MS 223: Volunteer/Trainee Readjustment Allowance

Date: 06/30/95 v.5 (partial revision 8/4/03); (partial revision 5/20/05)
Office: OPBF/FIFO/VFO
Supersedes: MS 223 - 10/27/87, 1/2/85, 11/2/83

Table of Contents
Attachments

Interim Policy Statement, Readjustment Allowance


1.0	Purpose
2.0	Authority
3.0	Policy
	3.1	Purpose of the Readjustment Allowance
	3.2	Readjustment Allowance Accrual
	3.3	Record of Readjustment Allowance
	3.4	Withholdings and Withdrawals
	3.5	Payments of the Readjustment Allowance
4.0	Establishment and Routine Maintenance of Readjustment Allowance
	4.1	Establishment and Review of Accounts
		4.1.1	Registration
		4.1.2	Trainee Arrival Cable
		4.1.3	Swearing-in Cable and Oaths
		4.1.4	Annual Roster
		4.1.5	Roster Changes
	4.2	Closing of Accounts
5.0	Monthly Deductions From the Readjustment Allowances
	5.1	Federal Income tax
	5.2	OASDI (Social Security Taxes)
	5.3	Peace Corps Group Life Insurance
		5.3.1	Insurance Premium Deduction
		5.3.2	Waiving the Insurance
6.0	Withdrawals (Single Payments)
	6.1	Purposes Allowed
	6.2	Limitations
	6.3	Withdrawal Procedures
		6.3.1	In-country Special Needs Withdrawals
		6.3.2	Medical Emergency Withdrawals
	6.4	Withdrawals at Completion or Early Termination of Service
	6.5	Receipt of Payment
7.0	Monthly Allotment Payments (partial revision 8/4/03)
	7.1	Purposes Allowed
	7.2	Limitations and Conditions
	7.3	Allotment Procedures
	7.4	Allotments for Purchase of U.s. Savings Bonds
8.0	Verification of Request for Withdrawal, Allotment, or Bond
9.0	Readjustment Allowance Payment at Close-of-service
	9.1	Volunteer Projected cos Report
	9.2	One-third Checks
		9.2.1	Distribution of the Check
		9.2.2	Failure to Receive One-third Check
	9.3	One-third Checks for Medical Separations
10.0	Readjustment Allowance Payments to Extending Volunteers
	10.1	Extensions of Less Than six Months
	10.2	Extensions of More Than six Months but Less Than Twelve Months of Service
	10.3	Extensions of Twelve Months or More of Volunteer Service
11.0	Readjustment Allowance Payments to Early Terminating Volunteers
	11.1	Eligibility for Readjustment Allowance
	11.2	Reporting Readjustment Allowance Advance
12.0	Final Payment of Readjustment Allowance for Volunteers Completing Service
	12.1	Reporting Final Payment of Readjustment Allowance
	12.2	Calculating Final Payment of Readjustment Allowance
	12.3	Final Payment to Port of Entry Terminees
13.0	Effective Date

Attachments

Attachment A	Form PC-1487, "Trainee Registration Form"
Attachment B	Trainee Arrival Cable
Attachment C	Sample Swearing-In Cable
Attachment D	Annual Roster Correction Cables
Attachment E	PC 652, "Designation of Beneficiary for Peace Corps Life Insurance"
Attachment F	PC-653, "Waiver of Coverage Peace Corps Life Insurance"
Attachment G	PC-10, "Application to Allot or Withdraw Readjustment Allowance"
Attachment H	PC-1572, "Authorization for Purchase of U.S. Savings Bonds By Volunteer"
Attachment I	PC-804, "List of Payments Charged to Account 11X6016"
Attachment J	PC-477, "Peace Corps Volunteer Certification of Non- Indebtedness and Accountability for Property"
Attachment K	PC-1764, "Emergency Readjustment Allowance Request Form"
Attachment L	COS Termination Email Format
Attachment M	Early Termination Cable

1.0 Purpose

This Manual Section prescribes Peace Corps regulations and procedures governing Trainee/Volunteer Readjustment Allowances.

