TO:

All Cooperators and Participants

Effective December 27, 1996, the Federal Travel Regulation was amended to (1) abolish the quarter day method of computing the meals and incidental expenses (M&IE) allowance for partial days of travel (e.g., the first or last day of travel) and to replace it with payment of a flat three-fourths rate of the applicable M&IE and (2) prohibit the payment of a per diem allowance for travel of 12 hours or less (previously 10 hours) and establish three-fourths of the applicable M&IE rate as the per diem allowance for travel of more than 12 hours, but not exceeding 24 hours, when no lodging is required.

In addition, effective May 1, 1997, the Federal Travel Regulation was amended to increase the ceiling for actual subsistence expenses from 150 percent to 300 percent of the prescribed maximum per diem rate where special or unusual circumstances result in an extreme increase in subsistence costs.

These changes are detailed in the attached final rules.