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There are laws and regulations that must be followed for portability of benefits between the civil service (APF) and DoD nonappropriated (NAF) employment systems.
DoD NAF employees work in military exchanges and morale, welfare, and recreation programs, and are paid from funds generated by those activities. There are six primary DoD NAF employers: Army, Air Force, U.S. Marine Corps, Navy Exchange Service Command (NEXCOM), Commander Navy Installations Command (CNIC) and Army and Air Force Exchange Services (AAFES).
DoD NAF employee benefit programs are different from civil service employee (APF) benefit programs. Each of the six primary NAF employers has a separate refirement plan.
With certain exceptions, NAF employment is not considered to be Federal service for purposes of law administered by OPM. Unless specifically provided by law, NAF service is not creditable for purposes of civil service benefits and vice versa, unless DoD policy provides for such credit.
These differences, particulary in the area of retirement benefits, can cause employees to lose service credit when they move between NAF and APF positions. Four laws prevent or limit such loss by providing portability of benefits between NAF and APF. Each law contains different eligibility criteria, benefits provisions and application dates.