LQA Update: All submitted debt waivers approved

  • Published
  • By Capt. Reba Good
  • U.S. Air Forces in Europe and Air Forces Africa
RAMSTEIN AIR BASE, Germany --  Twenty-seven more living quarters allowance debt waivers were approved in full for affected civilian employees assigned to U.S. Air Forces in Europe and Air Forces Africa.

According to the USAFE-AFAFRICA personnel division, all 43 full debt waivers submitted to date were approved by the Department of Hearing and Appeals.

The opportunity to apply for a debt waiver was presented to affected employees in May after an audit, based on a 2011 Office of Personnel Management appeal decision, found they were not authorized to receive an LQA allowance and would potentially have to repay all the LQA they had accrued since accepting overseas employment.

"This LQA situation is a terrible position for our civilian Airmen to be in," said Lt. Gen. Tom Jones, USAFE-AFAFRICA vice commander. "But, I do appreciate the success we've had so far with the debt waiver approvals."

Of the 71 USAFE-AFAFRICA employees affected by the LQA audit, six have not signed waivers, while a number of others chose not to disclose their decision.

Jones reiterated his thoughts on the way ahead at a town hall here Dec. 3.

"Ultimately, we have a choice: we can be paralyzed by the problems and the confusion out there, or we can go after it," he said. "Whether or not you sign the waiver is your right -- how you go forward is a personal decision. To those of you who are considering other ways ahead, we'll keep working with you to the highest degree we can do so."

Jones hosted the fifth town hall on LQA with members of the USAFE-AFAFRICA personnel division to give employees important updates on the advanced priority placement program, student education travel entitlements, and what constitutes being a "U.S. hire."

One important update was the deadline extension for enrollment in the special priority placement program.

"Employees now have until June 2014 to sign up for special priority placement," said Jeff Loomis, USAFE-AFAFRICA Civilian Programs branch chief. "You have the option to sign up for PPP to gain stateside employment on a priority status, if that is something you seek."

The advantage of enhanced PPP, Loomis explained, is that it specifically identifies employees in the system as being impacted by LQA and gives these enrollees a higher placement priority for stateside employment opportunities.

Loomis also addressed the issue of transportation agreements, which continue to be a source of concern for employees impacted by LQA curtailment.

"We sent a list to the permanent change of station section at the Air Force Personnel Center validating nearly 100 percent of our affected employees' TAs and will provide additional documentation to this effect when orders are cut for return placement stateside," said Loomis.

Personnel officials also emphasized that even though there are six entitlements tied to LQA (temporary quarters subsistence allowance, student education travel, post-differential, foreign transfer, separation maintenance and home services), SET is the only one that applies to USAFE-AFAFRICA employees.

Currently, 14 employees have used SET entitlements, which may have to be recouped. However, military services are not taking any action at this time as Defense Finance and Accounting Services personnel are working with officials at the Office of the Secretary Defense to reach a policy decision, according to personnel officials.

Employees also wondered if the Internal Revenue Service would subsequently tax the erroneous LQA payments, despite the waiver clearing them of the debt.

"An allowance is not taxable," said Aaron Gillison, DFAS Director Indianapolis, via video teleconference. "If an allowance is waived, then the waiver of that allowance is not taxable."

Even though employees received this assurance, concerns remained because this guarantee is not in writing.

Personnel officials also discussed a recent change to the term "U.S. hire," which alters LQA eligibility.

Previously, a U.S. hire referred to someone who "physically resided permanently in the United States ... from the time he or she applied for employment until and including the date he or she accepted a formal offer of employment," according to Department of Defense Instruction 1400-25, Volume 1250.

A memo dated Sept. 19, 2013, from the Office of the Assistant Secretary of Defense changed this definition of a "U.S. hire" to include applying for employment during a temporary absence from their U.S. residence.

It reads, "Temporary absences from the U.S. for reasons such as vacation, temporary duty assignments or deployments by Reservists and National Guard members do not alter a person's 'U.S. hire' status."

Some employees argued that overseas military assignments should be considered "temporary duty," and that the new clarification should re-categorize them as "U.S. hires" instead of "local hires," making them re-eligible for LQA.

After the town hall, USAFE-AFAFRICA personnel officials researched these claims in-depth to determine their validity.

Upon further study, personnel officials soon confirmed that no evidence was found of affected USAFE-AFAFRICA employees falling into the new "U.S. hire" eligibility criteria.

Loomis explained that members' overseas assignments are considered permanent in nature, hence the phrase, "permanent change of station," referring to a military move.

Additionally, he emphasized that falling under the Status of Forces Agreement allows employees and their families to remain in country for longer than temporary periods, which qualifies them as permanent residents, not temporary ones.

For more information or to discuss an appeal process, contact the local civilian personnel office.