AFZC-JA-AL 25 January 2002
INFORMATION PAPER
SUBJECT: Frequent Traveler Benefits
1. PURPOSE: To provide an overview of the new frequent traveler benefits rules.
2. The National Defense Authorization Act for Fiscal Year 2002, signed by President Bush on
28 December 2001, now allows federal employees to retain for personal use promotional items
received incident to official travel. On 11 January 2002, such changes were incorporated in the
Secretary of the Army’s policy letter, Policy for Travel by Department of the Army Officials,
dated 5 November 2001.
3. Any promotional benefits or material received (e.g., frequent flier miles, hotel bonus points)
from a travel service provider in connection with official travel may be retained for personal use,
if such items are obtained under the same conditions as those offered to the general public at no
additional cost to the Government. This includes all personal and government benefits earned,
including those earned before enactment of the National Defense Authorization Act for Fiscal
Year 2002.
4. Each traveler is responsible to establish his/her frequent travel promotional benefits account.
Any associated costs must be paid by the traveler and are not a reimbursable expense.
5. The use of personal frequent flyer miles to upgrade to business or first-class travel is
permitted, however wearing military uniforms, or advertising a position or rank with the
Department of the Army is prohibited. Approval to fly first-class, or the higher of two offered
classes, at government expense remains at the Secretariat level.
6. The GSA advises that it has asked the IRS for information about the taxability of frequent
flyer miles. It is possible that such benefits may be considered to be additional compensation,
and taxed accordingly. Until a ruling is received, recommend that personnel who redeem
frequent flyer miles or other promotional benefits keep a record of such redemptions.
7. Supervisory Issues. Under the new rules, some personnel may attempt to schedule travel in
order to acquire frequent flyer miles or other promotional items. For example, personnel may
schedule travel that is not necessary, may schedule meetings in more distant locations, or may
schedule travel that involves multiple legs. Personnel who have frequent flyer accounts for one
carrier may attempt to avoid use of the government contract (city-pairs) carrier when they do not
have a frequent flyer account for the contract carrier. Such attempts, to the extent that they
increase the costs of travel to the Government, violate the Joint Ethics Regulation, and, in some
cases, may violate criminal conflicts of interest statutes. Supervisors and travel approving
authorities should be aware of these concerns and, as always, ensure that the travel is necessary
to accomplish the mission and is by the most cost effective means.
8. Questions may be directed to the Office of the Staff Judge Advocate, Administrative Law
Division, 555-1111/2222.
MAJ NAME, 555-1111
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