A GUIDE TO THE ALLOWANCE SYSTEM

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04722A000300030017-4
• Release Decision: RIFPUB
• Original Classification: K
• Document Page Count: 4
• Document Creation Date: December 12, 2016
• Document Release Date: March 4, 2002
• Sequence Number: 17
• Publication Date: October 1, 1974
• Content Type: MAGAZINE

FIRST IN A S~~ rhved.Epr Release 2002/05/17 CIA-RDP78-04 2A000300030017-4
State Department review completed
A Guide to the Allowance System
By JAMES STROMAYER, Director, Allowances Staff
Allowances are an emotional subject in the foreign
affairs community. That they are an important ele-
ment in personnel administration and have a strong
impact on morale, no one would deny. But a con-
siderable amount of confusion appears to exist here
and abroad about the range of allowances available,
how they are established and calculated, why and
when they are changed, by whom, and under what
authority. Misunderstanding on these and other
points might be avoided if the Department did a
better job of explaining the allowance system and
how it works.
In this and succeeding issues of the NEWSLETTER
we will try to do just that, in language understand-
able to all.
We start with a modest objective: a summary of
14 major allowances, setting forth their purpose and
important features and taking them in the order that
seems to reflect most interest abroad.
These allowances are within the jurisdiction of the
Department's Allowances Staff and include:
Post Allowance
Living Quarters Allowance
Temporary Lodging Allowance
Post Differential
Foreign Transfer Allowance
Travel Per Diem Allowance
Supplementary Post Allowance
Education Allowance
Educational Travel
Representation Allowance
Home Service Transfer Allowance
Separate Maintenance Allowance
Official Residence Expense
Evacuation Payments
With an eye to brevity, the summaries can only he
viewed as guidelines, but they should serve as a good
point of departure for future articles in which we
plan to take a closer look at the anatomy of some
individual allowances to understand better how they
work. *
Readers are invited to address any questions on
this or future articles to the Director, Allowances
Stag, A/ALS, Department of State. We will supple-
ment future articles with a representative sampling of
the questions and answers to them.
* Administrative offices can provide more detailed in-
formation available in the Standardized Regulations (Gov-
ernment Civilians, Foreign Areas), the Foreign Affairs
Manual and the Federal Travel Regulations.
Summary of Fourteen Allowances
Post Allowance
PURPOSE
To compensate for serving at a post where the
cost of living (excluding the cost of living quarters
and schooling) is substantially higher than in Wash-
ington, D. C.
to Bureau of Labor Statistics figures on Washington
prices.
^ Varies by salary and family size.
o Paid biweekly automatically with salary.
0 Payable upon arrival at post of you or your
family, whoever comes first.
FEATURES
0 Paid only if living costs are at least 2t/z percent
higher than in Washington, D. C.
`0 Applies only to percentage difference in "spend-
able income"-that part of salary remaining after
average taxes, life insurance, retirement contribu-
Living Quarters Allowance
PURPOSE
To cover the annual cost of suitable and adequate
living quarters for the average employee and family
if government quarters are not provided at a post.
tions and savings are deducted. FEATURES
^ Determined by annual or biennial review of 0 Paid onlyy if government quarters are not pro-
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 ^ Not paid concurrently with temporary lodging
oreign Transfer. Allowance
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seat, light, fuel, gas, electricity, water, insurance, and
squired local government housing taxes.
0 Paid up to a calculated maximum. Circum-
tances may decrease payments.
? Varies with post costs, grade, and family size.
o File an annual estimate, supported` by receipts,
o obtain an adjustment in the maximum rates.
0 Paid biweekly with salary.
0 A housing supplement is available to a limited
number of employees assigned. to the U. S. Mission
to the United Nations in New York City.
-Temporary Lodging Allowance
PURPOSE
To pay the costs of temporary quarters at a for-
eign post.
FEATURES
11 Paid for up to the initial three months at post
and up to the final month before departure from post.
o Not paid concurrently with a living quarters or
travel per diem allowance.
0 Covers actual costs of hotel room not to exceed
a prescribed maximum rate. Meals not included.
O Paid biweekly with salary.
O Submit evidence of daily costs at post.
burled by travel per diem.
0 Granted for all foreign transfers.
0 Amounts of $100 (employee without a family)
and $200 (employee with family) payable without
receipts or itemization. Larger claims must be sup-
ported by receipts for the entire miscellaneous ex-
pense claim.
Wardrobe expense portion
o Granted only for transfers between climatic
zones, or on about one-third of all transfers.
