Civilian Personnel Advisory Center
Portability & Interchange Prgm

OFFICE OF PERSONNEL MANAGEMENT (OPM) INTERCHANGE AGREEMENT

The Department of Defense/OPM interchange agreement, approved September 21, 1991, allows eligible NAF employees to apply for APF or civil service positions without being referred from civil service registers, and it allows employees serving in positions in the competitive civil service to be appointed to NAF positions. Appointments under the interchange agreement are considered voluntary. Eligible DoD NAF employees may apply for positions at any grade level (e.g., eligible NAF employees may apply for Army APF civilian career program positions filled through the Army Civilian Career Evaluation System by registering in that system). NAF employees applying for APF positions will be considered along with applicants who are eligible to transfer from other government agencies.
NAF employees who are appointed in the competitive civil service under the terms of the Interchange Agreement will receive competitive civil service status. Thereafter, such employees will be entitled to the benefits and privileges provided by the civil service rules and by OPM's regulations. Employees of the competitive civil service who are appointed to NAF positions under the terms of this agreement will have benefits and privileges in accordance with Army NAF personnel regulations.

PORTABILITY OF BENEFITS FOR NAF EMPLOYEES ACT OF 1990

In 1987, Congress directed the re-categorization of activities to limit the use of appropriated funds in Morale, Welfare and Recreation programs. In so doing, many positions changed from one employment system to another (Civil Service to NAF or vice versa) impacting employee benefits and entitlements of incumbents of the affected positions. To prevent loss of entitlements, the Portability of Benefits Act was enacted retroactively effective January 1, 1987. The Portability of Benefits Act provides pay, leave, health and life insurance coverage, and for eligible employees election in retirement coverage. To be eligible for provisions contained within the law, the move between employment systems must have been made without a break in service of more than 3 days. The law applies regardless of whether the move is involuntary or voluntary. Provisions are applied differently depending on how the move is made; therefore, it is important to consult with your APF and NAF personnel representatives when anticipating a move between the two systems so that you know your entitlements under the law.
The Defense Authorization Act for Fiscal Year 1996, provided new retirement coverage elections for certain employees who moved within one year between the NAF and APF systems after December 31, 1965. It expanded the retirement election provisions of the Portability of Benefits Act.

See Decision Guide for more information.