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Panama Canal Area: Guidelines for Allowances and Benefits U.S. Government Civilians (FTR, JTR, DSSR, FAM) Canal Area until noon 12/31/99 and Republic of Panama after noon 12/31/99 Prepared by the Office of Allowances, October 1999

Per the Panama Canal Treaty of 1977, at 12:00 o'clock noon on December 31, 1999, the Canal Area will officially be turned back to the Panamanian Government. The Canal Area has been treated as a "non-foreign area" for allowances and benefits. After noon on 12/31/99, the Canal Area will cease to exist and will be considered part of the foreign area of the Republic of Panama for allowances and benefits. The following compilation of allowances and benefits for U.S. Government Civilians has been reviewed by an interagency team composed of the General Services Administration (responsible for the Federal Travel Regulation-FTR), the Department of Defense (responsible for the Joint Travel Regulations-JTR), the Department of State (responsible for the Department of State Standardized Regulations-DSSR, and the Foreign Affairs Manual-FAM) and the Agency for International Development. Although we have tried to address all concerns, if individual questions arise, contact your agency representative for further clarification of allowances and benefits in a non-foreign versus a foreign area.

Allowances and Benefits in the Canal Area until noon 12/31/99	Allowances and Benefits in the Republic of Panama after noon 12/31/99
1. Cost of Living Allowance Not authorized	1. Post (Cost of Living) Allowance--DSSR 220 Authorized when warranted. Rates will be listed in DSSR Section 920.
2. Danger Pay Not authorized	2. Danger Pay--DSSR 650 Authorized when warranted. DSSR 652f danger pay--Amounts are 15, 20 or 25% of basic compensation (considered part of gross income for federal tax purposes). Rates listed in DSSR Section 920. May be paid when employee is receiving Post Differential. DSSR 652g danger pay--Flat amount of $150 per month (considered part of gross income for federal tax purposes). Not paid with 652f danger pay nor when employee is receiving Post Differential which includes political violence credit. Rates listed in DSSR Section 920.
3. Department of Defense Dependent Schools (DoDDS) Authorized	3. For DOD employees: DoDDS arranges for schooling either through the dormitory program or by contracting with a private school. For Non-DoD Employees: DSSR Section 270 education allowance regulations and DSSR Section 920 education allowance rates will apply.
4. Educational Travel Title 5 U.S. Code 5924 allows benefit equal to foreign area benefit.	4. Educational Travel Guidelines found in DSSR 280 and DSSR Section 960 "Omnibus Exhibit"
5. Q: Is a Househunting Trip allowed when transferring from a non-foreign post to the U.S. or another non-foreign area? A: A househunting trip is allowed when both old and new Permanent Duty Stations (PDS) are located within the United States.	5. Househunting Trip Is not allowed to or from a foreign area.
6. Living Quarters Allowance Rates used are equal to those in DSSR Section 920	6. Living Quarters Allowance DSSR Chapter 100. Rates are shown in DSSR Section 920. Rates are based on employees' costs for rent, utilities, and other allowable expenses reported on DSSR Section 960 worksheets or summary report. These worksheets/reports are submitted to the Office of Allowances, U.S. Department of State for analysis.
7. Miscellaneous Expenses Authorized	7. Miscellaneous Expenses DoD Civilians: Under the JTR, Chapter 9 and DSSR. (JTR note: in item 1, par. C9002, "Employees performing first-PDS travel in a foreign area are eligible for the miscellaneous expense portion of the FTA. For Foreign Transfer Allowance guidance refer to Section 240 of the Department of State Standardized Regulations (DSSR) as stated in par. C1004." Non-DoD Civilians: "Miscellaneous Expense Portion" of the Foreign Transfer or Home Service Transfer Allowance (DSSR 240 and 250, respectively).
8. Permanent Change of Station (PCS) transportation agreement Authorized	8. Permanent Change of Station (PCS) transportation agreement Authorized
9. Personally Owned Vehicle (POV) shipment Authorized	9. Personally Owned Vehicle (POV) shipment Authorized
10. Real Estate Transaction and Unexpired Lease Expenses Authorized	10. Real Estate Transaction and Unexpired Lease Expenses See Residence Transaction Expenses below. Unexpired lease benefits are under the Foreign Transfer Allowance or Home Service Transfer Allowance ("Lease Penalty Expense Portion" equal to 3 months' rent or terms of Living Quarters Allowance lease in foreign area--whichever amount is less). (DSSR 240 and 250) Residence Transaction Expenses (FTR Chapter 302)--Current rule is if reassigned following one or more intervening foreign assignment(s) to a different U.S. duty station than the last U.S. duty station prior to the foreign assignment. Since person is now in a foreign area, if transferred back to different U.S. duty station this may apply.
