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Reimbursement Rates for Use of Private Vehicle Lowered by GSA

By Ralph Smith

Thursday, January 7, 2010

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Based on the many comments that are sent to our website each day, many readers are unhappy. Some are unhappy because they are retired and did not get a COLA increase in 2010. Others are unhappy because the average federal pay increase for 2010 was 2% but that was not sufficient or, in some cases, the writer received less than 2% based on his geographic location.

Others are unhappy because their health insurance rates have skyrocketed in 2010 and others are unhappy because their long term care insurance premiums have also gone up.

To add to the often stated unhappiness, here is an event that will impact some readers.

If you use your personal vehicle for government business, you will be getting a smaller reimbursement.

The General Services Administration (GSA), following the lead of the Internal Revenue Service, has reduced the amount you will receive per mile when using your own car for federal business. In 2009, the rate was 55 cents per mile.

But, as of January 1, 2010, the rate is 50 cents per mile.

The 50 cents per mile is the lowest reimbursement rate since 2007. On February 1st of that year, GSA set the reimbursement rate at 48.5 cents per mile. As gas prices went up, the reimbursement rate hit a high of 58.5 cents per mile for the latter part of 2008 (See Mileage Reimbursement Rate Headed Up?). Because gas prices went down in 2009, the rate fell back to 55 cents.

The reimbursement rate for motorcycles also went down on January 1st—from 52 cents to 47 cents but the reimbursement rate for using your own airplane went up. It is now $1.29 instead of $1.25.

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Readers' Comments

  • To Fed Govt: Before my daughter changed professions last year, driving her POV five days a week for official government business was exactly what she was required to do by her employer. Unfortunately, when she applied for the position, there was no indication she would be required to use her own ...
    Posted: January 11, 2010 4:57 PM
  • To retired, work is work, but it can also be fun. For example, solving a challenging issue can be fun as well as work. Also some of the mickey mouse stuff that does not need to be done all of the time on every issue is not fun Perhaps this is what geologist is talking about....
    Posted: January 11, 2010 12:21 PM
  • claims rep its obvious that you haven't look at a report in a good long while. Ford has consistently out done ALL the imports in reliability. consumer reports says though SSA is the 2nd worst federal agency when dealing with the pubic only after the IRS...
    Posted: January 10, 2010 7:52 PM

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