Office of Personnel Management

Retirement and Insurance Service

1920 1954 1959 1986 

 

Benefits Administration Letter

Number: 96-108 Date: September 6, 1996 

SUBJECT Retirement Election Opportunities for Certain FERS Employees

Appointed Before August 10, 1996, After Service in a

Nonappropriated Fund Instrumentality of the Department of

Defense or Coast Guard

A. Introduction On August 9, 1996, the Office of Personnel Management (OPM) published

Civil Service Retirement System (CSRS) and Federal Employees Retirement

System (FERS) regulations to implement section 1043 of Public Law 104-

106, the National Defense Authorization Act for Fiscal Year 1996. The

regulations took effect on August 10, 1996. Benefits Administration Letter

96-105, dated August 9, 1996, announced the publication of the regulations

and provided information on how they may be obtained.

This Benefits Administration Letter (BAL) provides specific instructions for

election opportunities under section 1043 for certain FERS employees who,

before August 10, 1996, entered a retirement-covered position following

service with a nonappropriated fund instrumentality (NAFI) of the

Department of Defense (DoD) or Coast Guard. 

Section 1043 also provides other election opportunities for employees who

entered a retirement-covered position on or after August 10, 1996. BAL 96-

107, issued August 20, 1996, provides information about these election

opportunities. 

B. Background:

Provisions in Effect

Before

August 10, 1996

1. Public Law 

99-638

Before August 10, 1996, NAFI service in DoD and Coast Guard was not

creditable for CSRS or FERS purposes, except under Public Law 99-638. 

Public Law 101-508 did not allow credit for NAFI service under CSRS or

FERS, but did allow employees to make certain coverage elections.

CSRS credit is allowed under limited circumstances for certain NAFI

service performed between June 18, 1952, and January 1, 1966. See

Chapter 20, Part 20A2 of The CSRS and FERS Handbook for Personnel and

Payroll Offices. The new law has no effect on those provisions.
BAL 96-108 September 6, 1996

Page 2

2. Public Law The Portability of Benefits for Nonappropriated Fund Employees Act of

101-508 1990, Public Law 101-508, allowed certain DoD and Coast Guard

employees who moved from a NAFI position to a CSRS- or FERS-covered

position, and vice versa, the opportunity to elect to remain in the retirement

plan they had in their previous employment system. These provisions

applied to qualifying employment moves that occurred after December 31,

1986. The election opportunity was limited to 30 days after appointment in

the gaining organization. Once an employee elected to continue the

previous system's coverage after a move, that election continued to apply

even if the employee later moved out of DoD or Coast Guard.

To qualify under the 1990 Act, the employee had to meet the following

requirements:

Vested in prior organization's plan. The employee making the

employment move must be vested in the plan applicable to the

losing organization. For CSRS and FERS, vesting means the

employee, upon leaving service under the plan, has enough

civilian service to qualify for a deferred annuity, that is, 5

years of civilian service. Vesting under the NAFI plans must

be determined by each of the several plans.

Employment move within DoD or Coast Guard. The

employment move that qualified the employee to make the

election must occur within DoD or Coast Guard.

Break-in-service of 3 days or less. If employment in the

gaining organization followed a break of 4 days or more, the

employee was disqualified from making the election.

No prior opportunity. If an employee entering a NAFI

previously had an opportunity to continue CSRS or FERS

coverage upon a qualifying move to a NAFI, the employee is

not allowed to elect to continue CSRS or FERS upon a later

move. If an employee entering a civil service position

previously had an opportunity to continue NAFI retirement

plan coverage upon a qualifying move to a civil service

position, the employee is not allowed to elect to continue

NAFI plan coverage upon a later move.

See Chapter 12, Part 12A5 of The CSRS and FERS Handbook for Personnel

and Payroll Offices, for more information about elections under the 1990

Act.
BAL 96-108 September 6, 1996

Page 3

C. Overview of Section

1043 of Public Law

104-106

The general purpose of section 1043 is to allow certain FERS and NAFI

employees who had a qualifying move after December 31, 1965, and before

the effective date of the new regulations (August 10, 1996), to combine all

their service--both NAFI and regular civil service--toward a single

retirement benefit. This BAL discusses the election opportunities available

to current FERS employees. 

Current NAFI employees may also qualify to elect to combine all their

service toward a single retirement benefit. The election opportunities for

current NAFI employees will be addressed in guidance issued by DoD and

Coast Guard.

D. Notice Requirement Public Law 104-106 requires that all employees affected by the new

provisions be notified of their election opportunity under the law and to

receive any necessary assistance and counselling. The purpose of this BAL

is to provide the information Benefits Officers will need to inform

employees of the change in the law, counsel eligible employees about the

elections they may consider, and process any employee elections. This BAL

contains instructions for agency personnel as well as information that may

be distributed to employees. If additional information is needed,

headquarters level Benefits Officers should contact their liaison officer in

the Agency Services Division. Agencies should not refer employees directly

to the Agency Services Division.

E. Elections Available

to FERS Employees

Based on Qualifying

Moves Before

August 10, 1996

Section 1043 of Public Law 104-106 provides for a 1-year period during

which certain FERS employees may elect to combine their FERS and NAFI

service under one retirement system based on a qualifying employment

move that occurred after December 31, 1965, and before August 10, 1996. 

There are two types of elections that combine FERS and NAFI service. 

1. Election to Eligible FERS employees (see paragraph F) may change from FERS to a

Combine NAFI retirement plan. The election has the effect of removing the

Service Under individual from FERS and covering the employee under the NAFI

a NAFI retirement plan retroactive to the date of the qualifying move. 

Retirement

Plan The law allows only for service performed after the date of the qualifying

move to become subject to, and therefore creditable under, the NAFI

retirement system. Earlier civil service employment does not become

creditable under the NAFI retirement plan.

2. Election to Eligible FERS employees may, alternatively, combine their FERS and NAFI

Combine service without quitting FERS. The employee remains covered by FERS for

Service Under all future service (including future NAFI service) and receives credit in the

FERS FERS retirement benefit for all service that the NAFI certifies as creditable

toward a NAFI retirement benefit, not just NAFI service performed after a

qualifying move. 
BAL 96-108 September 6, 1996

Page 4

F. Who is Eligible?

1. Election to To qualify to combine service in a NAFI retirement plan, all six of the

Combine following conditions must be met:

Service Under

a NAFI 1. The employment move on which the election would be based was

Retirement not from a NAFI to the CSRS.

Plan

(Paragraph CSRS employees (or former CSRS employees who elected FERS) have no

E.1) election opportunities to combine service under Public Law 104-106. 

Subclause (III) of section 1043(c)(2)(B) of Public Law 104-106 bars any

individual from making an election if the election would be based on a move

to the CSRS from a retirement system established for NAFI employees. 

Therefore, an employee who is currently subject to CSRS has no new

opportunity under the law to elect NAFI retirement coverage. The bar on

elections based on moves to the CSRS also applies to employees now

covered by FERS who elected FERS during the 1987 open season or later. 

If an employee moved from a NAFI to CSRS (including the CSRS Interim

provisions in effect from January 1, 1984 through December 31, 1986, and

the CSRS Offset provisions in effect on and after January 1, 1987), and later

elected FERS coverage, he or she is not eligible to elect NAFI retirement

system coverage. Moves from a NAFI to CSRS Interim coverage, followed

by automatic, as opposed to elective, FERS coverage will be considered a

move to FERS.

2. The employee was a vested participant in his or her retirement plan

(as "vested participant" is defined by that plan) prior to the change in

employment.

Public Law 104-106 provides only for a continuation of vested retirement

coverage upon a change in employment. Under CSRS and FERS, a

minimum of 5 years of creditable civilian service is required for a CSRS- or

FERS-covered employee to be vested. The retirement systems that cover

NAFI employees have various vesting requirements. Before providing an

employee the opportunity to elect NAFI retirement coverage, agency

personnel must first verify that the employee was vested in his or her prior

NAFI retirement plan. 

3. The qualifying move occurred after December 31, 1965, and before

August 10, 1996.

A move is considered to have been made at the time the individual entered

the new position, not at the time of separation from the prior position. 
BAL 96-108 September 6, 1996

Page 5

1. Election to 4. The employee began employment in a retirement-covered position no

Combine more than 1 year after separation from retirement-covered NAFI

Service Under employment.

a NAFI

Retirement An intervening appointment not subject to retirement coverage would not

Plan invalidate an otherwise qualifying move. 

(Continued)

5. The employee remained continuously covered by his or her current

retirement system since the date of the qualifying move.

A break in service of 3 days or less is not considered a break in continuous

service.

6. The employee has not had a prior opportunity to elect to continue

any type of retirement coverage (CSRS/FERS or NAFI) after a

qualifying move.

Employees who moved under conditions that allowed a previous

opportunity to elect to retain any retirement coverage under the 1990

Portability Act (Public Law 101-508) before August 10, 1996, are not

eligible to elect NAFI retirement coverage. This condition is different from

the condition under the 1990 Portability Act that required no previous

opportunity to continue the same retirement coverage after a qualifying

move. Under the 1990 Act, an employee may make two qualifying moves

(one in each direction) and have two opportunities to elect to continue

retirement coverage (one opportunity for CSRS/FERS and one opportunity

for NAFI retirement coverage). Under the 1996 Act, any past qualifying

move (either into FERS or into a NAFI) disqualifies a FERS employee from

making an election to combine service in a NAFI retirement plan.

2. Election to To qualify to remain in FERS and combine past NAFI service with FERS

Combine service, only the first five conditions discussed above must be met. That is,

Service Under an employee who had a previous opportunity to elect retirement coverage

FERS and meets conditions 1 through 5 may now elect to combine service under

(Paragraph FERS. An employee who meets all six conditions is eligible to choose

E.2) between the two elections in paragraph E.

Annuitants, including reemployed annuitants, are not eligible to make an

election based on a prior qualifying move under the provisions of Public

Law 104-106. 

Attachment 2 contains a model notice agencies may use to alert employees

to the election opportunity provided by Public Law 104-106.
BAL 96-108 September 6, 1996

Page 6

G. Time Limit for

Elections

The election opportunity expires 1 year after the effective date of the

regulations. Since that day (August 10, 1997) is a Sunday, the deadline is

the following Monday, August 11, 1997. 

Because section 1043 requires that eligible employees receive timely notice

of the opportunity to make the retroactive election, and that employees be

counselled concerning the election opportunity, the employing agency has

the authority to waive the time limit in the event that an employee did not

receive such notice and counselling. See 5 CFR 847.304.

H. Election Forms Attachment 8 contains the required election forms and instructions for

completing the election forms.

I. Elections

Irrevocable and

Permanent

An affirmative election under either paragraph E.1 or E.2 is irrevocable

when received by the employing agency. The employee will continue to be

covered by his or her elected retirement system, according to the rules of

that system, for all future service, including service as a reemployed

annuitant.

J. Thrift Savings Plan As stated above, an election of NAFI retirement system coverage effectively

removes the employee from FERS coverage for all service following the

date of the qualifying move to FERS. The Thrift Investment Board's

regulations provide that by virtue of the retroactive election of NAFI

retirement coverage, the employee was ineligible to participate in TSP. 

Therefore, a retroactive change from FERS to NAFI retirement plan

coverage will result in the removal of agency contributions and associated

earnings from the employee's TSP account. Additional information

concerning the effect of retirement coverage elections on TSP contributions

may be found in Thrift Investment Board regulations at 61 Fed. Reg. 41,485

(1996)(to be codified at 5 C.F.R. part 1620, subpart G).

K. Refunded Service While a refund would generally terminate an individual's service credit

under FERS or a NAFI retirement system, Public Law 104-106 provides for

the transfer of service credit regardless of refund status. An employee who

elects to remain in FERS with credit for NAFI service, but previously

received a refund of FERS contributions, will receive credit for any periods

of refunded FERS service in the computation of the FERS benefit. The

FERS annuity will be reduced by an amount that is actuarially equivalent to

the amount of the refund, plus interest. This reduction is similar to the

method used for non-disability CSRS retirees who received a refund of

retirement deductions prior to October 1, 1990.

L. Military Service Military service is creditable under the general FERS rules and is not

affected by Public Law 104-106. See paragraph O.3 for information about

military deposits.
BAL 96-108 September 6, 1996

Page 7

M. Effect of Election on

Insurance

Coverage,

Reduction In Force,

and Leave Accrual

The amendments made by Public Law 104-106 have no effect on eligibility

for coverage under the Federal Employees Health Benefits (FEHB) or the

Federal Employees Group Life Insurance (FEGLI) programs. A FERS

employee who elects NAFI retirement coverage does not, because of the

election, lose coverage under the FEHB or FEGLI programs.

Public Law 104-106 allows credit for Reduction In Force (RIF) purposes for

certain employees with prior NAFI service. For the employee's NAFI

service to qualify for RIF credit, the employee must have moved, after

December 31, 1965, without a break in service of more than 3 days, from a

DoD or Coast Guard NAFI position to a civil service position in the DoD or

Coast Guard, respectively. 

Public Law 104-106 has not amended the creditability of NAFI service for

leave accrual purposes. For the employee's NAFI service to qualify for

leave accrual, the employee must have moved, after December 31, 1986,

without a break in service of more than 3 days, from a DoD or Coast Guard

NAFI position to a civil service position in the DoD or Coast Guard,

respectively. Chapter 6 (paragraph 1-6b) of The Guide to Processing

Personnel Actions provides information on crediting NAFI service for leave

accrual purposes.

NOTE: The RIF and leave accrual credit rules differ from the retirement

election rule and therefore must be applied independently.

N. Effective Date of

Election

An election to change back to NAFI retirement coverage (paragraph E.1) is

effective retroactive to the date of the qualifying move. This election also

changes current retirement coverage. Salary deductions and contributions

for the NAFI retirement system begin on the first day of the next pay period

after the agency receives the employee's election. This means that the

transfer of contributions (paragraph O.1) covers the period from the date of

the qualifying move to the last day of the pay period in which the agency

receives the employee's election.

An election to remain covered under FERS and to obtain credit for NAFI

service (paragraph E.2) is effective on the date of receipt of the election in

the employing agency. The NAFI service becomes creditable under FERS

at the time the election is received in the employing agency.

O. Transfer of

Contributions

Public Law 104-106 requires a transfer of employee and employer

retirement contributions, plus interest earned on the employee contributions,

to the elected retirement plan at the time that certain elections to combine

NAFI and civil service are made. No interest on employer contributions is

added. The law specifically excludes amounts contributed to the TSP or any

other defined contribution plan from the amount transferred to the newly

elected retirement system.

