NAF to GS: keep your pension?

You have 30 days. It’s permanent.

The short version
30 days
to elect
Counted from your new appointment
1 year
longest break
Between the old job and the new one
Once
permanent
Applies to every later move too

Do nothing and you start FERS from zero. Your NAF years don’t move over.

Jump to a section
  1. Who gets the choice
  2. The two options
  3. How to decide
  4. Using NAF years to retire sooner
  5. What doesn’t move with you
  6. Your 30-day checklist
  7. Frequently asked questions

1. Who gets the choice

The Portability of Benefits rules let you keep the retirement plan you had before a move between a nonappropriated fund (NAF) job and a civil service job. Think exchange, MWR, child care and club jobs run by DoD or the Coast Guard.

RequirementRule
Your NAF jobDoD or Coast Guard, covered by a NAF pension plan
Your civil service jobCSRS or FERS, in any agency
Break in serviceNo more than 1 year
Date of the moveOn or after December 28, 2001
Prior chanceYou can’t have had this choice before
VestingNot required

NAF 401(k) only? You don’t qualify. You must have been in the NAF pension plan. It works the other way too: a FERS employee moving to a NAF job can elect to stay in FERS.

2. The two options

Moving from NAF into a civil service job, you pick one:

Keep the NAF pensionJoin FERS
NAF yearsKeep building in one planStay behind in the NAF plan
Savings planNAF 401(k)TSP
StartsBack to the date of the moveAs a new FERS employee
FormRI 38-134None needed

Each military service and exchange runs its own NAF pension: Army, Air Force, Marine Corps, Navy (CNIC), NEXCOM and AAFES. Ask your NAF benefits office for your plan’s formula and vesting rules before you decide.

3. How to decide

The clock runs while you settle in

Thirty days goes fast during onboarding. If HR doesn’t mention the election, ask in week one. Missing the deadline leaves you in FERS.

4. Using NAF years to retire sooner

A separate rule helps at retirement. If you qualify for a deferred annuity but not an immediate one, you can count DoD or Coast Guard NAF service toward eligibility only.

Already eligible through MRA+10 or a full immediate retirement? Then this rule doesn’t help you.

5. What doesn’t move with you

BenefitWhat happens
FEHBNot portable. Enroll within 60 days.
FEHB five-year ruleNAF time doesn’t count
FEGLINot portable; Basic starts automatically
Leave, pay, RIF creditMoves within DoD if the break is 3 days or less
Severance payGenerally not paid on a qualifying move

The FEHB point catches people near retirement. You need five years of FEHB right before you retire to keep it; see the FEHB five-year rule.

Moved between 1966 and 1996? A one-time retroactive election closed August 11, 1997. Your agency must still allow it if you were never told about it.

6. Your 30-day checklist

New to federal hiring? Federal Warrior’s first 90 days covers the other onboarding deadlines, and its military spouse hiring guide helps if that’s your route. Picking a health plan? Use Warrior Insure’s FEHB premium estimator. Veteran moving into a GS job? See Warrior Disability on veterans’ preference.

7. Frequently asked questions

Can I keep my NAF pension if I move to a federal civil service job?

Yes, if you were in a DoD or Coast Guard NAF pension plan, you move to a CSRS or FERS position in any agency with a break in service of no more than one year, the move was on or after December 28, 2001, and you have not had this choice before. You do not need to be vested. Being only in a NAF 401(k) does not qualify.

How long do I have to make the election?

30 days from the date of your new appointment. The election is permanent and irrevocable, and it takes effect back to the date of the move.

What happens if I do nothing?

You are covered by the new job’s retirement system as a new employee. Moving into civil service, that usually means FERS, with no credit for your NAF years and no transfer of your NAF contributions.

Does NAF service count toward the FEHB five-year rule?

No. Health and life insurance are not portable, and NAF service does not count toward the five years of FEHB coverage you need to keep FEHB in retirement. You get 60 days from your appointment to enroll.

Can NAF service help me retire earlier under FERS?

Only for eligibility, and only at retirement. If you have at least five years of civilian service outside NAF and qualify for a deferred annuity but not an immediate one, you can elect to count DoD or Coast Guard NAF service toward immediate retirement eligibility. The annuity is reduced so it is worth no more than the deferred annuity, you get no FERS supplement, and you cannot make a deposit for the NAF time.

Sources
  1. DCPAS, Portability of Benefits for NAF employees
  2. DCPAS, Portability of Benefits Reference Guide (2021)
  3. DCPAS, FAQs: Portability NAF to civil service
  4. DCPAS, NAF Personnel System and Portability of Benefits (2024)
  5. 5 CFR Part 847, elections of retirement coverage and NAFI service credit
  6. OPM, Benefits Administration Letter 03-102
  7. OPM, NAFI retroactive elections

This page explains general rules. Your NAF plan’s terms and your service history decide your options; confirm with your NAF and civil service benefits offices before you elect.