0 Amounts payable are $75 (employee without
family), $125 (one family member), and $175 (two
or more family members).
The maximum amounts for the two portions com-
bined are one week's salary for an employee without
family and two weeks' salary for an employee with
family at a maximum salary ceiling of GS-13, step
not n able
t
y
Differential
PURPOSE
To compensate for serving at a post where extra-
ordinarily difficult or notably unhealthful conditions
or excessive physical hardships differ substantially
from those in the continental United States and war-
rant a recruitment and retention incentive.
FEATURES
Paid at 10, 15, 20, or 25 percent (legal maxi-
mum) of your basic rate of pay.
o Authorized only where the degree of hardship
for most employees exceeds that expected as a neces-
sary part of overseas service. Fewer than half of the
foreign posts have a post differential.
. o Rates determined by biennial-at least=-review
of reports from posts and measured against a set of
standards. Rates may vary with changes in environ-
ment.
o Paid biweekly automatically with your salary.
Subject to Federal. income tax. All other al-
t taxable
o
To reimburse partially for expenses incurred by
changing residences in or to foreign areas (miscel-
laneous expense) and by changing climatic zones
(wardrobe expense).
FEATURES
Miscellaneous expense portion
0 Covers expenses such as disconnecting and con-
necting or converting appliances, equipment, and
utilities; cutting and fitting rugs, drapes, curtains (not
purchase of new items); utility fees not offset by
eventual refunds; auto registrations, driver's licenses,
and similar fees; and personal cable and telephone
costs, exclusive of such costs intended to be reim-
ion is p
10. If the wardrobe expense por
a correspondingly larger amount is available for
miscellaneous expenses within the ceilings.
1 Submit receipts (if applicable) after arrival at
new post.
Paid in lump sum.
Travel Per Diem Allowance
PURPOSE
To cover average costs of a single room, meals,
and incidentals such as laundry, drycleaning, tips,
and related service expenses for each day you and
your family are in travel status. (Expenses relating
to actual transportation of you and your depend-
ents, baggage, and household effects do not fall
within this category.)
FEATURES
0 Established rates vary according to average
costs reported from cities throughout the world.
continued
lowances are n
Approved For Release 2002/05/17 : CIA-RDP78-04722A000300030017-4 33
OCTOBER 1974
 and the relative requirements of the several categories
(] Based on the number of dependents may
of personnel at your mission.
away from post:
El Insufficient to reihA,l i vell WRefaader2 2/05/17 : CIAO-Fa $n 722A00030003001571-150
penditures. However, all uncompensated bona fide
2 or more children
$2400
representation costs are tax deductible.
1 adult only
$2700
^ Paid in lump sum.
1 adult & 1 other dependent
$3200
O Submit a voucher for previously authorized
1 adult & 2 or 3
other dependents
$3700 4.
I adult & 4 or more
other dependents
$4300
Home Service Transfer Allowance
PURPOSE
To reimburse .you you. partially for expenses incurred
in establishing yourself at a post in the United States
between assignments to foreign posts. Not available
if you will not again serve abroad (e.g., permanent
return to U. S. duty or separation).
FEATURES
0 Consists of three parts-a miscellaneous ex-
pense portion, a wardrobe expense portion, and a
temporary lodging portion. The first two are de-
scribed in this digest under Foreign Transfer Allow-
ance.
11 The third offsets actual hotel lodging costs for
a maximum of 30 days, in the period 60 days before
to 60 days after entrance on duty.
E3 Maximum rate varies with the number and age
of your dependents occupying temporary lodging.
^ Based on hotel room costs in Washington, D. C.
Does not include extra charges, if any, for TV, tele-
phone, or additional furniture. The current maximum
rates per day are: $12 for the initial occupant age
11 or over, $9 for the second, age 11 or over, and
$6 for each additional occupant.
O Appropriate reimbursement made for depend-
ents who arrive in advance of the employee.
O Payment made upon application immediately
after arrival.
El If you choose, paid in two lump sums. Make
one estimated total and later submit an amendment.
Separate Maintenance Allowance
PURPOSE
To pay additional costs when the head of your
agency decides that conditions at post require you to
maintain your dependents elsewhere.
FEATURES
0 Separate maintenance required by dangerous,
notably unhealthful, or excessively adverse situations,
or for the convenience of the Government.
o Based on average additional expenses for hous-
ing and household equipment in maintaining a spouse
and dependents in Washington, D. C., regardless of
Application must be approved.
Paid biweekly with salary.
