Q. Overview:  I began in the Air Force Non-Appropriated Fund in 1996, enrolled in NAF retirement plan in 2000, ported to GS in 2005 with deferral of my NAF retirement (calculated at 5.27 yrs) and entered FERS. My current GS position will be abolished in 2014 (at nine years FERS). I have the potential of porting into a NAF position. I wish I had just retained NAF retirement, but lack of research and misguided human resources recommendations led me to where I am with a split retirement outlook.

Given my FERS time will total only nine years at abolishment, if I move to NAF:

* Will I have the option of re-entering the NAF retirement system, or am I required to remain in FERS?

* If I can switch back to NAF retirement, will I have to wait until 62 to draw any FERS retirement since I only achieved nine years, versus reaching MRA+10?

* Will I be able to retain Thrift Savings Plan in nonactive status (until draws begin at 59½) and begin contributing into the NAF 401(k), or will I have to roll TSP into 401(k)?

* Are there any conflicts with drawing two annuities at retirement (both APF and NAF)?

* Does AF NAF retirement pay the full amount of the retirement calculation (less 4 percent for each year before age 62) until I reach age 62? And is the only reduction at 62 the annuity reduction calculated at 2.5 percent of Social Security (x) # of NAF years?

* At age 65, do the health benefits automatically roll to supplementary when Medicare starts?

* What is the current cost for full family coverage and also the current cost for just the supplementary insurance?

* If, at 65, full coverage reduces to supplementary and my spouse is not yet 65 years old, can I elect to continue full coverage?

* If the NAF position is abolished via business-based action (after 2016) is there the possibility of being offered a Voluntary Early Retirement Authority/Voluntary Separation Incentive Pay retirement based on my service computation date providing 20 years of combined continuous service without a break since 1996?

A. Mike: You may maintain your TSP account.

Reg: I wish I could be of help but I don’t know anything about the rules that cover someone transferring from FERS to a NAF position. You’ll have to check with the NAF personnel office.


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Mike Miles is a Certified Financial Planner licensee and principal adviser for Variplan LLC, an independent fiduciary in Vienna, Virginia. Email your financial questions to fedexperts@federaltimes.com and view his blog at money.federaltimes.com.

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