APPENDIX B

Effect of Extended Leave Without Pay (LWOP)
(or Other Nonpay Status)
on Nonappropriated Fund Benefits and Programs



Type of Benefit/Program The amount of LWOP (or other nonpay status) that is considered creditable service for purposes of determining an employee's entitlement to or eligibility for the following Nonappropriated Fund benefits and programs:
Service tenure All nonpay status is creditable service as a NAFI civilian employee of the Department of the Army and credited as the employee's length of service. Note: Users should refer to the different categories below for the amount of service that is creditable for other purposes, e.g., probationary, retirement, 401(k).
Completion of probation A total of 15 workdays in a nonpay status is creditable service. Anything beyond the 15 workdays will extend the probationary period by that number of days.
Qualification requirements (requirements for promotion, e.g., trainees) Any nonpay status is creditable service. However, employees must still meet appropriate length of experience requirements for qualification purposes.
NAF and Federal (CSRS and FERS) Retirement NAF: A total of 12 months in nonpay status is creditable service. Employees are not required to make payment for such service to receive credit. (The maximum period of leave without pay is 1 year. If the employee fails to return to duty, appropriate separation action must be effected IAW AR 215-3.) When employees are in a nonpay status for only a portion of the pay period, their contributions are adjusted in proportion to their basic pay.

Federal (for NAF employees who have elected to keep CSRS or FERS under portability of benefits): A total of 6 months in nonpay status in any calendar year is creditable service. Employees are not required to make payment for such service to receive credit. Periods in which the employee is in a nonpay status that exceeds 6 months in a calendar year are not creditable for any retirement purpose. When employees are in a nonpay status for only a portion of the pay period, their contributions are adjusted in proportion to their basic pay.


Type of Benefit/Program The amount of LWOP (or other nonpay status) that is considered creditable service for purposes of determining an employee's entitlement to or eligibility for the following Nonappropriated Fund benefits and programs:
Health Benefits Enrollment may continue for up to 1 year in a nonpay status. The NAFI contribution continues while employees are in a nonpay status. The employee may choose between paying the NAFI directly on a current basis (every month) or having the premiums accumulate and withheld from his or her pay upon returning to duty. The employee may also request cancellation of insurance and have their insurance and contributions stopped. Health benefits coverage will terminate after the employee is in a LWOP status for 1 year. (The maximum period of leave without pay is 1 year. If the employee fails to return to duty, appropriate separation action must be effected IAW AR 215-3). Once separated, the employee may elect temporary continuation of coverage (TCC) or retiree medical coverage if eligible.
Life Insurance Enrollment may continue for up to 1 year in a nonpay status. The NAFI contribution continues while employees are in a nonpay status. The employee may choose between paying the NAFI directly on a current basis (every month) or having the premiums accumulate and withheld from his or her pay upon returning to duty. The employee may also request cancellation of insurance and have their insurance and contributions stopped. Insurance coverage terminates after the employee is in a LWOP status for 1 year. (The maximum period of leave without pay is 1 year. If the employee fails to return to duty, appropriate separation action must be effected IAW AR 215-3). Once separated, the employee may purchase an individual life insurance plan up to the amount that was in effect on their last day of work within 30 days of separation. Employees who are eligible for retirement, may be eligible for free life insurance of the lowest amount in effect during the 5 year period immediately preceding retirement, as long as they were participating for 5 consecutive years before retirement. Disability employees are eligible for waiver of premium until age 62, provided their disability is approved by the surgeon general, and they participated in the life insurance plan for the 5 year period immediately before retirement.


Type of Benefit/Program The amount of LWOP (or other nonpay status) that is considered creditable service for purposes of determining an employee's entitlement to or eligibility for the following Nonappropriated Fund benefits and programs:
Within-grade increases For Federal Wage System (NA, NL, and NS schedules), a total of 1 workweek in a nonpay status during the 26-week waiting period is allowed to advance to step 2; 3 workweeks during the 78-week waiting period for advancement to step 3; and 4 workweeks during the 104-week waiting period for advancement to steps 4 and 5.
Accrual of Annual and Sick Leave During any pay period in which full-time employees accumulate 80 hours in a nonpay status, they lose their annual and sick accrual for that pay period. Employees earn leave in the next succeeding pay periods until accumulating an additional 80 nonpay hours. For part-time employees, the allowable nonpay hours are prorated.

Note: All nonpay status is creditable service for determining leave accrual category. The leave service computation date (which determines employees' accrual rate, i.e., 4, 6 or 8 hours) is not adjusted when an employee has accumulated time in a nonpay status.
NAF 401(k) Savings
Plan and Thrift Savings Plan (TSP)
NAF 401(k) Savings Plan: Employee contributions and NAFI (1% to 3%) contributions may not be made when an employee is in a nonpay status for one or more pay periods. Employees may make elections, interfund transfers and in-service withdrawals during periods of nonpay status. Employees may not acquire a new loan. Current loans may be subject to default when payments are not made through payroll deduction.

TSP (for NAF employees who have elected to keep CSRS or FERS under portability of benefits): Employee contributions and agency automatic 1% contributions may not be made when an employee is in a nonpay status for one or more pay periods. Employees may make open season elections, interfund transfers and in-service withdrawals during periods of nonpay status. Employees may not acquire a TSP loan or make payments to an existing loan. For detailed information, refer to the TSP Fact Sheet - Effect of Nonpay Status on TSP Participation, at http://www.tsp.gov.


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