41 CFR 303-70.302 - When the employee dies at or while in transit to or from his/her official station outside CONUS, must we return the...immediate family, baggage and household goods to the residence or alternate destination?
Yes. However, your agency head or his/her designated representative must approve the family's election to return to an alternate destination, and the allowable expenses cannot exceed the cost of transportation to the decedent's residence. Travel and transportation must begin within one year from the date of the employee's death. A one-year extension may be granted if requested by the family prior to the expiration of the one-year limit.
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§ 303-70.302 When an immediate family member, residing with the employee, dies while the employee is stationed OCONUS, may we pay interment expenses?
No. You may not pay interment expenses when an immediate family member, residing with the employee, dies while the employee is stationed OCONUS.