State Association of County
FINAL
STATE ASSOCIATION OF COUNTY
RETIREMENT SYSTEMS
TRAVEL POLICY
Adopted: ______, 2008
STATE ASSOCIATION OF COUNTY
RETIREMENT SYSTEMS
TRAVEL POLICY
This document sets forth the State Association of County Retirement Systems’ (“SACRS”) policy for authorized travel expenses and the recommended procedures for paying the expenses incurred by members of the SACRS’ Board of Directors (the “Board”) that are related to the duties on the Board.
Board members are entitled to reimbursement for reasonable expenses incurred in fulfilling their leadership role. Board members conduct their duties in conjunction with their respective roles as trustees of counties participating in the County Employees Retirement Law of 1937 (the “1937 Act Counties”). The time spent serving as Board members will not be reimbursed by SACRS.
Many trustees of the 1937 Act Counties volunteer to serve on various committees (other than SACRS committees) or in other roles that benefit the mission of SACRS. While the business of SACRS could not be provided without the efforts of these volunteers, it is not the policy of SACRS to reimburse travel or other expenses associated with those committee assignments or other work done on behalf of SACRS.
The guidelines contained in this policy apply to travel expenses incurred by Board members when traveling both within and outside the State of California while on official SACRS business (i.e., when attending and participating in meetings, conferences, seminars, training and other events that benefit the SACRS).
This policy shall be reviewed annually by the Board and may be amended by the Board at any time.
I. Authorization for AttendING Meetings at SACRS Expense
A. Authorization. Authorization may be granted if the necessary funds are available, and if the program includes subject matter directly related to retirement issues or if SACRS will benefit from the Board member’s attendance.
B. Distribution of Information. Individuals attending meetings, seminars or conferences at SACRS’ expense shall report to the Board all pertinent information obtained at these events on a timely basis. No report is required when Board members attend educational events (such as a SACRS conference) that are typically attended by several Board members.
II. AUTHORIZATION FOR TRAVEL REIMBURSEMENT
A. Out-of-State Travel by Board Members. All out-of-state state travel by Board members shall be requested in writing and approved before the trip is made.
B. In-State Travel by Board Members. All in-state travel by Board members shall be requested in writing and approved before the trip is made, whenever practical.
C. Out-of-State and In-State Travel by Board Members. Board members engaged in out-of-state and in-state travel shall advise the SACRS Administrator and the other Board members of the business nature of the trip, the location, and the duration of the trip.
D. Failure to Obtain Prior Approval. If prior approval is not requested and the claim for reimbursement is in excess of $100, the SACRS Administrator shall place the request for travel reimbursement on the agenda for the next regular meeting of the Board for the Board’s consideration and action.
E. Board Approval of Travel Reimbursement. All travel reimbursement requests from Board members shall be included in the Board meeting agenda and approved by the Board in open meeting. Sufficient information about the reason for the trip shall be provided to allow adequate evaluation.
F. Minutes. The Board’s minutes shall reflect approval of the travel for audit purposes.
III. REIMBURSABLE EXPENSES
Reimbursement of the following expenses is subject to the Board members submitting receipts or other forms of documentation evidencing the expenses he or she incurred.
A. Transportation.
1. In all cases, the most reasonable and cost effective method of travel should be chosen.
2. Personal auto mileage will be reimbursed at the prevailing IRS rate. In no event shall personal auto mileage reimbursement exceed the cost of round trip airfare plus reasonable expenses associated with air travel.
3. Domestic air travel will be reimbursed at coach rate, common carrier, not to exceed the actual amount paid. Every effort should be made to secure the best rate available at the time of travel.
4. Public transportation (including taxis and shuttles) will be reimbursed at actual cost.
5. If a Board member travels by an indirect route for his or her own convenience (this includes travel by automobile instead of by an available air carrier) and he or she incurs additional food and/or lodging expenses, such additional expenses shall be borne by that Board member. Reimbursement for his or her expenses shall be based only on such charges that would have been incurred had he or she traveled by the most direct and usual route and method.
6. A rental car may be reimbursed if such use is less than or equal to the cost of public transportation (including taxis and shuttles), or if public transportation is clearly inadequate.
B. Hotels.
1. Actual expense incurred by a Board member for lodging will be reimbursed.
2. Reimbursement will be limited to a standard class room.
3. Itemized lodging receipts are required for reimbursement.
4. Whenever possible, Board members should request a government rate or conference rate. SACRS Administrator should be consulted to assist in obtaining the best rate.