2.0 Authority

Section 5(c) of the Peace Corps Act, as amended, provides that Volunteers shall be entitled to receive a readjustment allowance at a rate determined by the President, but not less than $125 for each month of satisfactory service. The Director of the Peace Corps has been delegated the authority to determine that rate (as well as exercise other authorities under this section). This rate is currently set at $200 per month. [See the 12/08/98 Interim Policy Statement at the end of this Manual Section.] Section 5(c) also provides: "The readjustment allowance of each Volunteer shall be payable upon his or her return to the United States: Provided, however, that under such circumstances as the President (Director) may determine, the accrued readjustment allowance, or any part thereof, may be paid to the Volunteer, members of his or her family or others, during the period of service, or prior to his or her return to the Untied States."

Section 6 of the Peace Corps Act, as amended, authorizes payment of a readjustment allowance to Volunteer Leaders at a rate not less than $125 for each month of satisfactory service, as determined by the President. This authority has also been delegated to the Director.

3.0 Policy

3.1 Purpose of the Readjustment Allowance

The readjustment allowance is a payment authorized by Congress to assist returned Volunteers in their transition from Peace Corps Service to other endeavors. It is not a deferred salary; thus, Volunteers are not entitled to use this allowance until completion of service, except as noted below. Dependents of Volunteers are not entitled to a readjustment allowance.

The provisions below relating to withdrawals, allotments, and federal income tax withholdings are the only exceptions to the basic rule concerning use before completion of service which has been authorized by the Director.

3.2 Readjustment Allowance Accrual

The readjustment allowance accrues for each month of satisfactory service (pro-rated for partial months of service) from the enter-on-duty date of a Trainee to the date service with the Peace Corps ends.

3.3 Record of Readjustment Allowance

Volunteer Financial Operations (OPBF/F/IFO/VFO) maintains a record of each Trainee's and Volunteer's readjustment allowance and all disbursements.

3.4 Withholdings and Withdrawals

Withholdings for OASDI (Social Security tax), (sub-paragraph 5.2.) and Volunteer group life insurance (sub-paragraph 5.3.) unless the Volunteer waives the insurance, are taken from the Volunteer's readjustment allowance account.

A Volunteer may request, through VFO, that other withdrawals or allotments be made from the account as outlined in paragraphs 6 and 7. Advances from the Readjustment Allowance (RA) Fund may not be repaid to the RA Fund, but must be deducted from the final RA entitlements.

3.5 Payments of the Readjustment Allowance

One-third of a Volunteer's net readjustment allowance is paid in the field upon completion of service. The balance is mailed to the Volunteer's U.S. home of record or other U.S. address indicated in the Volunteer's termination cable or FAX if Department of State cable service is not available.

4.0 Establishment and Routine Maintenance of Readjustment Allowance Accounts

4.1 Establishment and Review of Accounts

4.1.1 Registration

Each new Trainee completes a registration form (PC-1487) upon arriving at the U.S. staging or training site. This form is then forwarded to VFO, where individual readjustment accounts are established (see Attachment A).

4.1.2 Trainee Arrival Cable

The Country Director (or Project Director, in countries where training is not held in country) will cable or forward the following to VFO within 24 hours after the Trainees arrive in country: (See Attachment B)

Training Class Number;
Volunteer Assignment Description (VAD) Codes;
Trainee names and Social Security numbers; and
Completion of Service (COS) date for each group of Trainees, individual transfer or individual placement.

Note: An arrival cable must also be sent for transferees if arrival date is after the effective date of the transfer (e.g., special leave).

