Relocation_Policy_Rev.pdf

HUMAN RESOURCES MANUAL

RELOCATION

Manual: 5B Procedure: 2-4 Revision: 15

Effective Date: TBD Type-Class: Admin-Info Page: 1 of 23

Revision Log

Pages Affected Description of Revision All Total rewrite

Manual: 5B Procedure: 2-4 Relocation Revision: 15 Page: 2 of 23

1.0 PURPOSE

This procedure addresses relocation expense allowances incident to a permanent change of official station for an indefinite period (or for a stated period of not less than 12 months) of an existing employee or upon recruitment of a new employee.

2.0 SCOPE

The provisions of this procedure apply only to the Management and Operations (M&O) contractor at the Savannah River Site (SRS).

This procedure specifically applies to M&O employees who meet the conditions outlined in this procedure.

Portions of this procedure deal with allowances for the immediate family of the relocating employee. The immediate family includes the lawful spouse, children and other legal dependents of the employee, residing in the employee’s primary residence when relocation is authorized by the designated recruiter.

This procedure does not apply to an employee transferring from SRS to work for a parent or an affiliate of a member company of the M&O contractor team.

3.0 DEFINITIONS AND ABBREVIATIONS

Official Station - the place of an employee’s regular work location as directed by the M&O contractor. SRS is the official station for most employees, but the M&O contractor may establish an official station other than SRS to meet its needs under the Prime Contract. An employee may be assigned to a different location at any time at the discretion of the M&O contractor.

Meals and Incidental Expenses (M&IE) – a government-establish rate intended to cover daily cost of food and other incidental expenses (ex. tips to waiters or baggage carriers)

Residence – the place, especially the house, in which the employee lives or resides (habitation); also referred to as dwelling place, home, or residential property.

Lawful Spouse - proved through either the validation of a state-recognized marriage certificate, including same sex marriage when recognized by state law through a valid marriage license or common law marriage. South Carolina common law marriage will continue to have the same documentation requirement for attestation.

4.0 RESPONSIBILITIES

4.1 SRNS Senior Vice President of Workforce Services or Delegate

SRNS Senior Vice President of Workforce Services or delegate is responsible for granting any waivers, exceptions, and approving deviations that are not explicitly delegated to the recruiter in this procedure

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4.2 Relocating Employee of the M&O Contractor

The Relocating Employee of the M&O Contractor is responsible for:

• Complying with the provisions of this procedure

• Receiving relocation authorization from their designated recruiter prior to incurring any relocation expenses

• Making travel arrangements within per diem guidelines (lodging and M&IE rate reimbursement will not exceed the applicable/local rates). These expenses must be reasonable and incident to the permanent change and cannot exceed limits set by the government and SRNS policy with regards to travel (no upgrades to first class flights, no upgrades to rental cars or larger rental cars than necessary, etc.) without prior documented approval from the employee’s recruiter.

• Notifying Traffic Logistics if household goods are to be moved from the former location to the new official station

• Notifying Traffic Logistics if a mobile home will be transported in lieu of shipping household goods and personal effects

• Submitting a management approved OSR 22-310, M&O Employee Relocation Expense Report, to the Travel Group of the Chief Financial Officer Department of the M&O contractor for reimbursement of all incurred expenses within 90 days from the date expenses are incurred.

• Submitting a copy of proof of sale, proof of purchase, and proof of ownership to the Travel Group to support reimbursement of residence transaction expenses

• Completing a Relocation Payback Agreement which will be provided to the employee by the designated recruiter

• Paying all applicable taxes for reimbursements that are deemed taxable

• Providing proof of payment for all expenses except for M&IE when per diem is claimed

4.3 Talent Acquisition and Development, Workforce Services and Talent Management

Talent Acquisition and Development is responsible for:

• Notifying Traffic Logistics and Travel when an employee elects to relocate, even if the employee will only be executing a self-move

• Providing Travel with a copy of the relocation authorization, any relocation extensions approved by the recruiter and/or VP of Workforce Services, and any other pertinent information that relates to an employee’s relocation benefits

• Submitting the completed Miscellaneous Expense Allowance Payment Request form to Payroll for processing

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4.3 Talent Acquisition and Development, Workforce Services and Talent Management (cont.)

• Filing the Relocation Payback Agreement, the Relocation Acknowledgement form, initial relocation authorization, and written exceptions to this procedure in the new hire employee file

• All administration and management functions of the relocation process.

