[Material Transmitted]{.underline}:

Department of Health and Human Services (HHS) Instruction 572-1, Payment
of Travel and/or Transportation Relocation Expenses, dated May 9, 2008.

[Material Superseded]{.underline}:

HHS Instruction 571-1, Payment of Travel and/or Transportation Expenses,
dated August 8, 1996

[Background]{.underline}:

[]{.mark}

This Instruction has been superseded due to the 2004 Federal Travel
Regulations (FTR) revision.

The FTR, contained in 41 Code of Federal Regulations, Chapters 300
through 304, implements statutory requirements and Executive branch
policies for travel by federal civilian employees and others authorized
to travel at government expense. The regulations were promulgated so
that official travel might be conducted in a responsible manner with
administrative costs minimization.

[]{.mark}

This revised Instruction:

-   Uses budgetary limitations in addition to whether a new appointee
    resides outside of the local commuting area to determine if
    relocation expense allowances will be placed on vacancy
    announcements.

-   Includes policy for payment of travel advances.

-   Includes policy related to relocation expense allowances for CONUS
    moves; eliminates references to overseas employment and payment of
    interview expenses, covered by different policy issuances.

-   Clarifies distinctions between relocation expense allowance and
    relocation incentive payments covered by the "3R's" policy.

-   Enumerates responsibilities.

-   Develops specific language that can be used for vacancy announcement
    postings to ensure consistency among all operating HR organizations
    in the Department.

-   Clarifies instructions for payment of mandatory or discretionary
    allowances when authorized to avoid misapplication of the
    regulations. Specifically, payment of all allowances listed in the
    tables as mandatory must be paid and cannot be selectively applied.
    Includes tables from FTR as exhibits in the policy to provide clear
    guidance on this provision of the policy and governing regulation.

-   Includes provisions for reporting and accountability reviews as
    required.

This issuance is effective immediately. Implementation under this
issuance must be carried out in accordance with applicable laws,
regulations, bargaining agreements, and Departmental policy.

Antonia T. Harris

Deputy Assistant Secretary for Human Resources

INSTRUCTION 571-1

**SUBJECT: PAYMENT OF TRAVEL AND/OR TRANSPORTATION RELOCATION EXPENSES**

572-1-00 Purpose

572-1-10 References

572-1-20 Definitions

572-1-30 Coverage and Exclusions

572-1-40 Responsibilities

572-1-50 Policy

572-1-60 Employment Service Agreement Requirements

571-1-70 Separation before Completing 12 Months of Service

572-1-80 Reporting and Accountability

Exhibit A: Relocation Expense Allowances Paid to First Official Station
in the Continental United States (CONUS)

Exhibit B: Relocation Expense Allowances Paid to Transfer between
Official Stations in the CONUS

**572-1-00 PURPOSE\
**\
The purpose of this Instruction is to provide policy and guidance for
the payment of:

A.  Expenses for travel, transportation of immediate families, and
    transportation of household goods to a new post of duty for a
    current Federal employee, a new appointee, or a student trainee;

B.  Travel expenses for pre-employment interviews; and

C.  Travel and transportation expenses of an employee, his/her family,
    and household goods when an employee's duty station is permanently
    changed from one geographic area to another geographic area within
    the continental United States, normally at least 50 miles distance
    from the old duty station.

**572-1-10 REFERENCES**

A.  Title 41, CFR, Federal Travel Regulation System, Chapter 302,
    Relocation Allowances

B.  5 USC § 5723 (law - travel and transportation expenses of new
    appointees and student trainees)

C.  5 USC § 5724 (law - travel and transportation expenses of employees
    transferred; advancement of funds; reimbursement on commuted basis)

D.  5 USC § 5724a (law - relocation expenses of employees transferred or
    reemployed)

E.  5 CFR Part 572 (regulations - travel and transportation expenses;
    new appointees and interviews)

F.  HHS Instruction 301-1 (United States citizens stationed overseas)

G.  HHS Travel Manual

H.  5 USC § 5753 and 5754 (law - Recruitment, Relocation and Retention
    Incentives)

I.  5 CFR Parts 575 (regulation - Recruitment, Relocation and Retention
    Incentives)

J.  5 CFR Part 304 and 5 USC 3102 (Experts and Consultants)

**572-1-20 DEFINITIONS**

A.  New Appointee. (a) An individual who is employed with the Federal
    Government for the very first time; (b) An employee who is returning
    to the Government after a break in service (except an employee
    separated as a result of reduction in force or transfer of functions
    and is re-employed within one year after such action); or (c) A
    student trainee assigned to the Government upon completion of
    his/her college work.