4.1.3 Swearing-In Cable and Oaths

The Country Director will cable the Training Class Number, VAD Codes, names and Social Security numbers of new Volunteers, the swearing-in date and the projected close of service (COS) date to VFO within 48 hours after a Trainee or group of Trainees is sworn in as Volunteers (see Attachment C). The Country Director will then send the Volunteer oaths (Form PC-39) to VFO. The name of the Volunteer must be printed on the oath form and it must be signed by the Volunteer and the Country Director or person to whom the authority to administer the oath has been redelegated.

4.1.4 Annual Roster

VFO will send a Volunteer roster to each Peace Corps post annually. The Country Director will review the roster for accuracy and completeness in order to ensure correct COS dates, VAD Codes, and country of service. This information is essential for timely and accurate payment of Readjustment Allowance checks and income tax reporting. The Country Director will cable any errors found as a result of this review to VFO within 15 days after the receipt of the roster

No Corrections If there are no errors, the post will cable VFO that the roster was received and that it is correct.

Error Correction If there are corrections to be made to the roster the post will cable VFO to acknowledge it has received the roster and transmit original cables for the corrections needed (see Attachment D). .

If there are 21 or more records which contain errors, the post will cable VFO to acknowledge it has received the roster and to indicate the number of records which contain errors. The cable will also state the date that the post corrected roster was mailed to VFO. The following procedures are used to make roster corrections:

Draw a line through the incorrect entry and type or print the correction above the original entry;
Type or print additional entries in alphabetical order at the end of the roster; and
Send all correspondence to VFO with an information copy to the Country Desk Officer.

4.1.5 Roster Changes

The Country Director will notify VFO of later changes in VAD Codes or individual projected COS dates, as explained in the guidelines for advancing the COS date (See MS 281 "Completion of Service Date Advancement and Extension of Service," MS 284 "Early Termination of Trainee and Volunteer Service," and MS 282 "Transfer and Reassignment of Trainees and Volunteers Reinstatements and Re- enrollment."

4.2 Closing of Accounts

In order for VFO to close a readjustment allowance account and process the final payment for a Trainee or Volunteer who terminates Peace Corps service before the planned COS date, the Country Director will send an Early Termination Cable (Attachment M) to Special Services (VS/SS) and VFO within 24 hours of termination as explained by MS 284, "Early Termination of Trainee and Volunteer Service." In addition, if the Trainee terminates during training in another country, the Training Director will also send the Early Termination (ET) cable to the post that was to have received the Volunteer.

5.0 Monthly Deductions From the Readjustment Allowances

5.1 Federal Income Tax

Federal income taxes are not automatically withheld from a Volunteer's or Trainee's readjustment allowance account. Volunteers and Trainees may request federal income tax deductions from $15 to $100 per month. These deductions must be requested on IRS Form W-4, Employee's Withholding Allowance Certificate. The W-4 is then sent via pouch to VFO.

5.2 OASDI (Social Security Taxes)

Readjustment Allowance is subject to deductions for OASDI (Old Age, Survivors and Disability Insurance tax) and Medicare tax. This deduction may not be waived.

5.3 Peace Corps Group Life Insurance

Volunteers are automatically insured by a $30,000 non-convertible death benefit insurance policy from the date they register for training unless they waive the coverage. Coverage under the policy terminates automatically:

At the end of fifteen days following termination of service in the U.S.; or
At the end of sixty days following termination of service overseas.

Note: The policy cannot be extended beyond these limits.

5.3.1 Insurance Premium Deduction

The policy is issued by Travelers Insurance Company. Charges to the Trainee or Volunteer are deducted for each month a Trainee or Volunteer accrues readjustment allowance. A Trainee may designate a beneficiary by filing a form PC-652, "Designation of Beneficiary for Peace Corps Life Insurance" (see Attachment E).

5.3.2 Waiving the Insurance

A Trainee or Volunteer may waive this coverage by filing a Form PC-653 "Waiver of Coverage Peace Corps Life Insurance" (see Attachment F); otherwise, the premiums will be deducted automatically from the readjustment allowance. If waived, insurance coverage cannot be reinstated during the Volunteer's current term of service.