Official Residence Expenses
PURPOSE
To reimburse a principal representative (chief
representatives and other designated senior officials)
for those unusual expenses he must incur in the opera-
tion and maintenance of an official residence.
To keep official residences staffed and operational
during intervals such as recall or transfer of a princi-
pal representative.
FEATURES
0 Expenses must exceed the normal housekeeping
expenses and costs an officer at the post would incur.
o Based on the normal living pattern of officers at
the posts, the difference between normal housekeep-
ing expenses and costs a principal representative is
required to bear, and the size and condition of the
official residence.
Usually insufficient to cover all costs.
o Not considered to be a gratuity, allowance, or
emolument.
0 Paid in a lump sum to the mission.
o Submit a voucher for specific expenses.
Evacuation Payments
PURPOSE
To provide continued payment of salary and cer-
tain allowances when you or your family are evacu-
ated from a post because of imminent danger to your
lives.
FEATURES
Period covered is up to 180 days.
^ Provides salary advance for 30 days if neces-
sary and continuation or adjustment of allowances at.
evacuated post depending on circumstances.
^ Provides for special travel, subsistence, and edu-
cational allowances payable to you and members of
your family evacuated from post.
Paid by various methods depending on type of
actual location of. separated household. payment.
Approved For Release 2002/05/17 : CIA-RDP78-0472200300030017-4
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 ^ Under lA p tole r eseYQfl02t /tTairCIA-REb978MO47sZ90Q~30A %tztibn, correspondence
up to $18 over the established rate for actual ex- courses (home study), and educational expense for
penses. handicapped children not in regular schools.
0 Paid in lump sum following submission of a n Apply for the education allowance at your post
voucher. of assignment.
0 Receipts necessary only to support actual ex- 0 Paid in lump sum(s) as necessary.
penses for claims above established rates.
Supplementary Post Allowance
PURPOSE
To pay for heavy expenses for restaurant meals
for you and your family while you are occupying
temporary nonhousekeeping quarters.
FEATURES
0 Payable for you and dependents.
o Covers up to the initial three months at post or
the final month before departure from a post.
o Paid biweekly with salary.
Submit evidence of daily costs at post.
Education Allowance
PURPOSE
To assist in meeting the uncompensated, neces-
sary, and extraordinary expenses of educating your
dependent children while you are serving in a for-
eign area.
FEATURES
o Granted at posts where the cost of adequate
schooling exceeds the cost in a U. S. public school,
grades K-12.
0 If adequate schools are available at post and you
elect to send a dependent to school away from post,
no higher allowance than the "at post" rate will be
paid.
o If local schools are inadequate, an "away from
post" allowance will assist with costs of tuition, room
and board, and periodic transportation for adequate
schooling elsewhere.
D Generally, you may send your child to any
school and receive up to the maximum allowance
established for your post. However, if there is a
U. S. Government-operated school (Army, Navy,
Air Force) or a designated U. S. Government-spon-
soxed school at post, your child must attend if you
are to receive an education allowance. Special cir-
cumstances of health or distance may allow you to
send your child elsewhere or you may elect to send
Educational Travel
PURPOSE
To cover round-trip travel expenses of your chil-
dren from post to a school in the United States for
secondary and undergraduate college education.
FEATURES
Covers student rates or less than first-class fares.
Includes per diem and transportation of un-
accompanied personal baggage,
^ Eligibility determined by age of the dependent
child, length of time the child has spent outside the
United States and by your employment status at the
post.
^ One round trip for all of high school. At the
high school level (9-12), this benefit is available
in lieu of the education allowance. However, the
annual education allowance is usually of greater
monetary value.
^ One round trip for all of undergraduate college.
(Legislation is being sought to allow a round trip
for each of 4 years of college.) At the college under-
graduate level, this is the only education benefit.
o Round trips must start at the post and be fin-
ished before the 21st birthday. A graduating college
senior may extend the limit up to (not including)
his 23rd birthday or longer if military service inter-
rupted his education.
^ Not simply a benefit for a short vacation trip. A
child beginning educational travel to the United
States must have been outside the United States for
21 days if his trip to the post was at government
expense.
0 Educational travel orders are generally written
at post or by the usual travel authorizing office.
Representation Allowance
PURPOSE
To defray expenditures for entertainment and in-
cidentals if your official position at a post entails
responsibility for establishing and maintaining rela-
tionships valuable to the U. S. Government in further-
ing U. S. foreign policy objectives.
him to the United States.
FEATURES
h
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In adi opt?roved ou etlase
allowance a c. s may ' assis w1 cer am one-time post, the po rtica economic importance of a post,