B.  Reassigned employee. An employee who is reassigned within an agency
    from one position to another without promotion or change to lower
    grade.

C. Transferred employee. A current Federal employee who changes from a
position in one agency to a position in another agency, whether HHS or
outside HHS, that can be filled under the same appointing authority,
without a break in service of one full workday. This may also include
employees separated as a result of reduction in force or transfer of
functions who are re-employed within one year after such separation.

D. Student Trainee. A new appointee assigned to the organization upon
completion of their college work, under the Student Career Employment
Program (SCEP).

E. Relocation Expense Allowance. The payment of expenses associated with
the travel, transportation of immediate families, and transportation of
household goods to a new post of duty as described in Chapter 302,
Relocation Allowances, of the Federal Travel Regulation. Relocation
expense allowances are separate and distinct from relocation incentive
payments made in accordance with 5 CFR Part 575, Recruitment,
Relocation, and Retention Incentives.

F. Relocation Incentive**.** An incentive paid to a *current* Federal
employee who must relocate to accept a position in a different
geographic area if it has been determined that the position is critical
to the mission of the organization and is likely to be difficult to fill
in the absence of such an incentive. Relocation incentives are separate
and distinct from relocation allowances paid in accordance with the
Federal Travel Regulation and not covered by this policy. Relocation
Incentive guidance can be located in HHS Instruction 575.1, Recruitment,
Relocation and Retention Incentives (3Rs).

**572-1-30 COVERAGE AND EXCLUSIONS**

A. Coverage

1.  Federal employees under consideration for paid travel expenses for
    pre-employment interviews;

2.  A new appointee appointed to his/her first official duty station
    within the Continental United States (CONUS);

3.  An employee being transferred or reassigned in the interest of the
    Government from one position or duty station to another for
    permanent duty, and the new duty station is at least 50 miles
    distant from the old duty station; and

4.  A student trainee assigned to any CONUS position upon completion of
    college work.

B. Exclusions

1.  Private persons;

2.  Experts and consultants employed in accordance with 5 CFR Part 304
    and 5 USC § 3109 (Note: This does not refer to the employment of
    Special Consultants under 42 CFR § Section 209(f));

3.  Members of National Advisory Councils or Advisory Committees;

4.  Members of the U.S. Public Health Service Commissioned Corps;

5.  Appointees recruited or transferred from the continental United
    States to overseas duty stations. The HHS Instruction 301-1,
    Overseas Employment, addresses these policies; and

6.  Individuals appointed under the Intergovernmental Personnel Act.

**572-1-40 RESPONSIBILITIES**

A.  Office of Human Resources (OHR), Assistant Secretary for
    Administration and Management (ASAM) is responsible for:

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1.  Reviewing and maintaining this policy;

2.  Preparing and submitting periodic reports regarding usage of
    relocation expense allowances as requested by the Office of
    Personnel Management; and

3.  Monitoring the use of these allowances to ensure that documentation
    requirements are consistent with the requirements of this policy.

B. Operating Divisions (OPDIVs) are responsible for:

1.  Determining which positions will be authorized payment of
    pre-employment interview travel expenses and relocation expense
    allowances based on whether or not the position is deemed
    hard-to-fill or critical to mission accomplishment;

2.  Documenting the criteria used for determining whether discretionary
    allowances will be authorized;

3.  Ensuring that service agreements are signed and submitted to their
    operating human Resources organizations; enforced; or waived in
    accordance with this policy;

4.  Preparing Travel Authorizations (TAs) in order for payment of
    relocation allowances to be made.

C. Operating Human Resources Organizations (OHROs) are responsible for:

1.  Documenting vacancy announcement postings to identify whether or not
    payment of relocation expense allowances will be paid;

2.  Establishing and maintaining documentation and records containing
    the decision to authorize payment of relocation allowances as well
    as filing the signed service agreement in the employee's Official
    Personnel Folder;

3.  Providing input to OHR for periodic or annual reporting requirements
    in the use of these allowances as required to maintain
    accountability.

