Pre-Posting Administrative Matters

Major Marsh/Assignment to the USA considerations BDS-US - USA Sp Gp - Pre Arrivals Brief

21 April 2016

Personnel Assigned to USA

USA ASPECTS TO CONSIDER AND HOW THEY MAY AFFECT YOU AND YOUR FAMILY

1. An assignment to the USA will for many be a very exciting life experience. The following is a collection of areas that are worthy of note when considering an assignment to the USA. The topics have been collated utilising the experience of the USA Support Group in order to provide you with a full and frank disclosure of the possible areas/topics that may need to be taken into consideration prior to an assignment to the USA. The reality is very different to that portrayed in the media and popular culture.

2. The subjects covered will not affect everyone as we all have different outlooks, priorities, and family circumstances. Currently we have nearly 800 service and United Kingdom Based Civilians (UKBC) personnel based in 46 locations in 34 states across 4 time zones. Including family members, the total is in excess of 2000 UK personnel. The nature of the United States federal system of government can mean each state have a very different approach to customs, laws, taxes and individual rights.

GENERAL

3. Your move to the USA will in all probability be the most administratively time consuming, bureaucratic, expensive and stressful transition of any overseas assignment. The USA Support Group based within the British Embassy, Washington D.C. and teams in Virginia Tidewater area, Edwards and Creech AFB are responsible for advising and guiding new arrivals through the process but the onus rests with the Service Personnel (SP) and UKBC to read and research the plethora of administrative tasks in order to make the move as smooth as possible. All of the required reading matter, documents and the steps to be taken are to be found on the UKGOV.NET website accessed via the internet. To obtain a login you should email [email protected] for access to the website. The USA Sp Gp area of this website is the authorative means by which information is distributed on all administrative issues to the US footprint. This is a crucial communication medium because most UK personnel will not have direct access to DII or JPA throughout their assignment. Your predecessor or other British military and UKBC personnel based at your new location will be a key source of localised information.

LIVING IN THE USA

4. Education. Parents who are considering bringing school age children to the US should consider their options carefully prior to accepting the assignment. The Pay & Benefits section of UKGOV.net provides detailed information on children’s education in the US. Parents should also carry out their own internet research to ensure they are content with the education provision in the assignment location. Unlike in the UK, there is no national curriculum in the US. Authority over state-funded education rests primarily with individual State Departments of Education; therefore curriculum can vary from State to State and even between school districts within a State. Education for 14 to 18 year olds in the US is particularly different to the UK curriculum for children of this age, and children in this age bracket could be seriously disadvantaged if they return to the UK midway through this stage of education. School standards also vary across the country; however this does not necessarily mean that US schools are inferior to UK schools. The MOD no longer provides 2/3rds funding towards the cost of private schooling in the US and JSP 342 and 2015DIN01-054 provide further details.

5. Medical and Dental Care. The Pay & Benefits section of UKGOV.net provides extensive information on the provision of medical and dental care in the US and should be read thoroughly,

1 Major Marsh/Assignment to the USA considerations especially if a family member has a long term medical condition. Healthcare is primarily provided through US military medical facilities; with the remainder covered through the MOD funded private plan. MOD policy states that all medically necessary treatment that would be available on the NHS will be funded overseas. The entitlement does not extend to elective procedures (i.e. those that are not medically necessary); these will not be funded overseas.

6. Food. Certain foods in the US contain added preservatives, chemicals and hormones etc that are not permitted in the UK. This area may require further investigation if a member of your family has certain dietary needs or allergic reactions to certain substances.

7. Spouse Employment. The Employment Authorization Document (EAD) is required by US law for dependants of personnel to undertake paid employment for the duration of their spouse’s tour in the US; some States require you to be in possession of an EAD to qualify for a State driving license. You cannot apply for an EAD until you have entered the US. The process takes between 6-8 weeks for a successful applicant to obtain an EAD. SP should apply as soon as you get your Common Access Card (CAC - US base ID card). A non State Department accredited A2 visa holder (a primary visa holder with an A2 visa who does not work at a US state accredited establishment) will be in a position where their spouse will not be able to obtain an EAD. This should be clarified with unit HR. For couples who rely on two wages this could have significant financial implications and impact on the standard of living you currently enjoy. Although there is some scope for spouses to work, there are hurdles to be overcome. Some UK qualifications are not accepted in the USA and as such spouses seeking employment in medical, accounting or education fields may find that their qualifications are not instantly transferrable. Research this area fully.

