Maximizing PCS Benefits for Military Relocation

A Permanent Change of Station (PCS) is more than just a move; it is a significant life event that involves logistical complexities and financial considerations. For civilian employees of the Department of Defense (DoD), understanding the full scope of available benefits is the key to a smooth transition. The Joint Travel Regulations (JTR) provide a robust framework of entitlements designed to offset the costs of relocation, but maximizing these benefits requires knowledge and careful planning. This guide explores the various allowances available during a PCS move, how to accurately calculate and claim your expenses, and strategies for managing your finances effectively throughout the process.

Types of Benefits Available During a PCS Move

The government provides a wide array of benefits to cover the costs associated with moving you, your family, and your belongings. Knowing what you are entitled to is the first step in maximizing your relocation package.

Transportation and Travel Allowances

The core of PCS benefits covers the physical movement of personnel and goods.

• Travel and Transportation: You are entitled to transportation for yourself and your immediate family members. This includes per diem allowances for lodging and meals while en route.
• Household Goods (HHG): The government authorizes the shipment of up to 18,000 pounds of household goods. Alternatively, you may be authorized to transport a mobile home in lieu of HHG transportation if it is for use as a residence.
• Privately Owned Vehicles (POV): If authorized, the government may pay for the transportation of your vehicle, especially for OCONUS moves. If you drive your own vehicle, you receive a Monetary Allowance in Lieu of Transportation (MALT) plus per diem.
• Mobile Home Allowances: If you choose to move a mobile home, allowances include mileage when towed by the employee (currently $0.11/mile) or actual transportation costs if commercially transported, capped at what the government would have paid to move 18,000 lbs of HHG plus 90 days of temporary storage.

Housing and Quarters Allowances

Finding a new home takes time, and the JTR provides several allowances to bridge the gap.

• Temporary Quarters Subsistence Expenses (TQSE): This covers lodging, meals, and laundry expenses while you and your family are in temporary housing. TQSE is generally available when you are searching for a permanent residence at the new station.
• Living Quarters Allowance (LQA): For foreign OCONUS moves, this helps cover the annual cost of suitable, adequate living quarters for the employee and their family.
• Temporary Quarters Subsistence Allowance (TQSA): Similar to TQSE but specific to foreign areas, this covers the reasonable cost of temporary quarters, meals, and laundry for up to 90 days after first arriving at a new post.
• Home Service Transfer Allowance (HSTA): This assists with extraordinary, necessary, and reasonable expenses, including a miscellaneous expense portion, incurred when transferring to a post in the United States.

Specialized Allowances for Foreign Transfers

Moves outside the continental U.S. (OCONUS) come with additional support structures:

• Foreign Transfer Allowance (FTA): A multi-part allowance that includes a subsistence expense portion for temporary lodging before departure and a miscellaneous expense portion.
• Separate Maintenance Allowance (SMA): Paid when family members cannot accompany the employee to the new post due to safety, health, or other compelling reasons.
• Education Allowance: Helps cover the cost of education for children in foreign areas where local schools are not adequate.
• Post Allowance: A cost-of-living allowance granted when the cost of living at a foreign post is substantially higher than in Washington, D.C.

How to Calculate and Claim Eligible Expenses

Accurately calculating your entitlements ensures you are not left out of pocket. The JTR provides specific formulas and limits for reimbursement.

Calculating Reimbursements

• Per Diem: This allowance offsets the daily cost of lodging, meals, and incidental expenses. It is crucial to know the specific per diem rate for your travel locations.
• TQSE Calculations:
  • Actual Expense (AE) Method: You are reimbursed for the lesser of your actual allowable expenses or the maximum allowable amount for the eligibility period.
  • Lump Sum (LS) Method: Payment is based on the total number of people moving (employee and dependents), not just those occupying temporary lodging. This provides a fixed amount regardless of actual spending, which simplifies paperwork.
• Real Estate Expenses: Reimbursement for selling your old home is generally limited to 10% of the actual sale price. For purchasing a new home, it is limited to 5% of the purchase price.
• Mobile Home Transport: The maximum amount an agency can authorize for moving a mobile home cannot exceed the hypothetical cost of transporting 18,000 pounds of household goods plus 90 days of temporary storage.

The Claim Process

• Vouchers: Employees must submit vouchers to claim reimbursement. Your agency will instruct you on whether to submit one final voucher after the move or interim vouchers as costs are incurred.
• Receipts: Always keep receipts. For specific claims like withdrawing HHG from Non-Temporary Storage (NTS), receipts are required for expenses of $75 or more.
• Taxation: Be aware that many relocation benefits are considered taxable income. Your agency will calculate a Withholding Tax Allowance (WTA) to help offset the federal income tax deducted from your relocation reimbursements.

Tips for Budgeting and Managing Finances During Relocation

Relocation can be expensive upfront, even with eventual reimbursement. Proper financial management is essential.

Utilize Travel Advances

If you do not have a Government Travel Charge Card (GTCC), you may be eligible for a Travel Advance. This is an interest-free loan from the government to cover estimated travel expenses like per diem and mileage. It provides immediate cash flow but must be repaid, usually by offsetting it against your final travel claim. Advances are also available for the Foreign Transfer Allowance and Home Service Transfer Allowance.

Understand Financial Responsibilities

• Excess Weight: You are financially responsible for any shipping costs exceeding the 18,000 lb limit. This applies even if the transportation officer didn't warn you about the excess weight beforehand. Purge unnecessary items before the movers arrive.
• Service Agreements: To receive benefits like the Home Service Transfer Allowance or residence transaction reimbursements, you must sign a service agreement (usually 12 months). Failing to complete this service period usually results in a liability to repay the allowances.
• Lease Penalties: If you have to break a lease due to a transfer, lease penalty expenses may be reimbursable if the transfer was unavoidable and required by the agency.

Maximize Miscellaneous Allowances

Don't overlook the "miscellaneous expense" portion of various allowances (like the FTA or HSTA). These are designed to cover the small, hard-to-track costs that add up during a move, such as cutting utility connections or vehicle registration fees. Unlike itemized expenses, these often do not require detailed receipts up to a certain limit, providing a flexible buffer for your budget.