1. Elections to For elections of NAFI retirement coverage (paragraph E.1), OPM will
BAL 96-108 September 6, 1996

Page 8

Combine transfer to the NAFI plan the total amount withheld from the employee's

Service Under salary for FERS basic benefits, any deposits made by the employee for

a NAFI civilian service, interest accrued on the employee's deductions and deposits,

Retirement and amounts contributed by the employing agency without interest. OPM

Plan will compute the exact amount that will transfer to a NAFI retirement plan at

(Paragraph the time the employee's election is received in OPM. Interest on the

E.1) employee contributions will be computed at the time of transfer. Section

841.605 of title 5, Code of Federal Regulations, provides the method for

computing interest on FERS employee contributions that transfer to a NAFI

retirement plan (see also Chapter 32 of The CSRS & FERS Handbook for

Personnel and Payroll Offices). 

For FERS employees who are considering an election of NAFI retirement

plan coverage, the employing agency must provide the amount of

contributions (including interest on the employee's share) that would transfer

to the NAFI retirement plan. OPM will include information on computing

the amount of contributions and interest in an upcoming Payroll Office

Letter.

2. Elections to DoD or Coast Guard must transfer to the Civil Service Retirement and

Combine Disability Fund the NAFI employee and employer retirement contributions

Service Under credited to the employee, if any, plus interest earned on the employee

FERS contributions for the NAFI service that becomes creditable under FERS. 

(Paragraph

E.2) The employee deductions, plus interest, become part of the employee's

lump-sum credit that is payable to the employee or survivors in the case of 

separation or death. The employer share of the NAFI plan contributions, if

any, is not payable to the employee or the employee's survivors. NAFI

contributions transferred to the Fund will accrue interest under current

procedures from the date of transfer to the date the actuarial reduction in the

FERS annuity is computed (paragraph P.3). Interest is compounded

annually at the variable rate, which is linked to the rate payable on

government securities in the Fund. 

3. Military Since credit for military service is not affected by these regulations, any

Service deposits a FERS employee may have made for military service performed

Deposits after December 31, 1956, are not included in the amount transferred to DoD

or Coast Guard. If the deposit has been submitted to OPM, OPM will

refund the deposit to the employee upon receipt of an election of NAFI

retirement system coverage. If the appropriate documentation regarding the

military deposit has not been submitted to OPM, the employing agency must

return to the employee any amounts paid toward a military deposit upon

receipt of an election of NAFI retirement system coverage. 

P. Employee Funding

Requirement

Public Law 104-106 requires employees to fully finance the increase in their

retirement benefit attributable to the election, if not otherwise funded by the
BAL 96-108 September 6, 1996

Page 9

transfer of money between retirement funds. The information in this section

explains the financing method adopted in OPM regulations for elections to

remain in FERS with credit for NAFI service (paragraph E.2). DoD and

Coast Guard policy is to use a method consistent with OPM's method, when

determining financing requirements for retirees under a NAFI plan.

1. Actuarial By law, if the total amount transferred to the elected retirement system does

Present Value not cover the increase in the "actuarial present value" of the employee's

and Present future retirement benefit attributable to the service covered by the election,

Value Factors the employee must fund the difference. The actuarial present value of a

retirement benefit is the amount of money that would have to be set aside at

retirement to finance the future retirement benefits an employee would

receive during his or her expected lifetime.

You may determine the actuarial present value of a monthly FERS benefit

by using the "present value factors" in the tables in Attachment 9. For

example, the FERS present value factor for age 62 is 161.3. To find the

actuarial present value of a $100 per month increase in a FERS annuity

beginning at age 62, multiply 161.3 by $100. The result--$16,130--is the

actuarial present value of the increase in the FERS annuity. If the annuity

began at age 63, the present value of a $100 monthly increase would be

$15,710, because the present value factor for age 63 is 157.1.

2. No Deposits For elections to remain in FERS with credit for NAFI service, employees

for Crediting will not make deposits for NAFI service.

NAFI Service

3. Actuarial Rather than a deposit to meet the law's funding requirement, OPM will

Reduction in establish a permanent reduction in annuity. The reduction for crediting

Annuity NAFI service will equal the amount of the present value of the FERS benefit

created by crediting the NAFI service, divided by the present value factor

for the retiree's age.

The reduction will be computed at the point in time when crediting NAFI

service actually makes a difference in benefits. In most cases this will be

when the employee retires because the monthly annuity rate will be higher

due to inclusion of the NAFI service in the computation. The survivor rate

established at the time of retirement in most cases will be based on 50% of

the retiree's life rate (before the 10% reduction for survivor benefits) after

reduction due to crediting NAFI service in the retiree's computation. The

survivor rate will not be further reduced due to the crediting of NAFI

service.
BAL 96-108 September 6, 1996

Page 10

3. Actuarial The actuarial reduction is computed at the time a FERS survivor annuity, if

Reduction in any, becomes payable, based on the survivor's age at that time, in the

Annuity following cases: death-in-service, death of a disability annuitant, and death

(Continued) of a former employee entitled to a deferred annuity. 

In a disability case, no annuity increase will generally be created (due to

crediting NAFI service) until age 62, when the annuity is recomputed to

eliminate the guaranteed minimum percentage of average salary. The actuarial reduction will be computed and included in the annuity rate at age 62.

As stated, the actuarial reduction in annuity is permanent. The monthly rate

of annuity payable is the reduced amount to which COLAs are applied. The

effect is that the amount of the reduction increases by the COLAs applied to

the monthly annuity payable.

Q. Calculation of a

FERS Benefit That

Includes NAFI

Service 

1. Compare OPM will compare two FERS benefit computations:

Benefits With

and Without (1) Annuity that includes credit for NAFI service made creditable by the

NAFI Service election.

The method OPM will use to establish the actuarial reduction resulting from

an election to combine service under FERS (paragraph E.2) is set out below. 

Worksheets that employees may use to estimate the reductions are in

Attachment 9.

(2) Annuity without credit for NAFI service made creditable by the

election. 

The actuarial present value of each benefit is computed by multiplying the

monthly rate of annuity by the appropriate present value factor (found in

Attachment 9).

2. Determine OPM then computes the difference between the two actuarial present values. 

Actuarial The result is the present value of crediting the NAFI service. Then, OPM

Reduction subtracts the amount received from the NAFI retirement plan (see paragraph

O.1), increased by interest from the date the amount was received by OPM,

to the beginning date of the actuarial reduction. The result is then divided

by the appropriate present value factor to establish the actuarial reduction.

3. Refunded In some cases, an additional actuarial reduction will apply for FERS

FERS Service refunded service made creditable by an election to combine NAFI service

under FERS (see paragraph K). The amount refunded to the employee, plus

interest, will be added to the present value of the NAFI service. This will

affect only those cases in which the refunded FERS service took place

before the NAFI service being added to FERS service credit.
BAL 96-108 September 6, 1996

Page 11

4. If NAFI When the NAFI service allows an employee to retire earlier than he or she

Service Credit could have without the NAFI service, an additional step is required. 

Changes Because no annuity would be immediately payable if NAFI service was not

FERS Annuity combined with civil service, the present value of the immediate annuity that

Commencing includes NAFI service is compared to the present value of the deferred

Date annuity that, based on the employee's actual separation date, would have

otherwise been the only benefit payable without the NAFI service. 

To determine the actuarial present value of the deferred annuity benefit

(which is payable at a later date) at the time the employee actually retires,

we discount the present value of the deferred annuity benefit. (The present

value of the deferred annuity on the date the employee actually retires is

lower because the amount set aside to finance the deferred annuity benefit

would earn interest from the date the present value is computed through the

date that the deferred annuity becomes payable.) The actuarial present value

of the deferred annuity benefit must therefore be adjusted by multiplying it

by a factor that corresponds to the number of months between the

employee's age on the date the calculation is made and the date a deferred

annuity without credit for the NAFI service would become payable. The

factor discounts the present value of the deferred annuity by the interest that

would be earned from the date the calculation is made through the date that

the deferred annuity would actually become payable. The result is the

discounted present value of the deferred annuity, which is the amount that

would be required at the time the calculation is made to fund a deferred

annuity payable in the future. See worksheet B in Attachment 9.

5. Computer OPM, DoD, and Coast Guard are now working to create a computer disk as

Disk an aid for employees to estimate their retirement benefits. The disk, which

will become available later this year, will compute benefits under CSRS,

FERS, and each of the NAFI retirement plans based on information the

employee supplies predicting age, final salary and total service at the time of

retirement. The worksheets in Attachment 9 are for employees who wish to

compute their FERS benefit before the disk is available. Employees who

wish to compute a benefit under one of the NAFI retirement plans must

contact the plan directly for assistance. The addresses of the NAFI

retirement plans are in Attachment 3.

R. Agency

Responsibilities

The employing agency must provide notice to all eligible employees of the

opportunity to elect to continue retirement coverage. Attachment 2 contains

a model notice agencies may use to inform employees of the election

opportunity provided by Public Law 104-106.

Any agency that employs an individual eligible to make an election must

provide the individual any information necessary for the election. This

includes information about the dates of creditable service performed by the
BAL 96-108 September 6, 1996

Page 12

R. Agency

Responsibilities

(Continued)

employee, amounts contributed by the employee and the agency toward

retirement, and information about the future FERS benefit.

Due to elections to retain retirement coverage made under the 1990

Portability Act (see paragraph B.2), Federal agencies may currently employ

individuals who have elected to be subject to a NAFI retirement plan instead

of CSRS or FERS. Because these employees may also qualify for an

election opportunity under Public Law 104-106, it is important that agencies

identify any employee covered by a NAFI retirement plan and refer the

employee to his or her NAFI retirement plan for specific election

information. 

S. Employee

Responsibilities

Eligible employees who wish to make an election must file the election with

the current employing agency. Attachment 8 contains the election forms

eligible FERS employees must use to make an election. Attachment 4

contains questions and answers for employees. 

John E. Landers, Chief

Retirement Policy Division

Attachments

1. Procedures for Elections Based on Moves Before August 10, 1996

2. Model Notice of Election Opportunity

3. Names and Addresses of NAFI Retirement Plans

4. Questions and Answers

5. Forms to Verify Service, Vesting and Transferable Contributions

6. Eligibility Checklist

7. Examples of Qualifying and Non-Qualifying Moves

8. Election Forms for FERS Employees who Moved From NAFI Employment Before August 10, 1996

9. FERS Computation Worksheets and Examples
ATTACHMENT 1

Procedures for Elections Based on Moves Before August 10, 1996
BAL 96-108 September 6, 1996

Attachment 1 Page 1

Elections Based on Moves Before August 10, 1996

ACTION PROCEDURE

1. Notify employees of the election Use model notice in Attachment 2. Employees who think they

opportunities under section 1043 of may be eligible to make the election should be instructed to

Public Law 104-106. contact an agency representative.

2. Determine if any employee If employee appears to meet all eligibility criteria, obtain history

responding to the notice is eligible of all nonappropriated fund and civil service employment. 

to make election. Verification of prior NAFI service, vesting, and amount of

transferable contributions may be requested using forms in

Attachment 5. NOTE: If employee claims service subject to

more than one NAFI retirement plan, a verification request must

be sent to each NAFI plan.

Once information from the NAFI retirement plan(s) is received,

determine if employee is eligible to make an election. Use

checklist in Attachment 6: 

Review Standard Form 50s (Notification of Personnel

Action) in Official Personnel Folder (OPF) to verify that

employee is currently covered by FERS and that FERS

coverage was automatic, rather than by election. (For

FERS employees, there should not be a completed

Standard Form 3109 (Election of Coverage) in the

OPF.)

Check the Verification of NAFI Service, Vesting and

Contributions form received from the NAFI to make

certain that the employee was vested in his or her prior

NAFI retirement plan.

Compare the employee's civil service employment and

NAFI employment verified on the Verification of NAFI

Service, Vesting and Contributions form to determine if

the employee was appointed to a FERS-covered

position within 1 year of leaving NAFI employment. 

FERS appointment must be before August 10, 1996.
Elections Based on Moves Before August 10, 1996

ACTION PROCEDURE

BAL 96-108 September 6, 1996

Attachment 1 Page 2

2. Determine if any employee Review all SF-50s since the employee's move from

responding to the notice is eligible NAFI service to determine if he or she has remained

to make election. (Continued) continuously covered by FERS (or CSRS Interim

followed by automatic FERS) since the move. Disregard

any breaks in service of 3 calendar days or less.

If employee meets conditions 1 through 7 on the

Eligibility Checklist (Attachment 6), he or she is eligible

to make at least one type of election. Review all NAFI

and civil service employment since January 1, 1987, and

eligibility criteria under Public Law 101-508 (Paragraph

B.2 of BAL 96-108) to determine if employee ever

moved under conditions which would have allowed an

election to retain FERS or NAFI retirement coverage. 

(Look for a move between NAFI and civil service

employment within DoD or Coast Guard with a break in

service of 3 calendar days or less.) 

If employee never moved under conditions which

allowed an election of retirement coverage, he or she is

eligible to choose between the two types of elections

available under Public Law 104-106. If employee did

have a previous opportunity to elect FERS or NAFI

retirement coverage, he or she may elect to remain in

FERS with credit for NAFI service (Paragraph E.2 of

BAL 96-108)

3. Determine amount of transferable For current FERS employees, compute amount of FERS

contributions. employee and agency contributions made with the current

agency and add interest earned on the employee share. Payroll

Office Letter 96-06 provides instructions on computing these

amounts.

If the employee was serviced by a payroll office other than his or

her current payroll office for any FERS service since the

qualifying move, use form in Attachment 5 to request the

amount of FERS contributions attributable to the prior FERS

service which are transferable to a NAFI retirement plan.

4. Provide election forms to eligible

employees.

Provide employee with the appropriate election form(s) found in

Attachment 8. Instructions for completing the forms are also in

Attachment 8. 

5. Counsel employees regarding her retirement benefits if election is made using worksheets in

election. Attachment 9 and provide any other information employee may

If necessary, assist employee in estimating the amount of his or

require to make election.

6. Process election:
Elections Based on Moves Before August 10, 1996

ACTION PROCEDURE

BAL 96-108 September 6, 1996

Attachment 1 Page 3

A. If employee does not return the Note that employee declined to make an election under the

election form by the due date: retroactive provisions of Public Law 104-106 and file a copy of

the election form (only parts 1 and 2 will be completed) in the

employee's OPF.

B. If a FERS employee elects NAFI Process a personnel action following the instructions in Chapter

retirement plan retroactive to the 28 of OPM's Operating Manual, The Guide to Processing

date of a qualifying move: Personnel Actions. Use the nature of action "803/Chg in

Retirement Plan" and legal authority "ZLM/P.L. 104-106". 