6.0 Withdrawals (Single Payments)

6.1 Purposes Allowed

A Trainee or Volunteer may request a single payment withdrawal from the readjustment allowance account for payment of certain non-routine expenses. These payments may be requested for:

Family support, insurance premiums, liens, and other obligations incurred before Peace Corps training and service;
Dental expenses not covered by Peace Corps;
Unusual family, medical, or other emergency expenses; or
Federal income tax payment.

6.2 Limitations

A Trainee or Volunteer may request a single withdrawal to be paid at any time during Peace Corps service except during training and the final 90 days prior to COS. (See sub-paragraph 9.1.) Although applications for these withdrawals are accepted at the pre-departure orientation, payment will not be made until the Trainee becomes a Volunteer with the exception of dental expenses, court-ordered family support and federal taxes.

6.3 Withdrawal Procedures

A Volunteer may request that a withdrawal of no more than 50 percent of the net accrued readjustment allowance be sent to a stateside address by submitting a Form PC-10, "Application to

Allot or Withdraw Readjustment Allowance" (see Attachment G) to VFO. Withdrawals are subject to the following provisions:

A separate Form PC-10 must be completed for each withdrawal;
A Volunteer may submit several PC-10s at one time for later withdrawals at various times during service;
A copy of the approved withdrawal request will be returned to the Country Director for forwarding to the Volunteer; and
The Volunteer cannot be listed as the payee on the PC-10 form.

Note: Do not use Form PC-10 to request or report advances received overseas from the imprest fund or the post's disbursing office. These advances must be reported on the 804 cable (see sub- paragraph 6.3.1). The form must not be used to request health or personal articles insurance payments.

Requests for withdrawals of more than 50 percent of the net accrued readjustment allowance may be approved at any time for dental or other medical expenses, as outlined below, and in extraordinary circumstances such as family emergencies. All such requests, except those for medical expenses, must be submitted through the Country Director to the Director, VFO for authorization. See sub-paragraph 6.3.2 for Medical Emergency Withdrawals.

As provided in MS 262, "Health Services for Trainees, Volunteers, and Their Dependents," all major dental work required for a Trainee to qualify for Volunteer service must be performed at the Trainee's expense. Although encouraged to pay the dentist directly, a Trainee may request payment by the Peace Corps from the readjustment allowance for authorized dental work. If the Trainee submits a PC-10 (see Attachment G) for dental work, the total monthly readjustment balance accrual, after deductions, may be applied toward dental bills.

6.3.1. In-country Special Needs Withdrawals

The Country Director may authorize issuance of the following types of readjustment allowance withdrawals to Volunteers for payment of extraordinary expenses:
Withdrawals of less than $200 Without prior authorization from the Director, VFO, in-country withdrawals from the readjustment allowance account may include, but are not limited to:

Debts owed by the Volunteer to host country citizens or institutions which can be paid only through the readjustment allowance account;
Transportation funds for Volunteers stranded away from site;
Fees for application to colleges and universities issued in U.S. dollars;
Travel expenses associated with family emergencies not covered under the emergency leave provisions;
Medical expenses; or
Income tax payments.

Note: Readjustment Allowance is not available to settle in-country debts unless the PCT/V has terminated or is preparing to do so. (See MS 232 sub-paragraph 3.1.)

Withdrawals of more than $200 Special need withdrawal requests for more than $200 should be cabled, with a recommendation from the Country Director, to the Director, OPBF/F/IFO/VFO for approval. Country Director approval is not required for medical expense requests. (See sub-paragraph 6.3.2.) A Volunteer may withdraw more than $200 for transportation, if stranded away from site, for medical expenses, or for extraordinary purposes (as noted above).

