Board of Contract Appeals

                 General Services Administration

                      Washington, D.C. 20405









                      _____________________



                        September 28, 2001

                      _____________________





                         GSBCA 15663-RELO





               In the Matter of ROBERT G. JENNINGS





     Robert G. Jennings, Las Vegas, NV, Claimant.



     Charles N. Stockwell, Travel and Vendor Pay Division, Defense Finance and

Accounting Service, Denver, CO, appearing for Department of Defense.



DeGRAFF, Board Judge.



     In 1999, the Department of Defense (DoD) transferred Robert G. Jennings from one

permanent duty station to another.  In connection with the transfer, DoD made various

reimbursements and payments to Mr. Jennings that increased his taxable income.  DoD paid

Mr. Jennings a withholding tax allowance and a relocation income tax allowance to

compensate him in part for the income taxes he incurred due to the increase in his taxable

income.  When DoD calculated Mr. Jennings's relocation income tax allowance, it decided

not to include his military pension payments as earned income.  Mr. Jennings asks us to

review DoD's decision.



     The facts presented by this claim are, in all material respects, identical to those

presented in Marion D. Taylor, GSBCA 15500-RELO (Aug. 14, 2001), and we refer the

reader to our opinion there for a full explanation of the relevant statutes and regulations.  We

concluded in Taylor that DoD should include military pension payments as earned income

when it calculates a transferred employee's relocation income tax allowance, even though

such payments are reported on an IRS Form 1099.  As we said in Brent A. Myers, GSBCA

15466-RELO (May 9, 2001), all of our travel and relocation claims decisions are published

and precedential.  Applying the precedent set in Taylor to Mr. Jennings's claim, we conclude

that DoD should include his military pension payments as earned income when it calculates

his relocation income tax allowance.



     The claim is granted.









                                   __________________________________

                                   MARTHA H. DeGRAFF

                                   Board Judge