Will conversions under UFM end on 15
There is no end date to UFM conversions.
Some overseas GS MWR employees are converting to NSPS (National Security
Personnel System) on April 15, 2007. MWR folks are being told that when they convert
to NSPS they will still have the option to move into a NAF position once in NSPS.
Employees are worried that if they convert to NSPS, they will not have the option to
voluntarily move to NAF.
UFM is a funding issue. It would not make a difference whether the employee is in
NSPS or not. The position can be converted to NAF when the employee chooses or
when the position is vacated. The same rules apply.
I am currently stationed overseas. If I retire from GS and convert to NAF under UFM, I
understand that my Home Leave benefit rolls over as well. Will that expense be
reimbursed with APF dollars like my salary, or will it be a NAF expense to the local
Fund? Same question with PCS costs: will that be an APF or NAF expense?
The answer depends on what side of the globe it occurs--it is handled differently
depending on which IMCOM region you are stationed.
If you are in Europe, Home Leave is funded from the supporting MWR MDEP, in which
case it follows the UFM rules for APF to NAF transfer. For PCS costs, for former TDA
positions, it is funded from a region central APF fund; if these are not former TDA
positions any addition APF support would come from the MDEP, and again follow the
In the Pacific and Korea Regions, all of these types of costs are funded through the
MDEPs and follow UFM--all subject to the actual funding levels.
If I consent to the APF to NAF conversion, is the government in turn obligated to fund
I am concerned about the current appropriated fund (APF) shortfall. We are under hiring
freezes, etc, now. If I convert to UFM/NAF, and there is not enough APF money to
reimburse my NAF/UFM position, I would be terminated under a NAF Business Based
Action (BBA), rather than going into the Priority Placement Program under a Reduction
in Force (RIF) as I would if I had remained GS. But since UFM is based on a new law,
would that UFM funding be "guaranteed" in some way, or at least not considered
separately from all other APF salary issues?
Conversion from APF to NAF under UFM is voluntary. We recommend the employee
receive counseling from his/her servicing human resources office to insure the specific
circumstances of the employee are considered. The local Civilian Personnel Advisory
Centers (CPACs) will provide affected employees information concerning the impact of
conversion on employee benefits, entitlements and conditions of employment. Under
UFM, all APF MWR positions will be converted to NAF either by voluntary conversion
of the APF incumbent or upon having been vacated through attrition by the APF
If you convert to NAF, you are subject to NAF personnel policy to include BBA
process. UFM employees who convert to NAF are not exempt from being
BBA'd. "…would that UFM funding be „guaranteed‟ in some way, or at least not
considered separately from all other APF salary issues?”
The answer is NO.
With regard to the funding: The UFM process is a different way of executing APF in
support of MWR. The process in itself doesn't guarantee funding for any particular
element of our requirements. We believe that NAF employees paid through UFM should
receive the same priority for funding as their counterparts who are paid directly with
APF. It is a management issue and one we continue to work on with the Army
I noticed that the UFM on the website has "Draft" beside it---has it been officially
The guidance is official. It was originally marked draft because the chapters dedicated to
overseas areas were under development.
Will people already on PPP have the same option to convert to NAF from GS?
PPP really has no effect on the decision to convert to NAF. If the employee
chooses to convert to NAF in his/her present position, then they will no longer be
eligible for PPP as a civil service employee. The underlying questions are:
Is the employee currently in an MWR position as a civil service employee?
Did the employee voluntarily agree to a conversion to NAF?
If the answers to those two questions are “yes”, then the employee is eligible to
move with their current position and continue to serve as a NAF employee.
However, we recommend that the employee receive counseling from his/her
servicing human resources office to insure that the specific circumstances of the
employee are considered.
Can individuals who are in the CSRS retirement system and eligible for
retirement chose to convert to NAF, elect the NAF retirement system, and then
retire from GS and collect their annuity?
If the question is, “Can the employee retire from CSRS, move to a NAF position
on the next day, and receive both the CSRS annuity and coverage under NAF
retirement?” the answer is yes (provided there is not a prior election). As always,
we recommend the employee receive counseling from his/her servicing human
resources office to insure the specific circumstances of the employee are
If an overseas career GS employee converts to NAF via UFM, assuming he was hired
from CONUS and has a full transportation agreement:
1. Will the transportation agreement entitlement continue after converting to NAF?
Would the gaining agency pay out of APF or NAF/reimbursed?
2. Will the transportation agreement entitlement continue after converting to NAF if
the employee is separated by a Business Based Action?
3. Does the Renewal Agreement Travel entitlement continue?
4. Does the Student Travel entitlement continue?
APF employees serving overseas on transportation agreements are entitled to a
government paid return move to the Continental United States (CONUS) as authorized by
the Joint Travel Regulation (JTR). Should such employees convert to NAF status, the
employing NAFI would assume financial responsibility for the employee‟s return move
to the extent authorized by the JTR, just as if they had remained APF.