• Obtaining and documenting extensions/exceptions allowed within this policy

4.4 Traffic Logistics, Packaging and Transportation Services

Traffic Logistics, Packaging and Transportation Services are responsible for:

• Making all arrangements, with Department of Energy (DOE) approved commercial carriers, for shipment of household goods and personal effects

• Arranging for transportation of mobile home, if applicable.

4.5 Travel Group, Chief Financial Officer Department (CFOD)

Travel is responsible for:

• Issuing reimbursements against approved expense reports

• Providing Payroll with relocation documentation so that applicable income taxes can be withheld

• Ensuring compliance with the Federal Acquisition Regulation (FAR) requirements.

4.6 Payroll Accounting Group, Chief Financial Officer Department (CFOD)

Payroll Accounting is responsible for:

• Withholding the applicable taxes from the relocating employee’s pay and reporting relocation related payments to the IRS, as applicable

• Issuing the Miscellaneous Expense Allowance payments

5.0 REQUIREMENTS

This procedure is divided into the following 12 Sub-Sections:

5.1 General

5.2 House-Hunting Trip Expenses

5.3 Travel and Living Expenses En Route

5.4 Household Goods Transportation and Storage

5.5 Shipment of Privately Owned Vehicles

5.6 Interim Living Expenses

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5.0 REQUIREMENTS (cont.)

5.7 Residence Transaction Expenses

5.8 Mortgage Interest Differential (MID)

5.9 Miscellaneous Expense Allowance (MEA)

5.10 Partner Assistance

5.11 Miscellaneous

5.12 Taxation

5.1 General

5.1.1 Approvals and Administration

The designated recruiter must provide relocation written relocation authorization prior to the relocating employee incurring any relocation costs or expenses.

To be eligible for relocation expense allowances under this procedure, an individual must meet one of the conditions below:

• A new hire who meets the conditions outlined in this procedure that is directed to a first official station for work under the M&O contract

• An employee who is directed from one official station to another, for permanent assignment under the prime contract, including Strategic Partnering Projects (SPPs).

For specifics related to ETA, see Manual 1B, Procedure 3.03, General Travel Procedure.

5.1.2 Report to Work Date

An employee's report-to-work date is arranged through the designated recruiter. All employees are expected to complete relocation within 12 months of the report-to-work date.

5.1.3 Reimbursement of Relocation Expenses

An employee whose old location is more than 50 miles from the new official station will be reimbursed relocation expenses incurred in accordance with this procedure.

An employee should submit an Employee Relocation Expense Report (approved by at least a level 2 manager) to the Travel Group in a timely manner.

For per diem information, please refer to the supplemental directive and Attachment 8.3, Per Diem Chart.

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5.1.4 Payback Agreement/Condition of Employment

Individuals must sign an agreement to pay back all relocation costs paid by the M&O contractor to the employee, if any of the following occurs within 12 months of their report to work date:

• Employee voluntarily leaves employment

• Employee is transferred at the employee's request

• Employee is discharged by the M&O contractor due to falsification of employment information

• Employee is terminated for cause A Relocation Payback Agreement must be signed by the employee and returned to the designated recruiter prior to incurring relocation expenses.

5.1.5 Exceptions

The SRNS Senior Vice President of Workforce Services or delegate (depending on exception requested) may grant exceptions to any provision of this procedure to the extent that the exceptions conform to pertinent regulations and law.

Staffing will maintain adequate documentation supporting its determination to grant exceptions. Requests for exception must be in writing addressed to the M&O contractor’s designated recruiter.

5.2 House Hunting Trip Expenses

A new employee who owns a home at their former location is eligible for one house hunting trip, not to exceed seven days (including travel time), to the new official station for the new employee and partner.

Reimbursement will include roundtrip travel (by airline or personal vehicle), lodging, meals and incidental expenses (M&IE) and rental car. These expenses must be reasonable and incident to the permanent change and cannot exceed limits set by the government and SRNS policy with regards to travel.

For per diem information, please refer to the supplemental directive and Attachment 8.3, Per Diem Chart.

Expenses for children and pets (except for service animals) are not reimbursable.

If an employee travels by ship, the M&O Contractor determines an appropriate M&IE rate within the applicable maximum rate allowable.

Individuals who do not own a home will not receive a house hunting trip. See Attachment 8.1, Tier Summary Domestic Relocation, for a summary of domestic relocation.

