3 FAH-1 H-3250
OFFICIAL RESIDENCE EXPENSES (ORE)
(CT:POH-218; 05-17-2019)
(Office of Origin: HR/ER/WLD)
3 FAH-1 H-3251 ACCOUNTS CHARGEABLE FOR
EXPENSES OF AN OFFICIAL RESIDENCE
3 FAH-1 H-3251.1 Funding
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
ORE are chargeable to the post's operating expense fund
(e.g., for the Department of State, the Diplomatic and Consular Programs (DCP)
allotment). Subobject codes used for charging ORE for principal
representatives are contained in 4 FAH-1 H-613.
3 FAH-1 H-3251.2 Funding From
Other Sources
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
Expenses of operating an official residence are not
chargeable solely as an ORE. For example, where applicable, individual agency
appropriations should be used to provide alternative methods of funding for
some or all of the expenses identified in DSSR 451 through 453 or 3 FAM 3255.2
through 3255.5 (e.g., household furnishings provided by the Overseas Building
Operations Program). Routine maintenance and repair funds can be used for U.S.
Government-owned or long-term lease properties and salary and expenses
(S&E), or diplomatic and consular programs (DCP) funds for short-term lease
properties. Expenditures funded by alternative methods, as described above,
will not be considered in calculating the cost of ORE.
3 FAH-1 H-3252 ORE HOUSEHOLD STAFF
3 FAH-1 H-3252.1 General
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Agencies abroad should jointly develop and issue a
statement outlining requirements and criteria for hiring ORE household staff.
These statements should assure that principal representatives treat their
household staff fairly and provide them employment conditions that conform to
local law and customs in the host country.
b. Post must obtain a pre-employment suitability and/or
security certification from the regional security officer (RSO) for any
candidate for employment as a household staff member. Periodic
re-certifications shall also be required as determined by the RSO.
3 FAH-1 H-3252.2 Employment Status
of Household Staff
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Household staff who work as ORE employees are
neither Federal employees nor employees of the U.S. mission. They are employees
of the principal representative in whose home they work.
b. The lack of an employee and/or employer relationship
with the Federal government should be clearly understood by both administrative
staff as well as the ORE household staff when they are hired and pointed out
periodically during their employment.
3 FAH-1 H-3252.3 Official
Residence Expense Reimbursement
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. The designated principal representative may be
reimbursed from ORE funds as provided in the following sources:
(1) DSSR 411, paragraph c (unusual expenses which a
principal representative is obligated to incur in the operation and maintenance
of a suitable official residence). Expenses must be in excess of the usual
expenses incident to the operation and maintenance of the residence he or she
would occupy if he or she were serving at the post in any other capacity, or 3 FAM 3251.3,
(Staff maintenance); and
(2) DSSR 451, paragraph a (wages and maintenance of household
staff) or 3
FAM 3255.2, for those household staff members whose salaries are properly
reimbursable or payable from ORE funds.
b. Claims for reimbursement payments of fringe benefits
made to or on behalf of official residence staff members are shown on ORE vouchers as a household staff members maintenance expense.
3 FAH-1 H-3252.4 Retirement
Coverage
3 FAH-1 H-3252.4-1 Host
Government Social Insurance System
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Coverage Normally Mandatory:
(1) Principal representatives who have household staff
will normally provide for retirement coverage for their household employees
through participation in a host government social insurance system, which
includes retirement benefits. This should be done even where a mission does not
participate in the local system on behalf of its locally employed staff (LE
staff), unless the household staff members are not foreign nationals or
permanent residents of the host country and are covered under the social
security laws of another country; and
(2) The principal representative, as the employer, is
responsible for arranging for retirement coverage and for making payments of the
employers share of the contribution to the retirement fund, except where it is
local practice for the domestic employee to do so.
b. Guidance: The ranking officers or their designees
of the Department of State, USAID, USAGM,
Commerce, and Foreign Service Corps-USDA establishments abroad in a country
should jointly develop guidelines governing individual employer participation
in a local retirement system on behalf of household staff.
c. Host Government Laws Do Not Permit Coverage: Where
host government laws do not permit an individual employer to cover ORE household staff members under the local social insurance plan, the mission should
investigate the possibility of ORE household staff members participating
individually on a voluntary basis.
d. Payment of Contributions:
(1) The employees portion of the contribution will
normally be deducted from the employees pay;
(2) If it is customary for employees to make their own
payments, principal representatives will assure themselves to the extent
practicable that such payments are being made regularly.
3 FAH-1 H-3252.4-2 Posts
Pension Plan
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. In localities where the post has established a
private pension benefits plan for locally employed staff (LE staff), principal
representatives designated to receive ORE funds should investigate with the
post the feasibility of covering their employees under the posts plan. The
insurer may agree to include such employees under the posts plan by rider to
the posts contract. In such an instance, the rider should clearly specify that
the principal representative of each affected ORE household staff employee, not
the U.S. Government, is liable for the payment of premiums and assumes all
other employer obligations under the terms of the contract. The rider should
also state that the individual principal representative would send the premium
payments directly to the insurer.
b. Before placing ORE household staff under a posts
pension plan, the mission should keep in mind that not all situations which
make post participation in the local social security system infeasible also
make individual participation infeasible.
c. Coverage under post pension plans rather than local
social security should be limited to instances in which either no social
security system is available or individual participation is not possible.
