. This information will be used to account for your official duty travel and relocation expenses. As a routine use, this information may be disclosed to a congressional office at your request; to OMB for review of private relief legislation; to a labor organization as required by NLRA; where pertinent in a legal proceeding to which the USPS is a party; to an appropriate law enforcement agency for investigative or prosecutorial purposes; to a government agency where relevant to a hiring, contracting, or licensing decision by the requesting agency; to a government agency in order to elicit information relevant to a hiring, contracting, or licensing decision by the USPS; to an expert or consultant under contract with the USPS to fulfill an agency function; to the Federal Records Center for storage; to the Equal Employment Opportunity Commission for investigating a formal EEO compliant filed against USPS under 29 CFR 1613; to an independent Certified Public Accountant during an official audit of USPS finances; and to the Merit System Protection Board or Office of Special Counsel for proceedings involving possible prohibited personnel practice. The completion of this form is voluntary; however, if this information is not provided, you may not be reimbursed for your travel and relocation expenses.


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8-3 Completing PS Form 8059

This subchapter shows you how to fill out PS Form 8059. The steps refer to the sections labeled in exhibit 7-3. You should type or print the following information:

This Blank . . . Is For This Information . . . a. Name of Transferee The employee's name. b. Old Office Telephone

Number The telephone number at which the employee can be contacted.

c. Employee Identification Number

The employee's 8-digit employee identification number.

d. Cellular Phone Number The cellular phone number at which the employee can be contacted.

e. New Finance Number The finance number of the employee's new duty station.

f. Old Home Telephone Number

The telephone number at the old duty station where the employee can be reached while off duty.

g. Address of old Residence

The employee's residence at the old duty station.

h. Address, or State of New Residence if Address is Unknown

The employee's residence at the new duty station. If unknown, enter the state where the employee will establish the new residence.

i. Address of New Duty Station

The issuing office's address.

j. New Office Telephone Number

The telephone number of the new office.

k. New Home Telephone Number, or Other Local Contact Number

The telephone number of the employee’s new residence. If unknown, a number where the employee can be reached while off duty.

l. Enter Distance in Miles Enter the distance in miles between the employee’s old home and old duty station, and old home and new duty station.

m. Signature of Approving Official

The approving official will sign here.

n. Printed Name and Title of Approving Official

The approving official's name and title.

o. Office Name The name of the office issuing PS Form 8059. Send the completed PS Form 8059 to:

RELOCATION MANAGEMENT SECTION ACCOUNTING SERVICES 2700 CAMPUS DR SAN MATEO CA 94497-9420

The issuing office keeps a copy of PS Form 8059.


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Exhibit 7-3

Request for Relocation Management Firm (RMF) Service

RELOCATION MANAGEMENT SECTION ACCOUNTING SERVICES U S POSTAL SERVICE 2700 CAMPUS DR SAN MATEO CA 94497-9420

Transferee Name (First, M.I., Last)

Old Duty Station Phone Number ( )

Employee Identification Number (EIN/SSN) ___ ___ ___ ___ ___ ___ ___ ___ ___

Employee Cell Phone Number ( )

New Finance Number

Old Home Phone Number ( )

Address of Old Primary Residence (for RMF to pick up household goods)

Address or State (if Address is unknown) of New Residence (for RMF to deliver household goods)

New Duty Station Phone Number ( )

Email Addresses; Personal and Business

New Duty Station Address Signature of Approving Official Typed Name and Title of Approving Official

Enter Distance in Miles: From Old Home to Old Duty Station __________ From Old Home to New Duty Station __________

Contact Phone Number and Email Address/New Duty

PS Form 8059, Draft August 2008

Relocation Policy — Nonbargaining (EAS) Employees Handbook/F-15-A Relocation Policies...Handbook...

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Transcript of Relocation Policy — Nonbargaining (EAS) Employees Handbook/F-15-A Relocation Policies...Handbook...