UNCLASSIFIED

01 02 230959Z MAR 94 RR UUUU 0820959
CDR USACFSC ALEX VA//CFSC-HR-P//
AIG 9893
AIG 9150
ZEN DLA CAMERON STA VA
ZEN CFSC-HD
ZEN AFRC-ORLANDO, FL
ZEN CNPO, TEXARKANA, TX
ZEN 266TH TFC
ZEN STARS AND STRIPES, PACIFIC



UNCLAS

SUBJECT: CONTINUATION OF U.S. ARMY NAF EMPLOYEE BENEFITS SYSTEM (EBS) COVERAGE DURING PERIODS OF LEAVE WITHOUT PAY (LWOP)

1. WHEN AN EMPLOYEE IN LWOP STATUS ELECTS CONTINUED PARTICIPATION IN THE EBS, THE EMPLOYEE IS REQUIRED TO MAKE A MONTHLY PREMIUM PAYMENT TO THE SERVICING CAO. THE CAO COLLECTS THE EMPLOYER'S SHARE OF THESE PREMIUMS FROM THE EMPLOYING NAFI AND SENDS A COMBINED CHECK TO THE SERVICING PAYROLL OFFICE. (AR 215-5, PARA 8-16)

2. THE ABOVE PROCEDURE PROVIDES FOR CONTINUATION OF BENEFITS DURING EXTENDED PERIODS OF LWOP AND PROTECTS THE EMPLOYEE FROM LOSS OF COVERAGE. DURING SHORTER PERIODS OF LWOP WHEN BI-WEEKLY EARNINGS FALL BELOW THE AMOUNT REQUIRED FOR PREMIUM PAYMENT, NO DEDUCTION IS MADE. THIS NON-PAYMENT OF PREMIUM CAUSES THE EMPLOYEE TO BE DROPPED FROM THE EBS AND COVERAGE CEASES. TO PRECLUDE HARDSHIP ON THE EMPLOYEE THROUGH DENIAL OF MEDICAL CLAIMS, WHEN THE BI-WEEKLY PAY IS INSUFFICIENT TO PAY THE PREMIUM THE SERVICING PAYROLL OFFICE WILL DEDUCT THE PREMIUM COST FROM THE EMPLOYING NAFI. THE EMPLOYER WILL BE NOTIFIED OF THE PAYMENT AND THE AMOUNT TO BE COLLECTED FROM THE EMPLOYEE.

3. THIS PROCESS, WHICH IS AN EXTENSION OF THE AUTHORITY FOR EMPLOYEES TO ELECT CONTINUED BENEFIT COVERAGE WHILE IN EXTENDED LWOP, WILL ENSURE THAT THERE IS NO UNINTENTIONAL LOSS OF COVERAGE.



LINDA RODY, DSN 221-7765

SANDRA G.CURRAN, CHIEF NAF PERS DIV