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5.3 Travel and Living Expenses en Route (Report to Work Travel)

Payment is provided for one-way travel (ex. personal mileage or flight, lodging, M&IE) to the new official station for the employee and immediate family members. These expenses must be reasonable and incident to the permanent change and cannot exceed limits set by the government and SRNS policy with regards to travel.

Travel by personal vehicle between the employee's former location and the new official station will be independently verified by Travel, followed by reimbursement at the GSA mileage rate.

For Lodging and M&IE information, please refer to the supplemental directive and Attachment 8.3, Per Diem Chart.

5.4 Household Goods (HHG) Transportation and Storage

5.4.1 General

Employees are eligible for transportation of household goods and personal effects to the new official station. If the employee chooses to ship a vehicle and is without a vehicle at the new location, the employee is eligible for a rental car for the duration of the shipment period. Once the personal vehicle is delivered to the new location, the rental should be returned in a reasonable timeframe.

The maximum weight allowance of household goods that may be shipped or stored at Government expense is 18,000 pounds net weight. For crated or van line shipments, a 2,000-pound allowance is added for a total 20,000-pound net weight allowance. Unless otherwise approved in advance by a DOE Contracting Officer, no shipment weighing over 20,000 gross pounds (the 18,000 pounds net weight of uncrated household goods plus the 2,000 pounds allowance for packing materials) may be billed to the Government.

Employees must not contact a moving company. Traffic Logistics is to arrange for shipment and direct billing of household goods and personal effects with a moving company.

5.4.2 Full Value Replacement Coverage

The M&O contractor provides household goods Full Value Replacement coverage as follows:

• Interstate household goods shipment are released with full replacement value coverage protection (replacement at current market value and not actual depreciated value) with a limit of no less than $75,000 for goods shipped and are covered up to $125,000.00 in full replacement coverage (replacement at current market value and not actual depreciated value). The dollar values are subject to change.

• This amount is included at no additional cost to the Company, in our Tender Agreement with the Household Goods Carriers.

• Any Full Value Replacement coverage purchased beyond that which is provided in the Tender (up to $125,000.00) will be at the employee's expense. The dollar values are subject to change.

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5.4.2 Full Value Replacement Coverage (cont.)

• Intrastate household goods shipment will be released at a rate of $1.25 per pound. The rate is subject to change.

• The total amount of coverage is $1.25 per pound multiplied by the total weight of the shipment will be covered at only the amount allowed by that State's Tariff at no additional cost to the Company. The rate is subject to change.

• The amount is subject to change with Tariff Changes and the amount of coverage allowed will be provided by the Carrier contracted to perform the move.

• Any Full Value Replacement coverage purchased beyond that which is provided by Tariff at no cost to the Company will be at the employee's Expense.

Per DOE Order 460.2A, Departmental Materials Transportation and Packaging Management, the contractor shall not expend Government funds to insure property against loss, damage or destruction while in transit unless qualifying as a "special circumstance".

5.4.3 Carrier Moves

The M&O contractor will cover reasonable transportation including: origin and destination charges (sometimes listed as bundled charges), fuel surcharge, packing, loading, and shipping.

Reasonability of transportation expenses will be determined by Traffic Logistics.

Charges incurred for additional services requested by the employee are at the employee’s expense.

The M&O contractor will not pay for tips or meals for movers or packers, the exclusive use of moving vans, or for charges associated with rental equipment used to transport items not authorized for shipment.

The employee or a representative must be present during packing and loading at origin and during unloading at destination, and for receiving the household goods and personal effects on each day of the scheduled delivery period.

The M&O contractor cannot guarantee pickup and delivery dates and will not pay for packing, transport, delivery, or unpacking of household goods on Saturdays, Sundays, or holidays.

Split Deliveries

Traffic Logistics may allow a split delivery to transport household goods and personal effects from origin to storage at the new official station with a partial delivery of essential items to a leased temporary residence (e.g, where the employee rents housing during the interim living period).

All items to be delivered to the temporary residence must be separated by the employee before the carrier arrives.

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5.4.3 Carrier Moves (cont.)

When a primary residence is obtained, the M&O contractor will pay for transportation of household goods and personal effects from storage to the new residence.

The M&O contractor will not pay for transporting household goods and personal effects from the temporary residence to the new primary residence.

Split deliveries must be accomplished on the same day.

Special Crating

Third party packaging charges for special crating will be allowed within reason for those items typically found in the standard American household. (Example: Washing machine, dryer, refrigerator, flat screen T.V., etc.).

