DTG:spacer 071715Z JUL 97

FROM:spacerDA WASHINGTON DC//SAMR-CP//

TO:spacerAIG 9893
spacerAIG 9150

INFO:spacerZEN/EUROPEAN STARS AND STRIPES
spacerZEN/DLA FT BELVOIR VA
spacerZEN/ACPERS ALEXANDRIA VA
spacerZEN/USAISA WASHINGTON DC
spacerZEN/CDRUSACFSC ALEXANDRIA//CFSC-HD//
spacerZEN/CDRUSACFSC ALEXANDRIA//CFSC-MS//
spacerZEN/PACIFIC STARS AND STRIPES
spacerZEN/NFS RED RIVER TX
spacerZEN/PERSONNEL AND EMPLOYMENT SERVICES WASH

XMT:spacerCDRPERSCOM ALEXANDRIA VA//TAPC-CP//
spacerCDRUSACFSC ALEXANDRIA VA//CFSC-HRB//

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unclassified

SUBJECT: NONAPPROPRIATED FUND (NAF) DISCONTINUED SERVICE RETIREMENT (DSR) CLARIFICATION

A. UNCLASSIFIED MSG. SAMR-CP DTG 101429ZMAR 97. SUBJECT: VOLUNTARY EARLY RETIREMENT AUTHORITY (VERA) AND DISCONTINUED SERVICE RETIREMENT (DSR) PROGRAM FOR NAF EMPLOYEES.

1. REFERENCE NOTIFIED COMMANDERS OF INCLUSION OF VERA AND DSR IN THE ARMY NAF RETIREMENT PLAN TO ASSIST COMMANDERS IN FORCE REDUCTION. REFERENCE ALSO ESTABLISHED THE PURPOSE, CRITERIA AND PROCEDURES FOR USE OF VERA OR DSR. IT APPEARS THAT CERTAIN ELIGIBLE NAF EMPLOYEES MAY HAVE BEEN DENIED THE OPPORTUNITY TO APPLY FOR DSR. CLARIFICATION OF THE COMMANDERS (OR HIGHER LEVEL IN THE CASE OF BRAC INSTALLATIONS) VOLUNTARY DECISION AND EMPLOYEE ENTITLEMENT TO APPLY FOR DSR IS PROVIDED.

2. DSR IS A MANAGEMENT TOOL TO ASSIST IN PLANNING WORKFORCE REDUCTIONS. ONCE A MANAGEMENT DECISION IS MADE TO ABOLISH POSITIONS OCCUPIED BY LONG TERM EMPLOYEES, AGE 50 WITH 20 YEARS OF RETIREMENT SERVICE CREDIT, OR ANY AGE WITH 25 YEARS RETIREMENT SERVICE CREDIT, THE EMPLOYEES ARE ENTITLED TO BE ADVISED, IN THE NOTICE OF A BUSINESS BASED ACTION, THAT THEY ARE ELIGIBLE TO SUBMIT AN APPLICATION FOR DSR. UPON RECEIPT AND ACKNOWLEDGMENT OF THE BBA NOTICE, EMPLOYEES MAY RESIGN, APPLY FOR DSR, AND RETAIN ENTITLEMENT TO SEVERANCE PAY, OR THEY MAY STAY ON THE ROLLS UNTIL SEPARATION IS EFFECTIVE AND THEN APPLY FOR DSR AND RECEIVE SEVERANCE PAY. (THE POINT IS, ONCE EMPLOYEES RECEIVE THE BBA NOTICE OF SEPARATION, ANY RESIGNATION FROM THAT DATE FORWARD IS CONSIDERED INVOLUNTARY, AND ELIGIBLE INDIVIDUALS ARE ENTITLED TO APPLY FOR DSR AND RECEIVE SEVERANCE PAY.)

3. FUNDING. THE NONAPPROPRIATED FUND INSTRUMENTALITY THAT EMPLOYS INDIVIDUALS WHO RETIRE EARLY UNDER AN APPROVED VERA OR DSR CONDITIONS DURING FY97 IS REQUIRED TO PAY TWENTY THOUSAND DOLLARS ($20,000) TO THE U.S. ARMY NONAPPROPRIATED FUND EMPLOYEE RETIREMENT PLAN. REMIT (IMMEDIATELY UPON RECEIPT OF ASA (M&RA) APPROVAL) ONE PAYMENT FOR EACH EMPLOYEE WHO RETIREES EARLY UNDER THE PROVISIONS OF THIS MESSAGE TO THE U.S. ARMY NAF EMPLOYEE RETIREMENT PLAN TRUST, P.O. BOX 107, ARLINGTON, VA 22210-0107.

4. REQUEST DISSEMINATION TO ALL ACTIVITIES/INSTALLATIONS.