Department of Defense

INSTRUCTION

NUMBER 1340.18

December 13, 1988

ASD(FM&P)

SUBJECT:  Advance Pay Incident to a Permanent Change
of Station (PCS) for Members of the Uniformed Services


References:  (a)  DoD Military Pay and Allowances Entitlements
Manual (DoDPM), Paragraph 40101

(b)  Joint Federal Travel Regulations (JFTR) for Uniformed
Service Members, Volume 1

1.  PURPOSE 

This Instruction establishes policy, assigns responsibility,
and prescribes procedures governing the administration
of an advance of basic pay incident to a PCS as authorized
by reference (a).

2.  APPLICABILITY AND SCOPE 

This Instruction applies to the Military Departments.
  For the purposes of this Instruction, the term "Uniformed
Services," refers to the Army, the Navy, the Air Force,
and the Marine Corps.

3.  DEFINITIONS 

3.1.  Basic Pay Less Deductions.   The sum of money
for an individual's basic pay, less deductions, as delineated
in the DoDPM, Table 4-1-1 (reference (a)).

3.2.  Permanent Change of Station (PCS).   As defined
in the JFTR, Appendix A (reference (b)).

4.  POLICY 

It is DoD policy that:

4.1.  The purpose of an advance of pay incident to a
PCS is to provide a Service member with funds to meet
the extraordinary expenses of a Government-ordered relocation.
  It is intended to assist with out-of-pocket expenses
that exceed or precede reimbursements incurred in a
duty location change, and are expenses that are not
typical of day-to-day military living.

4.2.  An advance of basic pay shall not be authorized
for the specific out-of pocket expenses covered by advances
of other pays and entitlements, if such advances are
used.   To the extent that incurred or anticipated expenses
exceed those covered by the following advances or reimbursements,
or are outside of the scope of those entitlements, the
Service member may be authorized an advance of basic
pay:

4.2.1.  Service member and/or dependent travel allowances
and per diem.

4.2.2.  Overseas station housing allowance.

4.2.3.  Basic allowance for quarters and/or variable
housing allowance.

4.2.4.  Dislocation allowance.

4.3.  An advance of pay for a PCS move in the same geographic
area of a Service member's prior duty station, home
port, or place from which ordered to active duty, is
only authorized when movement of the Service member's
household at Government expense is in accordance with
the JFTR, Chapter 5, Part D (reference (b)).

4.4.  Commander oversight is an important responsibility
in the advance pay program.   The commander or supervisor
shall ensure that the Service member is aware of the
options available to ease the possible financial burden
of a PCS move.   Advance pay is one such option for
easing a PCS financial burden.   The potential for personal
financial hardship, as the result of the reduced monthly
paycheck over the repayment period, is of significant
importance.   It is the commander's responsibility to
ensure that the Service member is aware of the intent
of an advance of pay, particularly for expenses outside
of the program's scope.   An advance of pay is not intended
to

provide funds for such items as investments, vacations,
or the purchase of consumer goods that are not the result
of direct expenses resulting from the Service member's
PCS orders.

5.  RESPONSIBILITIES 

5.1.  The Assistant Secretary of Defense (Force Management
and Personnel) (ASD(FM&P)) shall:

5.1.1.  Serve as the focal point on matters for advance
pay incident to a PCS.

5.1.2.  Issue and maintain a DoD Instruction, which
provides policy and procedures whereby Service members
may request and receive an advance of pay incident to
a PCS.

5.1.3.  Consider request for changes to criteria in
this Instruction and approve such changes.

5.2.  The Secretaries of the Military Departments shall:

5.2.1.  Require that forms documenting Service member
use of an advance of pay are maintained in accordance
with Military Service regulations.

5.2.2.  Comply with this Instruction.

6.  PROCEDURES 

6.1.  All Service members requesting an advance of pay
in accordance with a PCS are required to sign a form
that states the purpose of the program and confirms
that the intended use of the funds is in accordance
with the stated purpose.

6.2.  Justification is required when the Service member
requests an advance outside of the normal parameters
of1-month's basic pay, less deductions, a 12-month repayment
schedule, and eligibility in the window of 30 days before
departure to 60 days after arrival.   Justification
must illustrate extenuating circumstances, severe hardship,
or unusually large expenses that require an extension
of the normal parameters and shall be provided in writing
to the commander in the following cases:

6.2.1.  A Service member requesting greater than 1-month's
basic pay, less deductions.   Justification clearly
must indicate out-of-pocket PCS expenses that meet the
amount of advance requested; i.e., as follows:

6.2.1.1.  A list of actual or anticipated expenses.

6.2.1.2.  An explanation of individual circumstances
when greater than normal expenses might be incurred,
like a house or apartment hunting trip, supporting two
households when the Service member is unable to rent
or sell the house at the old duty station, the downpayment
on purchase of a house, or excess household goods shipment
charges.

6.2.1.2.1.  When warranted and justified by the out-of-pocket
expenses experienced or anticipated, a commander may
approve up to 3-month's basic pay, less deductions.

6.2.2.  A Service member requesting a repayment schedule
in excess of 12 months.   Justification must demonstrate
that severe hardship would result for a liquidation
period of 12 months; i.e., as follows:

6.2.2.1.  Outstanding debts that significantly reduce
the Service member's discretionary paycheck.

6.2.2.2.  Support of a large number of dependents.

6.2.2.3.  Specifics of a Service member's financial
situation that might indicate a severe hardship in repaying
the advance in the normal 12-month time period.

6.2.2.3.1.  When a PCS move causes unusually large expenses
and the Service member justifies that repayment within
12 months would create a severe hardship, Military Service-designated
officials may authorize repayment up to a period of
24 months.   Extended repayment terms are for clearly
exceptional cases and should be authorized with discretion
only when fully justified by compelling reasons of hardship.
  Written authorization is required.

6.2.3.  A Service member requesting an advance outside
the window of 30 days before departure to 60 days after
arrival.   Justification must be specific to indicate
the circumstances requiring an early or late advance
of pay; i.e., as follows:

6.2.3.1.  The early departure or late arrival of dependents.

6.2.3.2.  An extended delay in acquiring permanent housing.

6.2.3.2.1.  When extenuating circumstances warrant,
and when justified by the Service member, the commander
may authorize an advance up to 90 days before departure
or 180 days after arrival.   Written authorization is
required.

6.3.  A commander's written authorization is required
for any advance of pay to Service members in grades
E-3, and below, except as more restrictively prescribed
in administrative regulations of the Military Service
concerned.

7.  EFFECTIVE DATE AND IMPLEMENTATION 

This Instruction is effective immediately.   Forward
one copy of implementing documents to the Assistant
Secretary of Defense, Force Management and Personnel,
within 120 days.