The payroll office should:

1. Close out the Individual Retirement Record (Standard

Form 3100) by showing under remarks "Retroactive

election of NAFI retirement coverage under P.L. 104-

106." Certify the Individual Retirement Record and

submit, with the Register of Separations and Transfers

(Standard From 3103), a copy of the employee's

election form and the original "Verification of NAFI

Service, Vesting, and Contributions" form (Attachment 5)

to: Office of Personnel Management, Retirement

Operations Center, Post Office Box 45, Boyers, PA

16017-0045; and

2. Terminate deductions for FERS/TSP and begin

withholding the appropriate contributions for the elected

NAFI retirement plan.

If employee has made military deposit payments and the

payment has not been submitted to OPM, refund the payments

to the employee since the military service credit does not

transfer to the NAFI retirement plan.

Upon receipt of the employee's election and Individual

Retirement Record, OPM will complete the required transfer of

FERS contributions to the appropriate NAFI retirement system.

C. If a FERS employee elects to The employee's election form will serve as documentation of

remain in FERS with service credit both the election of FERS coverage and of the NAFI service

for NAFI service: made creditable for FERS retirement purposes. Submit a copy

of the employee's election and the original "Verification of NAFI

Service, Vesting, and Contributions" form (Attachment 5) to

each NAFI retirement system that certified service that becomes

creditable under FERS. Upon receipt of the election form, the

NAFI retirement plan will prepare an Individual Retirement

Record (Standard Form 3100) for the creditable NAFI service

and complete the required transfer of NAFI contributions to

OPM. 
ATTACHMENT 2

Model Notice of Election Opportunity
BAL 96-108 September 6, 1996

Attachment 2

NEW RULES ALLOW CERTAIN FERS EMPLOYEES

TO RECEIVE RETIREMENT CREDIT FOR 

SERVICE WITH A NONAPPROPRIATED FUND INSTRUMENTALITY

YES NO

Do you have prior service with a

nonappropriated fund instrumentality (NAFI)

in the Department of Defense or the Coast

Guard?

Are you currently covered by FERS? 

Did you become covered by FERS

automatically (rather than by electing FERS

from a CSRS-covered position)?

Are you vested in a NAFI retirement plan? 

That is, did you work under a NAFI

retirement plan long enough to earn a

retirement benefit, even if you have taken a

refund of your NAFI contributions?

Were you employed in a position subject to

FERS (or in employment followed by

automatic conversion to FERS) before

August 10, 1996?

Was your break between NAFI and FERScovered employment (or employment

followed by automatic conversion to FERS) 1

year or less?

Have you had no breaks in service

(excluding a break of 3 days or less) since

the move?

If you answered YES to all of the above questions (or you think the answers could be YES), a new

law may allow you to receive retirement credit for your NAFI service in your FERS benefit or, if you

have not had an opportunity to elect continued retirement coverage under Public Law 101-508, to

choose to be covered by your old NAFI's retirement plan instead of FERS.

The law requires that all elections must be made by August 11, 1997.

Contact for additional information.
ATTACHMENT 3

Names and Addresses of NAFI Retirement Plans
BAL 96-108 September 6, 1996

Attachment 3

To verify NAFI service, vesting, and/or to obtain the amount of transferable NAFI

retirement contributions, contact the appropriate nonappropriated fund component:

Name of Retirement Plan Address

Department of the Army Civilian Personnel Policy

Assistant Secretary of the Army for

 Manpower and Reserve Affairs

Attn: SFCP-NF, Room 1N39

200 Stovall Street

Alexandria, VA 22332-0300

Department of the Air

Force

HQ Air Force Services Agency

HQ AFSVA/SVXBR

10100 Reunion Place, Suite 502

San Antonio, TX 78216-4318

U.S. Marine Corps Morale, Welfare, and Recreation Support Activity (MWP-B)

Headquarters, U.S. Marine Corps

3044 Catlin Avenue

Quantico, VA 22134-5099

Department of the Navy,

Bureau of Naval

Personnel (BUPERS)

Bureau of Naval Personnel Detachment Memphis

MWR Division (PERS-653)

Naval Support Activity Memphis

7800 3rd Avenue, Bldg 457

Millington, TN 38054

Naval Exchange Service

Command (NEXCOM)

Navy Exchange Service Command

Attn: Ms. Willette Brown, Employee Entitlement and Services

3280 Virginia Beach Boulevard

Virginia Beach, VA 23452

Army and Air Force

Exchange Service

(AAFES)

Headquarters, Army and Air Force Exchange Service

FA-T (Benefits)

P.O. Box 660202

Dallas, TX 75266-0202

U.S. Coast Guard Commandant (G-WPC-2)

U.S. Coast Guard Headquarters

2400 2nd Street SW

Washington, DC 20593
ATTACHMENT 4

Questions and Answers 
BAL 96-108 September 6, 1996

Attachment 4

ELECTIONS RELATING TO RETIREMENT COVERAGE

FOR CIVIL SERVICE EMPLOYEES

This information sheet addresses the elections available to civil service employees who entered a

retirement-covered position before August 10, 1996, following service with a nonappropriated fund

instrumentality (NAFI).

1. What does Public Law 104-106 provide for FERS employees?

Public Law 104-106 contains a provision which allows certain FERS employees (see question 3)

the opportunity to make one of two elections to combine civil service and service with a NAFI under

one retirement plan:

A.) Elect NAFI Coverage: You may be able to leave FERS coverage and become covered

under your old NAFI retirement plan. All of your FERS service performed since you left the NAFI

will become creditable under the NAFI retirement plan; or

B.) Elect FERS Service Credit: You may be able to receive FERS retirement credit for NAFI

service that would have been creditable toward a NAFI retirement benefit.

2. What if I'm covered by CSRS?

The new law does not allow CSRS employees to make an election to combine service under one

retirement plan.

3. How do I know if I'm eligible to make an election?

You will probably need to contact your old NAFI employer before you or your Personnel Office can

finally determine that you are eligible. In general, you must be able to answer "YES" to all of the

following questions:

Do you have prior service with a NAFI in the Department of Defense or Coast Guard?

Are you currently covered by FERS?

Did you become covered by FERS automatically (rather than by electing FERS from a

CSRS-covered position)?

Did you work under a NAFI retirement plan long enough to earn a retirement benefit?

Were you reemployed in a position subject to FERS before August 10, 1996?

Was your break between NAFI and FERS-covered employment 1 year or less?

Have you had no breaks in service (excluding a break of 3 days or less) since becoming

covered by FERS?
BAL 96-108 September 6, 1996

Attachment 4 Page 2

If you can answer "YES" to all of these questions and you have never before had the opportunity to

elect to continue retirement coverage based on a move to or from a NAFI, then you may choose

between the two types of elections.

If you can answer "YES" to all of the questions in the box and you already elected, or had an

opportunity to elect retirement coverage, based on a move to or from a NAFI, then you may only

elect FERS service credit (see question #1, B). You may not elect retroactive NAFI retirement

coverage (see question #1, A).

If you have already retired, you are not eligible to make an election. This is true even if you are a

reemployed annuitant. 

4. What is the time limit for making an election?

Elections of NAFI retirement coverage or FERS service credit must be made by August 11, 1997.

5. Will these elections cost me any money?

The law provides that if you make an election, any increase in the amount of your FERS retirement

benefit (or your NAFI retirement benefit) because of the election must be fully financed. To help

finance the benefit increase, the law provides that all the employee retirement deductions (plus

interest) and the government retirement contributions attributable to your service be transferred to

the retirement system that will pay you a benefit. That means, if you elect to credit previous NAFI

service in a FERS benefit, all of the retirement deductions withheld from your NAFI salary (plus

interest) and any retirement contribution made by the NAFI will transfer to FERS to help offset the

cost of the additional service. If you elect to go back to your old NAFI retirement plan, all of

deductions withheld from your pay for FERS retirement (plus interest) and the government's

contribution for FERS will be transferred to your NAFI retirement plan. 

If the amounts transferred are not enough to fully finance the increase in your retirement benefit,

the law provides that you must bear the additional cost. OPM's regulations provide that you do not

have to make a deposit for the money. Instead, you will receive full credit for the service and your

retirement benefit will be actuarially reduced depending on your age and the amount that was not

financed by the transfer of contributions. 

6. How will I know whether FERS or my old NAFI retirement plan is better?

Your Personnel Office will help you calculate your benefit under either retirement plan. In addition,

OPM, DoD, and the Coast Guard will be providing a computer model that will help employees

estimate the amount of their retirement benefits. The computer model should be available by the

end of 1996.

7. I have periods of military service. Does retirement credit include credit for

my military service?

Active duty military service served under honorable conditions is generally creditable under FERS,

subject to a deposit requirement. If you have made payments toward a military deposit and elect to

be covered under your old NAFI retirement plan, your military deposit will be returned to you.
BAL 96-108 September 6, 1996

Attachment 4 Page 3

8. I have withdrawn my NAFI retirement contributions. Can my NAFI service

still be credited in my FERS retirement benefit?

Your old NAFI retirement plan must certify that your NAFI service would have been creditable in a

NAFI retirement benefit. OPM's regulations provide that the fact that you may have taken a refund

of your NAFI retirement contributions does not affect the creditability of your NAFI service.

9. If I elect to leave FERS and become covered by my old NAFI retirement plan,

what happens to my contributions to the Thrift Savings Plan (TSP)?

Your TSP contributions will not transfer to the NAFI plan. TSP regulations provide that if you leave

FERS coverage retroactive to the date you became covered under FERS, your TSP account will

be de-activated and any contributions made by your agency and the earnings attributed to the

agency contributions will be removed from it. You will be able to receive a refund of your own TSP

contributions. 
ATTACHMENT 5

Forms to Verify Service, Vesting and Transferable Contributions
BAL 96-108 September 6, 1996

Attachment 5

Request for Verification of CSRS or FERS

Service

Public Law 104-106

Employees interested in obtaining verification of prior service under the Civil Service Retirement System (CSRS), and the

Federal Employees Retirement System (FERS) in connection with an election to combine civil service and service with a

nonappropriated fund instrumentality (NAFI) should complete this form and return it to their employing agency. This form

cannot be used to verify service, vesting, or contributions with a NAFI.

Part 1. TO BE COMPLETED BY EMPLOYEE

Name Other Names Used

Date of birth Social Security Number Telephone number

Please check the appropriate box:

1. I am currently covered by a NAFI retirement plan and would like verification of my prior creditable

service listed below.

2. I am currently covered by FERS and am requesting the amount of my FERS contributions. 

NOTE: If your current employer has the record showing all your FERS contributions, then don't

complete this form.

Please provide as much information as possible regarding your prior civilian service. If necessary, attach additional

information on a separate sheet of paper.

Agency and Location (City and State) Ending Date Position (CSRS, FERS, FICA, Beginning

Date

Retirement Coverage

CSRS Offset, Interim)

Part 2. TO BE COMPLETED BY EMPLOYER

Provide agency name, address and telephone number (response will be returned to this address):

If the above employee is currently covered by FERS, you will receive a record of the FERS contributions currently on file at

OPM that are available for transfer to a NAFI retirement plan. NOTE: If the employee's payroll office currently has the

record of all FERS contributions, then do not send this form to OPM and advise the employee that this form is not needed.

If the above employee is currently employed by a NAFI, you will receive a record showing the employee's CSRS or FERS

service, a statement concerning vesting, and the amount of FERS contributions currently available for transfer to a NAFI

retirement system.

Send this form to: U.S. Office of Personnel Management, Retirement Operations Center, 

P.O. Box 45, Boyers, PA 16017
BAL 96-108 September 6, 1996

Attachment 5

Request for Verification of Service With a NAFI

Public Law 104-106

Employees interested in obtaining verification of prior service with a nonappropriated fund instrumentality (NAFI) in

connection with an election to combine civil service and NAFI service should complete this form and return it to the

employing agency. This form cannot be used to verify service, vesting, or contributions as an appropriated fund

employee (civil service employment).

Part 1. TO BE COMPLETED BY EMPLOYEE

Name Other Names Used

Date of birth Social Security Number Telephone number

Please check the appropriate box:

1. I am currently covered by FERS and would like verification of my prior creditable NAFI service listed

below.

2. I am currently covered by a NAFI retirement plan and am requesting the amount of my NAFI

retirement contributions. NOTE: If your current NAFI retirement plan knows your total NAFI

retirement contributions, then don't complete this form.

Please provide as much information as possible regarding your prior NAFI service. If necessary, attach additional

information on a separate sheet of paper.

Employer and Location Beginning Ending

(City and State) Date Date Position

Retirement Plan

(Army, Air Force, Marine Corps, Navy,

 Navy Exchange, AAFES, Coast Guard)

Part 2. TO BE COMPLETED BY EMPLOYER

Provide agency name, address and telephone number (response will be returned to this address:)

If the above employee is currently employed by a NAFI, you will receive a record showing the employee's NAFI service and

the amount of NAFI retirement contributions currently available for transfer to the Civil Service Retirement and Disability

Fund. NOTE: If the employee's current retirement plan currently has the record of all NAFI retirement contributions, then do

not send this form and advise the employee that this form is not needed.

If the above employee is currently employed in the civil service, you will receive a record showing the employee's prior NAFI

service, a statement concerning vesting, and the amount of NAFI retirement contributions currently available for transfer to

the Civil Service Retirement and Disability Fund.

Send this form to: The applicable NAFI retirement plan in Attachment 3 of BAL 96-108. If the employee claims

service subject to more than one NAFI retirement plan, a copy of this request must be sent to each

NAFI retirement plan.
BAL 96-108 September 6, 1996

Attachment 5 Page 7

ATTACHMENT 6

Eligibility Checklist 
BAL 96-108 September 6, 1996

Attachment 6

ELIGIBILITY CHECKLIST

For Elections By FERS Employees With Past Service in a NAFI

YES NO

1. fund instrumentality (NAFI) in the Department of Defense or

Does employee have prior service with a nonappropriated

the Coast Guard?

2. Is the employee currently covered by FERS? 

3. Was the employee automatically covered by FERS (rather

than by electing FERS from a CSRS-covered position)?

4. Has the NAFI retirement plan that covered the employee

certified that the employee was vested in the plan?

5. (or appointed to a position followed by automatic conversion

Was the employee appointed to a position subject to FERS

to FERS) before August 10, 1996?

6. (or employment followed by automatic conversion to FERS) 1

Was the break between NAFI and FERS-covered employment

year or less?

7.

Has the employee remained continuously (that is, no breaks

of more than 3 days) subject to FERS (or CSRS Interim

followed by automatic conversion to FERS) since the move

from NAFI employment?

