Unclassified

DTG: 081816Z Oct 98

From: DA WASHINGTON DC//SAMR-CP//
To: AIG 9150
AIG 9893

Info: RUEADLA/DLA FT BELVOIR VA
Xmt: CDRUSACFSC ALEXANDRIA VA//CFSC-MS//
CDRUSACFSC ALEXANDRIA VA//CFSC-HD// TEXT FOLLOWS

UNCLAS
SUBJECT: ENHANCEMENTS TO UNITED STATES (US) ARMY NAF EMPLOYEE RETIREMENT PLAN (MILITARY SERVICE)

REFERENCES:

A. MEMORANDUM, DATED JANUARY 21, 1998, SUBJECT: PROCEDURES FOR REQUESTING, FUNDING AND CREDITING CERTAIN MILITARY SERVICE IN THE US ARMY NONAPPROPRIATED FUND EMPLOYEE RETIREMENT PLAN,

B. AR 215-3, PARAGRAPH 15-25B(4)

1. THE PURPOSE OF THIS MESSAGE IS TO SUPPLEMENT REFERENCE (A) WITH AN AUGUST 1998 APPROVAL BY THE MORALE WELFARE & RECREATION (MWR) BOARD OF DIRECTORS OF ENHANCED BENEFIT ENTITLEMENTS FOR EMPLOYEES WHO PURCHASE MILITARY SERVICE CREDIT, AND ANNOUNCE IMPLEMENTATION OF THIS NEW POLICY RETROACTIVELY TO JANUARY 1, 1998.

2. THE MILITARY SERVICE CREDIT PURCHASE OPTION EXPLAINED IN REFERENCE A, FORMERLY APPLIED ONLY FOR ANNUITY COMPUTATIONAL PURPOSES.

3. IN AUGUST 1998, THE MWR BOARD OF DIRECTORS, APPROVED PERMITTING MILITARY SERVICE CREDITED IN THE NAF EMPLOYEE RETIREMENT PLAN TO APPLY ALSO FOR EARLY RETIREMENT ELIGIBILITY PURPOSES AS DESCRIBED IN REFERENCE (B).

4. ELIGIBILITY PURPOSES MEANS THAT MILITARY SERVICE CREDITED TO THE ACCOUNT OF A NAF RETIREMENT PLAN PARTICIPANT WILL NOW ALSO COUNT TOWARD SATISFYING THE REQUIREMENT FOR UNREDUCED EARLY RETIREMENT IN REFERENCE (B) (AGE 60 WITH 20 YEARS CREDITED SERVICE OR AGE 55 WITH 30 YEARS OF CREDITED SERVICE).

5. THE NAF EMPLOYEE BENEFITS OFFICE WILL TAKE NECESSARY ACTION TO RETROACTIVELY ADJUST ALL RETIREMENT ANNUITIES EFFECTIVE SINCE JANUARY 1, 1998.

6. QUESTIONS MAY BE DIRECTED TO MS. PAT NADEAU, DSN 781-7264.