Reporting Withdrawals All withdrawals whether in cash or by check made through a post's disbursing office must be reported by the post to VFO:

On cabled Form PC-804, List of Payments Charged to Account 11X6016, Readjustment Allowances(see Attachment I) within 5 days after the end of the month in which the disbursement is made. (See the Fiscal Coding Handbook Figure 6.4 for a description and example of Form PC-804). A negative report must be submitted in the event that no withdrawals were made during the period.
On a separate cable (see sub-paragraph 12.1. for format) within 24 hours of the Volunteer's COS if the Volunteer terminates within 45 days after the payment is made. This ensures notification to VFO before the final readjustment allowance payment.

6.3.2. Medical Emergency Withdrawals

All withdrawals for medical emergencies should be requested by the Volunteer through the VS/MS case nurse, who shall complete the Emergency Readjustment Allowance Request Form (Attachment L) and submit it to VFO for approval.

6.4 Withdrawals at Completion or Early Termination of Service

Withdrawals may be made from a Volunteer's readjustment allowance account upon completion or early termination of service to cover Volunteer indebtedness to the Peace Corps or others at that time (see paragraphs 9., 10., 11., 12.). Volunteer indebtedness to the U.S. Government should be recorded on Form PC-477 (Attachment J), and the COS cable (Attachment M )see also sub-paragraph 12.1.), or Early Termination cable (see MS 284 "Early Termination of Trainee and Volunteer Service"); and deducted accordingly from the readjustment allowance account. (For Volunteer debts to third parties, see MS 232, "Volunteer In-Country Debts.")

6.5 Receipt of Payment

Receipts signed by the Volunteer must be obtained for each Volunteer payment made and filed for three years after fiscal year end. (See Attachment I)

7.0 Monthly Allotment Payments (partial revision 8/4/03)

7.1 Purposes Allowed

A Volunteer may request that certain recurring expenses be paid monthly from the readjustment allowance account. These payments (allotments), continuing obligations incurred prior to Peace Corps training or service, and unexpected emergency expenses may include family support, monthly insurance premiums and loan payments. Allotments for the purchase of U.S. Savings Bonds are also permitted. (See sub-paragraph 7.4.)

7.2 Limitations and Conditions

A Volunteer may apply for an allotment (a series of monthly payments) at any time during service, except the last six months. To request an allotment, the Volunteer shall submit a Form PC-10 (Attachment G) directly to VFO. The maximum allotment is 75% of the total monthly readjustment allowance before deduction for insurance. Allotment requests (or a combination of them) for more than this amount may be approved by the Director of VFO only in extraordinary circumstances (e.g., a family emergency or Volunteer debt to a third party incurred before entering Peace Corps) that will affect a Volunteer's ability to continue to serve.
An allotment must be for a minimum of five consecutive monthly payments of at least $15.00 each. Each Volunteer is allowed a maximum of three concurrent allotments, including up to two allotments for U.S. Savings Bonds (see 7.4). The total of all allotments may not exceed 75% of the monthly readjustment allowance. Allotment payments requested by Trainees will not begin until the Trainee is sworn in as a Volunteer.

7.3 Allotment Procedures

Allotment requests must be received by the 25th day of a calendar month for VFO to begin payments the following month. VFO will return the approved copy of the request (Form PC-10 Attachment G) to the Country Director for forwarding to the Volunteer.

7.4 Allotments for Purchase of U.S. Savings Bonds

Allotments for the purchase of U.S. Savings Bonds are subject to the same provisions as other allotments. Each Volunteer is allowed a maximum of two concurrent bond allotments whose total does not exceed 75% of the monthly readjustment allowance (see sub-paragraph 7.2.). Volunteers may request bond allotments by submitting Form PC-1572 to VFO (see Attachment H). Bonds purchased through allotments are held in escrow at Peace Corps Headquarters in Washington, until the Volunteer terminates Peace Corps service or until the bonds have reached maturity. The bonds will be forwarded when the Volunteer's termination documentation has been processed and the final readjustment allowance check has been sent. Any Volunteer whose bonds have reached maturity, however, shall be entitled to receive physical possession of them upon demand. Upon receipt of a written and signed statement from the Volunteer requesting release and providing a U.S. or in-country mailing address, VFO will notify Fiscal Services to release such bonds. In computing the net amount of the one-third readjustment allowance payable overseas at termination, bond allotments are treated like any other allotments and withdrawals.