8. continue any type of retirement coverage under Public Law

Did the employee have a previous opportunity to elect to

101-508.

If the response to any of Questions 1 through 7 is NO,

then 

Employee is not eligible to elect to combine service

under Public Law 104-106.

If the response to all of Questions 1 through 8 is YES,

then 

Employee may elect to remain in FERS with credit for

NAFI service.

If the response to Questions 1 through 7 is YES, and

the response to Question 8 is NO, then 

Employee may elect between: 

1. NAFI retirement coverage retroactive to the

date of his or her qualifying move; or

2. To remain in FERS with FERS credit for NAFI

service.
ATTACHMENT 7

Examples of Qualifying and Non-Qualifying Moves
BAL 96-108 September 6, 1996

Attachment 7 Page 1

EXAMPLE 1

Employee, vested in a NAFI retirement plan, moved in 1988 (with a 9-month break), to a position covered by

FERS. The employee has since remained in FERS. 

YES NO

1. fund instrumentality (NAFI) in the Department of Defense or

Does employee have prior service with a nonappropriated

the Coast Guard?

2. Is the employee currently covered by FERS? 

3. Was the employee automatically covered by FERS (rather

than by electing FERS from a CSRS-covered position)?

4. Has the NAFI retirement plan that covered the employee

certified that the employee was vested in the plan?

5. (or appointed to a position followed by automatic conversion

Was the employee appointed to a position subject to FERS

to FERS) before August 10, 1996?

6. (or employment followed by automatic conversion to FERS) 1

Was the break between NAFI and FERS-covered employment

year or less?

7.

Has the employee remained continuously (that is, no breaks

of more than 3 days) subject to FERS (or CSRS Interim

followed by automatic conversion to FERS) since the move

from NAFI employment?

8. continue any type of retirement coverage under Public Law

Did the employee have a previous opportunity to elect to

101-508.

Responses to Questions 1 through 7 are YES, and

the response to Question 8 is NO, then 

Employee may elect between: 

1. NAFI retirement coverage retroactive to the

date of his or her qualifying move; or

2. To remain in FERS with FERS credit for NAFI

service.
BAL 96-108 September 6, 1996

Attachment 7 Page 2

EXAMPLE 2

Employee, vested in a NAFI retirement plan, moved in 1991 (with a 3-day break) to a DoD position covered by

FERS. Under the 1990 Portability Act, the employee exercised an election not to retain coverage in the NAFI

retirement plan, but instead to enter FERS. The employee has remained covered by FERS since the move.

YES NO

1. fund instrumentality (NAFI) in the Department of Defense or

Does employee have prior service with a nonappropriated

the Coast Guard?

2. Is the employee currently covered by FERS? 

3. Was the employee automatically covered by FERS (rather

than by electing FERS from a CSRS-covered position)?

4. Has the NAFI retirement plan that covered the employee

certified that the employee was vested in the plan?

5. (or appointed to a position followed by automatic conversion

Was the employee appointed to a position subject to FERS

to FERS) before August 10, 1996?

6. employment (or employment followed by automatic

Was the break in service between NAFI and FERS-covered

conversion to FERS) 1 year or less?

7.

Has the employee remained continuously (that is, no breaks

of more than 3 days) subject to FERS (or CSRS Interim

followed by automatic conversion to FERS) since the move

from NAFI employment?

8. continue any type of retirement coverage under Public Law

Did the employee have a previous opportunity to elect to

101-508.

Response to all of Questions 1 through 8 are YES,

then 

Employee may elect to remain in FERS with credit for

NAFI service.
BAL 96-108 September 6, 1996

Attachment 7 Page 3

EXAMPLE 3

Employee, after 5 years in a NAFI retirement plan, moved in 1978 (with a 3-day break) to a civil service position

covered by CSRS. The employee elected FERS during the 1987 Open Season and has since remained covered

by FERS.

YES NO

1. fund instrumentality (NAFI) in the Department of Defense or

Does employee have prior service with a nonappropriated

the Coast Guard?

2. Is the employee currently covered by FERS? 

3. Was the employee automatically covered by FERS (rather

than by electing FERS from a CSRS-covered position)?

4. Has the NAFI retirement plan that covered the employee

certified that the employee was vested in the plan?

5. (or appointed to a position followed by automatic conversion

Was the employee appointed to a position subject to FERS

to FERS) before August 10, 1996?

6. employment (or employment followed by automatic

Was the break in service between NAFI and FERS-covered

conversion to FERS) 1 year or less?

7.

Has the employee remained continuously (that is, no breaks

of more than 3 days) subject to FERS (or CSRS Interim

followed by automatic conversion to FERS) since the move

from NAFI employment?

8. continue any type of retirement coverage under Public Law

Did the employee have a previous opportunity to elect to

101-508.

Responses to Questions 3, 6 and 7 are NO, then 

Employee is not eligible to elect to combine service

under Public Law 104-106.

NOTE: Because the employee does not otherwise qualify, no attempt to verify vesting was undertaken.
BAL 96-108 September 6, 1996

Attachment 7 Page 4

EXAMPLE 4

Employee worked in a NAFI position from 1979 through 1985, and her vested status has been verified. She

moved in 1986 (with a 7-month break) to a civil service position covered by CSRS Interim and was automatically

converted to FERS in 1987. She has remained in FERS continuously.

YES NO

1. fund instrumentality (NAFI) in the Department of Defense or

Does employee have prior service with a nonappropriated

the Coast Guard?

2. Is the employee currently covered by FERS? 

3. Was the employee automatically covered by FERS (rather

than by electing FERS from a CSRS-covered position)?

4. Has the NAFI retirement plan that covered the employee

certified that the employee was vested in the plan?

5. (or appointed to a position followed by automatic conversion

Was the employee appointed to a position subject to FERS

to FERS) before August 10, 1996?

6. (or employment followed by automatic conversion to FERS) 1

Was the break between NAFI and FERS-covered employment

year or less?

7.

Has the employee remained continuously (that is, no breaks

of more than 3 days) subject to FERS (or CSRS Interim

followed by automatic conversion to FERS) since the move

from NAFI employment?

8. continue any type of retirement coverage under Public Law

Did the employee have a previous opportunity to elect to

101-508.

Responses to Questions 1 through 7 are YES, and

the response to Question 8 is NO, then 

Employee may elect between: 

1. NAFI retirement coverage retroactive to the

date of her qualifying move; or

2. To remain in FERS with FERS credit for NAFI

service.
ATTACHMENT 8

Election Forms for FERS Employees who Moved From NAFI Employment

Before August 10, 1996
BAL 96-108 September 6, 1996

Attachment 8 Page 1

INSTRUCTIONS FOR COMPLETING ELECTION FORMS

Elections by FERS Employees Based on a Move Before August 10, 1996

1. The personnel office completes Part 1 of the appropriate form(s) if the employee is found eligible to

make an election. If the employee is eligible for both elections, then both forms must be completed 

(See Paragraph F.2 of BAL 96-108 for information on who is eligible for both elections.)

BLOCK Election of Retroactive NAFI Coverage by Election of FERS with Credit for NAFI

FERS Employees Under Public Law 104-106 Service Under Public Law 104-106

1 - 6 Self-explanatory. Self-explanatory.

7 Beginning Enter the date of the appointment that completed the Enter the beginning date of the NAFI service

Date qualifying move from NAFI employment. that will become creditable under FERS if an

affirmative election is made. If more than one

period, show each period of NAFI service

separately.

7 Ending Enter the last day of the pay period in which the Enter the ending date of the NAFI service that

Date employee received this election form. (If the will become creditable under FERS if an

employee makes an affirmative election, the period affirmative election is made.

covered by the election will be the last day of the pay

period that the employing agency receives the

completed election form.)

8 Date Enter the last day of the pay period in which the Enter the date the NAFI retirement plan(s)

employee received this election form. Transferable computed the transferable contributions on the

FERS contributions should be computed through this "Verification of NAFI Service, Vesting and

date. Contributions" form (Attachment 5 to BAL 96-

108).

8 Amount Enter the total amount of FERS employee Total the transferable contributions certified by

contributions, plus interest, and agency contributions the NAFI retirement plan(s) on the

available for transfer to the NAFI retirement plan. "Verification of NAFI Service, Vesting and

See Payroll Office Letter 96-06 for instructions on Contributions" form (response to Attachment 5

computing the FERS contributions (plus interest) of BAL 96-108). Do not include any

made with the current servicing payroll office. If contributions refunded to the employee.

FERS contributions for the period of service entered

in block 7 were made with another payroll office, be

sure to include the additional FERS contribution

amounts from the "Verification of Service, Vesting,

or Contributions Under CSRS or FERS" form

(response to Attachment 5 of BAL 96-108). Do not

include any contributions refunded to the employee.

9 Signature Sign and date the form. Note that if employee has Sign and date the form. Check the box if the

been found eligible to elect NAFI retirement employee is also eligible to elect NAFI

coverage, he or she is also eligible to elect FERS with retirement coverage and has been also given the

credit for NAFI service and must be given two appropriate form for that election.

election forms.
BAL 96-108 September 6, 1996

Attachment 8 Page 2

INSTRUCTIONS FOR COMPLETING ELECTION FORMS -- (Continued)

2. The personnel office gives both copies of the form to the employee and instructs the employee to

read and acknowledge receipt of the form by signing Part 2 of one copy of the form. The personnel

office collects and retains the copy of the form that the employee signed (both Parts 1 and 2

completed). The employee keeps the other copy with only Part 1 completed.

3. The personnel office files the signed copy on the left side of the Official Personnel Folder (OPF), or

in some other temporary file, until the employee makes an election or the time limit for making an

election expires.

4. When the employee makes an election by signing under either Option 1 or Option 2 in Part 3 of the

form and returns it to the personnel office, the personnel office marks the date of receipt on the form

and makes a copy of the form (with Parts 1 and 3 completed). The personnel office gives the

employee the copy of the form that does not have the original signature in Part 3, files the form with

the original signature in Part 3 on the right side of the OPF, and destroys the copy of the form with

Part 2 completed.

5. If the time limit expires before the employee has returned the election form with Part 3 completed,

the personnel office takes the form with Part 2 completed, makes a notation that the employee did not

file a form with Part 3 completed, and files the form on the right side of the OPF. 
BAL 96-108 September 6, 1996

Attachment 8

ELECTION OF RETROACTIVE NAFI RETIREMENT COVERAGE BY

FERS EMPLOYEES UNDER PUBLIC LAW 104-106

Instructions for completing this form are in Benefits Administration Letter 96-108, dated September 6, 1996.

PART 1. TO BE COMPLETED BY EMPLOYING AGENCY

1. Employee Name 2. Date of Birth (Month, day, year) 3. Social Security number 

4. Employing agency and mailing address 5. Effective Date of Election 6. Name\telephone number of agency contact

 (Date of qualifying move)

7. The following period of service will become subject to nonappropriated

fund instrumentality (NAFI) retirement coverage by this election:

Beginning date Ending date

8. Total amount available for transfer to the NAFI Retirement Plan

 as of 

(Date) :

$

(Amount)

9. I verify that in accordance with the provisions of section 1043 of Public Law 104-106, and OPM regulations at 5 CFR part 847, Subpart D,

 this employee is eligible to elect NAFI retirement coverage retroactive to the date of the qualifying move shown in block 5 above.

Authorized signature and title Date signed

PART 2. ACKNOWLEDGEMENT OF RECEIPT

I understand that I am eligible to elect coverage under a NAFI retirement system. I am also aware of the right to make an alternative election

to remain in the Federal Employees Retirement System (FERS) with service credit for past NAFI service. I acknowledge that the Personnel

Office has completed Part 1 of this election form and given it to me on this date. I understand that if I wish to be covered by the NAFI

retirement system retroactive to the date of my qualifying move (shown in Part 1, block 5), I must return the completed form to the Personnel

Office before the close of business on August 11, 1997 (if mailed, the envelope must be postmarked no later than August 11, 1997). I also

understand that if I fail to return this form to my Personnel Office before August 11, 1997, I will remain covered by FERS, in accordance

with FERS rules.

Signature of employee Date

PART 3. TO BE COMPLETED BY EMPLOYEE

I elect to be covered by the NAFI retirement plan. I understand that because of this irrevocable election, I will never be able to earn

additional credit under FERS. I understand that regardless of future moves between civil service employment and NAFI employment, breaks

in service, and changes in employment or retirement status, my retirement coverage will remain with the NAFI plan in accordance with the

rules governing the NAFI plan. I also understand that this election does not affect any service performed before the effective date of this

election (as shown in Part 1, block 5).

I understand that because of my election, my civilian service subject to FERS since the date of my qualifying move (shown in Part 1, block 5)

will become subject to the NAFI retirement plan. Any unrefunded contributions made by me or on my behalf to FERS since the effective

date of this election (shown in Part 1, block 5) will be transferred to the NAFI retirement plan. If the amount transferred does not fully fund

the actuarial present value of the increase in my NAFI retirement benefit, I understand that my NAFI benefit will be reduced in a manner

consistent with 5 CFR part 847, Subpart F.

Signature of employee Date signed

Reproduce Locally September 1996
BAL 96-108 September 6, 1996

Attachment 8

ELECTION OF FERS WITH CREDIT FOR NAFI SERVICE

UNDER PUBLIC LAW 104-106

Instructions for completing this form are in Benefits Administration Letter 96-108, dated September 6, 1996.

PART 1. TO BE COMPLETED BY EMPLOYING AGENCY

1. Employee Name 2. Date of Birth (Month, day, year) 3. Social Security number 

4. Employing agency and mailing address 5. Date of qualifying move 6. Name\telephone number of agency contact

7. The following period(s) of service with a nonappropriated fund

instrumentality (NAFI) will become creditable for Federal Employees

Retirement System (FERS) purposes by this election:

Beginning date Ending date

8. Total amount available for transfer to the Civil Service Retirement and Disability Fund

 as of (date) :

$

(Amount)

9. I verify that in accordance with the provisions of section 1043 of Public Law 104-106, and OPM regulations at 5 CFR

 part 847, Subpart D, this employee is eligible to elect FERS with credit for the above periods of NAFI service.

 (Check if applicable) I have also determined that this employee is eligible to elect NAFI retirement coverage and

 has been given the appropriate form for that election.

Authorized signature and title Date signed

PART 2. ACKNOWLEDGEMENT OF RECEIPT

I understand that I am eligible to elect FERS with credit for the above NAFI service (shown in block 7) under FERS. I acknowledge that the

Personnel Office has completed Part 1 of this election form and given it to me on this date. I understand that if I wish to elect FERS service credit

for my NAFI service, I must return the completed form to the Personnel Office before the close of business on August 11, 1997 (if mailed, the

envelope must be postmarked no later than August 11, 1997). I also understand that if I fail to return this form to my Personnel Office before

August 11, 1997, that my prior NAFI service will not be creditable for any purpose under FERS.

