February 28, 1997
                                                  


                             GSBCA 13728-RELO


                       In the Matter of GEORGE SPAN


     George Span, Washington, DC, Claimant.

     Charles Buker, Defense Accounting Office - Indianapolis
Center, Defense Finance and Accounting Service, Fort Ritchie, MD,
appearing for Department of Defense.

DANIELS, Board Judge (Chairman).

     George Span, who is employed by the Department of Defense
(DoD) as a telecommunications specialist, was hired by the United
States Government while he was residing in Germany and was
initially assigned to a permanent duty station in Germany.  In
1995, DoD issued permanent duty travel orders to Mr. Span,
transferring him for the benefit of the Government from Frankfurt
to Washington, D.C.  Mr. Span was renting quarters in the Frankfurt
area at the time.  He states that he was unable to sublease the
quarters and had to pay the equivalent of six months' rent to
terminate his lease.  Mr. Span claimed that DoD was required to
reimburse him for the lease termination expense.  When the agency
denied his claim, he asked the General Accounting Office (GAO) to
review the matter.

     The agency acted correctly in denying the claim.  Statute and
regulation provide for the payment by the Government of a
transferred employee's expenses in settling an unexpired lease, but
only under certain conditions.  Generally, both the old and new
official stations involved in the transfer must be located within
the United States or other specified locations.  5 U.S.C.
 5724a(a)(4)(A) (1994); 41 CFR 302-6.1(a) (1995); JTR C14000-A. 
In 1987, Congress amended the law to permit such payment to certain
employees who were transferred from a foreign area to the United
States or one of the other specified locations.  Pub. L. No.
100-202,  628(a)(1), 101 Stat. 1329, 1329-430 (1987).  For an
eligible employee, however, the lease settlement expenses which may
be paid are only those pertaining to a lease at the official
station where the individual was employed at the time he was
transferred to the foreign area.  5 U.S.C.  5724a(a)(4)(A); 41 CFR
302-6.1(g)(3)(i); JTR C14000-C.3.a.

     Neither statute nor regulation makes any provision for the
payment by the Government of expenses a transferred employee incurs
in settling an unexpired lease at a foreign location where the
individual is stationed.  69 Comp. Gen. 506 (1990).  The laws do
not authorize payment of such expenses to an employee like Mr. Span
who resides in a foreign country at the time of his appointment and
is later transferred to the United States, either.  Whether, as the
claimant contends, these distinctions are unfair is a policy
question which is for the Congress and the regulation-writers to
decide.  As a quasi-judicial tribunal, our role is limited to
interpreting and applying the law as it exists.

     Mr. Span maintains that amendment 37 to the Federal Travel
Regulation, which was issued on May 16, 1994, and is principally
incorporated in 41 CFR 302-6.1(c), authorizes payment to him for
the expenses incurred.  This amendment accurately describes itself
as "modif[ying] the rules governing residence title requirements to
recognize, and provide reimbursement to an employee based on,
equitable title interests."  It does not alter any of the
restrictions on eligibility for benefits which are mentioned in
this decision and thus has no bearing on this claim.





                                   _________________________
                                   STEPHEN M. DANIELS
                                   Board Judge