GSA answers questions about new frequent flier mile policy

The General Services Administration has issued a travel advisory explaining the new frequent flier mile benefit awarded to federal employees in the fiscal 2002 Defense Authorization bill.

The bill was signed by President Bush last Friday.

The advisory provides guidance on the long-awaited benefit, which gives civil service, military and Foreign Service employees the authority to use frequent flier miles obtained on government travel for personal use. Prior to the law's passage, federal employees were not allowed to use their frequent flier miles because the 1994 Federal Acquisition Streamlining Act (Public Law 103-355) prohibited them from accepting promotional items they received while traveling at government expense.

The new benefit is available immediately to federal employees, though GSA is revising and amending the Federal Travel Regulation and Federal Property Management Regulations to reflect the change in law. Those changes are expected to be published in the Federal Register by March 1, 2002.

According to GSA's advisory, employees must open their own frequent flier accounts to take advantage of the new benefit, and pay any costs associated with establishing such accounts. The benefit is retroactive, allowing federal employees to use miles earned prior to the bill's enactment.

Although federal travelers are generally restricted to coach class, they are now able to use frequent flier miles to upgrade service. But agencies will not pay for upgrades if fees are assessed, GSA said. The Internal Revenue Service could declare that frequent flier miles are a taxable benefit, but has not yet made the decision to do so, GSA said. GSA officials said they will keep employees informed about what the IRS decides.

Federal employees with questions about their travel plans should contact their supervisor or travel manager, GSA advised.