8. Benefits such as paid time off (holiday and sick leave) are only available for full time employees. Part time can be as much as 35-37 hours a week (state dependant) and it may prove difficult to obtain meaningful employment. Companies may prefer to employ US citizens and minimum wages can be very low compared to the UK. Even full time employees get poorer benefits than the UK and one week Paid Time Off (PTO) per year is not unusual. PTO covers both holiday (vacation) and sick leave. This issue may impact on a family’s ability to enjoy the US and travel.

9. Support Groups. Not all families will be accommodated in military communities. This can cause some to feel isolated in civilian communities. There are however a number of Support Groups, for example Washington D.C. area has an organisation called British Embassy Support Association (BESA) and the Virginia Beach/Tidewater area has ‘Bay Brits’ both of which are active and very supportive. BESA contact details can be found on UKGOV.net website and Bay Brits have a website called www.baybrits.us. Personnel accommodated on or near a US military base elsewhere in the US can contact their spouse association via the base website. Edwards AFB 17(R) Sqn Families committee is also active, their email is;[email protected].

10. ‘Beasties’. Mosquitoes are an inherent problem across America. In some residential areas built upon swampland (eg Washington D.C., Florida) they are a major issue in the summer and often result in personnel not being able to sit outside without a ‘netted’ porch. If accommodated on military leases, basic ‘off the shelf’ pest control is funded but personnel should be aware that MOD cannot fund pest control measures for mosquitoes. Bed bugs can be brought into a property by guests or within luggage. Unfortunately the MOD cannot reimburse for the treatment of bed bugs unless it can be shown that the bugs were brought into the property by the MOD provided furniture pack at the start of the tour.

11. Extreme Weather. The USA is a continent of extreme weather and in some areas earthquakes. The regularity of extreme weather conditions across large areas of the US requires personal research. There is no entitlement to a tornado shelter and US building codes do not require properties to provide such a shelter. Research both the area and property very carefully. Earthquakes, severe thunder storms

2 Major Marsh/Assignment to the USA considerations and snow in differing degrees of severity are also prevalent in certain areas. Personnel should be aware that the MOD cannot fund snow clearance or provide snow blowers if you are posted to an area where snow is a regular occurrence. Personnel should be prepared to either meet these costs themselves or spend a great deal of time clearing paths and driveways. Power outages, flash floods and downed trees can be common during summer months when thunder storms are most prevalent. Even in heavily populated urban areas such as Washington D.C. it has been known to take up to five days to reconnect power supplies and weeks in some rural areas.

12. Firearms. Many states permit the open carrying of firearms in the street and many personnel in the US have firearms at home for self protection. The US has more guns per capita than any other country (88.8 guns per 100 residents, 34% are gun owners and the trend is upwards).This may be a culture shock to some. Be prepared to see individuals open carrying weapons in some areas of the USA.

13. Work Ethos and US Military Establishments. The work ethos in many US military establishments can be very different to that of the UK. They tend to work very long hours with little annual leave taken. The average American works 9% longer hours that a Briton. This said, US military accepts that as exchange personnel you are here to see and experience the US. The DA’s policy is that all UK personnel should take their full leave entitlement and this includes Post Operational Tour Leave if deployed on Operations.

14. Tipping. Tipping is a ‘cultural phenomenon’ as it is very subjective and depends on a number of factors including services received and what state you live it. Some tipping is conducted in percentages and some in monetary terms. Tipping is not mandatory and is classed as customary in US culture. This is from the perspective of the individual receiving the service as there are laws in relation to employee minimum wage and tipping. It is common to tip between 15% - 20% in restaurants. Some restaurants will enquire if an individual doesn’t tip or leaves around 10%. Groups of more than 6 will normally attract an automatic 18% gratuity charge. It is also common to tip roughly $1 per drink if sat at a bar.

Tipping is also prevalent when dealing with:

 Bellman/Porter: $1-2 per bag. More if the bags are very heavy.  Taxi Driver: 10-15% of fare, based on service.  Hairdresser/manicurist: 10% - 20%.  Bag packers in supermarkets: $1 per bag  Parking Valets: $3-5

The above rates can also be classed as subjective but is a guide to tipping across the 50 states.

15. Cost of Internet and Communications. This can be very expensive if not correctly researched. Many companies insist on a deposit at the beginning of the contract especially if you do not have a credit rating. An example is a $500 security deposit for an iPhone 6 on a 2 year contract. More initial financial outlay that may not have been expected or planned for. Some internet provider companies have a monopoly in certain areas which can attract high subscriptions. Not many areas have over the air coverage, so cable is the only means of getting TV and you have to pay for it. Consider also the possible costs that may be incurred when cancelling your current contract with your internet provider. Do not assume your UK phone will automatically work in the US with a US SIM card.

