DTG:spacer 101429Z MAR 97

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

TO:spacerAIG 9893
spacerAIG 9150

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

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

UNCLASSIFIED

SUBJECT: VOLUNTARY EARLY RETIREMENT AUTHORITY (VERA) AND DISCONTINUED SERVICE RETIREMENT (DSR) PROGRAM FOR NONAPPROPRIATED FUND (NAF) EMPLOYEES

  1. TO ASSIST COMMANDERS IN MEETING FORCE REDUCTIONS, RETROACTIVE TO 1 JANUARY 1997, AN EARLY RETIREMENT PROGRAM HAS BEEN INCLUDED IN THE ARMY RETIREMENT PLAN. THE PROGRAM CONSISTS OF TWO PARTS, VOLUNTARY EARLY RETIREMENT AND DSR.

  2. VOLUNTARY EARLY RETIREMENT

    1. PURPOSE.

      1. THE PURPOSE OF VOLUNTARY EARLY RETIREMENT IS TO REDUCE INVOLUNTARY SEPARATIONS BY ALLOWING ELIGIBLE EMPLOYEES WHO ARE NOT FACING INVOLUNTARY SEPARATION BECAUSE OF BUSINESS BASED ACTIONS (BBA) TO RETIRE EARLY, THUS CREATING VACANCIES THAT CAN BE FILLED BY EMPLOYEES WHO WOULD OTHERWISE BE SEPARATED.

      2. VOLUNTARY EARLY RETIREMENT IS AN OPTION ONLY FOR ACTIVITIES ACTUALLY FACED WITH SEPARATIONS RESULTING FROM PLANNED MAJOR REDUCTIONS, MAJOR REORGANIZATIONS, OR MAJOR TRANSFER OF FUNCTIONS.


    2. RESULTS. THE RESULTS OF THE USE OF VERA AT A MINIMUM, MUST REFLECT ONE EMPLOYEE SAVED FROM SEPARATION FROM EACH EARLY RETIREE. REQUESTS FOR VERA APPROVAL SUBMITTED TO ASA (M&RA), DASA (CPP), NAF PERSONNEL POLICY MUST REFLECT THIS SAVINGS.

    3. CRITERIA.

      1. FOR PURPOSES OF GRANTING A VOLUNTARY EARLY RETIREMENT, A MAJOR REDUCTION, MAJOR REORGANIZATION OR MAJOR TRANSFER OF FUNCTION EXISTS WHEN THE ACTIVITY CAN DEMONSTRATE THAT FIVE PERCENT OR MORE OF THE REGULAR EMPLOYEES WOULD BE SEPARATED THROUGH BBA WITHIN THE ACTIVITY WITHOUT THE VERA AUTHORIZATION.

      2. EACH ACTIVITY FOR WHICH VERA IS REQUESTED MUST MEET THE FIVE PERCENT REQUIREMENT FOR SEPARATIONS.


    4. EMPLOYEE ELIGIBILITY. IN ORDER TO BE ELIGIBLE TO RETIRE UNDER VOLUNTARY EARLY RETIREMENT AN EMPLOYEE MUST:

      1. HAVE COMPLETED AT LEAST 20 YEARS OF CREDITABLE SERVICE AND BE AT LEAST AGE 50, OR HAVE COMPLETED AT LEAST 25 YEARS OF CREDITABLE SERVICE REGARDLESS OF AGE;

      2. HAVE SERVED IN A POSITION COVERED BY ARMY NAF RETIREMENT PLAN FOR AT LEAST ONE YEAR OUT OF THE TWO YEARS IMMEDIATELY BEFORE RETIREMENT;

      3. BE SERVING IN A REGULAR FULL-TIME OR REGULAR PART-TIME APPOINTMENT.


    5. ANNUITY COMPUTATION. ANNUITY FOR EMPLOYEES APPROVED FOR EARLY RETIREMENT WILL BE COMPUTED USING THE BASIC FORMULA INCLUDING THE SUPPLEMENTAL EARLY RETIREMENT BENEFIT. THE BASIC ANNUITY WILL BE REDUCED BY ONE-SIXTH OF ONE PERCENT FOR EACH FULL MONTH (TWO PERCENT A YEAR) IF ANY, HE OR SHE IS UNDER AGE 55. THE ANNUITY RATE SO DETERMINED WILL NOT BE INCREASED WHEN THE ANNUITANT REACHES AGE 55 OR 62.

    6. EMPLOYEE STATEMENT. EACH ACTIVITY THAT OFFERS VOLUNTARY EARLY RETIREMENT MUST ENSURE THAT EMPLOYEES ARE NOT COERCED INTO RETIRING EARLY. THE ACTIVITY MUST ISSUE A STATEMENT TO EACH EMPLOYEE APPLYING FOR EARLY RETIREMENT AFFIRMING THAT EARLY RETIREMENT IS, IN FACT, VOLUNTARY.