**572-1-50 POLICY**

A.  Travel and/or transportation expenses incident to the situations
    identified in accordance with the Federal Travel Regulations,
    Chapter 302, Relocation Allowances may be authorized when the
    following requirements have been met:

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1.  The authorized management official has determined that certain
    interviewees are eligible for payment of pre-employment travel
    expenses. The OPDIV has determined that it is in the best interest
    to interview candidates from outside of the commuting area, based on
    the designation of the position as hard-to-fill and mission
    critical.

2.  The authorized management official has determined that the new
    appointment, reassignment, or the transfer of an employee to a
    permanent duty station is in the best interest of the Department and
    is not primarily for the convenience or benefit of the employee or
    at his/her request.

3.  The employee has signed an agreement to remain in Government service
    for 12 months following the date he/she reports for duty at a new
    permanent duty station, unless the employee is separated for reasons
    beyond his/her control and those reasons are acceptable to the
    Department. Employment Agreement for Manpower Shortage Positions in
    the 50 States and the District of Columbia, Form HHS-355, or
    Employment Agreement for Transfers to and within the Continental
    United States, Form HHS-355B (found at
    <http://intranet.hhs.gov/forms/hhs_forms.html>) is used to document
    this service and is filed on the right side of the employee's
    Official Personnel Folder.

4.  An approved Travel Authorization (TA) has been prepared in writing
    (paper or electronic). Specific allowances and procedures for
    submission of requests for reimbursement must be provided in
    writing.

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B.  If relocation expense allowances are authorized, OPDIVs must pay all
    of the expenses listed as mandatory allowances of the appropriate
    table in the Federal Travel Regulation, Chapter 302, dependent upon
    appointment type (i.e. new appointee or transfer) and location (i.e.
    CONUS or OCONUS). It is not allowable to pay only selective benefits
    listed as mandatory (see Exhibits A and B, Column 1). However,
    expenses listed as discretionary allowances of the appropriate table
    may be paid at the discretion of the employing OPDIV (see Exhibits A
    and B, Column 2).

C.  The authorized management official, in accordance with OPDIV Head
    delegation, determines whether or not relocation expense allowances
    will be authorized. This decision must be documented as part of the
    recruitment case or personnel file. A decision made in connection
    with one specific vacancy does not require a like decision in
    connection with future vacancies. Factors such as availability of
    funds or a determination of whether a position is considered
    hard-to-fill or critical to mission accomplishment will be
    considered in this decision.

D.  The decision to pay relocation expense allowances must be stated on
    the vacancy announcement. If relocation allowances are authorized,
    the vacancy announcement posting must contain specific language to
    authorize them; for example: "Relocation expense allowances may be
    paid. If relocation expense allowances are paid, employees will be
    required to sign a one year service agreement. Failure to fulfill
    the one year service agreement may require repayment of relocation
    expense allowances."

E.  If the decision to pay relocation expense allowances is made and the
    vacancy announcement advertises this benefit, an organization may
    not withdraw the entitlement to this allowance based on lack of
    funds.

F.  The decision not to pay relocation expense allowances is
    discretionary and must be stated on the vacancy announcement. If
    relocation allowances are not authorized, the vacancy announcement
    posting must contain specific language to that effect; for example:
    "Relocation allowances are not authorized and will not be paid."

G.  Travel advances will normally be paid for relocation expense
    allowances if the employee states in writing that, absent payment of
    the advance, the employee would be unable to accept the position and
    relocate at his/her own expense. The payment of travel advances is
    otherwise considered discretionary.

H.  Employees will be informed in writing that all aspects of travel
    must be completed and a TA submitted no later than 2 years after the
    effective date of the appointment or transfer. OPDIV Heads may
    extend this deadline if circumstances beyond the employee's control
    prohibit completion of their relocation.

**572-1-60 EMPLOYMENT SERVICE AGREEMENT REQUIREMENTS**

A.  Employees receiving payment of relocation incentives and/or
    relocation expense allowance for travel, transportation, and related
    costs incident to appointment, reassignment, or transfer to a new
    duty station are required to sign an appropriate employment service
    agreement that they will remain in Federal Government employment for
    12 months from the effective date of their appointment.

B.  If an employee refuses to sign an employment service agreement, the
    organization may not pay relocation expense allowances.