16. Resettlement. There is provision for individuals to fly back at public expense to undertake resettlement. If you are thinking of leaving the MOD following your US assignment and intend to stay in the US, research carefully the work permit options and viability. A case in 2013 involved an SP paying over $10,000 in professional solicitors’ fees and the individual has still not been issued a ‘Green Card’. You will first need to apply, and be sponsored for, a work visa. Whilst living in the USA on a standard

3 Major Marsh/Assignment to the USA considerations work visa it is not possible for any other family members to work except the principal visa holder. It can take many years to transition from a work visa to a green card.

17. Uniform. Please speak with your predecessor or someone in the area you are assigned to reference the different types of dress required for your role in the US prior to arrival.

18. Enhanced Learning Credits (ELC). There are very few companies in the US who are registered under the ELC programme.

19. Investitures. Currently there is no provision for individuals to fly back at public expense to receive an award. There is an opportunity to have the British Ambassador present the award in the Residence in Washington D.C.

20. Sport and Adventure Training. Currently there is no automatic provision for individuals to fly back to the UK at public expense in order to participate in sport or adventure training. Budget UINs can however authorise T&S for official military exercises and bids can be made to the UK Adv Trg Gp, Sports Lottery, Regimental/Corps funds or the British Embassy for financial assistance.

21. Postal Services. SP living further afield from Washington D.C. and Virginia Tidewater area who do not have access to the BFPO provision will find the use of the US postal system expensive, especially if most of your personal shopping is conducted on line. A ‘Buy In’ service such as Amazon Prime offers free/fast postage but comes with a monthly fee. LOA does compensate in part for this.

22. Armed Forces Childcare Voucher Scheme. If you are a participant of this scheme, carefully read the small print and its refund policy if you have built up a credit prior to arrival in the US as they may not be able to be used.

23. Pets. The MOD does not cover the cost of moving pets to or from the USA. The costs can range from £1000 to £2000 (one way) for a single large dog depending on the service requested. In addition personnel will be responsible for any additional pet fees in respect of their accommodation lease which can be as high as $1,000 per pet and is not always refundable at the end of the lease term. Most US properties do not have enclosed gardens and there is no entitlement for this. It is possible to rent fences but this would be at personal expense. Dogs cannot be walked off the lead in many states; fines for doing so are as high as $100 for each occurrence. It is normal for cats to live permanently inside but some landlords might place restrictions and additional fees. Returning your pet to the UK is a major admin and costly undertaking and one that should not be underestimated. UK companies cannot be used, the costs for flights, vets and fit to fly certificates plus customs documentation then delivery to the airport cargo bay and collection in the UK is very problematic.

TRAVEL ISSUES

24. Travel from Home to Work. BDS-US Policy states the entitlement is for a property within a 45 minute commute time to work outside of rush hour traffic in built up areas. If your work management does not permit flexible working hours and you are faced with travelling during rush hour traffic this may increase your commute travel time to over an hour.

25. Travel to Essential Facilities. It is likely that you will be accommodated further afield from daily living facilities (shops, banks, doctors etc) than you are used to in the UK. There are likely to be fewer pavements and little street lighting, if any, in residential areas making it undesirable and potentially unsafe to walk to amenities. The US has designed their shopping areas around the use of a car.

4 Major Marsh/Assignment to the USA considerations 26. Public Transport. Public transport may in some areas be non existent. In others, infrequent or unreliable even in built up areas. Your own local area may be isolated and require two cars in order to avoid the feeling of complete isolation whilst the SP is at work. Most families end up having two cars.

27. US Driving License. Under the NATO SOFA, those on a NATO Visa (only the SP) may drive on their UK licence. For dependents a local state driving licence will need to be applied for. This may mean taking another driving test in order to obtain the respective state driving license. This could be time consuming and again associated costs cannot be reimbursed by the MOD. In some states children are able to drive with a learners permit at the age of 15, each state has different rules and regulations regarding the process by which minors obtain a driving license or driving permit. Depending on the state it could be the enrolment into a driving school although driving instructors are not as common in the US as they are in the UK and in the majority of instances it falls to a parent to teach a child to drive.

