Civil Service Retirement for Employees of Nonappropriated Fund Instrumentalities

Nonappropriated fund instrumentalities (NAFI) personnel meet the general criteria used to define Federal employees but are excluded by law from civil service retirement coverage. H.R. 2660 and H.R. 5181 would have amended the law to permit certain periods of service by NAFI employees in special services recreation and morale programs of the Armed Forces to be included as creditable service under the civil service retirement system. GAO cannot support the changes under these bills, however, because they would only serve to continue the piecemeal development of Federal retirement systems and compound inconsistencies and inequities. Instead, Congress should establish definitive criteria as part of an overall Federal retirement policy.