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	Expiration: January 31, 2003

Originating Office:	Travel and Relocation Services Branch, Financial Management Division, ARS/AFM

Distribution:	All REE Employees

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:

1. Frequent Traveler Benefits (FTBs) may be used for personal use.

2. Frequent Traveler Benefits may be used, without agency approval, to upgrade to first or business-class accommodations for official travel.

3. Employees and authorized non-Government travelers that wish to upgrade their accommodations, that do not participate in frequent flyer mileage programs must obtain approval to upgrade their class of accommodations in accordance with Policy and Procedure (P&P) 343.1, Approval of Premium-Class Air Travel and subsequent REE Bulletin 01-314, Premium-Class Transportation.

4. Employees may not claim reimbursement, from the federal Government, for free air or train tickets obtained using FTBs since there was no cost incurred.

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