28. Vehicle Purchase. The cost of second hand vehicles can prove to be expensive. The cost of vehicle repairs and parts in some areas has also proven to be costly. The dream of owning a big American car quickly disappears for the majority when the cost reality hits home. Fuel in the US is cheaper but the US cars are famously poor on fuel economy. A high value vehicle purchased at the start of assignment may prove difficult to sell at the end without a significant discount being offered. This has affected numerous SP/UKBC who underestimated the loss they would face and then the factor of having to then purchase a vehicle at the new assignment location. LOA compensates in part for the purchase and sale of one car. For those on the COLA package, investigate the possibility of shipping a car out to the US and back to the UK, once your assignment is complete. For all military personnel it is possible to import your UK vehicle into the USA for personal use without the need to abide by some of the strict entry requirements. Visit the following website for more details www.cbp.gov/trade/basic-import- export/importing-car

29. Vehicle Insurance. Insurance for vehicles can be markedly more expensive than the UK and not many US insurance companies will accept the no claims bonus from a foreign country. This area requires careful personal research in order to get the best deal. The reverse is also true when moving back to the UK and the break in UK no claims. However, it is significantly cheaper to insure minors to drive, particularly when they are driving on a permit and are required to have an adult with them in the car. The use of an insurance broker may help, also membership of a university alumnus or other associations may assist as may a letter from your previous UK insurance company.

30. Leasing Vehicles. The leasing of a vehicle for the duration of a tour has become more popular and can be cost effective in that it avoids the selling of a vehicle at a knock down price at the end of your assignment. You must ensure the lease agreement has a UK military clause included which allows the SP to cancel the lease if the SP is assigned early elsewhere. If no military clause is included you will be legally forced to continue to pay for a leased vehicle in the US even though you may be in the UK! Also check the lease to ensure it does not force you to buy the vehicle following the completion of a certain number of leased months or mileage! The following however was a recent submission in Jan 16 by a new arrival which goes to show all states are different and lease car companies operate by different rules. Research carefully:

“First of all not all car companies will lease a vehicle to a non US citizen with no credit history (Ford ). Only a few do and do so at a much higher rate of monthly lease as you are not a solid credit case (ie Toyota). They definitely won’t lease to someone without a Social security number. As you cannot get an SSN until you arrive and can take 2 weeks to come through (as mine did). The chances are that your hire car will run out before you can secure a vehicle. I was quoted an extra $ USD 120 per month lease repayment by one car company (and that was after upping my initial deposit from 3000 USD to 4500 USD). A Total of USD 9000 in deposits and another extra unplanned for $ USD 200 per month for two cars meant that this route became financially unfeasible and I ended up having to lease one and buy a

5 Major Marsh/Assignment to the USA considerations banger. Please also note that when registering your banger at the DMV you also have to pay tax (another small but unwelcome shock that was not mentioned in the brief).

The second issue is that the military clause only applies to US active duty personnel. If I am posted early I am liable for the full payments of the remaining contract. If you are sweating on a promotion board this could make getting a lease car unfeasible.”

31. Hire Cars. All personnel assigned to the US will be entitled to two weeks hire car and fuel costs. You will need a valid credit card in order to secure the car upon collection. The MOD does not pay for child seats, Satellite Navigation devices, spouse driving the vehicle insurance and upgrades. If you subsequently wish to hire a car in the US for personal use, try using UK websites as these can work out cheaper.

FINANCIAL ISSUES

32. Advance of Pay. An advance of pay is available for all SP assigned to the US of up to four months salary and this will then be recovered in 12 monthly instalments. UKBC’s are entitled to up to 3 months salary and are able to have the amount recovered across the length of the assignment. This may seem like a great idea at the start but a high financial advance could quickly become a financial burden, impacting on your ability to afford certain things in your first year. Most feel the financial pressure of the monthly repayment deductions and some decide to pay off the balance early with UK savings or any unused portion of the advance. It is an individual’s choice if they wish to utilise their full four months and it is recommended that research be conducted before arriving in the US. HMRC have ruled that for the SP, the 12 months repayment period cannot be extended to 24 months because it would then be classed as a ‘benefit in kind’ thus has tax implications.

33. UK Savings. Many married accompanied personnel have had to rely on a healthy UK (£2000+) bank balance to fall back on, especially in their first year with the reduced monthly pay due to the advance of pay being recovered over the first 12 months. Those who choose to buy a better than average second hand car have found this option hard, especially if favourable loan terms were not available due to no credit rating in the US. Most personnel who do have savings take advantage of being based in the US and have more than one holiday or road trip per year in order to explore. Single personnel may find the financial situation less of a problem, lifestyle dependant.