All provisions of the transportation agreement entitlement continue after converting to
Is there a required number of years one has to be in the NAF medical program to be
eligible to carry this benefit into retirement?
How does this work for someone who is a NAF employee, but ports to APF (and has to
change medical plans)?
The NAF retiree medical insurance, DOD NAF Health Benefits Plan (HBP), requires 15
years of participation in the medical plan, and the employee has to be in the plan on the
date of retirement. The 15 years can be all NAF, or it can be civil service, but it has to
total 15 years.
If the employee goes from NAF to civil service, the rule for the Federal Employees
Health Benefit Plan (FEHB) is 5 years. The NAF time is creditable as participation as
long as there was no break in service over 3 days.
An employee who voluntarily moves from civil service to NAF only has to have 5 years
participation in the FEHB. These same rules are applicable to UFM.
Can an APF employee elect early retirement (VERA) if offered and then convert to NAF
This is theoretically possible as it is not prohibited by the legislation authorizing UFM.
However, given the rules that pertain to most, if not all instances of VERA offerings, it is
not probable that this would happen, and employees should not have the expectation that
this will be possible.
The UFM legislation states that conversions in place under UFM shall not entitle
an employee to severance pay, back pay or separation pay or that the conversion
shall not be considered an involuntary separation or other adverse personnel
action entitling an employee to any right or benefit under subchapter IX of
Chapter 55 of Title 5, United States Code . As VERA is not specifically
precluded, it would not be illegal under UFM if the employee was otherwise
approved for VERA.
VERA is not an employee right. It is a workforce restructuring tool for
management‟s use. Management sets the conditions for each VERA offering.
Each VERA offering requires employees to apply for VERA. Management
almost always reserves the right to approve or disapprove individual employee
applications based on whether or not the employee‟s release under VERA would
meet the conditions of the offering and management‟s restructuring objectives.
Most VERA offerings require that the employee‟s position either go away, or
become available for use elsewhere in the organization to accommodate
placement of another employee affected by restructuring. Conversions in place
under UFM don‟t meet these requirements, and would rarely, if ever, qualify for
most VERA offerings.
On a retirement (APF) do they get paid out annual leave prior to taking a NAF
position…or does it transfer to NAF?
If a civil service employee retires and moves to NAF with a break in service of not more
than 3 days, the annual leave must transfer. If it is paid out, it must be repaid to the
government AND there may be some serious tax implications.
Under CSRS SL is added to retirement - under FERS it's not.
Yes. If you retire from CSRS, the SL is used in the calculation of the annuity and is not
available for transfer to NAF (in English: No SL Credit transfers). If you retire from
FERS, the entire balance of SL is transferred to NAF and may be used in the calculation
of a NAF annuity (provided the employee vests, etc.).
QUESTION: Does comp time transfer when converting to NAF from APF?
ANSWER: Paragraph 3-11a., AR 215-3 states that when an employee separates from a
NAFI, any comp time balance will be paid at the overtime rate in effect at the time the
work was performed.
Comp time does not accrue as leave, but rather as overtime pay. If the comp time
is not used, the hours revert to overtime and must be paid accordingly. There is no affect
on leave balance.
Rules for Federal employees are similar, but the employee has more authority to
demand overtime pay and/or refuse comp time, especially if the employee is non-
exempt. Exempt employees have no right to either comp time or overtime, depending on
how the agency views it.
QUESTION: Why would it not be fair to offer WG employees the same privilege as GS
on the conversion?
ANSWER: WG employees are offered the same opportunity to convert to NAF as are
GS employees. See page 31 of the Uniform Funding and Management (UFM) Army
Guidance,December 2005, (Draft) at this web site. Because of statutory provisions
affecting pay of both WG and NAF Federal Wage System (FWS) employees (employees
designated NA, NL or NS); some WG employees might not be able to maintain their WG
rate of pay on conversion to NAF FWS status. GS employees are able to maintain the
same rate of pay when they convert to NAF pay band positions. Obviously, if this
situation applied in a particular individual circumstance, this might affect a WG
employee‟s decision on whether to convert. In many cases, it would not be a factor.
Regardless, the opportunity to convert is uniform for both GS and WG employees.
QUESTION: If an employee that retired FERS and is now working non appropriated
fund (NAF) paid a military deposit under FERS rules can they now pay a military deposit
towards NAF retirement?
