PCS Financial AssISTANCE Part 1
When researching how to manage the cost of a PCS, two different types of information pop up. The first is programs or resources in place that can help offset these costs. The second are discussions and preparations that should be made. To start, let’s talk about the programs in place. I want to put a big disclaimer before I start this post, though, that I am not a certified tax professional. A decent amount of this advice relates to how we file our taxes because all income is reported in a variety of ways, so I highly recommend talking to an accountant before doing anything. We have an accounting firm that handles our taxes every year, but I’m sure you could find similar advice through things like H&R Block.
1. Unemployment compensation for spouses
Generally speaking, when quitting a job, we do so willingly, which means we cannot receive unemployment compensation. However, most states, including the District of Columbia, recognize that quitting a job to follow a military member to a new assignment is not the same as voluntarily quitting. There are exceptions in place to allow military spouses to receive unemployment income while they search for a new job for the next assignment. Unemployment claims should be made to the state where the job was originally held rather than the new duty station.
2. Licensing support
For many spouses, a new state means new licenses to maintain their careers. This can be a lengthy process, but there may be options to help. We can ask for a temporary license to allow us to find employment while waiting for the new license to become official. We can ask for expedited procedures, given that we are military spouses with active licenses for our previous state. There’s no guarantee that this would work in whatever state we head to. Still, it’s always worth a shot to ask, especially if we find the perfect organization to work with but are still dealing with the bureaucracy of licensing processes.
3. Military dislocation allowance
This allowance partially reimburses servicemembers for moves required by a PCS, evacuation, or government convenience. Usually, only one of these is allowed per fiscal year. Generally, we can receive this if our spouses receive BAH or are over E-5 and choose not to live in single-type government housing. This is usually paid after a move but can be requested ahead of time by filing with the finance office 15 days before the move. You’ll also need the commander’s approval.
This allowance is primarily designed to help with things like additional meals or security deposits. It’s not a given that your spouse may already be applying for it, though, so it is definitely worth asking about. My husband was under the impression that we could only get it from the previous base before moving, but he will put in for it tomorrow, so I’ll let you know if there are any complications with the process. It’s paid out based on rank and dependent status, so definitely look into it. Check out this link for more information: https://www.militaryonesource.mil/benefits/military-dislocation-allowance/
4. Military sponsorship
While this isn’t technically a financial resource, it can be beneficial. It seems to be hit or miss how helpful a sponsor is, but in theory, they are there to help us assimilate to the new base. They help our spouses get set up in the new squadrons, as well as helping with things like the best places to live, work, and eat in a new area. Our sponsor coming into Robins was super helpful. They gave us a really clear breakdown of all the cities around the base as well as the pros and cons of living in each. This gave me a much better reference of areas to look at and avoid when house hunting, which helped me stay within budget while making sure we ended up in a good place.
5. Per Diem
This is a specific allotted amount paid after a move for the travel days of a PCS. Service members receive 100% of the rate. Spouses and children over the age of 12 receive 75% of the rate. Children under the age of 12 receive 50%. This is all filed once arriving at the new base and paid out based on how many travel days were allotted. We were given three for our move, so if our rate was $100 a day, we would receive $675 for those days since it was my husband, our one-year-old, and I traveling. You can look up the specific rates for the bases that you are traveling to. Usually, this money covers travel costs pretty well, but it only factors in the allotted travel days, so if we had to be in a hotel before or after the move, those would not be counted towards the per diem total.
6. Temporary Lodging Allowance
Many families arrive at a new base and begin looking at where to live. This allowance can help cover the cost of a hotel during a limited house-hunting period. Usually, the family has to stay in the base hotel unless it is full (or there isn’t one), in which case they will be sent to one off base. This can be used for a maximum of 60 days when arriving at a new base or for 10 days when departing. It is factored based on rank, number of family members, cost of hotel, availability of cooking facilities, and local per diem. You must be actively searching for a home when using TLA and have to verify that multiple times throughout the stay
7. Temporary Lodging Expense
This is most similar to per diem because it is designed to pay for hotel and food once arriving at a new base. This is only paid out in the continental US. It cannot overlap with per diem, and we are only eligible for payment for up to 7 or 14 days, depending on the base and circumstances of the move. From my understanding, this can be used both when leaving a duty station and arriving at a new one. This was also something that we were not aware of, especially since we could have easily ended up in a hotel for a few weeks prior to leaving our last base. It is definitely worth researching more and asking about if there is a buffer period between moving out of housing and moving into new housing. This is calculated the same as TLA but can only be used for a maximum of 10 days when moving within the continental US or a maximum of five days when moving from the US overseas.
This will be a two-part series on the benefits available, so make sure to come back on Wednesday to see what else may help us out during a PCS. Many of these programs aren’t necessarily “givens” that we may know about or apply for, so it is always better to be prepared with more information about what we may be eligible for. These are not perfect solutions, but every little bit does help when the average move costs families $5,000 out of pocket every 2-4 years.