34. Banking. Try and open a US bank account as soon as practically possible upon arrival. Research which banks operate in the actual area you will be assigned. CITI Bank has a cash dispenser in every Seven Eleven store (convenience store) which can be useful as withdrawing money from their ATMs attracts no charges, unlike other ATMs. Bank of America offers a free checking account and operates in 50 states. Research which banks offer free monetary transfers to and from the US. Citi bank may also transfer 3 months of UK credit history to facilitate a credit card application. American Express may require a Social Security Number on their application for a credit card.

35. Credit Cards. The US runs on credit. It is strongly advised to get a credit card as soon as you can upon arrival. Many personnel use their credit cards to purchase absolutely everything. This is their way of benefiting from the many offers and incentives offered by the competing credit card companies such as air miles. It is not uncommon for holiday flights to be completely taken care of via air miles. Most hire car companies require a credit card, either UK or American to rent a vehicle. Bank of America offers a credit card for military if you are on a NATO visa. This is an instant credit card with no credit check thus helps build a credit rating quickly. Some cards offer cash back or free insurances.

6 Major Marsh/Assignment to the USA considerations 36. Credit Rating and US Loans. The USA Sp Gp has not yet discovered a means of obtaining a US credit rating prior to arrival in the US. This can prove a frustration for new arrivals who wish to obtain a loan for a car and find it difficult because of no credit rating. It is not uncommon in the US to have five credit cards and numerous store cards in order to quickly reach an acceptable credit rating. Some utility companies (water, gas, electric) may ask for a deposit when setting up an account if you do not have a credit rating. Currently Citi bank and American Express allow you to switch a credit card from UK to US if you have banked with them for 6+ months in the UK.

37. Fixed Forces Rate (FFR). All personnel assigned to the US can have their salary split between their UK and US accounts. Money paid directly into a US bank account will be paid at the current FFR exchange rate. This rate can fluctuate and is balanced out through LOA.

ALLOWANCES AND GRANTS

38. Local Overseas Allowance (LOA). The aim of LOA is to contribute towards the necessary additional local cost of day-to-day living when the SP is serving overseas. LOA recognises the amount by which average essential expenditure of day-to-day living in a particular overseas location differs from that in the UK, and where appropriate taking into account the differences in the local lifestyle. Rates fluctuate down as well as up. Do not rely on it to fund a major life style choice or purchase.

39. Cost Of Living Allowance (COLA). Personnel working in the British Embassy do not receive LOA as they are on the COLA allowance.

40. Living Out Supplement Local Overseas Allowance (LOSLOA). LOSLOA is a contribution towards the living out costs for unaccompanied personnel. Personnel on COLA do not get LOSLOA.

41. Disturbance Expense (DE). The aim of DE for the SP is to contribute towards the necessary additional expenses that may arise when the Services require their personnel to make a qualifying move to or from a RWA on permanent assignment. DE comprises of two rates, an accompanied rate and an unaccompanied rate. These rates have recently been reviewed and increased as part of the enhancement to the overseas package. UKBCs receive a different package called a Transfer Grant.

42. Small Electrical Grant (SEG) (Mil only). The SEG is used to offset the initial costs of purchasing small electrical items in the US. It is only a contribution and may only cover a fraction of the 110 volt appliances you may need. This is possibly another unexpected initial outlay upon arrival. Try and buy from your predecessor or ask around upon arrival for second hand items and keep the receipts for possible audit. The MOD will provide an allowance for the purchase of a washing machine, fridge freezer, tumble dryer and microwave if they are not provided in the leased property.

43. Soft Furnishing Grant (SFG) (Mil only). The SFG is a one off grant designed to offset the initial costs of purchasing soft furnishings when initially setting up home in the US. The rates are dependant on the size of property you will be moving into and can be found on the UKGOV.NET website. Beds generally have different size dimensions than normally found in the UK. More details can be found on UKGOV.NET.

44. Get You Home (Overseas) Flights (GYH(O)). SPs on LOA, the GYH(O) entitlement is a contribution to the cost of one return journey back to the UK per family member for each complete year you are assigned overseas capped at a maximum rate. In addition to the flight, terminal travel can be claimed from Residence at Work Address (RWA) to airport of departure, airport of arrival and leave address and vice versa. They are not reciprocal (UK to USA) nor can they be transferred (to spouse) or carried over to the next year. Some GYH(O) flights have had to be used for sudden UK family emergencies that fall outside of the JCCC category system. Many personnel find the costs of

7 Major Marsh/Assignment to the USA considerations unexpected additional flights to and from the UK play a major part in their personal finances. GYH(O) rates are calculated based on flights from two airports on the east coast and two on the west coast. Current regulations only permit an advance for the GYH(O) up to three months before the flight which may affect your ability to get cheaper flights booked 6 months in advance.

