Report Shines Light on Serious PCS Reimbursement Problems

Report Shines Light on Serious PCS Reimbursement Problems
marketlan/Getty Images

Nearly 400,000 active duty servicemembers relocate on PCS orders every year, and the speed at which they’re reimbursed for moving expenses can mean the difference between financial peace of mind and mounting debt that can cascade into other problems.

 

That’s why MOAA stands ready to work with Congress, DoD, and the services to implement recommendations from a July 16 Government Accountability Office (GAO) report into the reimbursement process – a report which recommended an overhaul of the PCS financial system.

 

Among the findings:

  • Unclear Rules: DoD’s Financial Management Regulation (FMR) contains conflicting standards for how quickly PCS vouchers should be paid. One section cites a 30‑calendar‑day target, another references 25 business days, and still another omits timing entirely. That ambiguity means enlisted personnel and officers alike often are unsure which rule applies, especially when advances on dislocation allowances come into play.

  • Significant Delays: The Army processed 93% of its vouchers within its 30‑day window from fiscal years 2021 through 2023, but that still leaves more than 40,000 instances in which servicemembers waited longer than a month for their money. Those delays amounted to roughly $139 million held up past the standard. The Marine Corps, which internally aspires to a 10‑business‑day turnaround, saw nearly 10% of its claims exceed that benchmark. And about 1% of Marine vouchers slipped past the 30-calendar-day FMR benchmark, representing more than a thousand families waiting for reimbursement.

  • Accountability Issues: Perhaps most troubling is that neither the Army nor the Marine Corps has a single office charged with monitoring reimbursement timeliness and resolving backlogs. Finance officers in hundreds of installations must individually track and clear claims. As a result, patterns of delay can persist uncorrected and servicemembers are left repeatedly following up to learn the status of their reimbursements.

 

[RELATED: DoD Trying to Head Off Problems With Household Goods Moves]

 

Fixing a Broken System

GAO made three commonsense recommendations:

  1. The DoD Comptroller harmonize and clarify the FMR’s language so all branches apply the same deadline.
  2. The Army establish a centralized oversight entity to monitor reimbursement performance and intervene when delays arise.
  3. The Marine Corps create a similar capability.

 

To date, those recommendations remain open. MOAA is pressing for prompt, consistent action to address these steps forward.

 

From the enlisted ranks to the flag officers, no one should have to advance thousands of dollars for a PCS move only to wait weeks or months for repayment. Timely reimbursements reduce financial stress, bolster morale, and help ensure servicemembers can focus on the mission, not on whether their rent checks or car payments will clear. They also signal that the institution values its people enough to honor the commitments it has made.

 

[RELATED: MOAA Members Save on Storage With PODS]

 

Major PCS Changes

The report is timely considering all the challenges DoD is facing surrounding military moves, and the changes that have resulted. In May, DoD established the Permanent Change of Station Joint Task Force, tasked with overhauling the PCS process.

 

That was the catalyst that led to the termination of the Global Household Goods Contract (GHC), run by HomeSafe Alliance, on June 18 for widespread performance failures.

 

The 110‑member task force has reinstated the Tender of Service program to manage PCS moves, established a 24/7 call center staffed by experienced military personnel (fully operational as of Aug. 1), and plans to deliver strategic reform recommendations by Sept. 5.

 

These actions underscore DoD’s recognition that PCS is not merely a logistics challenge, but necessitates a people‑centered approach.

 

Keeping Officials Accountable

MOAA will urge lawmakers to request regular status reports on DoD’s corrective actions related to the GAO report, and we will collect real‑world examples from our members whose PCS reimbursements were delayed for far too long.

 

In the end, improving PCS reimbursement timelines is not a matter of budgetary gimmickry but a matter of treating every servicemember with the dignity and respect they have earned. By eliminating ambiguity and creating a system that reliably delivers what was promised, DoD can strengthen retention, reduce preventable financial hardship, and honor its commitment to the men and women in uniform.

 

younger-officer-h.png

Resources for Currently Serving Officers

MOAA can help you succeed in your military career and beyond.

Learn More

About the Author

Cory Titus
Cory Titus

Titus is a former Director of Government Relations for Currently Serving Affairs for MOAA.