**572-1-70 SEPARATION BEFORE COMPLETING 12 MONTHS OF SERVICE**

A.  When an employee for whom travel and transportation expenses have
    been paid under this Instruction leaves Federal Government service
    within 12 months, the OPDIV Head must determine whether repayment of
    these amounts to the Government must be required or may be waived.
    The determination shall be entered on the Notification of Personnel
    Action.

B.  Repayment may be waived when the reasons are acceptable to the OPDIV
    Head exercising the authority. The reasons for waiver requests must
    be beyond the control of the employee and must be acceptable to the
    organization, such as those which may involve the physical or mental
    health of the employee or a member of the employee\'s immediate
    family.

C.  If the employee leaves this Department to work for another Federal
    agency, his/her obligation to serve 12 months is transferred to the
    gaining agency.

D.  If the employee violates a service agreement (other than for reasons
    beyond their control and accepted by the OPDIV), the employee will
    have incurred a debt due to the Government and must reimburse all
    costs that the organization has paid towards relocation expense
    allowances including withholding tax allowance (WTA) and relocation
    income tax (RIT) allowance.

**572-1-80 REPORTING AND ACCOUNTABILITY**

A.  OHROs will maintain documentation regarding the use of relocation
    expense allowances and will provide accurate reports upon request of
    the OHR for internal accountability reporting or reporting to the
    OPM or other third parties.

B.  Each OPDIV must monitor the use of these allowances to ensure their
    use is consistent with prudent exercise of fiscal expenditures and
    the requirements of the regulations and this policy.

+-----------------------------------------------------------------------+
| **Exhibit A: Relocation Expense Allowances Paid to First Official     |
| Station in the Continental United States (CONUS)**                    |
|                                                                       |
|   -------------------------------- ---------------------------------  |
|   **Column 1 (Mandatory)           **Column 2 (Discretionary)         |
|   Relocation allowances that       Relocation allowances that agency  |
|   agency must pay or reimburse**   has discretionary authority to     |
|                                    pay or reimburse**                 |
|                                                                       |
|   1) Transportation of employee &  1) Shipment of privately owned     |
|   immediate family member(s)       vehicle (POV)                      |
|                                                                       |
|   2) Per diem for employee only                                       |
|                                                                       |
|   3) Transportation & temporary                                       |
|   storage of household goods                                          |
|                                                                       |
|   4) Extended storage of household                                    |
|   goods                                                               |
|                                                                       |
|   5) Transportation of a mobile                                       |
|   home or boat used as a primary                                      |
|   residence in lieu of the                                            |
|   transportation of household                                         |
|   goods                                                               |
|   -------------------------------- ---------------------------------  |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+

+-----------------------------------------------------------------------+
| **Exhibit B: Relocation Expense Allowances Paid to Reassignment or    |
| Transfer Between Official Stations in the Continental United States   |
| (CONUS)**                                                             |
|                                                                       |
|   -------------------------------- ---------------------------------  |
|   **Column 1 (Mandatory)           **Column 2 (Discretionary)         |
|   Relocation allowances that       Relocation allowances that agency  |
|   agency must pay or reimburse**   has discretionary authority to     |
|                                    pay or reimburse**                 |
|                                                                       |
|   1) Transportation & per diem for 1) House hunting per diem &        |
|   employee & immediate family      transportation, employee & spouse  |
|   member(s)                        only                               |
|                                                                       |
|   2) Miscellaneous moving expense  2) Temporary quarters subsistence  |
|                                    expense (TQSE)                     |
|                                                                       |
|   3) Sell or buy residence         3) Shipment of privately owned     |
|   transactions or lease            vehicle (POV)                      |
|   termination expenses                                                |
|                                                                       |
|   4) Transportation & temporary    4) Use of a relocation services    |
|   storage of household goods       company.                           |
|                                                                       |
|   5) Extended storage of household 5) Property management services    |
|   goods                                                               |
|                                                                       |
|   6) Transportation of a mobile    6) Home marketing incentives       |
|   home or boat used as a primary                                      |
|   residence in lieu of the                                            |
|   transportation of household                                         |
|   goods                                                               |
|                                                                       |
|   7) Relocation income tax                                            |
|   allowance (RITA)                                                    |
|                                                                       |
|                                                                       |
|   -------------------------------- ---------------------------------  |
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|                                                                       |
+-----------------------------------------------------------------------+
|                                                                       |
+-----------------------------------------------------------------------+