Signature of employee Date

PART 3. TO BE COMPLETED BY EMPLOYEE

I elect credit under FERS for the NAFI service shown above in Part 1, block 7. I understand that by making this irrevocable

election, I will remain covered by FERS, in accordance with FERS rules, for all future Federal service and I will never be able

to earn additional credit under a NAFI retirement plan. I also understand that because of this election, the NAFI service

shown in Part 1, block 7 ceases to be creditable for any purpose under a NAFI retirement plan.

I understand that because of my election, my NAFI service shown above will become creditable under FERS. Any

unrefunded contributions made by me or on my behalf to the NAFI retirement system will be transferred to the Civil Service

Retirement and Disability Fund. If the amount transferred does not fully fund the actuarial present value of the increase in my

FERS annuity, I understand that my FERS annuity will be reduced in accordance with 5 CFR part 847, Subpart F.

Signature of employee Date signed

Reproduce Locally September 1996
Page 5

ATTACHMENT 9

FERS Computation Worksheets and Examples
BAL 96-108 September 6, 1996

Attachment 9 Page 1

Personal Data Sheet (PDS)

Election of FERS Credit for NAFI Service Under Public Law 104-106

Before you begin completing the worksheets, fill out the personal data below. This way, you will

establish some information and assumptions about your situation that can be used throughout the

worksheets to help ensure that your answers are consistent.

1. At what age do you want to retire? Use one of the Eligibility

Charts on the next page.

Box 1

Years

2. How much total service, including military service, do you

expect to have when you retire? Include any refunded FERS

service.

Box 2

Years Mos

3. How much creditable NAFI service do you have? Box 3

Years Mos

4. Enter the total from boxes 2 and 3. Box 4

Years Mos

5. Estimate what you expect your high-3 average salary to be

when you retire.

Box 5

$

6. If you have had FERS refunded service, how much do you

owe? Get an estimate of your redeposit from your retirement or

benefits counselor.

Box 6

$

7. How much refunded FERS service do you have? Box 7

Years Mos

USE WORKSHEET A, IF you will qualify for an immediate FERS retirement based on the age

and service requirements using your age from Box 1 and your FERS service from Box 2.

USE WORKSHEET B, IF you will not qualify for an immediate FERS retirement based on your

age from Box 1 and your FERS service from Box 2.
BAL 96-108 September 6, 1996

Attachment 9 Page 2

Eligibility Charts

Eligibility for Immediate Retirement 

Full Benefits

Length of Service Minimum Age

At least 30 years MRA 

At least 20 years 60 years

At least 5 years 62 years

Early Retirement

Length of Service Minimum Age

At least 20 years 50 years

At least 25 years any age

Benefits Reduced for Age

MRA plus 10 Retirement

Length of Service Minimum Age

At least 10 years MRA

Eligibility for Deferred Retirement

Length of Minimum Age

Service

At least 10 years Your MRA (Benefit reduced for age)

At least 5 years 62

Age Reduction Factors Minimum Retirement Age

Minimum Reduction If you were Your MRA is:

Age Factor born

61 years .95 Before 1949 55

60 years .90 In 1948 55 and 2 months

59 years .85 In 1949 55 and 4 months

58 years .80 In 1950 55 and 6 months

57 years .75 In 1951 55 and 8 months

56 years .70 In 1952 55 and 10 months

55 years .65 In 1953-1964 56

For each month, add .00417 In 1965 56 and 2 months

For example, 56 years and 1 In 1966 56 and 4 months

month would be .70417; 56 years In 1967 56 and 6 months

and 2 months would be .70834. In 1968 56 and 8 months

In 1969 56 and 10 months

After 1969 57
BAL 96-108 September 6, 1996

Attachment 9 Page 3

Seven Percent Interest Factors Chart

0 Years 1 16 Years 2.952164 

1 Years 1.07 17 Years 3.158815 

2 Years 1.1449 18 Years 3.379932 

3 Years 1.225043 19 Years 3.616528 

4 Years 1.310796 20 Years 3.869684 

5 Years 1.402552 21 Years 4.140562 

6 Years 1.50073 22 Years 4.430402 

7 Years 1.605781 23 Years 4.74053 

8 Years 1.718186 24 Years 5.072367 

9 Years 1.838459 25 Years 5.427433 

10 Years 1.967151 26 Years 5.807353 

11 Years 2.104852 27 Years 6.213868 

12 Years 2.252192 28 Years 6.648838 

13 Years 2.409845 29 Years 7.114257 

14 Years 2.578534 30 Years 7.612255 

15 Years 2.759032 
BAL 96-108 September 6, 1996

Attachment 9 Page 4

FERS Present Value Factors If No COLAS Payable Before

Age 62

FERS PRESENT VALUE FACTORS APPLICABLE TO AN ANNUITY PAYABLE

FOLLOWING AN ELECTION UNDER SECTION 1043 OF PUBLIC LAW 104-106

Age at Present value of Age at calculation Present value Age at calculation Present value of a

calculation a monthly of a monthly monthly annuity

annuity annuity

40 169.2 57 160.2 74 106.8

41 168.8 58 160.4 75 102.2

42 168.4 59 161.2 76 97.8

43 168.1 60 162.7 77 93.5

44 167.7 61 163.5 78 89.2

45 166.9 62 161.3 79 85.0

46 166.1 63 157.1 80 80.9

47 165.4 64 152.5 81 77.0

48 164.7 65 148.0 82 73.1

49 163.7 66 143.6 83 69.4

50 162.4 67 139.1 84 65.8

51 161.9 68 134.6 85 62.4

52 161.6 69 130.1 86 59.1

53 161.2 70 125.4 87 56.0

54 160.6 71 120.7 88 53.0

55 160.0 72 116.0 89 50.2

56 160.0 73 111.4 90 47.5

Do not use this chart for the following types of annuities: Law enforcement Officer/Firefighter, Air

Traffic Controller, Military Reserve Technicians who retire under 5 U.S.C. 8414(c), disability, and

survivor. The next chart on page 5 will be used for these types of annuity.
BAL 96-108 September 6, 1996

Attachment 9 Page 5

FERS Present Value Factors If COLAS Payable Before Age 62

FERS PRESENT VALUE FACTORS APPLICABLE TO AN ANNUITY PAYABLE

FOLLOWING AN ELECTION UNDER SECTION 1043 OF PUBLIC LAW 104-106

Age at Present value of Age at Present value Age at calculation Present value

calculation a monthly annuity calculation of a monthly of a monthly

annuity annuity

17 301.7 42 238.5 67 139.1

18 299.8 43 235.0 68 134.6

19 297.9 44 231.5 69 130.1

20 296.0 45 227.9 70 125.4

21 294.0 46 224.2 71 120.7

22 291.9 47 220.3 72 116.0

23 289.8 48 216.5 73 111.4

24 287.7 49 212.6 74 106.8

25 285.4 50 208.6 75 102.2

26 283.2 51 204.5 76 97.8

27 280.8 52 200.3 77 93.5

28 278.4 53 196.1 78 89.2

29 276.0 54 191.8 79 85.0

30 273.5 55 187.4 80 80.9

31 270.9 56 183.1 81 77.0

32 268.2 57 178.6 82 73.1

33 265.5 58 174.2 83 69.4

34 262.8 59 169.7 84 65.8

35 260.0 60 165.1 85 62.4

36 257.1 61 160.4 86 59.1

37 254.1 62 161.3 87 56.0

38 251.1 63 157.1 88 53.0

39 248.1 64 152.5 89 50.2

40 245.2 65 148.0 90 47.5

41 241.9 66 143.6
BAL 96-108 September 6, 1996

Attachment 9 Page 6

Discount Factors Chart

Factors for Determining Reduction in a CSRS or FERS Annuity 

When Individual Does Not Have Title to an Immediate Annuity Without NAFI Service (Worksheet B)

(Elections Under the Retroactive Provisions of P.L. 104-106)

Find the factor which corresponds to the number of whole years and full months between the date the deficiency is calculated and the date you would first become eligible for a

deferred annuity benefit (without credit for NAFI service or FERS redeposit service).

0 Months 1 Month 2 Months 3 Months 4 Months 5 Months 6 Months 7 Months 8 Months 9 Months 10 Months 11 Months

0 Years....... 1.000000 0.994378 0.988787 0.983228 0.977700 0.972203 0.966736 0.961301 0.955896 0.950522 0.945178 0.939864 

1 Year........ 0.934579 0.929325 0.924100 0.918904 0.913738 0.908601 0.903492 0.898412 0.893361 0.888338 0.883344 0.878377 

2 Years....... 0.873439 0.868528 0.863645 0.858789 0.853961 0.849159 0.844385 0.839638 0.834917 0.830223 0.825555 0.820913 

3 Years....... 0.816298 0.811708 0.807145 0.802607 0.798094 0.793607 0.789145 0.784708 0.780296 0.775909 0.771547 0.767209 

4 Years....... 0.762895 0.758606 0.754341 0.750100 0.745882 0.741689 0.737519 0.733372 0.729249 0.725149 0.721072 0.717018 

5 Years....... 0.712986 0.708978 0.704991 0.701028 0.697086 0.693167 0.689270 0.685394 0.681541 0.677709 0.673899 0.670110 

6 Years....... 0.666342 0.662596 0.658870 0.655166 0.651482 0.647820 0.644177 0.640556 0.636954 0.633373 0.629812 0.626271 

7 Years....... 0.622750 0.619248 0.615767 0.612305 0.608862 0.605439 0.602035 0.598650 0.595284 0.591937 0.588609 0.585300 

8 Years....... 0.582009 0.578737 0.575483 0.572247 0.569030 0.565831 0.562649 0.559486 0.556340 0.553212 0.550102 0.547009 

9 Years....... 0.543934 0.540876 0.537835 0.534811 0.531804 0.528814 0.525841 0.522884 0.519944 0.517021 0.514114 0.511224 

10 Years..... 0.508349 0.505491 0.502649 0.499823 0.497013 0.494218 0.491440 0.488677 0.485929 0.483197 0.480480 0.477779 

11 Years..... 0.475093 0.472422 0.469766 0.467124 0.464498 0.461886 0.459290 0.456707 0.454139 0.451586 0.449047 0.446522 

12 Years..... 0.444012 0.441516 0.439033 0.436565 0.434110 0.431670 0.429243 0.426829 0.424429 0.422043 0.419670 0.417311 

13 Years..... 0.414964 0.412631 0.410311 0.408004 0.405711 0.403429 0.401161 0.398906 0.396663 0.394433 0.392215 0.390010 

14 Years..... 0.387817 0.385637 0.383469 0.381313 0.379169 0.377037 0.374917 0.372809 0.370713 0.368629 0.366556 0.364495 

15 Years..... 0.362446 0.360408 0.358382 0.356367 0.354363 0.352371 0.350390 0.348420 0.346461 0.344513 0.342576 0.340650 

16 Years..... 0.338735 0.336830 0.334936 0.333053 0.331181 0.329319 0.327467 0.325626 0.323795 0.321975 0.320164 0.318364 

17 Years..... 0.316574 0.314794 0.313025 0.311265 0.309515 0.307774 0.306044 0.304323 0.302612 0.300911 0.299219 0.297537 

18 Years..... 0.295864 0.294200 0.292546 0.290902 0.289266 0.287640 0.286022 0.284414 0.282815 0.281225 0.279644 0.278072 

19 Years..... 0.276508 0.274954 0.273408 0.271871 0.270342 0.268822 0.267311 0.265808 0.264313 0.262827 0.261350 0.259880 

20 Years..... 0.258419 0.256966 0.255521 0.254085 0.252656 0.251236 0.249823 0.248418 0.247022 0.245633 0.244252 0.242879 

21 Years..... 0.241513 0.240155 0.238805 0.237462 0.236127 0.234800 0.233480 0.232167 0.230861 0.229563 0.228273 0.226989 

22 Years..... 0.225713 0.224444 0.223182 0.221927 0.220680 0.219439 0.218205 0.216978 0.215758 0.214545 0.213339 0.212140 
BAL 96-108 September 6, 1996

Attachment 9 Page 7

Getting Estimates From Your Agency

Election of FERS Credit for NAFI Service Under Public Law 104-106

If you are near retirement, ask your benefits counselor for annuity estimates that can help you evaluate the relative

benefits in deciding whether to make a retroactive election. With the estimates, you can skip to Part 3 of

the Worksheet.

If you have part-time service or you will be retiring under the special provisions for law enforcement officers, firefighters, air traffic controllers,

or Congressional employees, you must get the annuity estimates listed below. The worksheets cannot be used to compute your basic

annuity. However, with the estimates, you can skip to Part 3 and use the remainder of the Worksheet.

If you are using Worksheet A, ask for the following estimates:

1. A single life annuity with NAFI service credited. (A single life annuity is one that is not reduced for

survivor benefits.) The worksheet will show you how to compute your annuity with survivor benefits.

The estimate should include-

--refunded CSRS service or nondeduction service performed before 1989 for which you expect to

make deposit;

--military service for which you expect to make deposit;

--refunded FERS service; and

--any age reduction, if you are planning to retire under an MRA-plus-10 retirement.

Enter the monthly annuity estimate in Part 1, Line 7 of the Worksheet.

2. A single life annuity without NAFI service credited.

The estimate should include the same service listed above and, if applicable, the age reduction for

MRA-plus-10 retirement.

Enter the monthly annuity estimate in Part 2, Line 7 of the Worksheet.

3. If you have refunded FERS service, get a third computation without NAFI service or refunded service

credited.

Enter the monthly annuity estimate in Part 6, Line 9 of the Worksheet.

If you are using Worksheet B, get the same estimates as above with the

following exception:

Use the earliest date on which you are eligible to receive a deferred retirement when computing the

annuity under 2. and 3. above.

For example, if you have 10 years of service without credit for your NAFI service, the earliest

eligibility date would be your MRA.

If you have at least 5 years of civilian service but less than 10 years without NAFI credit, the

eligibility date would be 62.
BAL 96-108 September 6, 1996

Attachment 9 Page 8

 Using A Shortcut

Election of FERS Credit for NAFI Service Under Public Law 104-106

If crediting your NAFI service will increase your annuity but will not change the date on which you

can retire, you can use a shortcut to estimate how much your NAFI service will increase your

benefit.

To compute the increase using the shortcut method:

1. Enter the number of years until your planned retirement date. 1

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest the transferred NAFI funds may earn between now and

your retirement date at an assumed rate of 7% per year. (The variable rate

actually in effect for FERS will be used in the final computation.

