WASHINGTON (Army News Service, Nov. 19, 2014) -- Long-term temporary duty rules that became effective Nov. 1, across the Department of Defense, are expected to result in an annual savings of $22 million, of which nearly $9 million will be reaped for the Army each year, according to the service's chief for compensation and entitlements.
Long-term temporary duty, referred to as TDY, is a period between 31 and 180 days, and those Soldiers and Army civilians will receive a flat-rate per diem equal to 75 percent, said Larry Lock, adding that travelers who are TDY for longer than 180 days will receive a flat-rate per diem of 55 percent.
The 75 and 55 percent rates apply to all three parts of the per diem -- lodging, meals and incidentals.
"If you know you're going to be TDY for a period in excess of a month and up to 180 days, DOD and the services expect you to plan accordingly. You don't plan as if you're going to be gone a few days. You have a long-term focus and should make long-term arrangements to where you can absorb a 25-percent cut," Lock said. "We can't pretend this doesn't work, because we've used it in the past."
Lock said that up until a few years ago, civilian personnel who were on long-term TDY, especially for training, were receiving 55-percent per diem. He added that the Army changed its policy to also apply to reserve-component Soldiers who were called to active duty in support of the war effort because it had worked so well with the civilian workforce.
He noted that the changes are meant to give long-term TDY personnel the incentive to seek out extended-stay lodgings, which are usually less expensive on a long-term basis, and often include perks such as free breakfasts and kitchenettes.
"If you were going to rent a car for example, and you know you needed that car for a month or more, would you be willing to pay daily rates as opposed to the less expensive monthly rate," Lock said. "Common sense would say you should plan accordingly, and that we be prudent travelers. It's pretty much that simple.
TDY approving officials do have flexibility to authorize 100-percent per diem, he said, but that is as an exception to policy based on a location where there is no guarantee a member will be able to get lodging at a reduced rate.
"Travelers who are authorized the flat-rate per diem are no longer required to submit a lodging receipt, but before reimbursement, they may need to have a receipt to validate the lodging costs," Lock said, noting that staying anywhere for free or buying a home at a TDY location makes the traveler ineligible for the flat-rate per diem payment.
"Probably 99 percent of the time, no one is going to ask for a receipt, because there's imbedded in this policy change a 25-percent savings, period," he said. "We don't want to press the inconvenience to the traveler because you would give them no incentive to do anything else other than to stay in the most expensive place they could afford given in terms of reimbursement."
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