8.0 Verification of Request for Withdrawal, Allotment, or Bond

Upon receipt of request for a withdrawal, allotment, or bond from a readjustment allowance account, VFO will process the forms and return a copy to the post to be forwarded to the Volunteer. If the Volunteer does not receive the processed copy within 45 days from the date the request was submitted, the postshould determine the status of the request.

9.0 Readjustment Allowance Payment at Close-of-service

9.1 Volunteer Projected COS Report

VFO will send a report listing all Volunteers expected to complete service within six months to each post quarterly. Any corrections to projected COS dates can be made in time for checks to be processed at the normal 90 to 120 day interval before COS. Cable VFO with any corrections to COS dates as soon as possible after receipt of the report.

9.2 One-third Checks

VFO will request from the U.S. Treasury a check for one-third of the balance remaining in the Volunteer's account as of the expected termination date. The U.S. Treasury will mail the check in care of the Country Director for receipt prior to the termination date. VFO will forward a one-third Check Issue Control Register to the Country Director at the time Treasury is requested to prepare the check.
The Country Director must ensure that the following actions take place in a timely manner:

Ensure that a one-third check has been received for each Volunteer completing service;
Cable to VFO immediately the beginning and ending check numbers and the date the checks were received. Payees for checks listed on the one-third check Issue Control Register but not received should also be specified in this cable;
· Return any check issued to a Volunteer who will not complete service, as had been expected, to the Collection Officer, OPBF/F/FS, (address shown in sub-paragraph 10.3) with a brief explanation of the situation; and cable the check number, payee, amount of the check, date, and explanation to VFO. (This does not pertain to extensions covered in paragraph 10.)Such checks may not be kept or issued except as outlined in sub-paragraph9.2.1;
Return to OPBF/F/FS, with a note of explanation, any check which a Volunteer completing service refuses to accept (because of the time needed to close Volunteer accounts and issue final checks, the Country Director should strongly urge Volunteers to accept the one- third check in the field); and
Lock the checks in a safe or bar-lock cabinet with a U.S. Government approved combination lock until distributed to Volunteers.

9.2.1. Distribution of the Check

The Country Director should consider a Volunteer's need for funds, (e.g., making travel arrangements), in deciding when to distribute checks. However, the distribution of checks should be made close to the time of departure. Earlier payment of the Readjustment Allowance is discouraged. If a check is cashed and money lost or stolen the Volunteer cannot be reimbursed for the loss.

As the one-third readjustment allowance checks are distributed to each PCV, have them sign and date the Register.
File the one-third Check Issue Control Register for three years after the fiscal year (see MS 896, sub-paragraph 3.3.).

9.2.2 Failure to Receive One-third Check

If a Country Director has not received the one-third readjustment allowance checks 45 days before a group's or individual's COS date, he or she should immediately cable VFO the names and Social Security Numbers of Volunteers for whom checks have not been received. VFO will then determine the amount due each Volunteer, and cable authority to the Country Director to pay these amounts at post . The Country Director will submit the authorization to the fiscal support office and request that checks be made payable to the Volunteers and forwarded to the Country Director. The Country Director will then distribute these checks to Volunteers at termination. (See sub-paragraph 9.2.1.). Any such disbursement must be reported by the Country Director to VFO in COS cables (Attachment M, see also 12.1. and cabled PC-804 Attachment I). Charges for disbursements will be made to fund 11X6016 on the payment voucher. Checks that arrive after payment has been made should be immediately returned to the Collections Officer, OPBF/F/FS, with a cable of explanation. Do not under any circumstances forward these checks to Volunteers. The Country Director will advise the Collections Officer, by cable, of action being taken, the check number(s), and the date mailed.