2

3. Enter the amount of funds transferring from the NAFI Plan to FERS. (This

amount must be furnished by the NAFI retirement plan and is the "Total

Transferable Amount" in Block 8 on the Election of FERS With Credit for

NAFI Service Under Public Law 104-106 form.)

3

4. Multiply the amount on Line 3 by the factor on Line 2. Enter the result,

rounded to the nearest dollar. This is the approximate value, at retirement,

of the funds transferring from the NAFI plan.

4

5. Enter the present value factor for the age you entered in Box 1 of your

PDS. Use the attached FERS Present Value Factors chart for annuities

that are not increased by COLAS before age 62; however, the alternate

Present Value Factors chart (on page 5) will be used for the following types

of annuities.

Exception: Disability annuitants receiving benefits based on actual service and employees

retiring under the special retirement provisions for law enforcement officers, firefighters, air

traffic controllers, and Congressional employees would use the alternate chart.

5

6. Divide the amount on Line 4 by the present value factor on Line 5. Drop

the cents and enter the result. This is the monthly amount your FERS

annuity will increase if you elect to have your NAFI service credited in your

FERS retirement benefit.

6

Skip to Part 6 to compute your annuity with no election of NAFI credit. Add the amount computed in

Line 6 above to the amount computed in Part 6. The total is your annuity with NAFI credit.

WARNING: Do not use the shortcut method if you have refunded FERS

service.
BAL 96-108 September 6, 1996

Attachment 9 Page 9

Worksheet A: Basic FERS Benefit

Election of FERS Credit for NAFI Service Under Public Law 104-106

Use Worksheet A, if you will qualify for an immediate FERS retirement both with and without credit for your NAFI service.

Part 1. Computing a single life annuity with credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

2. Enter your service from Box 4 of your PDS. If you used whole

years and full months, convert months to a factor using the chart

below.

2

3. Multiply Lines 1 and 2. 3

4. Compute the basic annuity. Multiply the amount on Line 3 by .01. 

(Use .011, instead of .01, if you will be at least age 62 and have at

least 20 years of service when you retire.)

4

5. Divide the basic annuity on Line 4 by 12. Drop the cents. 5

6. If your retirement is based on the reduced benefit under the MRAplus-10 provisions, enter the reduction factor for your age at

retirement from the Age Reduction Factors Table on page 2. For

example, if you are 59 years old, the reduction factor would be .85. 

Enter 1, if your benefit is not reduced for age.

6

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity counting your

NAFI and refunded FERS service and before any reduction for

survivor benefits.

7

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 10

Part 2. Computing a single life annuity without credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

2. Enter your service from Box 2 of your PDS. If you used whole

years and full months, convert months to a factor using the chart

below.

2

3. Multiply Lines 1 and 2. 3

4. Compute the basic annuity. Multiply the amount on Line 3 by .01. 

(Use .011, instead of .01, if you will be at least age 62 and have at

least 20 years of service when you retire.)

4

5. Divide the basic annuity on Line 4 by 12. Drop the cents. 5

6. If your retirement is based on the reduced benefit under the MRAplus-10 provisions, enter the reduction factor for your age at

retirement from the Age Reduction Factors Table on page 2. For

example, if you are 59 years old, the reduction factor would be .85. 

Enter 1, if your benefit is not reduced for age.

6

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity without

counting NAFI service and before any reduction for survivor

benefits.

7

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 11

Part 3. Computing the value of the transferred NAFI funds at retirement

1. Enter the number of years until your planned retirement date. 1

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest the transferred NAFI funds may earn between now and

your retirement date at an assumed rate of 7% per year. (The variable rate

actually in effect for FERS will be used in the final computation.)

2

3. Enter the amount of funds transferring from the NAFI plan to FERS. (This

is the "Total Transferable Amount" in Block 8 on the Election of FERS With

Credit for NAFI Service Under Public Law 104-106 form.)

3

4. Multiply the amount on Line 3 by the factor on Line 2. Enter the result,

rounded to the nearest dollar. This is the approximate value of the

transferred amount at retirement.

4

If you have refunded FERS service, complete Part 4. Otherwise, skip to Part 5.

Part 4. Updating the redeposit amount for refunded FERS deductions to your retirement

date.

1. Enter the number of years until your planned retirement date. 1

2. Enter the factor from the Seven Percent Interest Factor Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest on your redeposit between now and your retirement date

at an assumed rate of 7% per year. (The variable rate actually in effect for

FERS will be used in the final computation.)

2

3. Enter the amount of the FERS redeposit calculated by your agency from

Box 6 of your PDS.

3

4. Multiply the amount of your FERS redeposit on Line 3 by the factor on Line

2. Enter the result, rounded to the nearest dollar. This represents the

approximate redeposit amount for your refunded FERS service at your

retirement.

4
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 12

Part 5. Computing the monthly actuarial reduction if you elect NAFI service credit under

FERS.

1. Enter the single life annuity rate with NAFI credit from Part 1, Line 7. 1

2. Enter the single life annuity rate without NAFI credit from Part 2, Line 7. 2

3. Enter the present value factor for the age you entered in Box 1 of your PDS. Use

the attached FERS Present Value Factors chart for annuities that are not increased

by COLAS before age 62; however, the alternate Present Value Factors chart (on

page 5) will be used for the following types of annuities.

Exception: Disability annuitants receiving benefits based on actual service and employees retiring

under the special retirement provisions for law enforcement officers, firefighters, air traffic controllers,

and Congressional employees would use the alternate chart.

3

4. Multiply the single life annuity rate on Line 1 by the present value factor on Line 3. 

Round your answer to the nearest dollar. This is the present value of your annuity

with your NAFI service.

4

5. Multiply the single life annuity on Line 2 by the present value factor on Line 3. 

Round your answer to the nearest dollar. This is the present value of your annuity

without your NAFI service credited.

5

6. Subtract the amount on Line 5 from the amount on Line 4. The balance represents

the present value of your NAFI service.

6

7. Enter the amount you calculated in Part 3, Line 4 (the NAFI funds that transferred to

the Civil Service Retirement and Disability Fund, including earnings).

7

8. Subtract the amount on Line 7 from the amount on Line 6. If the result is zero or

less, enter zero because there is no unfunded amount. If the result is more than

zero, enter the amount. This represents the unfunded amount of your annuity with

NAFI credit. It is called the "deficiency."

8

9. If you received a refund of FERS deductions, enter the amount you calculated in

Part 4, Line 4. If you never got a refund, enter zero.

9

10. Add together the amounts on Lines 8 and 9, and enter the total. This is the total

unfunded amount of your annuity. Your annuity will be permanently reduced to

collect the cost of the deficiency and the refunded FERS service.

10

11. Divide the amount on Line 10 by the present value factor on Line 3. Round the

result up to the next dollar. This is the monthly reduction in your annuity due to

crediting your NAFI and refunded service.

11
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 13

Part 6. Computing a single life annuity with no election of service credit for NAFI Service

If you have no refunded FERS service, enter the monthly amount you computed in Part 2, Line 7 on Line 9 below,

and skip to Part 7.

1. Enter your service from Box 2 of your PDS. If you used whole years and full

months, convert months to a factor using the chart below.

1

2. Enter your refunded FERS service from Box 7 of your PDS. Convert any

months used to the appropriate factor.

2

3. Subtract the service on Line 2 from the service on Line 1, and enter the

result. This is the service you will be credited with if you make no election.

3

4. Enter your estimated average salary at retirement from Box 5 of your

Personal Data Sheet (PDS).

4

5. Multiply Lines 3 and 4. 5

6. Compute the basic annuity. Multiply the amount on Line 5 by .01. (Use

.011, instead of .01, if you will be at least 62 when you retire and have at

least 20 years of service on Line 3.)

6

7. Divide the basic annuity on Line 6 by 12. Drop the cents. 7

8. If your retirement is based on the reduced benefit under the MRA-plus-10

provisions, enter the reduction factor for your age at retirement from the Age

Reduction Factors Table on page 2. For example, if you are 59 years old,

the reduction factor would be .85. Enter 1, if your benefit is not reduced for

age.

8

9. Multiply the monthly annuity on Line 7 by the reduction factor on Line 8. 

Drop the cents. This is your monthly annuity if you make no election and

before any reduction for survivor benefits.

9

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Months Months

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months would be .583,

and you would enter 22.583 on Line 2.
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 14

Part 7. Computing the monthly annuity rates

A. Your Monthly FERS Annuity With Your NAFI Service Credited

Annuity

without

Survivor

Benefits

1. Enter the single life annuity rate with NAFI credit from

Part 1, Line 7.

1

2. Enter the monthly reduction amount from Part 5,

Line 11.

2

3. Subtract the amount on Line 2 from the amount on Line

1. This is the amount of your reduced annuity if you

choose not to provide survivor benefits for a spouse.

3

Annuity

with

Survivor

Benefits

4. Multiply the amount on Line 3 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

4

5. Multiply the amount on Line 3 by .5. Drop the cents and

enter the result. This is the monthly survivor annuity

payable to your surviving spouse when you die.

5

B. Your Monthly FERS Annuity If You Make No Election and Receive No NAFI Credit

Annuity

without

Survivor

Benefits

1. Enter the single life annuity rate with no NAFI or

refunded FERS service credit from Part 6, Line 9. This

is your monthly annuity with no reduction for survivor

benefits for a spouse.

1

Annuity

with

Survivor

Benefits

2. Multiply the amount on Line 1 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

2

3. Multiply the amount on Line 1 by .5. Drop the cents and

enter the result. This is the monthly annuity that would

be payable to your surviving spouse when you die.

3
BAL 96-108 September 6, 1996

Attachment 9 Page 15

Worksheet B: Basic FERS Benefit

Election of FERS Credit for NAFI Service Under Public Law 104-106

Use Worksheet B, if you will not qualify for an immediate retirement without your NAFI Service.

Part 1. Computing a single life annuity with credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

2. Enter your service from Box 4 of your PDS. If you used whole

years and full months, convert months to a factor using the chart

below.

2

3. Multiply Lines 1 and 2. 3

4. Compute the basic annuity. Multiply the amount on Line 3 by .01. 

(Use .011, instead of .01, if you will be at least age 62 and have at

least 20 years of service when you retire.)

4

5. Divide the basic annuity on Line 4 by 12. Drop the cents. 5

6. If your retirement is based on the reduced benefit under the MRAplus-10 provisions, enter the reduction factor for your age at

retirement from the Age Reduction Factors Table on page 2. For

example, if you are 59 years old, the reduction factor would be .85. 

Enter 1, if your benefit is not reduced for age.

6

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity counting your

NAFI and refunded FERS service and before any reduction for

survivor benefits.

7

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 16

Part 2. Computing a single life deferred annuity without credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

2. Enter your service from Box 2 of your PDS. If you used whole

years and months, convert months to a factor using the chart below.

2

3. Multiply Lines 1 and 2. 3

4. Compute the basic annuity. Multiply the amount on Line 3 by .01. 4

5. Divide the basic annuity in Line 4 by 12. Drop the cents. 5

6. If you entered at least 10 years of service on Line 2, you are eligible

for deferred retirement as early as your MRA. Enter the reduction

factor for your MRA from the Age Reduction Factors Table on page

2. For example, if your MRA is 56 and 2 months, the reduction

factor would be .70834. If you have less than 10 years of service,

enter 1. (There is no reduction for deferred retirement at age 62.)

6

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity without

counting NAFI service and before any reduction for survivor

benefits.

7

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 17

Part 3. Computing the value of the transferred NAFI funds at retirement

1. Enter the number of years until your planned retirement date. 1

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest the transferred NAFI funds may earn between now and

your retirement date at an assumed rate of 7% per year. (The variable rate

actually in effect for FERS will be used in the final computation.)

2

3. Enter the amount of funds transferring from the NAFI Plan to FERS. (This

is the "Total Transferable Amount" in Block 8 on the Election of FERS With

Credit for NAFI Service Under Public Law 104-106 form.)

3

4. Multiply the amount on Line 3 by the factor on Line 2. Enter the result,

rounded to the nearest dollar. This is the approximate value, at retirement,

of the funds transferring from the NAFI Plan to FERS.

4

If you have refunded FERS service, complete Part 4. Otherwise, skip to Part 5.

Part 4. Updating the redeposit amount for refunded FERS deductions to your retirement

date.

1. Enter the number of years until your planned retirement date. 1

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest on your redeposit between now and your retirement date

at an assumed rate of 7% per year. (The variable rate actually in effect for

FERS will be used in the final computation.)

2

3. Enter the amount of the FERS redeposit calculated by your agency from

Box 6 of your PDS.

3

4. Multiply the amount of your FERS redeposit on Line 3 by the factor on Line

2. Enter the result, rounded to the nearest dollar. This represents the

approximate redeposit amount for your refunded FERS service at

retirement.

4
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 18

Part 5. Computing the monthly actuarial reduction if you elect NAFI service credit under

FERS.

Computing the Present Value of Your Annuity With NAFI Credit

1. Enter the single life annuity rate with NAFI credit from Part 1, Line 7. 1

2. Enter the present value factor for the age you entered in Box 1 of your PDS. Use

the attached FERS Present Value Factors chart for annuities that are not increased

by COLAS before age 62; however, the alternate Present Value Factors chart (on

page 5) will be used for the following types of annuities.

Exception: Disability annuitants receiving benefits based on actual service and employees retiring

under the special retirement provisions for law enforcement officers, firefighters, air traffic controllers,

and Congressional employees would use the alternate chart.

2

3. Multiply the single life annuity rate on Line 1 by the present value factor on Line 2. 

Round your answer to the nearest dollar. This is the present value of your annuity

with your NAFI service.

3

Computing the Present Value of Your Deferred Annuity Without NAFI Credit

4. Enter the single life annuity rate without NAFI credit from Part 2, Line 7. 4

5. Enter the present value factor for your age at your earliest deferred retirement date. 

If you have at least 10 years of service without NAFI credit, your earliest retirement

date is your MRA; otherwise, it's age 62. Use the FERS Present Value Factors

chart for annuities that are not increased by COLAS before age 62 (page 4).

5

6. Multiply the single life annuity on Line 4 by the present value factor on Line 5. 

Round your answer to the nearest dollar. This is the present value of your annuity

without your NAFI service credited but before any discount for early eligibility.

6

7. Enter the Discount Factor. Compute the time between your planned retirement date

and your earliest deferred retirement date without NAFI credit by subtracting your

retirement age in Box 1 of your PDS from your earliest deferred retirement age used

on Line 5. Using the Discount Factors Chart, enter the factor that corresponds to

the result.