    7. PROCESSING REQUEST FOR APPROVAL.

      1. ACTIVITIES MUST SUBMIT REQUESTS FOR VERA TO: DEPUTY ASSISTANT SECRETARY OF THE ARMY, CIVILIAN PERSONNEL POLICY, NAF PERSONNEL POLICY (SFCP-NF), 200 STOVALL STREET, HOFFMAN II, ROOM 1N39, DASA (CPP), ALEXANDRIA, VA 22332-0300.

      2. EACH REQUEST FOR VERA MUST BE SUBMITTED THROUGH COMMAND CHANNELS AND BE ENDORSED BY THE MACOM COMMANDER OR HIS DESIGNEE. A VOLUNTARY EARLY RETIREMENT GENERALLY WILL NOT BE APPROVED MORE THAN 90 DAYS IN ADVANCE OF THE PLANNED EFFECTIVE DATE OF THE REDUCTION, REORGANIZATION, OR TRANSFER OF FUNCTION.

      3. EACH REQUEST FOR VERA MUST CONTAIN THE FOLLOWING INFORMATION:

        1. A JUSTIFICATION FOR THE REQUEST INCLUDING THE REASON FOR THE MAJOR REDUCTION, MAJOR REORGANIZATION, OR TRANSFER OF FUNCTION. THE REQUEST MUST SPECIFICALLY COVER OTHER OPTIONS THAT THE ACTIVITY HAS CONSIDERED TO MINIMIZE THE NEEDS FOR INVOLUNTARY SEPARATIONS.

        2. IDENTIFICATION OF THE ACTIVITY'S INSTALLATION, MACOM AND GEOGRAPHICAL LOCATION.

        3. THE EFFECTIVE DATE OF THE MAJOR REDUCTION, MAJOR REORGANIZATION, OR TRANSFER OF FUNCTION.

        4. THE TOTAL NUMBER OF EMPLOYEES IN THE ACTIVITY THAT ARE REQUESTING EARLY RETIREMENT AUTHORIZATION.

        5. THE NUMBER OF EMPLOYEES WHO WOULD: (1) BE SEPARATED BY BBA OR SEPARATION AFTER DECLINING TO TRANSFER TO A DIFFERENT COMMUTING AREA, IF THE VOLUNTARY EARLY RETIREMENT IS NOT APPROVED; (2) ACCEPT VOLUNTARY EARLY RETIREMENT; ACCOMPANIED BY SIGNED DA FORM 3715-R INDICATING THE EMPLOYEES INTENT TO RETIRE AND THE EFFECTIVE DATE; (3) NOT BE SEPARATED, OR TRANSFERRED TO A DIFFERENT COMMUTING AREA BECAUSE OF THE PROJECTED EARLY RETIREMENT, OR; (4) LEAVE THE ORGANIZATION VOLUNTARILY BEFORE THE PLANNED EFFECTIVE DATE.

        6. AN ESTIMATE OF THE NUMBER OF NEW HIRES TO REPLACE EMPLOYEES WHO ACCEPT VOLUNTARY EARLY RETIREMENT, THE REASONS WHY ANY RESTAFFING ACTIONS ARE ANTICIPATED; AND THE REASONS WHY OTHER CURRENT EMPLOYEES WILL NOT BE PLACED IN THE VACANT POSITIONS OFFERED TO NEWLY HIRED EMPLOYEES.

        7. THE NAME, TELEPHONE NUMBER, AND TITLE OF AN ACTIVITY CONTACT PERSON, IN THE EVENT ADDITIONAL INFORMATION IS REQUIRED.


      4. FORMER NAF EMPLOYEES WHO MOVED TO APF AND CONTINUED PARTICIPATION IN THE NAF RETIREMENT PROGRAM WHO ARE EMPLOYED BY AN APF ACTIVITY THAT HAS OPM VERA APPROVAL MAY ALSO BE APPROVED UNDER THIS NAF VOLUNTARY EARLY RETIREMENT PROGRAM. VERIFICATION OF THE VERA ELIGIBILITY MUST BE PROVIDED BY THE SERVICING APF CPO ALONG WITH THE INFORMATION REQUIRED IN PARA 2.G 93) ABOVE.


  3. DISCONTINUED SERVICE RETIREMENT

    1. EMPLOYEE ELIGIBILITY. IN ORDER TO QUALIFY, AN EMPLOYEE MUST:

      1. HAVE SERVED UNDER THE RETIREMENT SYSTEM FOR AT LEAST ONE YEAR WITHIN THE 2-YEAR PERIOD IMMEDIATELY PRECEDING THE SEPARATION UPON WHICH THE ANNUITY IS BASED.

