Non-Appropriated Fund Instrumentality (NAFI) Program
The Non-Appropriated Fund Instrumentality (NAFI) Program is a
computer-based system that provides benefits specialists a tool to
assist eligible employees with retirement coverage elections under
Public law 104-106.
Public Law 104-106 is the National Defense Authorization Act for
Fiscal Year 1996. Section 1043 of this legislation created a
1-year opportunity under which employees under the Federal
Employees Retirement System (FERS) who meet criteria set out in the
law could elect to receive FERS credit for prior nonappropriated
fund instrumentality (NAFI) service, or to retroactively resume
retirement coverage previously held as a NAFI employee. Likewise,
certain NAFI employees at the Departments of Defense or Coast Guard
with prior service under FERS or the Civil Service Retirement
System (CSRS) could elect to return to retirement coverage under
FERS or CSRS or to credit their FERS service in their current NAFI
retirement plan.
The general purpose of this portion of section 1043 is to allow
certain FERS and NAFI employees who had moved between the systems
before the effective date of the regulations (August 10, 1996) the
opportunity to combine all their service--both NAFI and regular
civil service--in a single retirement benefit. The windows-based
program described above has been jointly sponsered by the
Department of Defense and the U.S. Office of Personnel Management
to help eligible employees make these elections.
The program takes information about past service and the employees
expectations of future employment to provide projections of future
benefits under the options that are available to the employee.
The deadline for making these elections is August 11, 1997, unless
an employee meets the criteria described later in this announcement
for a waiver of the deadline.
Note: The legislation also provides that certain employees who move
between NAFI employment and FERS/CSRS anywhere in the Federal
government on and after August 10, 1996 may elect to retain their
current retirement coverage in future employment. This computer
model is not designed to assist employees with these elections.
Who is Eligible to Make an Election to Resume Prior Retirement Coverage or Credit Prior Service to Current Retirement Plan?
Employees must satisfy the following eligibility criteria to
make an election under section 1043 of Public Law 104-106:
- A qualifying move from Appropriated Fund (APF) to Nonappropriated
Fund (NAF) plan (or vice versa) was after 12/31/1965, and before
08/10/1996. The move is considered to have been made at the time
of entering into the new position.
- The employee or member is not currently covered under CSRS or FERS
following a voluntary transfer from CSRS.
- The employee or member was vested in the former retirement plan
prior to the qualifying move.
- The employee's or member's current retirement coverage began not
more than one year after separation from the former retirement plan.
- The employee or member has not had a break in service (more than 3
days) since the date of the qualifying move.
- Additionally, employees or members who have previously had an
opportunity under Public Law (PL) 101-508 (Portability Act), to
elect to continue coverage following a move may now elect to
combine service under the current retirement plan but may not
return to the former plan.
Hints for the NAFI Program User
Users' Guide.
A user's guide is available in two ways. A stand-alone document
can be printed out before you enter the transfer model. Within the
model information for the User's Guide is available on Help!
screens.
Eligibility Criteria.
While there are a number of edits in the program that identify
situations where an employee is not eligible to make an election,
or where the election opportunities are limited, the program can
not identify every such situation. The using personnelist must
verify that each employee is eligible to make an election and also
which options are available. An example of a situation which the
program will not identify is whether or not the employee had a
previous opportunity to make an election.
Conditions for Waiver of August 11, 1997 Deadline
Public Law 104-106 requires that all employees eligible to make an
election receive timely notice of the election opportunity.
Therefore, any employee who did not receive timely notice of the
election opportunity may make an election after the August 11,
1997, deadline. To avoid deadline waivers, we urge agencies to
notify employees as soon as possible. The law also requires that
employees receive any information or assistance needed to make the
election. Section 847.304 of title 5, Code of Federal Regulations,
grants agencies the authority to waive the election deadline if an
employee did not receive timely notice or counselling concerning
the election opportunity.
Download NAFI Program
Reference Material
Employee Records
Please contact the following offices for information about an
employee's prior service or contributions to a retirement plan that
are available for transfer. Note that the current employing agency
has an employee's records of current service and retirement
contributions.
For Further Assistance
For information about the Department of Defense regulations implementing this legislation, and assistance with the
NAF retirement plan rules, please contact the Nonappropriated Fund Retirement Policy and Operations offices.
For assistance about the regulations and guidance governing
employees in appropriated fund positions and general assistance on
using this program, call (202) 606-0777, extension 954, or email Agency Services.
For assistance regarding the Federal Retirement Thrift Investment
Board's policy, call (202) 942-1460.
For technical information about the programming and underlying
assumptions in this program, contact the developer of this model at
(703) 642-5225 or send an email to Economic Systems. Inc.
For comments on the OPM Federal Benefits Page, please contact:
benefits@opm.gov
U.S. Office of Personnel Management 1900 E Street NW, Washington, DC 20415 | (202) 606-1800 | TTY (202) 606-2532