PERMISS

Nonappropriated Fund (NAF) MWR USA/Uniform Funding Management/Portability of Benefits Issues

Nonappropriated Fund (NAF) MWR Utilization Support and Accountability (USA)/Uniform Funding Management (UFM)/Portability of Benefits Guidance Based on Questions from the Field

Below is information regarding guidance concerning when an employee moves from appropriated fund to nonappropriated fund under the MWR USA process, under the UFM process, and other voluntary moves and the application of Portability of Benefits under such moves.

Employees under MWR USA

Under this program, only vacant appropriated fund (APF) positions may be converted to NAF. Employees may compete for established vacancies once the position has converted to NAF. If an APF employee is hired for the position and moves to NAF, this is considered to be a "voluntary" move under the Portability of Benefits law. An employee moving to a NAF MWR position may separate from civil service through retirement. It is important that the Civilian Personnel Advisory Center provide guidance and information on Portability retirement options and intricacies of the those provisions as applicable to each set of circumstances.

There are two separate thresholds for benefit eligibility under the Portability law. If the move is made within 3 days, the employee's annual leave, sick leave balance (if any remaining after crediting under a retirement) transfers, and service computation date moves with the employee. The move to NAF is an "Appointment, P.L. 101-508", notwithstanding any prior NAF service and regardless of the salary.

If the move from civil service to NAF is greater than 3 days, neither annual leave, sick leave, nor the service computation date may move with the individual. Notwithstanding prior NAF service, The Nature of Action is "Appointment", regardless of the salary.

All employees who move with a break of service of no more than one year between DoD or Coast Guard NAF positions and retirement covered civil service positions in any agency may elect to continue coverage in that retirement system following the move. Alternatively, the employee may enter the NAFI employer's retirement system with no service credit transfer.

Employees moving to NAF, and who are eligible, may elect to participate in the NAFI's medical/dental, life insurance plans. Those who have elected to participate in the NAF retirement plan may also participate in the NAF 401 (k) plan.

Per DoD 1400.25-M , SC 1405.AP1.5.1; AR 215-3, 3-14.b., pay may be set anywhere within the appropriate pay band as identified by the recruiting source.

UFM employee move from APF to NAF

An employee must voluntarily move from a designated APF UFM position to NAF. If the employee agrees to move with his/her position to NAF, the move is considered to be "voluntary" under the Portability of Benefits law. An employee moving to a NAF UFM position may separate from civil service through retirement.

It is important that the Civilian Personnel Advisory Center provide guidance and information on Portability retirement options and intricacies of those provisions as applicable to each individual's set of circumstances.

Civil Service employees moving to NAF with their position will be appointed without competition under authority of AR 215-3, 2-3.a.(3). The Nature of Action is "Appointment, P.L. 101-508", notwithstanding any prior NAF service.

The move must be made within 3 days and the employee's annual leave, sick leave balance (if any remaining after crediting under a retirement) transfers, and the service computation date moves with the employee.

Portability provisions state: All employees who move with a break of service of no more than one year between DoD or Coast Guard NAF positions and retirement covered civil service positions in any agency may elect to continue coverage in that retirement system following the move. Alternatively, the employee may enter the NAFI employer's retirement system with no service credit.

Employees moving to NAF, and who are eligible, may elect to participate in the NAFI's medical/dental, life insurance plans. Those who have elected to participate in the NAF retirement plan may also participate in the NAF 401 (k) plan.

Under UFM, Army established pay setting rules for this particular "Voluntary" Portability move. Army policy states that pay will be set at the same salary as the employee was making immediately before the move.

Other Voluntary Placement Actions in NAF

AR 215-3, 3-14.b. Discussed in this section are other "voluntary" moves from Civil Service to NAF (For UFM moves see above) covered by the Portability of Benefits law. Examples of voluntary moves might be when a civil service employee is hired for a NAF position through the Career Referral Program or through an installation vacancy. An employee moving to NAF from civil service under a voluntary move may separate through retirement. It is important that the Civilian Personnel Advisory Center provide guidance and information on Portability retirement options and intricacies of those provisions as applicable to each individual's set of circumstances.

There are two separate thresholds for benefit eligibility under the Portability law. If the move is made within 3 days, the employee's annual leave will transfer, sick leave balance (if any remaining after crediting under a retirement) transfers, and service computation date moves with the employee. The move to NAF is "Appointment, P.L. 101-508", (notwithstanding any prior NAF service) and regardless of the salary.

If the move from civil service to NAF is greater than 3 days, neither annual leave, sick leave, nor the service computation date may move with the individual. The Nature of Action is "Appointment", (notwithstanding any previous NAF service), and regardless of the salary.

All employees who move with a break of service of no more than one year between DoD or Coast Guard NAF positions and retirement covered civil service positions in any agency may elect to continue coverage in that retirement system following the move. Alternatively, the employee may enter the NAFI employer's retirement system with no service credit.

Employees moving to NAF, and who are eligible, may elect to participate in the NAFI's medical/dental and life insurance plans. Those who have elected to participate in the NAF retirement plan may also participate in the NAF 401(k) plan.

Per DoD 1400.25-M , SC 1405.AP1.5.1; AR 215-3, 3-14.b., pay may be set anywhere within the appropriate pay band as identified by the recruiting source.

Content last reviewed: 5/9/2006-MF

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This page was last revised: 12/29/2011