Retirees’ Limited Privilege Program [RLPP]

  • Published
  • Retiree Activity Office
RAF MILDENHALL, England --  Introduction: All items sold by the Army and Air Force Exchange Service [AAFES] and the Commissary [DeCA] in the UK are sold free of British import duty. The sale of this merchandise is governed by a NATO Status of Forces Agreement [SOFA] of January 1951. The SOFA authorizes only those individuals on orders to the UK in support of NATO, and their family members, to purchase duty-free goods. The SOFA does not address the eligibility of retirees to purchase such goods. In 1983 this oversight was addressed and, following extensive lobbying and negotiations, the RLPP was agreed between agents of the UK and the USA. 

The Program: The RLPP allows retirees, their dependents, and surviving spouses to purchase merchandise in AAFES and DeCA facilities contingent upon their paying an agreed amount of duty. However, certain classes of merchandise are excluded from the RLPP and therefore cannot be purchased. These include alcohol products, tobacco products, motor vehicles and gasoline. The amount of duty payable is a percentage of the total purchase price, and is currently 17.5 percent. Duty is collected through a system of coupon books administered by AAFES. 

Participation in this program requires the retiree [sponsor] and the sponsor's family members, or a surviving spouse, to obtain a Retiree Limited Privilege Card [USAFE Form 174a, or "white card"]. The sponsor or surviving spouse must apply for the card at a Military Personnel Flight [MPF], which will verify the applicant's eligibility. Proof of eligibility is documentation confirming residency in the UK. This can be in the form of a UK driver license, a utility bill showing a British address, etc. The MPF will initiate the request and direct the applicant to the Pass and Registration facility, who will issue the "white card". 

Prior to making a purchase of merchandise it will be necessary to purchase "Retiree Coupons" at any AAFES customer service counter. These coupons are sold in books having a value equal to $200 of merchandise sales, i.e. duty of $35. AAFES charges an administration fee of $1 per book, and an appropriate ID card and the "white card" must be presented at the time of purchase. 

When making a purchase in AAFES or DeCA facilities the individual must show their ID and "white" cards, and provide the cashier with retiree coupons equivalent to the price of the purchase. Retiree coupons are required for any purchase of 50 cents or higher, and any amount of 50 cents or above will be "rounded" to the next higher whole dollar amount, i.e. $1.49 will be "rounded" down to $1 while $1.50 or above will be "rounded" up to $2. Please note that for purchases made in DeCA facilities the duty is payable on the amount of the purchase prior to the 5 percent surcharge being added. A purchase register must also be signed at the time the retiree coupons are given to the cashier.