How can three little letters cause such a big disruption to your household budget?

PCSs are a normal part of most active-duty military life, and with it comes the chaos! Don’t let that paralyze you or stress you out. We are here to help you navigate this time with information and resources.

To start with, you are not ALONE!  When the orders come down, it is easy to get tunnel vision so try and remember that you are in good company.

Approximately one-third of active-duty service members receive PCS orders each year, according to the Department of Defense. And though you may benefit from several PCS entitlements, you may incur numerous unexpected (and unreimbursed) expenses as well.

How will you get your family from point A to point B without too much stress or debt? It is important that you approach the PCS as a team. The more you plan, the easier the process will be.

How do you prepare for unknown PCS expenses?

To keep your out-of-pocket expenses to a minimum, do your homework before you PCS. Consider the following examples:

• Are you driving straight to the new duty station, or will you take the time to see the giant ball of yarn that sits somewhere in the Midwest?  
• Where will you stop and sleep and eat on the way?
• What would be the most cost-effective way to eat meals? After all, not everyone is excited about McDonald’s for breakfast, lunch, and dinner. 

Two things you must do before you start the PCS plan.

1. Budget and communicate! Talk the whole process through. Prepare for all the hidden costs and for the things you will need to pay for on the way. 
2. Take advantage of resources that may be available through the transportation office, finance office and family center at your installation. Find out which PCS entitlements you are eligible for to create a realistic budget for your upcoming move.  

The Five Military PCS Entitlements You Need to Know About Dislocation Allowance (DLA)

Dislocation Allowance is intended to offset some of the costs of the PCS move, and it doesn’t need to be paid back. The rates change annually and are based on service member rank and number of dependents. Service members with no dependents who will be living on base are not eligible for DLA.

*It is important to note, that this will be settled on the BACK end of your move. Keep this in mind as you make a budget for your upcoming PCS.

1. Advance Basic Pay

You can apply for up to three months of your salary to help cover unexpected relocation expenses. But if you think receiving an advance on your pay is a great deal, you may want to think again. Advance Basic Pay is really a loan that, in most cases, needs to be repaid within the year. Granted, the loan is interest-free, so it’s probably better than running up high-interest credit card debt. 

*Important to note that you will need to be prepared to live on a reduced salary for a while since the installments to pay it back will be taken out of your monthly wages. 

2. Advance Basic Allowance, Housing (BAH)

If you don’t plan to live on base, you may be eligible for Advance Basic Allowance for Housing. Like Advance Basic Pay, this is a loan that typically needs to be repaid within 12 months. The money must be used for housing-related expenses such as security deposits.

*Important to note budgeting in housing and utility deposits is important to include in your PCS budget.

3. Temporary Lodging Expense (TLE) and Temporary Lodging Allowance (TLA)

Before or after a CONUS PCS, it may be necessary for you and/or your dependents to move into temporary housing. TLE is a daily allowance to help cover the costs of meals and lodging in these circumstances, up to 10 days.

*Important to note:  if you’re moving overseas, you may be eligible for TLA, which provides for temporary housing in your new location for up to 60 days.

4. Monetary PCS Allowance in Lieu of Transportation (MALT)If you drive to your new service station, you will receive mileage reimbursement through MALT. The reimbursement rate changes every year, and the allowance is typically available for two cars.

*Important to note more in-depth information on the MALT allowances can be found at https://www.dfas.mil/MilitaryMembers/travelpay/armypcs/malt/ 

5. Per Diem Allowance

While traveling to your destination, expenses for daily meals and lodging may be offset by a per diem allowance. *Important to note: If you need more clarification, there is a great online tutorial on some of the allowances and benefits listed above, please visit: https://www.defensetravel.dod.mil/site/faqpcs.cfm 

PCS entitlements are typically based on your military rank and dependency status. The Department of Defense has more detailed information about specific moving allowances – including weight limits for household goods – at Move.mil

A comprehensive personal financial plan and advice from your Financial Advisor can help you plan for PCSing so you’re more prepared to make the move. To learn more about PCS entitlements and how to budget for your relocation, contact a trusted First Command Financial Advisor today.

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