If the individual is unsure if their items meet this qualification, they are to contact their recruiter for clarification. The recruiter will work with Traffic Logistics to determine if the items in question qualify for special crating.

Unauthorized Items

The M&O contractor will not pay the carrier the costs of shipping the following items:

• Unusually bulky items

• Boats in excess of 200 pounds or over 13 feet in length

• Boat trailers regardless of length or weight

• Airplanes, campers, trailers, tractors over 25 hp

• All flammables

• Plants and animals

• Cordwood, lumber

• Alcoholic beverages

• Open containers and aerosol cans

• Ammunition

• Antique automobiles

• Snowmobiles, golf carts, and other recreational vehicles

• Outdoor sheds, playhouses, cabanas, awnings, or fences

• Outside fuel tanks, propane tanks

• Frozen Food.

Fuel tanks on lawn mowers, motorcycles, outboard motors, and gas grills must be empty if they are to be moved by carrier.

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5.4.3 Carrier Moves (cont.)

Special Personal Items

The M&O contractor will not pay for the costs of shipping valuable personal items, such as:

stamp collections, jewelry, rare coins, cash, furs, or like valuables; or items of sentimental value.

Reporting Claims

Claims for damaged items must be filed with the household goods carrier in writing on a carrier claim form within nine months from the date of delivery. Claims for missing items must be filed as soon as possible, done by notifying the driver or delivery team

Claim forms must be obtained directly from the carrier.

Copies of all claims must be sent to the M&O contractor’s Traffic Logistics.

In the event of damage or missing items, employees are required to file claims with the carrier.

If problems are encountered in getting the claims resolved, Traffic Logistics shall contact the carrier to find out the cause of the delay. The claims process, under normal circumstances, begins upon receipt of the "SIGNED" form from the carrier.

There are five types of claims, which are listed below in general sequence of their discovery, priority, and suggested reporting guidelines. Four of the five types should be reported immediately and prior to the driver leaving the residence.

Property Damage – gouges in flooring, walls, and corners.

High Value Items -These items must be valued at more than $100 per pound. These are listed on a High Value Inventory form provided by the carrier.

Missing Items at time of delivery - Advise the carrier driver of missing items before they leave.

Write “missing” in the destination column before the driver signs the form.

Damage Noticed Upon Delivery - i.e., scratched, chipped or broken furniture. Note discrepancies in the delivery column of the inventory forms provided by the carrier.

Non-visible items - i.e., things packed in standard cartons, which can wait to be unpacked.

These items should be unpacked as soon as possible to allow timely reporting of damage.

You have 9 months to file a claim on Pack by Carrier (PBC) cartons. Pack by Owner (PBO) cartons are not covered under valuation, but the carrier does have some liability when PBO cartons are crushed at time of unload. It is recommended the employee reports claims as soon as possible. Commonly denied claims are those which the customer treats as non-priorities.

5.4.4 Self Moves

Reimbursement will be made for actual expenses, including trailer/truck rental, boxes, moving pads, and gas, with submission of receipts. SRNS will not reimburse payments made to a third party moving company on the employee’s behalf for a self-move.

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The cost of a self-move should be deemed reasonable. If SRNS finds that the cost of a self-move is not reasonable, SRNS may withhold reimbursement or pursue a cost comparison for self-move vs. carrier move.No other reimbursements associated with movement of the employee's household goods will be made.

If a rental tow-trailer is used for a self-move, the employee will be reimbursed a mileage allowance, at the GSA-approved rate, for use of the personal vehicle plus an additional mileage allowance, at the same rate, for towing a trailer. The added allowance is intended to offset any additional costs (i.e., permits, repairs, damages).

5.4.5 Storage

The M&O contractor will pay for the costs of storing household goods and personal effects at an authorized carrier storage facility at the new official station for a maximum of 90 calendar days.

Charges for any additional days of storage beyond 90 calendar days will be at the employee’s expense.

The M&O contractor will only pay for storage at an authorized carrier storage facility, determined by Traffic Logistics. The M&O contractor will not pay for storage in unauthorized public or private storage facilities.

If the household goods are in storage at the former location, the goods must remain in the origin storage facility or at the carrier’s facility until ready to be delivered to the new official station. Household goods in storage at the former location will be delivered to the employee's new primary residence and will not be stored again at destination.

