ALCOAST 026/08 COMDTNOTE 1710 SUBJ: NAF YEAR 2008 BUDGET UPDATE A. COAST GUARD MORALE, WELL-BEING, AND RECREATION MANUAL, COMDTINST M1710.13(SERIES) 1. THE COAST GUARD TRUST FUND BOARD RECENTLY APPROVED THE NAF YEAR 2008 CENTRAL MWR BUDGET. THIS BUDGET PROVIDES FOR A STRAIGHT PER CAPITA DISTRIBUTION OF 35 DOLLARS PER ACTIVE DUTY BILLET ON THE PERSONNEL ALLOWANCE LIST (PAL). BEGINNING IN NAF YEAR 2008, ALL UNITS WILL BE RECEIVING A STRAIGHT PER CAPITA DISTRIBUTION AND REF (A) WILL BE AMENDED TO REFLECT THIS CHANGE. THIS CHANGE IMPLEMENTS THE PER CAPITA DISTRIBUTION GOAL PREVIOUSLY ANNOUNCED. 2. COLA FOR THOSE ELIGIBLE NAF EMPLOYEES IS 3.0 PERCENT FOR NAF YEAR 2008 AND WILL BE EFFECTIVE IN THE PAY PERIOD BEGINNING 10 FEB 2008. 3. THE COST OF THE HEALTH CARE PREMIUMS FOR OUR NAF EMPLOYEES ENROLLED IN THE NAF EMPLOYEE HEALTH CARE PLAN WILL INCREASE APPROXIMATELY 12 PERCENT FOR NAF YEAR 2008. COMMANDS SHOULD NOTE THAT THEY PAY 75 PERCENT OF THE TOTAL PREMIUM WHILE OUR EMPLOYEES PAY 25 PERCENT. BOTH THE EMPLOYER AND EMPLOYEE WILL SEE THIS INCREASE. ALL NAF EMPLOYEES CURRENTLY ENROLLED IN THE PLAN WILL BE RECEIVING A LETTER DIRECTLY FROM COMDT (CG-103) REGARDING THIS INCREASE AND A POSSIBLE LOWER COST HEALTH CARE OPTION. THE REVISED PREMIUM DEDUCTIONS WILL TAKE AFFECT DURING THE NAF PAY PERIOD COMMENCING 27 JAN 08. SINCE OUR INSURANCE COSTS ARE EXPERIENCE- BASED AND OUR EMPLOYEE POOL IS RELATIVELY SMALL AND AGING, WE CONTINUE TO BE FORCED TO MAKE DIFFICULT CHANGES TO THE HEALTH CARE PROGRAM AVAILABLE TO OUR NAF EMPLOYEES IN ORDER TO KEEP HEALTH CARE COSTS AFFORDABLE FOR OUR NAF PROGRAMS AND THE PARTICIPATING EMPLOYEES. IN NAF YEAR 2008, WE WILL AGAIN LOOK AT CHANGES TO THE HEALTH CARE PLAN OFFERED TO OUR EMPLOYEES TO MAKE IT AFFORDABLE AND COMPETITIVE. 4. THE EMPLOYERS SHARE OF NAF EMPLOYEE RETIREMENT FOR THOSE NAF EMPLOYEES ENROLLED IN THE NAF RETIREMENT PLAN IS 5.94 PERCENT FOR NAF YEAR 2008. 5. FINALLY IN NAF YEAR 2008, COMMANDS WITH MWR NAF EMPLOYEES INCURRING WORKERS COMPENSATION EXPENSES WILL BE REQUIRED TO PAY THE FIRST 5,000 DOLLARS OF THE EXPENSES ASSOCIATED WITH EACH EMPLOYEES CLAIM. COMMANDS WILL BE INVOICED FOR THIS EXPENSE IN FEB 09 AFTER THE NAF YEAR CLOSES. 6. IN THE EXECUTION OF NAF YEAR 2008 BUDGETS AND IN THE PRELIMINARY PREPARATION OF NAF YEAR 2009 BUDGETS, COMMANDS MUST AVOID OPERATING BUSINESS ACTIVITIES AT A LOSS AND ELIMINATE DEPENDENCE ON PER CAPITA DISTRIBUTIONS TO FUND NAF SALARIES. ADDITIONALLY, COMMANDS THAT MAKE PER CAPITA DISTRIBUTIONS TO OTHER COMMANDS IN AN AOR AND TAX THOSE DISTRIBUTIONS SHOULD ENSURE THAT COMMANDS IN THE AOR ARE FULLY AWARE OF THIS TAX AND ITS PURPOSES. WE CONTINUE TO ADDRESS QUERIES FROM THE FIELD REGARDING CHANGES TO THE PER CAPITA DISTRIBUTION THAT WAS APPROVED BY THE TRUST FUND BOARD. 7. QUESTIONS REGARDING THESE FACTORS MAY BE ADDRESSED TO MR. GARY SCHEER AT (757) 420-2480, EXTENSION 3035 OR MR. RON RAY AT EXT. 3033. 8. INTERNET RELEASE AUTHORIZED. 9. RELEASED BY RADM CLIFFORD I. PEARSON, ASSISTANT COMMANDANT FOR HUMAN RESOURCES.