45. Mid Tour Leave Flights (MTL). SP on COLA (British Embassy) currently receive one MTL flight for a two year assignment and two for a three year assignment per family member. MTL currently has no capped rate.

46. Personal Effects Allowance (PE). The PE allowance is dependant on rank, family size and it is almost certainly not enough to ship larger furniture items. Research your entitlement (weight/volume) and the type and size of property you will be moving into very carefully. To mitigate this lower PE entitlement, all accommodation is provided with furniture. This solution unfortunately takes away your ability to wharf items or choice in the furniture received as it is contractually standardised across the US footprint. Naturally this means the additional fully furnished accommodation charge applies but the supplied furniture is of a good quality. Try and bring any specialist items within your PE that are essential to your lifestyle. Examples are certain chairs for medical conditions, specialist bed mattresses and hoists for disabled family members.

47. Children’s’ Education Allowance (CEA) (Eligibility Certificate). The early issue of a CEA Eligibility Certificate for those claiming CEA is crucial in order to meet the next school bill payment window. Try and apply prior to arrival as the process is painfully slow. A recent case involved an SP whose previous overseas unit entered his child onto JPA as CEA eligible without having sight of the Initial CEA approval for the child to enter boarding school in the UK and current Eligibility Certificate. This has resulted in a casework submission to PACCC by the SP to resolve the issue leaving the SP without the money for months in order to pay the current boarding school term fee.

48. School Children’s Visit. Currently the SCV flight entitlement is for 12 single flights per child per school academic year. This recent increase in the number of flights has taken into account the half term school breaks. Children at university are now permitted 3 return journeys per academic year.

ACCOMMODATION ISSUES

49. In the US there are many on base accommodation options available as would normally be expected in the UK or Germany and are to be considered as the first option. Personnel can be accommodated in a private rented property dependant on the actual properties on the open rental market at the time of their arrival. In Washington D.C., Tidewater and Beaufort areas the property is likely to be allocated to you by an accommodation team who search for a property within your entitlement and the BDS-US regulations. Outside of these areas the SP/UKBC will be responsible for sourcing and securing their own property within the first two weeks. This proves to be emotive and a very stressful period in your relocation process. Do your homework prior to arrival via UKGOV.NET and keep close communications with accommodation teams and realtors in the area to which you are assigned. The high turnover of the rental market can mean it is quicker to find and move into the property. Expectation management is key as no MOD employee lives in a mansion with a wrap around porch, swimming pool and a triple garage at the tax payers’ expense.

50. Base Housing. Base housing is available at approximately 95% of the military establishments to which UK personnel are assigned. It is a good option for many personnel as the properties are well maintained, in secure areas and offer excellent facilities such as swimming pools, gymnasiums, and the staffed community centres pride themselves on fostering community spirit. Base housing can allocate an address up to 6 weeks prior to personnel arriving in the US and all sites/establishments have a comprehensive website detailing locations, property types, floor plans and photographs. Recent policy

8 Major Marsh/Assignment to the USA considerations direction states that Mil Base Housing is strongly encouraged and should be applied for in the first instance. It will not be available to all SP and also may not prove suitable due to personal circumstances. Refer to BDSUS Accommodation Policy for the detail.

51. Types of Property Compared to UK SFA. Two bedroom houses are very hard to find in many areas therefore SP/UKBC with a Type B entitlement are likely to be housed in an apartment. The BDS- US Accommodation Policy located on UKGOV.NET explains all the country specific differences.

52. Accommodation Charges. Personnel will in the majority of cases be charged Band D or E under the CAAS system for the furnished accommodation. In addition married accompanied will also pay fuel and light (F&L). Unaccompanied personnel will not pay F&L. No part furnished rates apply. (No charges apply if on the COLA package). Research your individual circumstance and the associated costs. Regulations state that single and unaccompanied personnel are only entitled to a 1 bedroom apartment. In areas where it is manageable personnel below the rank of Major/Lt Cdr/Sqn Ldr will be required to share if circumstances dictate. The terms and conditions of service for UKBC’s stipulate that they can only be asked to share, not directed to share.

53. Landlords. Landlords vary in the level of service they provide to their tenants. Laws are different in each state and fall very much on the side of the landlord. When dealing with your landlord, keep all communication in writing and maintain an amicable working relationship. If you experience difficulties with a property you will be required to negotiate with the landlord to resolve those issues. Personnel are advised to keep landlord tenant relationships professional and cordial.