Upon notification from post that one-third checks have not arrived, VFO will initiate stop pay action with the Treasury Department in accordance with the Treasury Department verification procedures (1-TFRM 4-70000).

9.3 One-third Checks for Medical Separations

A check for one-third of the balance remaining in a medically separated Volunteer's account will be forwarded to a United States address if requested by the Volunteer. The VS/MS case nurse shall then complete PC 1764, "Emergency Readjustment Allowance Request Form" (Attachment K) and submit it to VFO for approval. (See MS 284, "Early Termination of Trainee and Volunteer Service")

10.0 Readjustment Allowance Payments to Extending Volunteers

10.1 Extensions of Less Than Six Months

The Country Director should retain the one-third readjustment allowance checks for those Volunteers who extend service for less than six months beyond the initial COS date, and distribute them to the Volunteers when they terminate. The readjustment allowance continues to accrue during an extension. No supplemental one-third payment will be authorized for the extension period.

10.2 Extensions of More Than Six Months but Less Than Twelve Months of Service

The Country Director shall immediately return one-third readjustment allowance checks to the Collections Officer stating the Volunteer's new COS date if the Volunteer extends Peace Corps service for more than six months but less than twelve months beyond the original COS date. Advise the Collections Officer and VFO, by cable, of the action being taken, the check number(s) and the date mailed. Note on the one-third Check Issue Control Register the date each check was returned to PC/W Collections Officer.

· VFO will issue one check representing one-third of the accrued readjustment allowance balance before the new COS date in accordance with normal procedures established in paragraph 9.
The readjustment allowance remains in the Volunteer's account and continues to accrue throughout the extension period in accordance with this Manual Section.
Withdrawals and allotments may be requested during the extension period in accordance with regular procedures established in paragraphs 6., 7. and 8.

10.3 Extensions of Twelve Months or More of Volunteer Service

A Volunteer who extends Peace Corps service for twelve months or more is eligible for special leave. The Country Director should encourage such Volunteers to accept the original COS one-third readjustment allowance check upon departure for special leave, but emphasize that this advance is not to be used to enhance their in-country standard of living. If an extending Volunteer does not want to accept the readjustment allowance check, the Country Director should return it immediately to the Collections Officer, with a note of explanation, addressed as follows:

	Peace Corps Collections Officer
	Fiscal Services Division, OPBF/F/FS
	1990 K St. NW
	Washington, DC 20526

Cable an extension document to be processed by VFO thereby updating the PCV payroll/personnel system for automatic generation of a new one- third readjustment allowance check 90 to 120 days prior to the date of the new COS date provided on each extension or transfer/extension cable. If the extending Volunteer transfers to a new country the receiving post is responsible for transmitting the cable which must include: (1) SSN; (2) Full Name; (3) Training Class Number (e.g., 694A19403); (4) Effective date of extension (i.e., arrival date); (5) Number of months extending; (6) New COS date; and (7) Special leave dates if applicable.

11.0 Readjustment Allowance Payments to Early Terminating Volunteers

(See MS 284, "Early Termination of Volunteers/Trainees" for definitions and discussions of early terminee classifications.)

11.1 Eligibility for Readjustment Allowance

Early terminating Volunteers are eligible for readjustment allowance as follows:

Volunteer terminees returning to Washington for consultation, medically evacuated Volunteers and port of entry (POE) Volunteer terminees (see MS 284, 11.1.) may be advanced up to $200 by the Country Director from the readjustment allowance account without advance authorization of VFO. However, final payments of the readjustment allowance cannot be processed until all the appropriate early termination documents are received by VFO;
Volunteers who are field exceptions to the "Direct and Immediate Return" may, with prior cabled authorization of VFO, receive up to one-third of their readjustment allowance at post; and
Volunteer field terminees who assume responsibility for their own return transportation may receive $200 from the readjustment allowance account, when authorized by the Country Director.

