NAF, MWR, & CYS FAQs

Q: Who are the DOD Nonappropriated Fund (NAF) employers?

A: DOD NAF employers encompass a range of organizations within the Department of Defense. These include the Department of the Navy, specifically the Navy Exchange Service Command (NEXCOM) and Commander, Navy Installations Command (CNIC), as well as the U.S Marine Corps. Other NAF employers include the Department of the Army, the Department of the Air Force, the Army and Air Force Exchange Service (AAFES), and several other DOD Agencies.

Q: How is the NAF workforce funded?

A: The pay for the NAF workforce is primarily sourced from self-generated funds rather than taxpayer funds appropriated by Congress. This funding model allows these entities to operate with a degree of financial independence, using revenues generated from their own activities.

Who is eligible for Military Spouse Preference (MSP)?

A: MSP is available for positions at the NF-3 grade and below, roles within the child and youth payband system, and crafts and trades positions. It applies to any job open to competition under merit staffing practices. The eligibility for MSP continues for each permanent move until the spouse either accepts or declines a continuing position without time limits, fails to maintain eligibility, becomes ineligible for appointment under the relevant authority, or expresses disinterest. The spouse must be married to the military sponsor before the latter's reporting at the new duty station and can apply for preference up to 30 days before the active duty spouse’s reporting date. MSP does not apply if the permanent move is related to the retirement or separation of the military member.

Q: What rights do NAF employees have if separated by Business-Based Actions?

A: NAF employees who are separated due to Business-Based Actions receive priority placement in the NAF activity from which they were separated. They also have priority consideration rights at other NAF activities within the same commuting area. These separated employees can remain on the Reemployment Priority Lists (RPL) until they are reemployed or for a maximum of one year from their separation date. The selection of individuals from the RPL is considered a noncompetitive recruitment action.

Q: What are the eligibility criteria for portability benefits?

A: Employees transitioning between DOD NAF positions and DOD civil service roles without exceeding a three-day service break may be entitled to protections regardingpay, leave, and reduction-in-force benefits. Furthermore, those moving between retirement-eligible DOD NAF roles and positions covered by the Civil ServiceRetirement System or Federal Employees Retirement System in any agency, with upto a one-year service break, may continue their existing retirement plancoverage.

Q: How are employee records managed for those eligible forportability benefits?

A: For employees qualifying for portability benefits, their records should be maintained using the Memorandum of Understanding (MOU): Merged Records Personnel Folder. This includes both physical and electronic official personnel folders, ensuring a seamless record-keeping process during transitions between the two employment systems.

Q: What is the key document for Nonappropriated Fund (NAF) Attendance and Leave policy?

A: The foundational policy for annual and sick leave for NAF employees is detailed in the Department of Defense Instruction (DODI) 1400.25, Volume 1406, titled "DOD Civilian Personnel Management System: NAF Attendance and Leave."

Q: Are there any government-wide leave regulations that apply to NAF employees?

A: Yes, certain government-wide regulations and laws overseen by the Office of Personnel Management regarding leave are also applicable to NAF employees. This includes provisions under acts and policies like the Family and Medical Leave Act, Home Leave, Donor Leave, Bereavement Leave, Court Leave, and Military Leave, which are administratively extended to NAF employees.

Q: How is the pay structure organized for NAF white-collar employees?

A: NAF white-collar employees, excluding those in Crafts and Trades, are covered by a payband system. This system comprises six paybands, labeled NF-1 through NF-6, which correspond to the General Schedule (GS)-1 level up to the Senior Executive Service (SES) equivalent. These paybands encompass the majority of the NAF white-collar jobs.

Q: What about the pay structure for Child and Youth program employees?

A: Employees in the Child and Youth program are covered by a separate payband structure, consisting of CY-I and CY-II paybands. The minimum and maximum pay rates for these paybands are linked to the GS pay rates in the locality where the job is situated, ensuring the compensation is reflective of the local economic conditions.

Q: How are pay rates determined for NAF Crafts and Trades positions?

A: Most pay policies for NAF Crafts and Trades employees are guided by subchapter S8 of the Office of Personnel Management Operating Manual, titled “Federal Wage System – Nonappropriated Fund.” The pay schedules for these positions are established based on surveys of local prevailing wage rates, ensuring that the compensation aligns with the standard wages in the respective areas.

What are the categories for NAF position classification?

