Washington, D.C.
U.S. Office of Personnel Management
Compensation Claim Decision
Under section 3702 of title 31, United States Code
U.S. Army Sustainment Command
U.S. Department of the Army
Dülmen, Germany
Dr. Kimberly A. Steide, DPA
Principal Deputy Associate Director
Agency Compliance and Evaluation
Merit System Accountability and Compliance
07/14/2025
Date
The claimant is a Federal civilian employee of the U.S. Department of the Army (hereafter referred to as “agency” or “Army”), assigned to the 405th U.S. Army Field Support Brigade, U.S. Army Sustainment Command in Dülmen, Germany. He requests the U.S. Office of Personnel Management (OPM) reconsider his agency’s denial of his voluntary separate maintenance allowance (VSMA) request. We received the claim on November 20, 2024, and the agency administrative report on January 15, 2025. For the reasons discussed herein, the claim is denied.
The claimant is currently assigned to a position as a Quality Assurance Specialist, GS-1910-12, step 2, with the 405th Army Field Support Brigade, U.S. Army Sustainment Command, in Dülmen, Germany, effective June 16, 2024. The claimant previously held a stateside position at Fort Huachuca in Cochise, Arizona, before transferring to the overseas area. At some point after arriving in the overseas area, the claimant submitted a ticket to Human Resources requesting VSMA for his spouse and two children. The claimant states that he required the allowance to maintain his spouse and two children who had to remain stateside during his tenure overseas. He further states that his spouse “has a career with the [U.S.] Defense Commissary Agency” and their family operates as a “dual income household.” According to the claimant, his spouse accompanying him to the overseas area “would terminate this job opportunity and create [a] financial hardship” for their family. In addition, the claimant states that his two children were entering a new school year, and he believed that their stability in school was extremely important, and he did not want to remove them from their school. Dülmen, Germany is a post of assignment where accompanying family members are authorized. Consequently, the claimant requested VSMA for his spouse and children who he states could not accompany him on this foreign post of assignment. On August 16, 2024, the agency denied the claimant’s request for VSMA. The agency denied awarding the allowance, because the granting of VSMA “may only be considered for the duration necessary for [a] child to complete [their current school] semester, or, in the case of a high school senior, to complete the school year.” At the time of the claim’s submission, the claimant’s children were in their sophomore and junior years of high school. In addition, the claimant’s request for VSMA for his spouse’s career does not meet the situation stipulated in Army regulation.
The Department of State Standardized Regulations (DSSR) set forth basic eligibility criteria for the granting of living quarters allowance (LQA). The DSSR contains the governing regulations for allowances, differentials, and defraying of official residence expenses in foreign areas. Under DSSR section 031.1, LQA may be granted to employees recruited in the United States.
In addition to LQA, an employee eligible under the DSSR section 031.1, may also be eligible to receive additional allowances under DSSR section 031.2.
Other cost-of-living allowances (foreign transfer allowance, home service transfer allowance, separate maintenance allowances, education allowances, and educational travel), and difficult to staff incentive differential, prescribed in subchapters 240, 250, 260, 270, 280, and 1000, respectively, may be granted subject to exceptions contained in the foregoing chapters, only to those employees who are eligible for quarters allowances under Section 031.1.
Separate maintenance allowances (SMA) are available to employees under the provisions of the DSSR section 261.1.a, which state:
SMA is an allowance to assist an employee to meet the additional expenses of maintaining members of family elsewhere than at the employee’s foreign post of assignment. [italics added]
VSMA is a type of SMA which, under DSSR section 261.1 a (2) may be granted to an employee who personally requests such an allowance based on special needs or hardship involving the employee or family member(s).
DSSR section 262.2 further emphasizes that:
An agency may authorize VSMA when an employee requests VSMA for special needs or hardship prior to or after arrival at post for reasons including but not limited to career, health, educational or family considerations for family members as defined at DSSR 040m. Dependent children, including sisters and brothers, must be under age 18 or incapable of self-support, unless they are attending secondary school (i.e., grades 9-12).
However, Army in Europe Regulation (AER) 690-500.592, limits the grant of VSMA to only certain situations. Specifically, AER 690-500.592, paragraph 12c (2) states that VSMA may be granted for:
Short-term transitional situations based on a child’s school attendance at the time of the employee’s transfer. These requests generally may be approved for a duration necessary to complete a semester. If the child is a high school senior, voluntary SMA may be approved for the entire school year.
Based on the facts surrounding the claim, it is clear that the claimant was eligible to receive LQA under the provisions of the DSSR section 031.1. As a result, the claimant was also eligible to receive additional allowances under the provisions of the DSSR section 031.2. As Dülmen, Germany is a post of assignment where accompanying family members are authorized, the claimant was eligible to request VSMA under the provisions of the DSSR section 261.1 a (2). However, the regulations states that an agency may only authorize VSMA in certain situations such as for special needs or hardships including “career, health, educational or family considerations.” Believing that his family situation met some of these categories, the claimant requested VMSA for his spouse and two children who were both in high school at the time. However, Army established further implementing regulation regarding the granting of VSMA. Specifically, AER 690-500.592, paragraph 12c (2) states that VSMA may only be granted for “short-term transitional situations based on a child’s school attendance at the time of the employee’s transfer.” Generally, the employee is granted the allowance for a duration necessary for their child to complete their current school semester. In addition, VSMA may only be approved for an entire school year, if that child is in their senior year of high school. When the claimant initially requested VSMA for his two children, the school year 2023/2024 had already ended. Additionally, although his two children were in high school at the time of claimant’s initial request, they were not seniors in high school. Therefore, OPM must uphold the agency’s decision to deny the claimant’s request for VSMA under AER 690-500.592, paragraph 12c (2).
Furthermore, the Department of Defense Instruction 1400.25 V1250 specifies that overseas allowances are not automatic salary supplements, nor are they entitlements. The statutory and regulatory languages are permissive and give agency heads considerable discretion in determining whether to grant VSMA to agency employees. Thus, an agency may deny VSMA when it finds that the circumstances justify such action, and the agency’s action will not be questioned unless it is determined that the agency’s action was arbitrary, capricious, or unreasonable. Under section 178.105 of title 5, Code of Federal Regulations, the burden is upon the claimant to establish the liability of the United States and the claimant’s right to payment. Joseph P. Carrigan, 60 Comp. Gen. 243, 247 (1981); Wesley L. Goecker, 58 Comp. Gen. 738 (1979). In this case, the claimant failed to do so. Since an agency decision made in accordance with established regulations and within its discretionary authority as is evident in the present case cannot be considered arbitrary, capricious, or unreasonable, there is no basis upon which to reverse the agency’s decision. Accordingly, the claim for VSMA is denied.
This settlement is final. No further administrative review is available within OPM. Nothing in this settlement limits the claimant’s right to bring an action in an appropriate United States court.