Note: Trainees who terminate early are not entitled to receive any advance from the readjustment account at the time of early termination. VFO will send a check for the full balance of the readjustment allowance to the Trainee following termination after all appropriate termination documents are received.

11.2 Reporting Readjustment Allowance Advance

Country Directors should report readjustment allowance advances processed at post on the Early Termination Cable (Attachment M), see also MS 284, "Early Termination of Trainee and Volunteer Service" and PC-804 (Attachment I). Early Termination Cables must be transmitted within 24 hours of termination for all early terminees except those who travel to Washington for special services or medical consultation. The Office of Medical Services will prepare termination documentation (Form PC-440) for all Volunteers who are medically separated following a PC/Washington consultation and cable post instructing them to send an early termination cable to VFO.

Note: Charge advances for transportation to those funds in the post budget allocated for such purposes. Do not under any circumstances charge these travel advances to account 11X6016. (Readjustment Allowance)

12.0 Final Payment of Readjustment Allowance for Volunteers Completing Service

12.1 Reporting Final Payment of Readjustment Allowance

To initiate final payment of the readjustment allowance account balance, the Country Director will prepare a separate cable for each COSing Volunteer which provides the information shown below. (see Attachment L)
Note: To speed up processing of the final Readjustment Allowance payment, it is important that the same format and same information as shown below be used when transmitting information.

======================================================================= =
TO: OPBF/F/IFO/VFO
SUBJECT: COS

Name:
Social Security Number:
VAD Code:
Close of Service (COS) date:
U.S. Address and Zip Code for mailing of final check:
1. This address does not have to be the home-of-record address.
2. It must be a stateside address with zip code.
Per diem:
Transportation:
Overpayments of allowance:
1. Living allowance:
2. Leave allowance:
3. Other:
  1. Rent, utilities, checks not cleared at bank prior to closing of account, claims made by host country nationals.
  2. PCV must have acknowledged debt via signed PC-477 (Attachment K) before deduction can be made from RA for items in 3a.
Cash Advances
1. List monies received at post to be deducted from final RA payment. (COS PCVs cannot withdraw money from their RA within the last 90 days of service)

======================================================================= =
Send this cable to VSPS within 24 hours of a Volunteer's COS.
Note This format of cabling information is to be used only for COS purposes. (See paragraph 11. for early termination procedures).

12.2 Calculating Final Payment of Readjustment Allowance

VFO will calculate the final payment due to the Volunteer upon receipt of the termination documents, and request that the Treasury Department mail a check to the U.S. address designated by the COSing Volunteer in sub- paragraph 12.1. If the Volunteer does not specify a U.S. mailing address, VFO will process and request the final check and forward it to OPBF/F/FS where it will be held until the Volunteer provides VFO with a current U.S. mailing address.

12.3 Final Readjustment Allowance Payment to Port of Entry Terminees

Port of entry terminees must return their no-fee passports to OSS before they may receive their final readjustment allowance payment.

13.0 Effective Date

This Manual Section shall take effect on the date of issuance.

Interim Policy Statement, Readjustment Allowance
This policy, increasing the readjustment allowance to $225, is effective as of January 1, 1999. It will be incorporated into MS 223, "Volunteer/Trainee Readjustment Allowance," at its next revision.

Staff are requested to make this change in relevant documents and resources.

Section 5( c) of the Peace Corps Act, as amended, provides that Volunteers shall be entitled to receive a readjustment allowance at a rate determined by the President, but not less than $125 for each month of satisfactory service. The Director of the Peace Corps has been delegated the authority to determine that rate (as well as exercise other authorities under this section). This rate is currently set at $225 per month. Section 5( c) also provides: "The readjustment allowance of each Volunteer shall be payable upon his or her return to the United States: Provided, however, that under such circumstances as the President (Director) may determine, the accrued readjustment allowance, or any part thereof, may be paid to the Volunteer, members of his or her family or others, during the period of service, or prior to his or her return to the Untied States."

Mark D. Gearan : signature on file
Date : 12/08/98