54. Finding a Property. Allocated properties are only available in certain areas, Washington D.C., Virginia/Tidewater and Beaufort. The accommodation coordinators will do their utmost to source a rental property that fulfils your entitlement and personal needs but the rental market is very fluid and fast moving. Unlike the UK, it is not possible to get a property choice. There is unfortunately no entitlement to a property within a specific school district or close to certain amenities. Allocated properties will be furnished prior to arrival and will have utilities set up in the name of MOD. The sourcing and allocation process is dependant on the actual properties available on the rental market at the time of your arrival.

55. Anyone wishing to meet individual and very specific needs for their family can opt to source their own property, within entitlement. This decision will have to be declared on the application form to the accommodation team a few weeks before arrival. Personnel sourcing their own properties get 14 days upon arrival to source, negotiate terms, obtain MOD approval, have the lease agreed, arrange furniture and move into the property. Do not always believe what you see on the realtor’s websites as many properties are not what they seem or may have already been rented out. This period for most is very stressful as they are also buying cars, obtaining driving licenses, arranging insurances, securing military base access, registering for medical and dental provision, setting up utilities in their own names and arranging the delivery of furniture, receiving delivery of their personal effects, starting work etc the list goes on and on.

56. Your Lease. If you source your own property and sign the lease in your own name you are personally legally and financially liable for the lease for the entire duration. It is not possible to break leases once signed unless you have an assignment order posting you more than 35 miles away from your duty station.

57. Property Maintenance. You will be financially liable (lease enforced) for damage above fair wear and tear, this is subjective and you might not agree with the charges raised by your landlord. This includes damage to hardwood floors caused by foot traffic and furniture. The MOD does not provide rugs even if a lease states that floors need to be 80% covered. You may be liable for almost anything that the landlord constitutes as damage. The landlord again has the upper hand so abiding by the USA Sp Gp

9 Major Marsh/Assignment to the USA considerations advice during ‘March In’ is crucial in order to avert expensive problems at ‘March Out’. Some personnel have also been fined by the ‘Home Owners Association’ for such violations as not taking care of the lawn or leaving rubbish outside the accommodation on non collection days. Be sure that you take extensive photos of any damage or areas when moving in that may cause concern or a bill when moving out. These have to be logged with the USA Sp Gp in order to provide evidence in a business case should this be needed. Keep copies of all correspondence with landlord/managing agent.

58. Renters Insurance. This covers your personal effects in the property and your personal finance liability to the property and the landlord therefore highly recommended for everyone. Some landlord’s insist on it as a condition of the lease and require that they are named as an interested party. Unfortunately the cost is not reimbursable by the MOD. Some personnel have previously relied on UK based Insurance companies/policy (eg Forces Financial or PAX) and should be aware that doing so can delay the processing of potential claims. A recent example of a minor kitchen fire resulted in a landlord claiming damages for thousands of dollars. No renters' insurance was in place, MOD cannot cover the costs as it was the tenant at fault but luckily an existing UK policy agreed to cover costs but the resultant stress on the family was immense.

59. Wharfing. Wharfing is the term used for reduced furniture holdings in the property. Regulations state that only furniture items that cannot physically fit into your property can be returned with the delivery vehicle. Personnel not obtaining permission to return items can be held liable for the associated storage charges. All storage facilities and delivery personnel are contracted civilian companies.

60. Security Deposits. The return of the security deposit is outlined in the lease and is generally returnable within 45 days of the end of the lease. You are liable for all deductions and the amounts are not small. Beware! You will be required to provide the MOD with a cheque to cover the advance of your security deposit prior to leaving the country. Keep your US bank account open until your security deposit has been returned. If there are any deductions for damage caused during your occupancy that you do not agree with, you will need to submit a business case detailing the charges and why you consider them to be unreasonable in order to secure a write off by the MOD. A letter to the US bank once back in the UK is sufficient to close your US account.