5.4.6 Mobile Homes

If the primary residence at the old location is a mobile home and the employee elects to move the mobile home to the new location, the M&O contractor will pay for the costs of transporting the mobile home by a licensed carrier in lieu of any payment for transportation of household goods and personal effects. Mobile home moves must be arranged through Traffic Logistics.

The M&O contractor will pay for labor charges only and not for the cost of any materials associated with movement of the mobile home.

No reimbursement will be made for the costs of alterations or modifications (i.e. running lights, installing tires, rental of axles, utility service charges).

5.4.6 Mobile Homes (cont.)

Entry and hook-up fees at the new official station are the financial responsibility of the new hire, not covered under the HHG move. The miscellaneous expense allowance can be used to offset this type of expense.

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5.5 Shipment of Privately Owned Vehicles

The actual shipping costs of up to two privately owned vehicles to the new official station will be directly paid by the M&O contractor if the employee's point of departure is 500 miles or greater from the new official station. Shipment of privately owned vehicles must be arranged through Traffic Logistics.

The M&O contractor will pay for shipping if two personal vehicles are transported to the new official station. Any vehicles shipped must be owned by the employee or immediate family memberand must be legally registered for public road operation.

The M&O contractor will reimburse the employee's use of a rental vehicle in cases where expedited report-to-work is required by management and the timeframe does not allow sufficient time for the employee to ship their personal vehicle.

5.6 Interim Living Expenses

5.6.1 Reimbursement

Reimbursement is paid at the M&IE rate and up to the lodging per diem rate for the employee and immediate family for 30 calendar days. Reimbursement for interim living should not exceed per diem rates.

If circumstances require more than 30 calendar days for interim living, then the individual must provide a written justification to the recruiter, requesting extension approval. The recruiter has authority to approve or deny the extension. If extension is approved by the recruiter, a copy of the request and extension should be placed in the employee’s file and provided to the Travel group. The interim living period can be extended for a maximum of 30 additional days, for a total of 60 days of interim living.

If the employee chooses to ship their personal vehicle(s) or the employee flies and their personal vehicle is still in the process of being shipped to the new location, the employee is eligible for a rental vehicle until their personal vehicle arrives at the new destination. The rental period is not to extend beyond the length of the approved temporary living timeframe. The employee is expected to return the rental vehicle in a reasonable timeframe once they have access to their personal vehicle.

Internet usage fees may be considered part of an employee's reimbursable daily lodging cost if the fees are ordinarily included in the price of hotels at the new official station. The cost of connecting/disconnecting the internet service is not reimbursable.

5.6.2 Temporary Lodging

The employee and their immediate family can be reimbursed for the cost of lodging/renting to the extent the employee can demonstrate the quarters occupied are intended to be only temporary. Temporary lodging/interim living includes payment for lodging and M&IE.

In determining the 30-day extension for temporary lodging, consideration is given to:

• Duration of the lease

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• Transportation of household goods

• Attempts to secure a primary residence.

Employees shall be reimbursed for the costs of basic utilities.

If employees choose to rent via short term lease instead of hotel, the cost must be equal to or less than the maximum lodging per diem over the interim living period. Costs for lodging with friends, work acquaintances, or relatives (including members of the immediate family) are not reimbursable.

Payment of lodging and M&IE must cease immediately once an employee moves into a primary residence. If hotels or motels in the Central Savannah River Area (CSRA) normally include internet services in the price of a room, any internet usage costs incurred by the employee during his/her temporary stay may be reimbursed as a lodging cost.

SRNS will not reimburse security deposits.

5.7 Residence Transaction Expenses

The employee may be reimbursed for the expenses of selling a residence at the former location, purchasing a residence at the new official station, or breaking an unexpired lease at the old location.

Employees should consult with their recruiter and Finance prior to incurring residence transaction expenses to ascertain which expenses are reimbursable.

5.7.1 Home Selling Assistance

Employees can be reimbursed for expenses incurred due to the sale of the primary residence at the former location provided the following conditions are met:

• The residence being sold is one from which the employee regularly commuted to and from daily

• The sale of the former primary residence is completed within two years of the permanent relocation date.

• The residence being sold was owned by the employee or an immediate family member on the date the employee was officially notified of the transfer to the new station

Relocation Revision: 14 Page: 14 of 22

5.7.1 Home Selling Assistance (cont.)

Qualifying residences include:

• Single family dwelling

• Two-family dwelling (if the employee occupied at least one-half of the unit)

• Mobile home and the lot on which it rests

• Condominium or cooperative apartment.