3 FAH-1 H-3252.5 Health Insurance
Coverage
3 FAH-1 H-3252.5-1 Employer
Responsibility
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
It is the individual responsibility of the principal
representative designated to receive ORE funds to provide, as an employer,
health insurance to their household employees in localities where it is the
prevailing practice of private individuals to provide such protection to their ORE household staff.
3 FAH-1 H-3252.5-2 Sources of
Coverage
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Host Government Social Insurance System: 3 FAH-1
H-3252.4-1 applies to those localities where health protection is an
integral part of the host governments social insurance sys-tem.
b. Post Health Insurance Plan: Some posts have secured
group health insurance coverage for their locally employed staff (LE staff)
through a private insurance carrier. Guidance under n 3 FAH-1
H-3252.4-2 on retirement coverage is also applicable to post health
insurance plans concluded with a private insurance carrier.
3 FAH-1 H-3252.6 Severance Pay
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Severance pay for ORE household staff may be
reimbursed or paid from ORE funds to the extent that such payment is consistent
with local law and prevailing practice.
b. Before any reimbursements or payments of severance
pay for ORE household staff are made from ORE funds, the post must determine
the following:
(1) Whether severance pay for household staff members
is the practice at embassies of other governments or at foreign business firms;
(2) What other circumstances or conditions of service
affect severance pay granted household staff domestics of other embassies or
firms; and
(3) The customary amounts of severance pay given to
household staff members by other embassies or firms.
c. Principal representatives are responsible for all
severance payments due to all ORE household staff members for the period of
their employment or upon termination of the employee.
d. In order to qualify for an ORE, the amount of
severance pay should not exceed the amount determined to be customary. Amounts
in excess of what is determined to be customary will be considered as a
personal expense, and if already reimbursed, will be recoverable as a personal
expense erroneously paid from official funds. If the customary severance pay in
the country is the same for household staff as for other workers, the embassys
severance pay plan may be a useful guide in determining appropriate payments
for the person who terminates an ORE household staff members employment.
e. All reimbursement or payments of severance pay from
the official residence allowance are subject to availability of funds at the
post.
3 FAH-1 H-3252.7 Principal Representatives
Employment of Foreign Nationals of Designated Countries
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Principal representatives may not bring any foreign
nationals of any country on the Designated Countries List to any other country
as an ORE household staff member or in any other capacity unless advance
written permission is obtained from:
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State
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Under Secretary for Management through the Assistant
Secretary for Diplomatic Security;
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USAGM
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Director of Personnel through the Director, Office of
Security;
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USAID
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Director of Human Resources through the Inspector General,
Office of Security;
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Foreign Service Corps USDA
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FAS: Assistant Administrator Management; APHIS: Deputy
Administrator, International Services
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Commerce
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Assistant Secretary for Administration through the
Director, Office of Security.
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b. Contact the Regional Bureau for assistance.
c. Approving officers may seek assistance from the
Bureau of Consular Affairs concerning matters of reciprocity.
3 FAH-1 H-3252.8 Employment of
Non-Host Country Citizens
3 FAH-1 H-3252.8-1 General
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
While non-host country citizens may be hired as ORE household staff members, in many countries this is a very sensitive issue. Host country
governments may feel rightly that a host citizen may be qualified and available
for such a position and therefore make it difficult, if not impossible, to
obtain visas and work permits for a non-host country ORE household staff
member. Well in advance of anticipated arrival at post, the principal
representative should consult the administrative office for any restrictions,
special requirements and specific procedures for obtaining a host country visa
for the non-host country citizen ORE household staff member.
3 FAH-1 H-3252.8-2 Payment of
Travel Expenses
(CT:POH-218; 05-17-2019)
(Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA) (Applies to
Foreign Service and Civil Service employees)
a. The fact that the non-host country ORE household
staff members wages include travel costs to and/or from the place where work
is to be performed must be clearly stated in the employment contract or
agreement. The amount of the travel expenses must also be separately identified
in the work contract.
b. Posts which establish a need to employ an ORE
household staff member from outside the country (which also involves travel
costs for the individual) must certify, in writing, that there are no ORE
household staff available locally to perform the specific function for which
hired.
c. For the Department of State, the written
certification and other appropriate documentation should be forwarded to the
Bureau of International Organization Affairs (IO) or the Regional Bureau
Executive Director who is responsible for ensuring that the need has been
adequately documented and justified. No international travel expenses can be
considered for reimbursement for ORE household staff members until after the
request has been reviewed and approved. A copy of the certification and
supporting documentation used by the post to establish the need to employ ORE household staff members from outside the host country must also be maintained in the
posts file for subsequent review as necessary. If a certification cannot be
made, all travel expenses will be the personal responsibility of the principal
representative.
3 FAH-1 H-3253 ORE ELECTION
(CT:POH-218; 05-17-2019)
Uniform State/USAID/USAGM/Commerce/Foreign Service Corps-USDA)
(Applies to Foreign Service and Civil Service employees)
a. Refer to 3 FAM 3254 for
basic guidelines.
b. If the principal representative chooses not to
contribute the three and one-half percent of his or her salary when projected
costs are less than his or her contribution, he or she should notify the
responsible bureaus Executive Office, via memorandum, of the election. A
sample memorandum follows below:
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SAMPLE MEMORANDUM
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"I (name) opt not to contribute the three and
one-half percent of my salary. I understand that I can reevaluate my
decision, and, if needed, elect the three and one-half percent contribution
of my salary in January of the following calendar year."
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c. In a calendar year, starting January of each year,
the principal representative can review his or her ORE expenditures to
determine if he or she wants to opt out for the new year.
3 FAH-1 H-3254 through H-3259
UNASSIGNED