MEMORANDUM FOR SEE DISTRIBUTION
SUBJECT: Instructions for Implementation of the Nonappropriated Fund (NAF) Pay Band System

1. References:

a. Memorandum, Office of the Deputy Chief of Staff for Personnel, CFSC=HR-P, dated 29 Oct 90, subject, Department of Defense (DoD) Nonappropriated Fund (NAF) Pay Band System.

a. Memorandum, Office of the Deputy Chief of Staff for Personnel, CFSC-HR-P, dated 13 Nov 90, subject, Department of Defense (DoD) Nonappropriated Fund (NAF) Pay Band System.

2. Reference 1a, announced the implementation of the subject pay system and provided a description of its major features. Reference 1b, outlined proposals to be adopted as Army policy where DoD has provided latitude. Major Army commands (MACOM) have responded to those proposals, and enclosed policy incorporates the suggestions which could be adopted.

3. The new system represents a major step forward in that it provides line managers much wider latitude in pay setting for the purpose of attracting and retaining quality employees. With that increased latitude goes increased accountability for the personnel management and fiscal impacts of the resulting pay decisions. To assist with implementation, a supervisors training guide, and instructions on position allocation are being sent separately.

4. MACOM and/or installation commanders may supplement this document with HQDA approval. A copy of any supplements will be forwarded to Community and Family Support Center, ATTN: CFSC-HR-P.

5. Since the Pay Band System does not include crafts and trades positions (NA, NL, NS) or child care positions (CC), all of the existing requirements of AR 215-3, chapter 3, pertaining to pay, will continue to be applied to those employees.

6. Questions should be addressed to Community ad Family Support Center, Human Resources Directorate, Personnel Division (CFSC-HR-P), AV 221-7762 or COMM (703) 325-7762.

Enclosures

DISTRIBUTION:
COMMANDER IN CHIEF
U.S. ARMY, EUROPE AND SEVENTH ARMY FORCES COMMAND

COMMANDER
U.S. ARMY MATERIEL COMMAND
U.S. ARMY TRAINING AND DOCTRINE COMMAND
EIGHTH U.S. ARMY
U.S. ARMY INFORMATION SYSTEMS COMMAND
U.S. ARMY MILITARY DISTRICT OF WASHINGTON
U.S. ARMY HEALTH SERVICES COMMAND
U.S. ARMY PACIFIC
MILITARY TRAFFIC MANAGEMENT COMMAND
U.S. ARMY COMMUNITY AND FAMILY SUPPORT CENTER

DIRECTOR
DEFENSE LOGISTICS AGENCY
U.S. ARMY RESERVE COMPONENTS PERSONNEL AND
ADMINISTRATION CENTER

SUPERINTENDENT, U.S. MILITARY ACADEMY

EDITOR IN CHIEF
EUROPEAN STARS AND STRIPES
PACIFIC STARS AND STRIPES