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DHS CBP Border Patrol Voluntary Relocation Plan (VRP) Lump Sum . Summary VRP Test Program began in April 2004.
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DHS CBP Border Patrol Voluntary Relocation Plan (VRP) Lump Sum • Summary • VRP Test Program began in April 2004. • As of end of FY ’04, 295 Relocations performed at an average cost of $14,331 per move – a significant cost savings from previous average of $72,000 per move for Border Patrol. Savings thus far: $17,000,000.
DHS CBP Border Patrol Voluntary Relocation Plan (VRP) Lump Sum • Summary (Continued) • CBP views program favorably due to reduced cost per move and reduced administrative overhead. • No post audits of transfers. • No tax gross-up issues.
DHS CBP Border Patrol Voluntary Relocation Plan (VRP) Lump Sum • Summary (Continued) • CBP can handle more transfers with the same staff. • Survey of Participants: Overall – “good” rating. Lump Sum Amount – “fair” rating. Primary Complaint – Small net amount due to tax withholdings.
DHS CBP Border Patrol VRP Lump Sum • Recommendations • Continue VRP Pilot through expiration date of October 20, 2005. • Expand Pilot (Subject to GSA Approval). • Increase lump sum amounts to offset the tax liability to transferees (This option is currently being investigated.
DHS CBP Border Patrol VRP Lump Sum • Recommendations • Improve communications to potential transferees • Streamline approval process to speed up payments
DHS CBP Border Patrol VRP Lump Sum • Background • CBP’s Office of Border Patrol performs vital mission of protecting U.S. borders, but with limited resources. • As border threats increased after 9/11, there was a convergence of the need to relocate agents and agents’ desires to transfer to border locations.
DHS CBP Border Patrol VRP Lump Sum • Background (Continued) • In search of funding, CBP learned that PL 105-264 permits GSA to authorize Federal Agencies to conduct test programs outside of the requirements of the FTR. • GSA approved CBP’s innovative relocation plan to provide lump sum payments ranging from $5 to $20 thousand to volunteer transferees.
DHS CBP Border Patrol VRP Lump Sum Relocation Survey Results • Highlights (Results based on information provided by respondents) • Average net amount received after taxes, $9,045, was 65% of the average pre-tax Lump Sum of $13,939. • Over 2/3 of the Agents moved themselves to their new duty stations. 11% used a moving company exclusively. 21% used a mix of both movers & their own means of transportation.
DHS CBP Border Patrol VRP Lump Sum Relocation Survey Results • Highlights (continued) • Agents gave the process of moving their household goods a “fair” rating on the scale. • On average, Agents reported that they spent $10,479 on their moves, $1,434 more than their average net lump sum after taxes of $9,045. • Almost 65% of respondents would recommend the VRP program to others.
DHS CBP Border Patrol VRP Lump Sum Relocation Survey Results • Highlights (continued) • 70% of the Agents would participate in the VRP program again if the opportunity arose. • 83% of respondents had narrative comments. Most frequent critical comments: tax on lump sum; low amount of lump sum; and poor timeliness in receiving lump sum.