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Nonappropriated Fund Policy

DOD Nonappropriated Fund (NAF) employers include the Department of the Navy (Navy Exchange Service Command (NEXCOM); Commander, Navy Installations Command (CNIC); and U.S Marine Corps), the Department of the Army, the Department of the Air Force, the Army and Air Force Exchange Service (AAFES), and several DOD Agencies. Pay for the NAF workforce is primarily from self-generated funds rather than taxpayer funds appropriated by Congress.

DCPAS oversees the DOD NAF portability of benefits policy for employee moves between NAF and appropriated fund positions or between appropriated fund and NAF positions. Additionally, DCPAS administers the NAF Health Benefits Program, a Congressionally mandated single, uniform health benefits program for NAF employees. DCPAS serves as DOD's primary point of contact for NAF human resources issues and works in close cooperation with its counterparts in the Office of the Secretary of Defense, Military Departments’ headquarters, and Exchange and Morale, Welfare, and Recreation (MWR) Communities.