C. Meals.
1. Actual and reasonable expenses for meals incurred while traveling will be reimbursed up to $90 per day. Receipts must be submitted to receive reimbursement.
2. Tips to a maximum of 20% are reimbursable.
3. No claims will be reimbursed for alcoholic beverages.
4. Meals consumed at the hotel, or one of its restaurants, and charged to the hotel bill will be reimbursed.
D. Other Expenses.
1. Bridge, tolls, parking, airport transportation, taxi, bus, rental car, tips and gratuities in accord with local custom will be reimbursed.
2. Reimbursement for porterage of $10 per day of travel is permitted. Receipts for porterage are not required.
3. Laundry, valet and pressing costs are not reimbursable unless in travel status for 5 or more days or an emergency situation
4. The following expenses will not be reimbursed: alcoholic beverages, tobacco, in-room movies, barber shops, beauty shops, gifts, magazines and mini-bar charges.
5. Board approved conference/seminar registration fees are reimbursable.
E. Miscellaneous.
If a significant savings can be realized on the airfare by having a Board member extend his or her stay to include a Saturday night, the Board member may extend his or her stay in order to realize such savings. The cost of the meals and lodging that the Board member incurs for the extra days in travel status so that he or she can take advantage of this lower cost fare will be reimbursed if a net cost savings can be documented. Appropriate documentation to support this cost savings should be attached to the “Travel Demand Form” (described in Article VII).
This policy is not intended to imply that the Board member is compelled to stay in travel status longer than required, but merely to provide this option should the traveler desire and a significant savings can be realized.
VI. TRAVEL ADVANCES
The Board member may request an advance of cash to defray reimbursable travel expenses that would otherwise be paid out-of-pocket. A “Travel Advance Form” should be completed for this purpose.
The amount of cash to be advanced shall be computed by assuming the reasonable cost of meals and transportation for the area to which the Board member is traveling. Immediately upon the conclusion of his or her travel, the Board member shall return any unspent monies from the travel advance to SACRS.
Detail of the Board member’s actual expenses shall be provided to SACRS, and SACRS shall reimburse any expenses incurred by the Board member that are greater than the travel advance as part of the normal travel-reimbursement process.
VII. CLAIMING REIMBURSEMENT
SACRS shall maintain a credit card to pay for approved travel reservations.
The Board member may either pay all expenses himself or herself and then request reimbursement, or he or she may request that all reimbursable expenses be charged directly to the SACRS credit card.
“Travel Demand Forms” should be submitted monthly to the SACRS Administrator for review. Airfare vouchers, itemized hotel, rental car, taxi, van (or other conveyance), parking and registration receipts for which reimbursement is requested must be attached to the Travel Demand Form. Board members are encouraged to submit receipts for other expenses that have been incurred, when available.
VIII. NON-REIMBURSABLE EXPENSES
In many cases personal non-reimbursable expenses are included in the hotel bill of Board members whose hotel expenses are charged to the SACRS credit card. In those situations, the non-reimbursable expenses shall be identified by the Board member and reimbursed to SACRS. Board members shall reimburse personal non-reimbursable expenses before the next meeting of the Board following their return from travel.
IX. TAX TREATMENT
Pursuant to the Internal Revenue Code, a taxpayer has income when he or she receives an economic gain and that gain primarily benefits the taxpayer. Economic gain is lacking, however, when a taxpayer (such as a Board member) is reimbursed for expenses incurred on behalf of another party (such as SACRS). In effect, the reimbursement represents the other party’s (SACRS) repayment of a loan made by the taxpayer (Board member) to cover expenses that are attributable to the other party (SACRS). The IRS has long maintained the position that reimbursements for “expenses incurred by a taxpayer on behalf of another in a non-employment context are not included in the taxpayer’s gross income.” However, to the extent the reimbursement exceeds the expenses incurred by the taxpayer (Board member), the amount is required to be included in income.
Subject to the provisions of this policy, a Board member who is not a SACRS employee will be reimbursed for travel expenses associated with his or her service on the Board and incurred on behalf of SACRS. The reimbursement amount is not includable in the Board member’s gross income.
PLEASE NOTE THAT BOARD MEMBERS SHOULD CHECK WITH THEIR TAX ADVISORS IN THIS REGARD.
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