      2. BE AT LEAST AGE 50 AND HAVE 20 YEARS OF CREDITABLE SERVICE IN THE ARMY NAF RETIREMENT OR

      3. REGARDLESS OF AGE, COMPLETED 25 YEARS OF CREDITABLE SERVICE IN THE ARMY NAF RETIREMENT PLAN.

      4. BE FACING INVOLUNTARY SEPARATION THROUGH BBA.


    2. ANNUITY COMPUTATION. ANNUITY FOR EMPLOYEES APPROVED FOR DSR UNDER THIS SPECIAL PROGRAM WILL BE COMPUTED USING THE BASIC FORMULA INCLUDING THE SUPPLEMENTAL VOLUNTARY EARLY RETIREMENT BENEFIT. THE BASIC ANNUITY WILL BE REDUCED BY ONE-SIXTH OF ONE PERCENT FOR EACH FULL MONTH (TWO PERCENT A YEAR) IF ANY, HE OR SHE IS UNDER AGE 55. THE ANNUITY RATE SO DETERMINED WILL NOT BE INCREASED WHEN THE ANNUITANT REACHES AGE 55 OR 62.

    3. PROCESSING REQUEST FOR APPROVAL.

      1. REQUESTS WILL BE SUBMITTED TO DASA (CPP), SFCP-NF, THROUGH COMMAND CHANNELS. INVOLUNTARY SEPARATIONS ARE THE RESULT OF BBA, ABOLISHMENT OF POSITION OR TRANSFER OF FUNCTION. THE RESPONSIBILITY FOR DETERMINING A SEPARATION IS INVOLUNTARY FOR RETIREMENT PURPOSES RESTS WITH SFCP-NF.

      2. AN EMPLOYEE MUST HAVE DEFINITE KNOWLEDGE FROM A SPECIFIC WRITTEN NOTICE (BBA) THAT HE OR SHE FACES INVOLUNTARY SEPARATION FROM HIS OR HER POSITION AS OF A SPECIFIC DATE BECAUSE OF COMING ORGANIZATIONAL CHANGES BEFORE HIS OR HER RESIGNATION MAY BE ACCEPTED AS INVOLUNTARY AND QUALIFYING FOR DSR. THE NOTICE MAY BE GIVEN ACCEPTED AS INVOLUNTARY AND QUALIFYING FOR DSR. THE NOTICE MAY BE GIVEN IN ADVANCE OF OFFICIAL MANAGEMENT ACTION EFFECTING THE CHANGES.

      3. EACH REQUEST WILL BE ACCOMPANIED BY A DA FORM 3715-R INDICATING THE PLANNED EFFECTIVE DATE. FINAL APPROVAL OF DISCONTINUED SERVICE EARLY RETIREMENT WILL BE GIVEN UPON SUBMISSION OF DA FORM 3434, WITH NATURE OF ACTION-SEPARATION BBA.

      4. FORMER NAF EMPLOYEES WHO WERE SEPARATED BY BBA FROM A REGULAR FULL-TIME OR PART-TIME POSITION DURING THE PERIOD 1 JANUARY 1997 TO THE ISSUE DATE OF THIS MESSAGE MAY REQUEST CONSIDERATION FOR A DSR BY CONTACTING THEIR FORMER SERVICING NA F PERSONNEL OFFICE.

      5. FORMER NAF EMPLOYEES WHO MOVED TO APF AND CONTINUED PARTICIPATION IN THE NAF RETIREMENT PROGRAM AND OCCUPY APF POSITIONS THAT ARE ABOLISHED MAY ALSO APPLY FOR DSR UNDER THE NAF RETIREMENT PLAN, ACTION MUST MEET ALL THE REQUIREMENTS INDICATED ABOVE TO INCLUDE SEPARATION SF-50.

      6. EMPLOYEES WILL NOT BE PLACED ON THE MANDATORY RE EMPLOYMENT PRIORITY LIST.


  4. JOB ABOLISHMENTS WLL BE RECOGNIZED AS A PART OF A REORGANIZATION ONLY WHEN THERE IS AN ACTUAL ELIMINATION OF A JOB OR CREATES A SITUATION IN WHICH THE EMPLOYEE'S RESIGNATION IS TREATED AS INVOLUNTARY FOR RETIREMENT PURPOSES. WHEN DSR OR VERA IS APPROVED, THE POSITION THAT WAS ABOLISHED OR SCHEDULED TO BE SCHEDULES MAY NOT BE REESTABLISHED FOR ONE YEAR WITHOUT WRITTEN APPROVAL OF SFCP-NF.

  5. FUNDING. THE NONAPPROPRIATED FUND INSTRUMENTALITY THAT EMPLOYS INDIVIDUALS WHO RETIRE EARLY UNDER AN APPROVED VERA OR UNDER DSR CONDITIONS DURING FY 97 IS REQUIRED TO PAY TWENTY THOUSAND DOLLARS ($20,000) TO THE U.S. ARMY NONAPPROPRIATED FUND EMPLOYEE WHO RETIRES EARLY UNDER THE PROVISION OF THIS MESSAGE TO THE U.S ARMY NAF EMPLOYEE RETIREMENT PLAN TRUST, P.O. BOX 107, ARLINGTON, VA 22210-0107.

  6. REQUEST DISSEMINATION TO ALL ACTIVITIES/INSTALLATIONS.