ANSWER: No. Once military service has been credited under a civil service retirement
program (CSRS or FERS), it cannot be credited under NAF. This is specifically provided
for at Section 1.16 of the Army NAF Retirement plan, available at
http://www.army.mil/cfsc/documents/benefits/RetirementPlan2001.DOC and copied
below (underline added):
“Military Service” shall mean active duty service not to exceed five years which
was terminated under honorable conditions in the United States Army, Navy, Air
Force, Marine Corps, Coast Guard or Title X Reserves. Such service shall not
include any period counted as credited civilian service under the Civil Service
Retirement System (CSRS), the Federal Employees Requirement System (FERS),
credited service under the retirement system of any other employer, or any
military service in respect of which the employee is entitled to draw retired pay
unless the pay is awarded:
(a) On account of a service-connected disability incurred in combat with an
enemy of the United States, or
(b) On account of a service-connected disability caused by an instrument of
war and incurred in the line of duty during a war, or
(c) Under the provisions of 10 USC 1331-1337 (Chapter 67) which grants
retired pay to members of reserve components of the armed forces on the basis of
age and service (active and reserve).
QUESTION: Where is it specifically written that the employers share of employees
TSP continues when an employee moves from APF to NAF and retains their FERS/TSP
ANSWER: There is a legal requirement to make TSP or 401(k) employer contributions
for employees who remain in their retirement system.
Section 7202(n) of P.L. 101-508 requires NAF employers to make employee and
employer deductions and contributions to TSP in accordance with requirements for TSP
participants. It also requires civil service employers to make the appropriate deductions
and contributions for employees who remain covered by the NAF system.
DoD policy issued by memorandum from the then DASD(CPP) on August 9, 1996,
Subject: Retirement Coverage Election Under Section 1043, P.L. 104-106, stated (in
Section C of the attachment to the memo) that TSP deductions and contributions would
be remitted in accordance with 5 CFR Part 1620. NAF 401(k) contributions and
deductions would be calculated as if for a NAF employee in a NAF plan.
QUESTION: Are ACS jobs excluded from UFM?
ANSWER: Yes, all ACS positions will remain APF.
QUESTION: May an employee elect to retire and move to NAF system without any
break in service of more than 3 days?
ANSWER: The option to retire and be noncompetitively appointed to a NAF position is
subject to the employee's being eligible to retire. If the employee is not eligible to retire,
UFM does not change their eligibility.
It is recommend that the individual who is considering a move from civil service to
NAF evaluate his/her own circumstances, receive counseling from the CPAC/CPOC,
NAF HRO and determine what is best.
QUESTION: What about conversion from APF under the CSRS to NAF? Is sick leave
credited toward retirement and is annual leave paid to the employee?
ANSWER: A person who moves between civil service and NAF must transfer their
leave balances to the gaining employer. This requirement is embedded in the law, and
erroneous payout of lump sum leave results in a debt to the US government.
It is critical that the employee be told about the requirement to transfer leave, and that the
separation from civil service be processed correctly to avoid the payout.
Sick leave must also be transferred. However, in the case of an Army NAF or CSRS
annuitant, all sick leave is used in the calculation of the retirement benefit. As a result,
the balance available for transfer is "0". This is not true of FERS annuitants; FERS does
not use sick leave in the calculation of the retirement benefit.
Please note also that the statute requires the transfer of home leave as well.
QUESTION: What should I consider before I move from APF to NAF?
ANSWER: It must be voluntary. No one can require you to convert, nor can you
receive any separation incentive (such as DSR, VERA, or VSIP) based upon the move.
If you have pending disciplinary or performance actions, you cannot make the move until
they are resolved.
You are subject to the portability statutes and regulations; if you have made a prior
portability election, it controls your retirement participation.
Your pay will be set at the same rate as your pay immediately prior to the move.
You should ALWAYS check with your CPAC/HRO who can conduct a full records
review and provide you with definitive answers based on your circumstances.
An employee was in AF with a break in service of a year and a half and then was picked
up by NAF. Will the sick leave transfer?
Under the provisions of AR 215-3, para. 5-19.b.:
“When an employee moves from a DoD APF position to a NAF position without
a break in service of more than 3 days…then all accumulated sick leave will be
credited to the sick leave account of the employee by the gaining NAF activity.”
If the break in service is 4 days or more, no sick leave credit transfers.
An employee is porting over to NAF after retiring from an APF position through UFM.
Please clarify the sick leave transfer provisions when you port over after your sick leave
has been calculated for retirement.
Any DoD APF employee who moves to a NAF position within 3 days is entitled to credit
of their sick leave balance from civil service. However, DoD has ruled that if an
employee‟s sick leave balance is “used” in the calculation of an annuity, then it is used in
total and the transferable sick leave balance is “0”. This is true of CSRS retirees and
NAF retirees. FERS does not use sick leave credit to calculate their annuity, so a person
who retires under FERS receives full credit for his/her sick leave balance.