Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405







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                         November 4, 2004

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                         GSBCA 16494-RELO





                 In the Matter of LINDA L. SKAGGS





     Linda L. Skaggs, Lansing, KS, Claimant.



     Todd P. Roddy, Office of Counsel, United States Army Corps of Engineers,

Albuquerque, NM, appearing for Department of the Army.



DeGRAFF, Board Judge.



     The Department of Defense (DoD) transferred Linda L. Skaggs from one permanent

duty station to another.  In connection with the transfer, Ms. Skaggs signed an agreement in

which she promised to remain in Government service for a period of time and DoD signed

travel orders agreeing to reimburse her real estate transaction expenses.  Ms. Skaggs reported

to her new duty station in early February 2003, and retired from Government service in late

February 2004.  In July 2004, she sold her residence at her old duty station and asked DoD

to reimburse her real estate sales transaction expenses.  DoD decided to deny her request

because she sold her house after she left Government service.  Ms. Skaggs asks us to review

DoD's decision.  



     When an agency transfers a civilian employee from one permanent duty station to

another in the interest of the Government, statute authorizes the reimbursement of relocation

expenses, including real estate sales transaction expenses, provided the employee meets

certain requirements.  5 U.S.C.     5724, 5724a (2000).  The purpose of the statute is "to help

pay the cost of moving to the new place of employment."  The statute is designed to authorize

payment of expenses "incident to transfer from the old to the new station" so "employees will

not have to incur financial losses when transferred at the request of the Government." 

S. Rep. No. 89-1357, at 2-4 (1966), reprinted in 1966 U.S.C.C.A.N. 2565-67; Jeffrey R.

Jenkins, GSBCA 15339-RELO, 00-2 BCA   31,066; Paul W. Gard, Jr., GSBCA

15311-RELO, 00-2 BCA   31,053.  



     The Comptroller General, who reviewed relocation claims until mid-1996, considered

whether transferred employees who retired before selling their houses at their old duty

stations ought to be reimbursed for real estate sales transaction expenses.  The Comptroller

General decided an employee's relocation benefits become vested when the employee fulfills

the terms of a service agreement.  Because vested benefits are not altered upon an employee's

retirement, the Comptroller General concluded agencies had to reimburse transferred

employees who fulfilled their service agreements, retired, and then sold their houses at their

old duty stations, so long as they met all of the other requirements for being reimbursed.  55

Comp. Gen. 645 (1976); Lucy S. Tyler, B-222371 (Nov. 17, 1986).  We agree with the

Comptroller General's conclusion.  It would be contrary to the purpose of the statute to deny

benefits to an individual who transfers in the Government's interest, remains in Government

service for the requisite length of time after the transfer, incurs expenses as a result of the

transfer, and fulfills all of the requirements for reimbursement.  Here, DoD does not question

whether Ms. Skaggs fulfilled the terms of her service agreement or whether she meets the

other requirements for being reimbursed, such as transferring in the interest of the

Government and selling her residence within the time permitted by applicable regulations. 

Because Ms. Skaggs's relocation benefits vested while she was an employee, DoD is

obligated to reimburse her real estate sales transaction expenses so long as the expenses she

claims are otherwise allowed by applicable regulations.



     The claim is granted.







                                   ___________________________________

                                   MARTHA H. DeGRAFF

                                   Board Judge