United States Department of Agriculture
Research, Education and Economics
ARS * CSREES * ERS * NASS
Bulletin
Title: | Frequent Traveler Benefits and Other Promotional Benefits |
Number: | 02-302 |
Date: | January 31, 2002 |
Originating Office: | Travel and Relocation Services Branch, Financial Management Division, ARS/AFM |
Distribution: | All REE Employees |
Expires: | January 31, 2003 |
This bulletin announces new regulations on the retention of Frequent Flyer Benefits and Other Promotional Materials in accordance with the National Defense Authorization Act for Fiscal Year 2002. Employees may now retain frequent flyer miles and other promotional materials obtained incident to official travel for personal use and may use frequent flyer miles to upgrade class of service for air and train accommodations without approval from the agency. |
On December 28, 2001, the President signed into law S.1438 National Defense Authorization
Act for Fiscal Year 2002. Section 1116, of this law, authorizes Federal employees to
retain promotional items, including frequent flyer miles earned on official travel for
personal use. Subsequently, certain provisions of the Federal Travel Regulations (FTR) and
Federal Property Management Regulations (FPMR) have been waived. This waiver will remain
in effect until a permanent amendment to the FTR is published by the General Services
Administration (GSA).
Changes In Regulations:
The law now allows Federal employees to retain for personal use, promotional items
including frequent flyer miles received incident to official travel, if such items are
obtained under the same conditions as those offered to the general public at no additional
cost to the Government.
Employees may also use frequent flyer miles to upgrade coach-class air and train
accommodations for official travel and use other promotional materials (i.e., free car
rental upgrades, lodging upgrades, etc.) received incident to official travel, without
agency approval.
Effective Date: December 28, 2001.
All benefits earned, including those earned before enactment of the Act, may be
used for personal use or to upgrade accommodations for official travel.
Accommodation Upgrades:
Note: National Agricultural Statistics Service (NASS) employees may be eligible
for a taxable Gainsharing award when using FTBs for official travel. See P&P 341.4,
Gainsharing Travel Savings Program (NASS only).
Travel Management Centers:
We have been informed by GSA that current Travel Management Centers (TMCs) are not
required to provide upgrade services when the upgrade is not approved by the agency.
Therefore, TMCs may only issue tickets for coach-class accommodations. Once you have
obtained a coach class accommodation you may contact the carrier to upgrade your
accommodations to first or business-class. Any fee that may be assessed by a TMC for
unauthorized upgrades is the responsibility of the traveler and will not be reimbursed.
Internal Revenue Service:
The Internal Revenue Service (IRS) has indicated that these benefits may be taxable. We
have not received any information or guidance from the IRS or GSA at this time. However,
we do recommend that all employees continue to maintain separate records of frequent flyer
miles earned on official travel versus personal travel until the IRS issues their ruling
on this subject.
P&P 343.1 and REE Bulletin 01-314 will be combined and updated to reflect the
changes in this bulletin. If you have any questions pertaining to this change, you may
contact Linda E. Mahoney, Chief, Travel and Relocation Services Branch on 301-504-1307 or
email LMahoney@ars.usda.gov.
/s/
S. M. HELMRICH
Director
Financial Management Division