A: NAF position classification is divided into three distinct categories:
1. Crafts and Trades (CT)
2. NAF White-Collar (NF)
3. Child and Youth (CY)

Each category has its own rights, requirments, and benefits all while falling with the NAF/MWR system

Q: What is the process for background investigations in DOD employment?

A: All applicants for Department of Defense (DOD) positions undergo a background investigation as a condition of employment. This investigation is conducted to make a suitability or fitness determination that aligns with the designated risk or sensitivity level of the position in question

Q: What additional checks are required for employees who provide childcare services?

A: Current and newly hired employees who provide childcare services for children under the age of 18 are subject to additional criminal history background checks. This is to ensure the safety and well-being of children under their care.

Q: What authority does the Secretary of Defense have over the NAF personnel system?

A: The Secretary of Defense holds administrative authority over most functional areas of the NAF personnel system. This means that the majority of decisions and regulations pertaining to NAF personnel fall under the purview of the Secretary.

Q: Are NAF employees subject to civil service provisions or restrictions?

A: Generally, NAF employment is not subjected to civil service provisions or restrictions, unless specifically stated by law. This means that many of the laws administered by the Office of Personnel Management (OPM), as noted in Title 5, U.S.C., Section 2105(c), do not apply to DOD NAF employees.

Q: What is the DOD Interchange Agreement?

A: The DOD Interchange Agreement between the Department of Defense and the Office of Personnel Management allows federal agencies to noncompetitively appoint NAF employees to career or career-conditional competitive service appointments. However, certain conditions outlined in the agreement must be met for such appointments.

Q: Who are eligible to apply for competitive civil service positions under the Interchange Agreement?

A: NAF employees can apply for competitive civil service positions under the Interchange Agreement if the vacancy announcement includes Federal employees outside the agency, individuals eligible for hiring selection priority under the Veterans Employment Opportunities Act (VEOA), or those eligible under the Interagency Career Transition Assistance Program (ICTAP).

Q: What are the conditions for portability of benefits under the Interchange Agreement?

A: Employees appointed under this agreement may be eligible for portability of benefits. Such NAF employees hired into competitive service positions are treated according to regulations covering the transfer of employees within the competitive service. Eligibility requires that the employee moves between non-time-limited positions, has one year of continuous service prior to the appointment, and moves without a break in service or has been involuntarily separated without personal cause within the preceding year.

Q: Where is the DOD policy for NAF Labor-Management and Employee Relations documented?

A: The DOD policy governing Labor-Management and Employee Relations for NAF employees is detailed in the Department of Defense Instruction (DODI) 1400.25, Volume 1471, titled “DOD Civilian Personnel Management System: Nonappropriated Fund (NAF) Labor-Management and Employee Relations.”

Q: Are NAF employees covered under Chapter 71 of Title 5, United States Code?

A: Yes, NAF employees fall under the coverage of Chapter 71 of Title 5, United States Code. This means they are subject to the various provisions detailed in this chapter, which governs aspects of labor-management relations in the federal sector.

Q: Do locally negotiated collective bargaining agreements affect NAF employees?

A: Yes, NAF employees are subject to the provisions of locally negotiated collective bargaining agreements. These agreements play a crucial role in defining the terms and conditions of employment for NAF employees, including aspects such as wages, working conditions, and dispute resolution mechanisms. These agreements ensure that the rights and interests of both the employees and the employer are adequately represented and safeguarded.

Q: Are off-duty enlisted personnel considered NAF civilian employees?

A: Off-duty enlisted personnel employed by NAF employers are not considered NAF civilian employees for the purpose of workers’ compensation as outlined in section 8.3 of DoD Instruction 1400.25, Volume 1408, which pertains to Insurance and Annuities for NAF Employees.

Q: Are NAF employees covered under the Federal Employees Compensation Act (FECA)?

A: No, NAF employees are not covered under the Federal Employees Compensation Act (FECA), as the funds for their compensation are not appropriated by Congress. Instead, NAF Workers’ Compensation programs are self-insured, self-administered, and regulated by the Department of

Q: What should NAF employees do if they are injured at work or receiving benefits under the LHWCA?

A: NAF employees who are currently receiving benefits under the LHWCA, or who suffer work-related injuries, should contact their local NAF Human Resources Office. This office can provide guidance and assistance in navigating the workers’ compensation process and ensuring that employees receive the appropriate benefits and support.