61. Pets and Landlords. It is certainly harder to find a property if you have pets, particularly larger dogs, multiple pets and certain restricted dog breeds. A cat being accepted into a property by the landlord could prove difficult. Not all areas allow cats to roam outside. Most landlords will require a non refundable pet deposit which may cost, in some cases, hundreds of dollars. You will need to have the MOD furniture and carpets ‘de flea and tick’ treated at your own expense prior to departure. Do not under any circumstances get a pet during the term of a lease without obtaining written permission from the landlord in advance. Large financial penalties may apply. Personnel have previously faced being charged for the replacement of all the carpets in a property after obtaining 2 cats without the landlord’s permission. Some landlords and apartment complexes only accept dogs of a certain weight. If they subsequently discover that they have been provided with incorrect information about the pet, significant charges can apply and you may be told to remove the animal from the property. The lease cannot be broken under such circumstances. In addition to being financially responsible to your landlord if your pet damages the property you may also be billed for any damage caused by your pet to your MOD provided furniture pack.

62. Currently Single but Getting Married? For those who come out single and subsequently get married, be advised there is no entitlement (lease restrictions) to move property following a change in personal circumstances. You are advised to inform the accommodation team if planning to get married in your first three months and confirm your new spouse will be joining you within six months of arrival to ensure that your accommodation entitlement is set at your married entitlement on arrival. Similarly, the

10 Major Marsh/Assignment to the USA considerations birth of a child does not attract an entitlement to move into a larger property (lease restriction) as there is no mechanism to break a lease under these circumstances.

63. Crime Rates. Once again carefully research the area of your proposed assignment. There is plenty of online information for you to look at in order to make an informed decision about where to live. Each state is required to make their crime details public, including photographs of individuals on the sex offenders register by zip code (US equivalent to postcodes). Whilst different websites exist for each state, this information is easy to access. Enter your State and Sex Offender Registry into Google search engine or try WWW.neighborhoodscout.com or WWW.City-data.com. You can also contact the local Sheriff’s office to obtain more detailed information on the crime rates for specific addresses. A recent case involved a single SP who moved into an apartment in an area where there was gang activity. This unfortunately led to his apartment being burgled three times and finally being seriously assaulted. Do not under estimate the impact crime has on numerous areas across the USA. In a separate location our UKBC and family were plagued with numerous violations and intimidation from a neighbouring family previously known to the police.

64. Legal Issues. If you are serving with the US military you might be able to use the Judge Advocate General’s (JAG) Office which is a fantastic resource for providing legal assistance to military personnel. For many cases the potential financial burden of a legal issue with your landlord is huge. The MOD cannot not pay for private legal advice. An important point to remember, it is your name on the lease and you are liable if any part of the lease is violated.

65. US Citizenship. BDS-US has been advised that the US does not recognise dual citizenship. Therefore if you or your dependants have both US and UK citizenship/passports, it appears the US takes primacy in the US. The situation becomes complicated if the IRS request annual US tax returns. In a recent case, a child born over in the US to UK parents and returned to the UK in 1974 with duel nationality has been approached by the US IRS for the completion of a US tax return. Currently there is an agreement between the UK/US that tax is only paid to the government where the earnings were accrued. The IRS is the focal point for resolution of possible tax implications. With effect Jan 2016, in order to become a sole UK citizen the person will have to go through the process of renouncing their US Citizenship. I have included the link below to the process from the US Embassy website but in essence the person has to fill in various forms, attend an appointment at the US Embassy where they have to sign an oath of renunciation and pay a fee of currently $2,350. They will also have to file a final US Tax Return as they may be subject to an Expatriation Tax (link also included below). https://uk.usembassy.gov/u-s-citizen-services/citizenship/loss-of-u-s-citizenship/overview/ https://www.irs.gov/Individuals/International-Taxpayers/Expatriation-Tax

This could be an important issue for children born in the US to UK citizens and for those US born ‘grown ups’ who are returning to the US. US citizens also have to annually declare their overseas bank, savings and securities accounts.

The most difficult issue with dual citizenship is immigration of dependents. As a US citizen you don't need nor will the USA issue you a NATO visa. This means that the dependents can't have one either. The only solution for this without renouncing citizenship is to get green cards for the dependents, which takes at least 6 months. Renouncement can only be done outside the USA and is not a step people should take lightly.

CONCLUSION

11 Major Marsh/Assignment to the USA considerations

66. There are so many positive points about an assignment to the US, just look at the travel guidebooks but at least by having taken all of the issues in this paper into consideration, you will now be in a much better position to understand the nuances and be able to avoid some of the areas that have been experienced by one or more of your predecessors. Expectation management, adaptability and patience are important to a successful transition to the US. This only leaves me to say “Welcome” to this fascinating and exciting country that will prove rewarding both personally and professionally. It has been hugely interesting and an experience my family and I would not have swapped for any other assignment.

{Signed on DII}

Stephen Marsh Major Head of In Country Support (Military) British Defence Staff – United States British Embassy