NAF YEAR 2008 BUDGET UPDATE

R 222116Z JAN 08 ZUI ASN-A00022000019 ZYB
FM COMDT COGARD WASHINGTON DC//CG-1//
TO ALCOAST
BT
UNCLAS //N01710//
ALCOAST 026/08
COMDTNOTE 1710
SUBJ: NAF YEAR 2008 BUDGET UPDATE
A. COAST GUARD MORALE, WELL-BEING, AND RECREATION MANUAL,
COMDTINST M1710.13(SERIES)
1. THE COAST GUARD TRUST FUND BOARD RECENTLY APPROVED THE NAF YEAR
2008 CENTRAL MWR BUDGET. THIS BUDGET PROVIDES FOR A STRAIGHT PER
CAPITA DISTRIBUTION OF 35 DOLLARS PER ACTIVE DUTY BILLET ON THE
PERSONNEL ALLOWANCE LIST (PAL). BEGINNING IN NAF YEAR 2008, ALL
UNITS WILL BE RECEIVING A STRAIGHT PER CAPITA DISTRIBUTION AND REF
(A) WILL BE AMENDED TO REFLECT THIS CHANGE. THIS CHANGE IMPLEMENTS
THE PER CAPITA DISTRIBUTION GOAL PREVIOUSLY ANNOUNCED.
2. COLA FOR THOSE ELIGIBLE NAF EMPLOYEES IS 3.0 PERCENT FOR NAF
YEAR 2008 AND WILL BE EFFECTIVE IN THE PAY PERIOD BEGINNING 10 FEB
2008.
3. THE COST OF THE HEALTH CARE PREMIUMS FOR OUR NAF EMPLOYEES
ENROLLED IN THE NAF EMPLOYEE HEALTH CARE PLAN WILL INCREASE
APPROXIMATELY 12 PERCENT FOR NAF YEAR 2008. COMMANDS SHOULD NOTE
THAT THEY PAY 75 PERCENT OF THE TOTAL PREMIUM WHILE OUR EMPLOYEES
PAY 25 PERCENT. BOTH THE EMPLOYER AND EMPLOYEE WILL SEE THIS
INCREASE. ALL NAF EMPLOYEES CURRENTLY ENROLLED IN THE PLAN WILL BE
RECEIVING A LETTER DIRECTLY FROM COMDT (CG-103) REGARDING THIS
INCREASE AND A POSSIBLE LOWER COST HEALTH CARE OPTION. THE REVISED
PREMIUM DEDUCTIONS WILL TAKE AFFECT DURING THE NAF PAY PERIOD
COMMENCING 27 JAN 08. SINCE OUR INSURANCE COSTS ARE EXPERIENCE-
BASED AND OUR EMPLOYEE POOL IS RELATIVELY SMALL AND AGING, WE
CONTINUE TO BE FORCED TO MAKE DIFFICULT CHANGES TO THE HEALTH CARE
PROGRAM AVAILABLE TO OUR NAF EMPLOYEES IN ORDER TO KEEP HEALTH CARE
COSTS AFFORDABLE FOR OUR NAF PROGRAMS AND THE PARTICIPATING
EMPLOYEES. IN NAF YEAR 2008, WE WILL AGAIN LOOK AT CHANGES TO THE
HEALTH CARE PLAN OFFERED TO OUR EMPLOYEES TO MAKE IT AFFORDABLE AND
COMPETITIVE.
4. THE EMPLOYERS SHARE OF NAF EMPLOYEE RETIREMENT FOR THOSE NAF
EMPLOYEES ENROLLED IN THE NAF RETIREMENT PLAN IS 5.94 PERCENT FOR
NAF YEAR 2008.
5. FINALLY IN NAF YEAR 2008, COMMANDS WITH MWR NAF EMPLOYEES
INCURRING WORKERS COMPENSATION EXPENSES WILL BE REQUIRED TO PAY THE
FIRST 5,000 DOLLARS OF THE EXPENSES ASSOCIATED WITH EACH EMPLOYEES
CLAIM. COMMANDS WILL BE INVOICED FOR THIS EXPENSE IN FEB 09 AFTER
THE NAF YEAR CLOSES.
6. IN THE EXECUTION OF NAF YEAR 2008 BUDGETS AND IN THE
PRELIMINARY PREPARATION OF NAF YEAR 2009 BUDGETS, COMMANDS MUST
AVOID OPERATING BUSINESS ACTIVITIES AT A LOSS AND ELIMINATE
DEPENDENCE ON PER CAPITA DISTRIBUTIONS TO FUND NAF SALARIES.
ADDITIONALLY, COMMANDS THAT MAKE PER CAPITA DISTRIBUTIONS TO OTHER
COMMANDS IN AN AOR AND TAX THOSE DISTRIBUTIONS SHOULD ENSURE THAT
COMMANDS IN THE AOR ARE FULLY AWARE OF THIS TAX AND ITS PURPOSES.
WE CONTINUE TO ADDRESS QUERIES FROM THE FIELD REGARDING CHANGES TO
THE PER CAPITA DISTRIBUTION THAT WAS APPROVED BY THE TRUST FUND
BOARD.
7. QUESTIONS REGARDING THESE FACTORS MAY BE ADDRESSED TO MR. GARY
SCHEER AT (757) 420-2480, EXTENSION 3035 OR MR. RON RAY AT EXT.
3033.
8. INTERNET RELEASE AUTHORIZED.
9. RELEASED BY RADM CLIFFORD I. PEARSON, ASSISTANT COMMANDANT FOR
HUMAN RESOURCES.
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