Washington, D.C. 20530

March 13, 2001

MEMORANDUM FOR BUREAU PERSONNEL OFFICERS

SUBJECT:      Educational Services in Puerto Rico and Guam

The Department of Defense (DOD) decided to exercise their discretionary authority provided by section 2164(g), title 10, of the United States Code. That section provides for reimbursement by the heads of all non-DOD Federal agencies for the cost of educational services provided to dependents of their employees. A reimbursement program was to begin for school year (SY) 2001-2002 and all years thereafter.

The DOD has heard from many non-DOD agencies with employees living and working in Puerto Rico since they announced their policy change. The tuition reimbursement in SY 2001-2002 did not provide enough time for the agencies to budget for this change. To provide non-DOD agencies adequate time to adjust their budgets, the Secretary is delaying tuition reimbursement from SY 2001-2002 until SY 2003-2004 and all years thereafter.

This tuition reimbursement delay does not apply to tuition reimbursement under the "five-year rule." 10 U.S.C. 2164(c)(2)(B) requires the Secretary to be reimbursed for educational services provided to dependents of non-DOD Federal agency employees (not in the excepted service) who are enrolled in their schools in Puerto Rico or Guam for more than five consecutive school years. Since this reimbursement provision is statutory, it cannot be waived and will begin in SY 2000-2001.

If you have any questions on this matter, contact Sheila D. Marshall, of the Personnel Staff’s Policy Group, on (202) 514-6778 or via e-mail at sheila.d.marshall@usdoj.gov.