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DOCUMENT RESUME
07991 - fC33484451
r 1ntitlements to Cost of Living Allowances and Retirement
Credits for Nouappropriated Fund Employees]. FFCD-79-6;
B-148581. November 29, 1978. 5 pp.
Report to Sen. Abraham Ribicoff; by B. L. Krieger, Director,
Federal Personnel and Compensation Div.
Issue Area: Personnel management and Compensation 4300).
Contact: Federal Personnel and Compensation Div.
Budget Function: General Government: Central Personnel
Manaqement (805).
Orqanization Concerned: Department of Defense.
Congressional Relevance: Sen. Abraham Ribicoff.
Autho -ity: Overseas Differentials and Allowances Act (5 U.S.C.
5924). Executive Order 11137.
The entitlement of nonappropriated fund (NAP) employee
stationed overseas, and particularly of George V. Decjay, to
cost-of-livinq allowances (COLA) and retirement credo4,s was
questiraed. Department of Defense (DOD) guidelines b, te that
U.S. citizens recruited in thp United States for NAP employment
overseas are entitled to COLA, but NAP employees hired Iccally
in an overseas area are not eligible. This distinction does not
apply to appropriated fund employees. Mr. Deojay was hired
locally in Germany by NAF activities and, therefore, was not
qranted the allowance. LjD decided against exceptions to
regulations which would allow payment of COLA to local bires,
citing additional costs. NAF employees are excluded by law from
participation in the U.S. civil service retirement system. The
NAF activities have established their own retirement systems,
but pension rights among systems are not transferratle except
under special circumstances, Mr. Deojay and many other employees
lost retirement benefits by transferring tetwien NAP activities.
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