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B-219473 1 (1986-03-12)

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                         THE COMPTROLLER GENERAL
O   ClISION              Op THE UNITED       STATUE
                 q.      WASHINGTON. 0. C. 20548
                 ('IT0


FILE:      B-219473            DATE: March 12, 1986

MATTER OF: John T. Phillips - Relocation Expenses -
             Release From Service Agreement
DIGEST:
       Employee of Department of Housing and Urban
       Development (HUD) who was transferred from
       Dallas to Fort Worth, Texas, failed to com-
       plete 12-month service agreement when he
       voluntarily retired, and HUD refused to
       reimburse his relocation expenses. Determi-
       nation whether separation is beyond employ-
       ee's control and for reasons acceptable to
       the agency is primarily for the agency to
       decide. Our Office will not overturn the
       agency's determination, unless it is arbi-
       trary or capricious. Here agency promul-
       gated regulation which provided that
       voluntary separation of an employee upon
       satisfying age and service requirements for
       optional retirement is an acceptable reason
       for release from a service agreement.
       Accordingly, agency action in refusing to
       accept voluntary retirement as an acceptable
       reason for not fulfilling obligation under
       service agreement is contrary to agency's
       own regulation and arbitrary. Therefore,
       agency action is improper and employee may
       be paid claimed expenses to extent otherwise
       proper.

       The issue in this decision is whether a transferred
  employee who did not complete the required term of
  Government service at his new duty station is entitled to
  relocation expenses incident to his transfer. We hold that
  the employee is entitled to relocation expenses since he
  failed to complete his service agreement for reasons which
  were explicitly made acceptable by the agency's own travel
  regulations. Therefore, failure to complete the service
  agreement under these circumstances cannot be a valid
  reason for agency to deny all relocation expenses.

      This decision is in response to a request, submitted
  through counsel, from Mr. John T. Phillips, a former
  employee of the Office of Inspector General, Department of
  Housing and Urban Development (HUD), concerning his claim


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