NAF Policy provides clarification and interpretation of laws and government-wide regulations, and consulting services in the strategic design and analysis of NAF employment, NAF compensation, NAF Performance Management, NAF Classification, Wage and Salary, benefits, work life, workforce restructuring and transition programs for more than 120,000 civilian NAF employees. NAF Programs support healthy communities, “BeFIT” families, and troop readiness. NAF Programs keep families together and are tip of the spear because NAF employees are often military family members serving other military families. DoD Component NAF employers include the Department of the Navy (Navy Exchange Service Command (NEXCOM); Commander, Navy Installations Command (CNIC); and Marine Corps), the Department of the Army, the Department of the Air Force, and the Army and Air Force Exchange Service (AAFES) and several DoD Agencies. The NAF workforce is paid entirely from self-generated funds rather than taxpayer funds appropriated by Congress.
Enacted in 1990, the Portability of Benefits for NAF Employees Act, P.L. 101-508, provides portability of pay and benefits for employees moving between NAF and APF positions within DoD. Under the Portability Act, employees who move with a break in service of no more than three days between DoD NAF and DoD APF civil service positions may be eligible for pay, leave, reduction-in-force, and retirement benefit protection.
Section 1043 of Public Law 104-106, enacted in 1996, expands the authorities provided by the Portability Act, primarily in the area of retirement coverage elections. Section 1131 of the National Defense Authorization Act for Fiscal Year 2002, Public Law 107-107, further expands the retirement election opportunity to make it easier for employees to continue retirement coverage after moving between NAF and APF civil service positions.
The Portability of Benefits Reference Guide provides a summary of various portability of benefits laws and regulations applicable to moves between APF civil service and NAF employment systems. This 2017 update reorganizes content, refreshes and expands guidance, and brings up to date references and points of contacts.
NAF employees moving under the DoD-OPM Interchange Agreement receive competitive status and are entitled to the same benefits and privileges provided by the Civil Service rules and by OPM regulations and instructions. In addition, if the employee moves without a break in service of no more than three days, the employee is entitled to portability of benefits.
Use the MOU-Merged Records Personnel Folder to retain the records of employees who qualify for portability of benefits, as well as electronic official personnel folders.
Bargaining Nonappropriated Fund Issues
NAF employees are Federal employees, but excluded from most laws administered by OPM (title 5, U.S.C., Section 2105(c)). Unless specifically provided by law, NAF employment is not subject to civil service provisions or restrictions. The Secretary of Defense has administrative authority for most functional areas of the NAF personnel system. NAF white-collar pay, employee benefits, performance pay, and employee grievances are among the personnel functions regulated by DoD, not OPM.
DoD-OPM Interchange Agreement - DoD and OPM have an interchange agreement permitting employees to move between DoD NAF positions and civil service positions. Employees appointed under this agreement receive credit for previous service toward career tenure requirements and do not have to serve a new probationary period in the gaining employment system. Under this agreement, NAF employees receive consideration for competitive civil service appointments in the same manner as competitive service employees receive consideration for transfer to NAF positions. Employees in the competitive service receive consideration for appointment to any NAF position based on their qualifications. Appointments under the DoD/OPM Interchange Agreement require that the individual be sitting in a NAF position without time limit or been involuntarily separated from such appointment without personal cause within the preceding year, and have one year of "continuous service" to be appointed under the terms of the agreement. There is no requirement for the one year to have been served immediately preceding the move.
Spouse preference applies to jobs graded at NF-3 and below, and for positions paid at hourly rates. Preference applies to any job that is open to competition in accordance with merit staffing practices. Spouse preference can be used once for each permanent relocation of the military sponsor, or in surrounding localities to which a spouse is willing to travel on a daily basis. Preference applies for each permanent move until such a time the spouse:
|Air Force Services||https://www.nafjobs.org/nafcareers.aspx|
|Army and Air Force Exchange Service||https://odin.aafes.com/employment/EXCHANGE_EMPLOYMENT/HTML/start.html|
|Army, Morale, Welfare and Recreation||https://www.armymwr.com/m/emplyee-portal/human-resources/employment|
|Navy Exchange Service Command||https://www.mynavyexchange.com/nex/work-for-us|
|CNIC, Morale, Welfare and Recreation||https://www.navymwr.org/|
|Marine Corps Community Services||http://www.usmc-mccs.org/careers/|
NAF Compensation covers pay policy for White-collar, Crafts and Trades, and Child and Youth employees. A pay-band system covers NAF employees working in white-collar (non-Crafts & Trades) positions. There are six pay-bands, NF-1 through NF-6 (GS-1 through SES equivalent), that cover the majority of NAF white-collar jobs. Child and Youth employees have a separate pay-band structure, CY-I and CY-II, (GS-2 through GS-5 equivalent). The minimum and maximum pay rates for CY-I and CY-II pay-bands link to GS-2 through GS-5 pay rates.
Local prevailing wage rates establish the pay rates for DoD Crafts & Trades positions.
DoD Instruction 1400.25, Volume 1407, “Nonappropriated Fund (NAF) Classification, July 6, 2012”, Table 1 in Enclosure 1 to Appendix 3 provides NAF employment system information regarding civil service grade equivalencies.
Additional guidance and information specific to NAF Compensation:
The Nonappropriated Fund Instrumentalities Act (NAFIA) 5 U.S.C. sections 8171 et seq. (1952) extends the provisions of the Longshore and Harbor Workers’ Compensation Act (LHWCA) to certain civilian employees of nonappropriated fund instrumentalities of the Armed Forces. Congress enacted the NAFIA in 1952 to define the status of employees working for NAF at U.S. military bases in the United States and overseas. Funds appropriated by Congress do not pay NAF employees therefore; they are not entitled to coverage under the Federal Employees Compensation Act (FECA).
NAF Workers’ Compensation programs self-insure, self-administer, and are regulated by the Department of Labor. NAF employees who are currently receiving benefits under the LHWCA, or who are injured at work, should contact their local NAF HR Office.
For information about the Longshore and Harbor Workers’ Compensation visit:
Longshore and Harbor Workers’ Compensation
Find Department of Labor LHWC forms here:
Longshore and Harbor Workers’ Compensation Forms