Excluded properties are:

• Vacation home

• Houseboat

• Properties held for speculative or income producing purposes (commercial properties)

• Farms (a farmhouse may qualify if it is sold separately from the rest of the land)

• Noncontiguous land (i.e., land that is not a part of the parcel of land on which the primary residence is located)

• Residence which includes excessive acreage (defined as anything extending beyond that usually sold as a package with a single-family dwelling in the particular locale or district, up to a maximum of 25 acres).

When an employee sells the former primary residence, the employee is reimbursed for allowable closing costs that are customarily paid by the seller of a residence at the former location such as brokerage fees (not to exceed the standard rate of commission in effect in the locality of the home), legal fees, transfer taxes, appraisal fees and recording fees.

The total home selling assistance costs will not exceed 14 percent of the sale price of the property sold. Employee must submit a copy of financial documentation evidencing the sale of the property and verifying that the employee or immediate family member had an interest in the property.

To request reimbursement for the sale of a former residence, provide copies of the sales contract/agreement. Provide copies of invoices or receipts for any bills paid which are not included on the sales contract/agreement. Exceptions are approved by the Accounts Payable Manager.

Transferring Power of Attorney

SRNS will reimburse the cost of delegating power of attorney, if needed, to complete the sale of the relocating employee’s former primary residence. Documentation and proof of payment will be provided to Finance to complete reimbursement. This benefit is provided to offset the need for a return trip to complete the sale of the former residence.

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Continuing Cost of Ownership

An employee who is financially responsible for maintaining two residences at the same time, one at the former location and one at the new official station, is eligible for the actual continuing costs of ownership of the vacant primary residence being sold. This may include maintenance of building grounds (exclusive of fixing-up expenses), utilities, taxes, property insurance and mortgage interest, after the settlement (closing) date or lease date of a new residence at the new official station. Continuing costs of ownership, when added to the costs reimbursed for home selling assistance, must not exceed 14 percent of the sales price of the property sold.

To qualify, the employee must certify that:

• The former residence is vacant

• The employee actually lived there

• The former residence is listed for sale.

If the former primary residence is not sold (closed out) within one year after the report-to-work date, the recruiter may grant an extension of up to one year due to unusual circumstances.

The time limit is not to be extended beyond an aggregate of two years.If an extension is required, the relocating employee must provide a detailed written request must be provided to the recruiter.

The following are examples of costs associated with a home sale that are not allowable:

• Change in property type, e.g., from residential to commercial

• Bridge, swing, equity and/or non-equity interest

• Cost of litigation

• Real and personal property insurance against damage or loss of property

• Mortgage life insurance

• Property taxes and operating or maintenance costs

• Warranties

• Capital gain taxes

• Loss on sale of home

• Seller's mortgage discount points unless dictated by local custom at the time of real estate listing and sale (documentation required)

• Carrying costs, such as mortgage interest, real estate taxes, insurance, utilities, maintenance, repairs, advertising costs, etc.

• Homeowner association fees, country club membership, pool maintenance, recreation fees, costs to clean the former residence, and installation or de-installation of a security system

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• Principal on Loans

• Costs specifically negotiated between the buyer and seller not required for closing

• Required closing costs typically paid by the other party.

5.7.2 Home Buying Assistance

An employee who owned a primary residence at the old location and purchases a residence at the new official station within 12 months of their report to work date may be reimbursed for acquisition costs not to exceed 5 percent of the purchase price of the new residence.

The employee must be occupying the residence at the old location at the time of notification of the relocation. The residence at the old location may be owned by an immediate family member, but the residence must be one from which the employee regularly commuted to and from work daily.

The employee must submit a copy of financial documentation evidencing acquisition of the property and verifying that the employee or immediate family member has an interest in the property. The residence at the old location need not be sold to qualify for home buying assistance.

An employee who owns or owned a primary residence at the old location and leases or rents a primary residence at the new official station is not entitled to home buying assistance expenses.

When a residence is built at the new official station, an employee may be reimbursed for mortgage financing costs associated with the building. Construction costs are not reimbursable.

To request reimbursement for the purchase of a residence, provide copies of the sales contract/agreement and where applicable, the loan closing statements. Provide copies of invoices or receipts for any bills paid which are not included on the sales contract/agreement or loan closing statements. Exceptions are approved by the Accounts Payable Manager.