11. Relocation Income Tax (RIT) Allowance Applies for transfer to or from Canal Area	11. Relocation Income Tax (RIT) Allowance Does not apply for transfer to a foreign area. FTR Chapter 302 indicates that the RIT Allowance does not apply to "Employees returning from overseas assignments for the purpose of separation." There is no prohibition for employees returning from foreign areas in connection with a transfer. Note: Transfer-related allowances paid under the DSSR [Foreign Transfer Allowance (FTA) and Home Service Transfer Allowance (HSTA)] are not included in gross income for Federal income tax purposes. (DSSR 054.1)
12. Home Leave Assignment Travel/Renewal Agreement Travel (RAT) Authorized	12. Home Leave Assignment Travel/Renewal Agreement Travel (RAT) Authorized
13. Separate Maintenance Allowance Not authorized	13. Separate Maintenance Allowance Will be allowed under DSSR Section 260
14. Shipment of Household Goods 18,000 pounds	14. Shipment of Household Goods 18,000 pounds
15. Storage--Non-Temporary (Continuous) Allowed if cannot use household goods at post	15. Storage--Non-Temporary What would be allowed for a foreign assignment.
16. Storage--Temporary Allowed	16. Storage--Temporary What would be allowed for a foreign assignment.
17. Temporary Quarters Subsistence Allowance (TQSA) Not authorized	17. Temporary Quarters Subsistence Allowance (TQSA) Under DSSR Chapter 100. See DSSR Section 960 TQSA Worksheet. Available upon arrival at foreign post and upon final departure from foreign post.
18. Temporary Quarters Subsistence Expense (TQSE) Q: Is TQSE allowed prior to departure from the U.S. to the Canal Area? A: Yes Q: Is TQSE allowed upon arrival in the U.S. from the Canal Area? A: Yes	18. Foreign Transfer Allowance (FTA) under DSSR Section 240, Subsistence Expense Portion, is available when transferring from U.S. to Panama. See DSSR Section 960 FTA Worksheet. Home Service Transfer Allowance (HSTA) under DSSR Section 250, Subsistence Expense Portion, is available when transferring to the U.S. from a foreign area. See DSSR Section 960 HSTA Worksheet.
19. Tropical Differential 15% additional remuneration and is considered part of gross income for federal tax purposes.	19. DSSR Chapter 500 Post (Hardship) Differential If warranted, the post differential rate will be listed in DSSR Section 920. Amounts range from 5% to 25% of base compensation. Considered as part of gross income for federal tax purposes.
20. Unaccompanied Air Baggage (UAB) Currently allowed for Foreign Service employees (6 FAM 148.2)	20. Unaccompanied Air Baggage (UAB) "Air Freight". What would be allowed for a foreign assignment.
21. Wardrobe Allowance Not authorized	21. Wardrobe Allowance Foreign Transfer Allowance (DSSR 240) Wardrobe Expense Portion available if transferring from a foreign area or non-foreign area (outside the continental U.S.) to a foreign area and cross two transfer zones (zone 1 to 3 or zone 3 to 1). The continental U.S. is a zone 2. Foreign area transfer zones are listed in DSSR Section 920. Non-foreign area transfer zones are listed in DSSR 240. There are only three transfer zones worldwide. Home Service Transfer Allowance (DSSR 250) Wardrobe Expense Portion available if transferring from a foreign area to a non-foreign area (outside the continental U.S.) when crossing two transfer zones (zone 1 to 3 or zone 3 to 1). The continental U.S. is a zone 2. Foreign area transfer zones are listed in DSSR Section 920. Non-foreign area transfer zones are listed in Section 250. There are only three transfer zones worldwide. Note: DoD regulations do not allow payment to DoD employees of the Wardrobe Expense Portion of either the FTA or HSTA

Internet sites for regulations: Department of State Standardized Regulations (DSSR) maintained by the Department of State: http://www.state.gov/www/perdiems/dssr/regs000.html Federal Travel Regulation (FTR) maintained by the General Services Administration (GSA): http://policyworks.gov/ftr Foreign Affairs Manual (FAM) maintained by the Department of State: http://foia.state.gov/Famdir/index.html Joint Travel Regulations (JTR) maintained by the Department of Defense: http://141.116.74.201/ [end of document] Office of Allowances | Western Hemisphere Affairs | Department of State