Example: You're retiring at age 50 with NAFI credit. Without NAFI credit, you would be eligible for

deferred retirement at 56 and 2 months (your MRA if you were born in 1965).

56 and 2 months - 50 = 6 years and 2 months

The discount factor is .658870.

This factor discounts your deferred annuity by the interest earnings the retirement fund

loses because of your earlier eligibility for benefits.

7

8. Multiply Line 6 by Line 7. This is the discounted value of your deferred annuity. 8
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 19

Part 5. Computing the monthly actuarial reduction. (continued)

Computing the monthly reduction

9. Subtract the amount on Line 8 from the amount on Line 3. Enter the balance. This

represents the present value of your NAFI service.

9

10. Enter the amount you calculated in Part 3, Line 4. (This is the NAFI funds that

transferred to the Civil Service Retirement and Disability Fund, including earnings.)

10

11. Subtract the amount on Line 10 from the amount on Line 9. If the result is zero or

less, enter zero because there is no unfunded amount. If the result is more than

zero, enter the amount. This represents the unfunded amount of your annuity with

NAFI credit. It is called the "deficiency."

11

12. If you received a refund of FERS deductions, enter the amount you calculated in

Part 4, Line 4. If you never got a refund, enter zero.

12

13. Add together the amounts on Lines 11 and 12, and enter the total. This is the total

unfunded amount of your annuity. Your annuity will be permanently reduced to

collect the cost of the deficiency and the refunded FERS service.

13

14. Divide the amount on Line 13 by the present value factor on Line 2. Round the

result up to the next dollar. This is the monthly reduction in your annuity due to

crediting your NAFI and refunded service.

14
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 20

Part 6. Computing a single life annuity with no election of service credit for NAFI Service

If you have no refunded FERS service, enter the monthly amount you computed in Part 2, Line 7 on Line 9 below,

and skip to Part 7.

1. Enter your total service from Box 2 of your PDS. If you used whole years

and full months, convert any months to a factor using the chart below.

1

2. Enter your refunded FERS service from Box 7 of your PDS. Convert any

months to a factor.

2

3. Subtract the service on Line 2 from the service on Line 1, and enter the

remaining service. This is the service you will be credited with if you make

no election.

3

4. Enter your estimated average salary at retirement from Box 5 of your

Personal Data Sheet (PDS).

4

5. Multiply Lines 3 and 4. 5

6. Compute the basic annuity. Multiply the amount on Line 5 by .01. 6

7. Divide the basic annuity on Line 6 by 12. Drop the cents. 7

8. If you entered at least 10 years of service on Line 3, you are eligible for

deferred retirement as early as your MRA. Enter the reduction factor for

your MRA from the Age Reduction Factors Table on page 2. For example,

if your MRA is 56 and 2 months, the reduction factor would be .70834. If

you have less than 10 years of service, enter 1. (There's no reduction for

deferred retirement at age 62.)

8

9. Multiply the monthly annuity on Line 7 by the reduction factor on Line 8. 

Drop the cents. This is your monthly annuity if you make no election and

before any reduction for survivor benefits.

9

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Months Months

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months would be .583,

and you would enter 22.583 on Line 2.
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 21

Part 7. Computing the monthly annuity rates

A. Your Monthly FERS Annuity With Your NAFI Service Credited

Annuity

without

Survivor

Benefits

1. Enter the single life annuity rate with NAFI credit from

Part 1, Line 7.

1

2. Enter the monthly reduction amount from Part 5,

Line 14.

2

3. Subtract Line 2 from Line 1. This is the amount of your

reduced annuity if you choose not to provide survivor

benefits for a spouse.

3

Annuity

with

Survivor 

Benefits

4. Multiply the amount on Line 3 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

4

5. Multiply the amount on Line 3 by .5. Drop the cents and

enter the result. This is the monthly survivor annuity

payable to your surviving spouse when you die.

5

B. Your Monthly FERS Annuity If You Make No Election and Receive No NAFI Credit

Annuity

without

Survivor 

Benefits

1. Enter the single life annuity rate with no NAFI or

refunded FERS service credit from Part 6, Line 9. This

is your monthly annuity with no reduction for survivor

benefits for a spouse.

1

Annuity

with

Survivor

Benefits

2. Multiply the amount in Line 1 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

2

3. Multiply the amount in Line 1 by .5. Drop the cents and

enter the result. This is the monthly annuity that would

be payable to your surviving spouse when you die.

3
BAL 96-108 September 6, 1996

Attachment 9 Page 22

Examples Using the Worksheet

Example 1

Employee is 50 years old and has 3 years of service under FERS and 4 years of

military service. She has 10 years of prior nonappropriated fund service and $10,000

in NAFI funds that will transfer to the Civil Service Retirement and Disability Fund if

she elects FERS service credit for her NAFI service. She wants to know what her

FERS annuity would be with and without NAFI credit if she works until she is 62

years old. At that time, she'll have 29 years of service counting her 10 years of NAFI

time, and she expects her average salary to be $50,000.

See sample computation attached.

Example 2

Employee is 51 years old and has 2 years of service under FERS. He has 10 years of

prior nonappropriated fund service and $7,500 in NAFI funds that will transfer to the

Civil Service Retirement and Disability Fund if he elects FERS service credit for his

NAFI service. He wants to know what his FERS annuity would be with and without

NAFI credit if he works until he is 58 years old. At that time, he'll have 19 years of

service counting his 10 years of NAFI time, and he expects his average salary to be

$30,000.

See sample computation attached. 
BAL 96-108 September 6, 1996

Attachment 9 Page 23

Personal Data Sheet (PDS)

Election of FERS Credit for NAFI Service Under Public Law 104-106

Before you begin completing the worksheets, fill out the personal data below. This way, you will

establish some information and assumptions about your situation that can be used throughout the

worksheets to help ensure that your answers are consistent.

1. At what age do you want to retire? Use one of the Eligibility

Charts on the next page.

Box 1

62 Years

2. How much total service, including military service, do you

expect to have when you retire? Include any refunded FERS

service.

Box 2

19 Years Mos

3. How much creditable NAFI service do you have? Box 3

10 Years Mos

4. Enter the total from boxes 2 and 3. Box 4

29 Years Mos

5. Estimate what you expect your high-3 average salary to be

when you retire.

Box 5

50,000

$

6. If you have had FERS refunded service, how much do you

owe? Get an estimate of your redeposit from your retirement or

benefits counselor.

Box 6

$

7. How much refunded FERS service do you have? Box 7

Years Mos

USE WORKSHEET A, IF you will qualify for an immediate FERS retirement based on the age

and service requirements using your age from Box 1 and your FERS service from Box 2.

USE WORKSHEET B, IF you will not qualify for an immediate FERS retirement based on your

age from Box 1 and your FERS service from Box 2.
BAL 96-108 September 6, 1996

Attachment 9 Page 24

 Using A Shortcut

Election of FERS Credit for NAFI Service Under Public Law 104-106

If crediting your NAFI service will increase your annuity but will not change the date on which you

can retire, you can use a shortcut to estimate how much your NAFI service will increase your

benefit.

To compute the increase using the shortcut method:

1. Enter the number of years until your planned retirement date. 1

12

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest the transferred NAFI funds may earn between now

and your retirement date at an assumed rate of 7% per year. (The

variable rate actually in effect for FERS will be used in the final

computation.

2

2.252192

3. Enter the amount of funds transferring from the NAFI Plan to FERS. 

(This amount must be furnished by the NAFI retirement plan and is the

"Total Transferable Amount" in Block 8 on the Election of FERS With

Credit for NAFI Service Under Public Law 104-106 form.)

3

$10,000

4. Multiply the amount on Line 3 by the factor on Line 2. Enter the result,

rounded to the nearest dollar. This is the approximate value, at

retirement, of the funds transferring from the NAFI plan.

4

$22,522

5. Enter the present value factor for the age you entered in Box 1 of your

PDS. Use the attached FERS Present Value Factors chart for

annuities that are not increased by COLAS before age 62; however,

the alternate Present Value Factors chart (on page 5) will be used for

the following types of annuities.

Exception: Disability annuitants receiving benefits based on actual service and

employees retiring under the special retirement provisions for law enforcement

officers, firefighters, air traffic controllers, and Congressional employees would use

the alternate chart.

5

161.3

6. Divide the amount on Line 4 by the present value factor on Line 5. 

Drop the cents and enter the result. This is the monthly amount your

FERS annuity will increase if you elect to have your NAFI service

credited in your FERS retirement benefit.

6

$139

Skip to Part 6 to compute your annuity with no election of NAFI credit. Add the amount computed in

Line 6 above to the amount computed in Part 6. The total is your annuity with NAFI credit.

WARNING: Do not use the shortcut method if you have refunded FERS

service.
BAL 96-108 September 6, 1996

Attachment 9 Page 25

Worksheet A: Basic FERS Benefit

Election of FERS Credit for NAFI Service Under Public Law 104-106

Use Worksheet A, if you will qualify for an immediate FERS retirement both with and without credit for your NAFI service.

Part 1. Computing a single life annuity with credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

$50,000

2. Enter your service from Box 4 of your PDS. If you used whole

years and full months, convert months to a factor using the chart

below.

2

29 yrs.

3. Multiply Lines 1 and 2. 3

1,450,000

4. Compute the basic annuity. Multiply the amount on Line 3 by

.01. (Use .011, instead of .01, if you will be at least age 62 and

have at least 20 years of service when you retire.)

4

$15,950

5. Divide the basic annuity on Line 4 by 12. Drop the cents. 5

$1329

6. If your retirement is based on the reduced benefit under the

MRA-plus-10 provisions, enter the reduction factor for your age

at retirement from the Age Reduction Factors Table on page 2. 

For example, if you are 59 years old, the reduction factor would

be .85. Enter 1, if your benefit is not reduced for age.

6

1

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity counting

your NAFI and refunded FERS service and before any reduction

for survivor benefits.

7

$1329

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 26

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 27

Part 2. Computing a single life annuity without credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

$50,000

2. Enter your service from Box 2 of your PDS. If you used whole

years and full months, convert months to a factor using the chart

below.

2

19 yrs.

3. Multiply Lines 1 and 2. 3

950,000

4. Compute the basic annuity. Multiply the amount on Line 3 by

.01. (Use .011, instead of .01, if you will be at least age 62 and

have at least 20 years of service when you retire.)

4

$9,500

5. Divide the basic annuity on Line 4 by 12. Drop the cents. 5

$791

6. If your retirement is based on the reduced benefit under the

MRA-plus-10 provisions, enter the reduction factor for your age

at retirement from the Age Reduction Factors Table on page 2. 

For example, if you are 59 years old, the reduction factor would

be .85. Enter 1, if your benefit is not reduced for age.

6

1

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity without

counting NAFI service and before any reduction for survivor

benefits.

7

$791

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 28

Part 3. Computing the value of the transferred NAFI funds at retirement

1. Enter the number of years until your planned retirement date. 1

12

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest the transferred NAFI funds may earn between now

and your retirement date at an assumed rate of 7% per year. (The

variable rate actually in effect for FERS will be used in the final

computation.)

2

2.252192

3. Enter the amount of funds transferring from the NAFI plan to FERS. 

(This is the "Total Transferable Amount" in Block 8 on the Election of

FERS With Credit for NAFI Service Under Public Law 104-106 form.)

3

$10,000

4. Multiply the amount on Line 3 by the factor on Line 2. Enter the result,

rounded to the nearest dollar. This is the approximate value of the

transferred amount at retirement.

4

$22,522

If you have refunded FERS service, complete Part 4. Otherwise, skip to Part 5.

Part 4. Updating the redeposit amount for refunded FERS deductions to your retirement

date.

1. Enter the number of years until your planned retirement date. 1

N/A

2. Enter the factor from the Seven Percent Interest Factor Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest on your redeposit between now and your retirement

date at an assumed rate of 7% per year. (The variable rate actually in

effect for FERS will be used in the final computation.)

2

N/A

3. Enter the amount of the FERS redeposit calculated by your agency

from Box 6 of your PDS.

3

N/A

4. Multiply the amount of your FERS redeposit on Line 3 by the factor on

Line 2. Enter the result, rounded to the nearest dollar. This represents

the approximate redeposit amount for your refunded FERS service at

your retirement.

4

N/A
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 29

Part 5. Computing the monthly actuarial reduction if you elect NAFI service credit under

FERS.

1. Enter the single life annuity rate with NAFI credit from Part 1, Line 7. 1

$1329

2. Enter the single life annuity rate without NAFI credit from Part 2, Line 7. 2

$791

3. Enter the present value factor for the age you entered in Box 1 of your PDS. Use

the attached FERS Present Value Factors chart for annuities that are not increased

by COLAS before age 62; however, the alternate Present Value Factors chart (on

page 5) will be used for the following types of annuities.

Exception: Disability annuitants receiving benefits based on actual service and employees retiring

under the special retirement provisions for law enforcement officers, firefighters, air traffic controllers,

and Congressional employees would use the alternate chart.

3

161.3

4. Multiply the single life annuity rate on Line 1 by the present value factor on Line 3. 

Round your answer to the nearest dollar. This is the present value of your annuity

with your NAFI service.

4

$214,368

5. Multiply the single life annuity on Line 2 by the present value factor on Line 3. 

Round your answer to the nearest dollar. This is the present value of your annuity

without your NAFI service credited.

5

$127,588

6. Subtract the amount on Line 5 from the amount on Line 4. The balance represents

the present value of your NAFI service.

6

$86,780

7. Enter the amount you calculated in Part 3, Line 4 (the NAFI funds that transferred to

the Civil Service Retirement and Disability Fund, including earnings).

7

$22,522

8. Subtract the amount on Line 7 from the amount on Line 6. If the result is zero or

less, enter zero because there is no unfunded amount. If the result is more than

zero, enter the amount. This represents the unfunded amount of your annuity with

NAFI credit. It is called the "deficiency."

8

$64,258

9. If you received a refund of FERS deductions, enter the amount you calculated in

Part 4, Line 4. If you never got a refund, enter zero.

9

0

10. Add together the amounts on Lines 8 and 9, and enter the total. This is the total

unfunded amount of your annuity. Your annuity will be permanently reduced to

collect the cost of the deficiency and the refunded FERS service.

10

$64,258

11. Divide the amount on Line 10 by the present value factor on Line 3. Round the

result up to the next dollar. This is the monthly reduction in your annuity due to

crediting your NAFI and refunded service.

11

$399
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 30

Part 6. Computing a single life annuity with no election of service credit for NAFI Service

If you have no refunded FERS service, enter the monthly amount you computed in Part 2, Line 7 on Line 9 below,

and skip to Part 7.

1. Enter your service from Box 2 of your PDS. If you used whole years and full

months, convert months to a factor using the chart below.