The following are examples of costs associated with a home purchase or home construction that are not allowable:

• Real estate broker's fees or commissions

• Bridge, swing, equity and/or non-equity interest

• Cost of litigation

• Construction Cost for home building

• Real estate and personal property insurance against damage or loss

• Mortgage life insurance

• Owner's title policy insurance if such insurance was not previously carried by the employee on the old residence (however, cost of a mortgage title policy is allowable).

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5.7.2 Home Buying Assistance (cont.)

• Must provide Travel a copy of the HUD statement at the purchase of the former residence

• Property taxes and operating or maintenance costs

• Home owner warranty fees

• Home owner association fees

• Costs incident to making arrangements with lenders to obtain a lower than market loan

• Finders fees, placement fees

• The costs for construction loan procurement are not reimbursable except in conjunction with the final mortgage settlement. Reimbursable expenses are identical to those that would be reimbursed for a previously occupied residence

• If more than one settlement is required (for instance one for land purchase, another for home construction) then reimbursement will be based on one settlement (combination of both settlements). Many lending institutions convert the construction loan to the final mortgage

• Continuing costs of ownership will not be paid during the construction period • Costs specifically negotiated between the buyer and seller not required for closing

• Required closing costs typically paid by the other party.

5.8 Mortgage Interest Differential (MID)

Individuals who were homeowners at the old location are eligible for MID.

If the new interest rate is higher, the employee may qualify for three annual payments of MID assistance. MID will be based on a lump sum calculation, calculated in the inception year of the relocation benefits, using the following formula: the difference between the mortgage interest rates of the old and new residences multiplied by the current balance of the old mortgage times three years. This calculation will provide the lump sum amount that is due to the employee. The lump sum will be paid to the employee in three annual installments upon the employee’s completion and submission of a valid OSR 22-310.

The amount reimbursed in connection with MID assistance will be adjusted appropriately to account for differences in the mortgage terms other than the interest rate (i.e., fixed vs.

variable, 15 years vs. 30 years).

The employee must submit proof of: sale of former home, purchase of current home, former mortgage interest rate, current balance of former mortgage, and selling price of former home.

If the mortgage rate is variable, the payment is adjusted either up or down over a three-year period using the new rate versus the former mortgage rate. In a refinance situation, a new calculation is made based upon the old interest rate and the new interest rate.

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5.8 Mortgage Interest Differential (MID), (cont.)

The cost of mortgage refinancing for employees receiving MID payments may be reimbursable provided the out-of-pocket cost of refinancing plus the reduced MID liability resulting from a lower mortgage interest rate, is equal to or less than the remaining liability of the original MID.

If refinancing is completed within the three-year period, an appropriate adjustment is applied to determine what, if any, monies remain to be paid or recovered.

5.9 Miscellaneous Expense Allowance (MEA)

Individuals are eligible for a $5000 miscellaneous expense allowance to defray various costs associated with discontinuing residence at the former location and establishing residence at the new official station.

Proof of payment and itemized receipts are not required to qualify for MEA.

Some examples of these costs include but are not limited to:

• Disconnecting and connecting household appliances

• Automobile registration

• Driver’s license and use taxes

• Cutting and fitting rugs, draperies, and curtains

• Forfeited utility fees and deposits

• Purchase of insurance against damage to or loss of personal property while in transit.

For eligibility of the MEA benefit, please see Attachment 8.1, Tier Summary Domestic Relocation.

5.10 Partner Assistance

SRNS recognizes the importance of continued employment for dual career families. The individual’s lawful spouse may find it necessary to give up a job because of the relocation.

There may be additional expenses associated with securing a position in the new location.

SRNS will reimburse up to a maximum of $1,000 for expenses associated with the individual’s lawful spouse securing a position at the new location.

Examples of the typical fees SRNS will reimburse are:

• Resume preparation

• Requirements for special certificates

• Specialized training.

• Placement counseling

All expenses must be turned in on OSR 22-310, including proof of payment.

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5.11 Hiring More than One Employee from the Same Household

Lodging expenses will be provided to only one employee if more than one employee from the same household is hired by the same M&O contractor.

When a family consists of children, a second adjoining room may be granted upon the employee's request to and approval from the designated recruiter.

5.12 Taxation

Employer payments and reimbursement for moving expenses will be subject to federal income tax withholding and FICA and FUTA taxes, including payments from the M&O contractor to third parties on behalf of the employee (e.g. payments made to a moving company).

The M&O contractor will gross up only amounts paid for household goods moving expenses.

Other relocation related expenses will not be grossed up.

Employees will be paid the gross amount indicated on the Relocation Expense Report.

Taxes due on reimbursed relocation expenses are deducted from the employee’s paycheck.

Due to payroll cutoff dates, reimbursed relocation expenses, included as taxable income for the month, may not reflect all reimbursements received during the month.

However, all reimbursements are included in income and taxed in the calendar year paid.

Therefore, there is no maximum limit per pay period for inclusion of reimbursement in employee's income.

6.0 REFERENCES

1B, 3.03, General Travel Procedure

1B, 3.31, Records Management

Federal Acquisition Regulation (FAR) 31.205-35, 31.205-46

DOE O 460.2A, Departmental Materials Transportation and Packaging Management

Federal Travel Regulations (FTR), Section 301-31.10

Internal Revenue Code of 1986 (26 USC)

Internal Revenue Service Publication 521 Moving Expenses

SRNS (PCS) Relocation Benefits Supplemental Guidance http://www.srs.gov/msd/5b/toc.html http://www.srs.gov/msd/5b/toc.html http://www.srs.gov/msd/1b/toc.html http://www.srs.gov/msd/1b/toc.html

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7.0 RECORDS

Records generated as a result of implementing this procedure are maintained in accordance with Manual 1B, Procedure 3.31, Records Management.

Payback Agreement

Miscellaneous Expense Allowance Payment Request Form

Employee Relocation Acknowledgement Form

7.1 Forms

OSR 22-310 M&O Employee Relocation Expense Report

8.0 ATTACHMENTS

Attachment 8.1 Tier Summary Domestic Relocation

Attachment 8.2 Per Diem Chart http://shforms.srs.gov/forms/osr/osr_22/22-310.xlsx

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ATTACHMENT 8.1

Tier Summary Domestic Relocation

Benefit

Tier A:

Non-homeowner

Tier B:

Homeowner

House Hunting Trip Not Applicable Travel, M&IE, and Lodging for employee and partner up to 7 days.

Report to Work Trip Not Applicable Travel, M&IE, and lodging for the employee and immediate family.

Household Goods Move

Full van line move for 20,000 Ibs - up to 90 days storage, shipment of up to 2 cars

Full van line move for 20,000 lbs - up to 90 days storage, shipment of up to 2 cars

Temporary Living Not Applicable Yes, 30 days for employee and immediate family. As necessary, recruiters can approve an additional 30 days of temporary living for a maximum of 60 days

Continuing Cost of Ownership (CCO)

Not Applicable Yes, up to 1 year. Not to exceed 14% of sales price of the former home in conjunction with Home Selling.

Home Selling Assistance

Not Applicable Reimbursement of typical seller's closing costs not to exceed 14% of sale price of the former home in conjunction with

CCO.

Transfer of Power of Attorney

Not Applicable Reimbursement of typical fees associated with transfer of power of attorney to complete sale of former residence

Home Buying Assistance

Not Applicable Reimbursement of typical buyer's closing costs not to exceed 5% of the sale price

Misc. Expense Allowance

$5000 $5000

Mortgage Interest Differential (MID)

Not Applicable Reimbursed for higher interest rate on new mortgage. Once per year for three years.

Estimated Gross- Up of Taxable Relocation Payments and Reimbursements

No No

Partner Assistance

Up to $1,000 Up to $1,000

Page: 22 of 22

ATTACHMENT 8.2

Per Diem Chart

Relocation Benefit Type Per Diem Rule House Hunting Trip Lodging - If trip is 12 hours or more, an employee is reimbursed the actual lodging costs not to exceed the maximum lodging rate for the stopover point. Receipts are required.

M&IE - Greater than 12 hours but less than 24 hours, 75% of per diem for each day. 24 hours or more- 75% of per diem on 1st and last day, 100% of per diem each day between.

No receipts required.

Travel and Living Expenses en Route Lodging - actuals are reimbursed up to the per diem amount plus applicable taxes.

Receipts are required.

M&IE - 75% of per diem on first and last day of travel, 100% of per diem on days in between.

Spouses and children 12 and older get 75% of the applicable per diem. Children under 12 get 50% of the per diem rate. No receipts required.

Interim Living Expenses Lodging - reimbursement up to the applicable per diem rate.

Receipts are required.

M&IE - reimbursement up to the applicable per diem rate.

Spouses and children 12 and older get 75% of the applicable per diem. Children under 12 get 50% of the per diem rate. No receipts required.