1

2. Enter your refunded FERS service from Box 7 of your PDS. Convert any

months used to the appropriate factor.

2

3. Subtract the service on Line 2 from the service on Line 1, and enter the

result. This is the service you will be credited with if you make no election.

3

4. Enter your estimated average salary at retirement from Box 5 of your

Personal Data Sheet (PDS).

4

5. Multiply Lines 3 and 4. 5

6. Compute the basic annuity. Multiply the amount on Line 5 by .01. (Use

.011, instead of .01, if you will be at least 62 when you retire and have at

least 20 years of service on Line 3.)

6

7. Divide the basic annuity on Line 6 by 12. Drop the cents. 7

8. If your retirement is based on the reduced benefit under the MRA-plus-10

provisions, enter the reduction factor for your age at retirement from the Age

Reduction Factors Table. For example, if you are 59 years old, the

reduction factor would be .85. Enter 1, if your benefit is not reduced for age.

8

9. Multiply the monthly annuity on Line 7 by the reduction factor on Line 8. 

Drop the cents. This is your monthly annuity if you make no election and

before any reduction for survivor benefits.

9

$791

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Months Months

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months would be .583,

and you would enter 22.583 on Line 2.
Worksheet A (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 31

Part 7. Computing the monthly annuity rates

A. Your Monthly FERS Annuity With Your NAFI Service Credited

Annuity

without

Survivor

Benefits

1. Enter the single life annuity rate with NAFI credit from

Part 1, Line 7.

1

$1,329

2. Enter the monthly reduction amount from Part 5,

Line 11.

2

$399

3. Subtract the amount on Line 2 from the amount on Line

1. This is the amount of your reduced annuity if you

choose not to provide survivor benefits for a spouse.

3

$930

Annuity

with

Survivor 

Benefits

4. Multiply the amount on Line 3 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

4

$837

5. Multiply the amount on Line 3 by .5. Drop the cents and

enter the result. This is the monthly survivor annuity

payable to your surviving spouse when you die.

5

$465

B. Your Monthly FERS Annuity If You Make No Election and Receive No NAFI Credit

Annuity

without

Survivor 

Benefits

1. Enter the single life annuity rate with no NAFI or

refunded FERS service credit from Part 6, Line 9. This

is your monthly annuity with no reduction for survivor

benefits for a spouse.

1

$791

Annuity

with

Survivor

Benefits

2. Multiply the amount on Line 1 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

2

$711

3. Multiply the amount on Line 1 by .5. Drop the cents and

enter the result. This is the monthly annuity that would

be payable to your surviving spouse when you die.

3

$395
BAL 96-108 September 6, 1996

Attachment 9 Page 32

Personal Data Sheet (PDS)

Election of FERS Credit for NAFI Service Under Public Law 104-106

Before you begin completing the worksheets, fill out the personal data below. This way, you will

establish some information and assumptions about your situation that can be used throughout the

worksheets to help ensure that your answers are consistent.

1. At what age do you want to retire? Use one of the Eligibility

Charts on the next page.

Box 1

58 Years

2. How much total service, including military service, do you

expect to have when you retire? Include any refunded FERS

service.

Box 2

9 Years Mos

3. How much creditable NAFI service do you have? Box 3

10 Years Mos

4. Enter the total from boxes 2 and 3. Box 4

19 Years Mos

5. Estimate what you expect your high-3 average salary to be

when you retire.

Box 5

30,000

$

6. If you have had FERS refunded service, how much do you

owe? Get an estimate of your redeposit from your retirement or

benefits counselor.

Box 6

N/A

$

7. How much refunded FERS service do you have? Box 7

N/A

Years Mos

USE WORKSHEET A, IF you will qualify for an immediate FERS retirement based on the age

and service requirements using your age from Box 1 and your FERS service from Box 2.

USE WORKSHEET B, IF you will not qualify for an immediate FERS retirement based on your

age from Box 1 and your FERS service from Box 2.
BAL 96-108 September 6, 1996

Attachment 9 Page 33
BAL 96-108 September 6, 1996

Attachment 9 Page 34

Worksheet B: Basic FERS Benefit

Election of FERS Credit for NAFI Service Under Public Law 104-106

Use Worksheet B, if you will not qualify for an immediate retirement without your NAFI Service.

Part 1. Computing a single life annuity with credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

$30,000

2. Enter your service from Box 4 of your PDS. If you used whole

years and full months, convert months to a factor using the chart

below.

2

19

3. Multiply Lines 1 and 2. 3

570,000

4. Compute the basic annuity. Multiply the amount on Line 3 by .01. 

(Use .011, instead of .01, if you will be at least age 62 and have at

least 20 years of service when you retire.)

4

$5700

5. Divide the basic annuity on Line 4 by 12. Drop the cents. 5

$475

6. If your retirement is based on the reduced benefit under the MRAplus-10 provisions, enter the reduction factor for your age at

retirement from the Age Reduction Factors Table on page 2. For

example, if you are 59 years old, the reduction factor would be .85. 

Enter 1, if your benefit is not reduced for age.

6

.80

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity counting your

NAFI and refunded FERS service and before any reduction for

survivor benefits.

7

$380

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 35

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 36

Part 2. Computing a single life deferred annuity without credit for NAFI Service

1. Enter your estimated average salary at retirement from Box 5 of

your Personal Data Sheet (PDS).

1

$30,000

2. Enter your service from Box 2 of your PDS. If you used whole

years and months, convert months to a factor using the chart below.

2

9

3. Multiply Lines 1 and 2. 3

270,000

4. Compute the basic annuity. Multiply the amount on Line 3 by .01. 4

$2700

5. Divide the basic annuity in Line 4 by 12. Drop the cents. 5

$225

6. If you entered at least 10 years of service on Line 2, you are eligible

for deferred retirement as early as your MRA. Enter the reduction

factor for your MRA from the Age Reduction Factors Table on page

2. For example, if your MRA is 56 and 2 months, the reduction

factor would be .70834. If you have less than 10 years of service,

enter 1. (There is no reduction for deferred retirement at age 62.)

6

1

7. Multiply the monthly annuity on Line 5 by the reduction factor on

Line 6. Drop the cents. This is your monthly annuity without

counting NAFI service and before any reduction for survivor

benefits.

7

$225

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Month Month

s s

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months

would be .583, and you would enter 22.583 on Line 2.
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 37

Part 3. Computing the value of the transferred NAFI funds at retirement

1. Enter the number of years until your planned retirement date. 1

7

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest the transferred NAFI funds may earn between now and

your retirement date at an assumed rate of 7% per year. (The variable rate

actually in effect for FERS will be used in the final computation.)

2

1.605781

3. Enter the amount of funds transferring from the NAFI Plan to FERS. (This

is the "Total Transferable Amount" in Block 8 on the Election of FERS With

Credit for NAFI Service Under Public Law 104-106 form.)

3

$7,500

4. Multiply the amount on Line 3 by the factor on Line 2. Enter the result,

rounded to the nearest dollar. This is the approximate value, at retirement,

of the funds transferring from the NAFI Plan to FERS.

4

$12,043

If you have refunded FERS service, complete Part 4. Otherwise, skip to Part 5.

Part 4. Updating the redeposit amount for refunded FERS deductions to your retirement

date.

1. Enter the number of years until your planned retirement date. 1

N/A

2. Enter the factor from the Seven Percent Interest Factors Chart that

corresponds to the years you entered on Line 1. This factor estimates

additional interest on your redeposit between now and your retirement date

at an assumed rate of 7% per year. (The variable rate actually in effect for

FERS will be used in the final computation.)

2

N/A

3. Enter the amount of the FERS redeposit calculated by your agency from

Box 6 of your PDS.

3

N/A

4. Multiply the amount of your FERS redeposit on Line 3 by the factor on Line

2. Enter the result, rounded to the nearest dollar. This represents the

approximate redeposit amount for your refunded FERS service at

retirement.

4

N/A
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 38

Part 5. Computing the monthly actuarial reduction if you elect NAFI service credit under

FERS.

Computing the Present Value of Your Annuity With NAFI Credit

1. Enter the single life annuity rate with NAFI credit from Part 1, Line 7. 1

$380

2. Enter the present value factor for the age you entered in Box 1 of your PDS. Use

the attached FERS Present Value Factors chart for annuities that are not increased

by COLAS before age 62; however, the alternate Present Value Factors chart (on

page 5) will be used for the following types of annuities.

Exception: Disability annuitants receiving benefits based on actual service and employees retiring

under the special retirement provisions for law enforcement officers, firefighters, air traffic controllers,

and Congressional employees would use the alternate chart.

2

160.4

3. Multiply the single life annuity rate on Line 1 by the present value factor on Line 2. 

Round your answer to the nearest dollar. This is the present value of your annuity

with your NAFI service.

3

$60,952

Computing the Present Value of Your Deferred Annuity Without NAFI Credit

4. Enter the single life annuity rate without NAFI credit from Part 2, Line 7. 4

$225

5. Enter the present value factor for your age at your earliest deferred retirement date. 

If you have at least 10 years of service without NAFI credit, your earliest retirement

date is your MRA; otherwise, it's age 62. Use the FERS Present Value Factors

chart for annuities that are not increased by COLAS before age 62 (page 4).

5

161.3

6. Multiply the single life annuity on Line 4 by the present value factor on Line 5. 

Round your answer to the nearest dollar. This is the present value of your annuity

without your NAFI service credited but before any discount for early eligibility.

6

$36,293

7. Enter the Discount Factor. Compute the time between your planned retirement date

and your earliest deferred retirement date without NAFI credit by subtracting your

retirement age in Box 1 of your PDS from your earliest deferred retirement age used

on Line 5. Using the Discount Factors Chart, enter the factor that corresponds to

the result.

Example: You're retiring at age 50 with NAFI credit. Without NAFI credit, you would be eligible for

deferred retirement at 56 and 2 months (your MRA if you were born in 1965).

56 and 2 months - 50 = 6 years and 2 months

The discount factor is .658870.

This factor discounts your deferred annuity by the interest earnings the retirement fund

loses because of your earlier eligibility for benefits.

7

.762895

8. Multiply Line 6 by Line 7. This is the discounted value of your deferred annuity. 8

$27,688
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 39

Part 5. Computing the monthly actuarial reduction. (continued)

Computing the monthly reduction

9. Subtract the amount on Line 8 from the amount on Line 3. Enter the balance. This

represents the present value of your NAFI service.

9

$33,264

10. Enter the amount you calculated in Part 3, Line 4. (This is the NAFI funds that

transferred to the Civil Service Retirement and Disability Fund, including earnings.)

10

$12,043

11. Subtract the amount on Line 10 from the amount on Line 9. If the result is zero or

less, enter zero because there is no unfunded amount. If the result is more than

zero, enter the amount. This represents the unfunded amount of your annuity with

NAFI credit. It is called the "deficiency."

11

$21,221

12. If you received a refund of FERS deductions, enter the amount you calculated in

Part 4, Line 4. If you never got a refund, enter zero.

12

0

13. Add together the amounts on Lines 11 and 12, and enter the total. This is the total

unfunded amount of your annuity. Your annuity will be permanently reduced to

collect the cost of the deficiency and the refunded FERS service.

13

$21,221

14. Divide the amount on Line 13 by the present value factor on Line 2. Round the

result up to the next dollar. This is the monthly reduction in your annuity due to

crediting your NAFI and refunded service.

14

$133
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 40

Part 6. Computing a single life annuity with no election of service credit for NAFI Service

If you have no refunded FERS service, enter the monthly amount you computed in Part 2, Line 7 on Line 9 below,

and skip to Part 7.

1. Enter your total service from Box 2 of your PDS. If you used whole years

and full months, convert any months to a factor using the chart below.

1

2. Enter your refunded FERS service from Box 7 of your PDS. Convert any

months to a factor.

2

3. Subtract the service on Line 2 from the service on Line 1, and enter the

remaining service. This is the service you will be credited with if you make

no election.

3

4. Enter your estimated average salary at retirement from Box 5 of your

Personal Data Sheet (PDS).

4

5. Multiply Lines 3 and 4. 5

6. Compute the basic annuity. Multiply the amount on Line 5 by .01. 6

7. Divide the basic annuity on Line 6 by 12. Drop the cents. 7

8. If you entered at least 10 years of service on Line 3, you are eligible for

deferred retirement as early as your MRA. Enter the reduction factor for

your MRA from the Age Reduction Factors Table on page 2. For example,

if your MRA is 56 and 2 months, the reduction factor would be .70834. If

you have less than 10 years of service, enter 1. (There's no reduction for

deferred retirement at age 62.)

8

9. Multiply the monthly annuity on Line 7 by the reduction factor on Line 8. 

Drop the cents. This is your monthly annuity if you make no election and

before any reduction for survivor benefits.

9

$225

Monthly Factor Chart

No. of Factor No. of Factor No. of Factor

Months Months Months

1 .083 5 .417 9 .750

2 .167 6 .500 10 .833

3 .250 7 .583 11 .917

4 .333 8 .667

Example: If you had 22 years and 7 months service, the factor for 7 months would be .583,

and you would enter 22.583 on Line 2.
Worksheet B (continued)

BAL 96-108 September 6, 1996

Attachment 9 Page 41

Part 7. Computing the monthly annuity rates

A. Your Monthly FERS Annuity With Your NAFI Service Credited

Annuity

without

Survivor

Benefits

1. Enter the single life annuity rate with NAFI credit from

Part 1, Line 7.

1

$380

2. Enter the monthly reduction amount from Part 5,

Line 14.

2

$133

3. Subtract Line 2 from Line 1. This is the amount of your

reduced annuity if you choose not to provide survivor

benefits for a spouse.

3

$247

Annuity

with

Survivor 

Benefits

4. Multiply the amount on Line 3 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

4

$222

5. Multiply the amount on Line 3 by .5. Drop the cents and

enter the result. This is the monthly survivor annuity

payable to your surviving spouse when you die.

5

$123

B. Your Monthly FERS Annuity If You Make No Election and Receive No NAFI Credit

Annuity

without

Survivor 

Benefits

1. Enter the single life annuity rate with no NAFI or

refunded FERS service credit from Part 6, Line 9. This

is your monthly annuity with no reduction for survivor

benefits for a spouse.

1

$225

Annuity

with

Survivor

Benefits

2. Multiply the amount in Line 1 by .9. Drop the cents and

enter the result. This is your monthly annuity after it has

been reduced to provide the maximum survivor benefit

for your spouse.

2

$202

3. Multiply the amount in Line 1 by .5. Drop the cents and

enter the result. This is the monthly annuity that would

be payable to your surviving spouse when you die.

3

$112