Documenting Reservist Differential based upon Office of Personnel Management (OPM) Update 52
The employee and Agency both have responsibilities when it comes to Military orders.
Employee Responsibilities
Employees are responsible for providing notice of their deployment to their Agency as far in advance as reasonable.
Note: Employees must contact their civilian human resources office as soon as they return to their civilian position.
Note: It is the employee’s responsibility to ensure that Federal Employees Health Benefits (FEHB) coverage and premiums resume upon return to duty.
Annual Leave
Employees who perform active military duty may request the use of accrued and accumulated annual leave to their credit (under 5 U.S.C. 6303 and 6304), and such requests must be granted by the Agency. In addition, requests for advanced annual leave may be granted at the Agency's discretion.
Employees who use annual leave will receive compensation from their civilian position for all hours charged to annual leave in addition to their military pay for the same period. Employees who enter into active military duty may choose to (1) have their annual leave remain as credit until they return to their civilian position, or (2) receive a lump-sum payment for all accrued and accumulated annual leave.
Leave Without Pay (LWOP)
The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) requires an Agency to place an employee entering military service on leave without pay (LWOP) unless the employee chooses to be placed on military leave or annual leave, as appropriate, or the employee requests to be separated. Full-time employees do not earn annual or sick leave in a pay period in which they have accumulated 80 hours of LWOP. In addition, part-time employees on LWOP also earn less annual and sick leave, since they earn leave based on the number of hours in a pay status.
Health Benefits
Employees who are in a nonpay status or separated while on military duty for more than 30 days may keep their Federal Employees Health Benefits (FEHB) coverage for up to 24 months from the date the absence to serve on military duty begins. Further information on FEHB coverage can be obtained on the OPM website.
Note: Many Agencies are paying the employee's health benefits premium share, in addition to the employer's health benefits premium share for covered employees ordered to active duty in support of a contingency operation. Employees should check with their human resources office and their military orders to see if they qualify for this benefit.
Premium Conversion
If participating in Premium Conversion, the employee has 60 days from the start of their uniformed service to waive participation, which would allow them to cancel FEHB coverage at any time later. If they do not waive premium conversion within the 60-day limit, they cannot cancel their FEHB except during the annual FEHB open season or within 60 days after another qualifying life event.
Life Insurance
Employees who are in a nonpay status while on military duty may keep their Federal Employees' Group Life Insurance (FEGLI) coverage for up to 12 months. This coverage is free. At the end of 12 months in nonpay status, the coverage terminates. Employees get a free 31-day extension of coverage and have the right to convert to a nongroup policy. More information on life insurance benefits can be found on OPM and Department of Veterans Affairs websites.
Public Law 110-181 allows employees to continue their FEGLI enrollment for an additional 12 months, for a total of 24 months. Employees will pay both employee and Agency share of the premiums for basic and any optional insurance. There is no Agency share for the optional insurance.
Note: New FEGLI Election Opportunity is only for civilian employees deployed in support of a contingency operation and employees designated as emergency essential employees.
If the employee separates from employment, their FEGLI coverage will continue at no cost for up to 12 months or until 90 days after their military service ends, whichever date comes first, and then their coverage terminates with an automatic 31-day free extension of coverage and the right to convert to a private policy.
Flexible Spending Account (FSA)
The employee must notify Federal Flexible Spending Account Program (FSAFEDS) of their entrance on absent - uniformed service and upon their return to civilian service by calling 1-877- 372-3337.
The employee may contact FSAFEDS to accelerate their pre-tax deductions prior to entering non-pay status. No contributions will be deposited into their account during their absence.
If the employee decides to separate from civilian service, their FSA will terminate as of the date of their separation. There are no extensions. Any health care expenses incurred prior to the date of separation will still be reimbursable but those incurred after the date of separation are not reimbursable.
Thrift Savings Plan
For purposes of the Thrift Savings Plan (TSP), no contributions can be made, either by the Agency or the employee, for any time in LWOP status or for a period of separation. Agencies should refer to the Thrift Savings Plan Bulletin for Agency TSP Representatives, 12-2, dated February 18, 2020. For additional information, Agency representatives may contact the Federal Retirement Thrift Investment Board at 202-942-1460. Employees should refer to the TSP Fact Sheet - Effect of Nonpay Status on TSP Participation. Both issuances are available from the TSP website. If employees are subsequently reemployed in, or restored to, a position covered by FERS or CSRS pursuant to 38 U.S.C. chapter 43, they may make up missed contributions. FERS employees are entitled to receive retroactive Agency/Service Automatic (1%) Contributions and, if they make up their own contributions, they can receive retroactive Agency/Service Matching Contributions. If FERS employees separate and their Agency/Service Automatic (1%) Contributions and associated earnings are forfeited because they did not meet the TSP vesting requirement, they are entitled to have these funds restored to their accounts after they are reemployed. In addition, if FERS employees separate and their accounts are disbursed as automatic cashouts, they may return to TSP an amount equal to the full amount of the payment after they are reemployed.
If the employee is restored to their civilian position under USERRA, they may make retroactive TSP contributions and elections, including missed catch-up contributions, if otherwise eligible. The employee will need to contact their employing office within 60 days of return to civilian duty to elect to make retroactive TSP contributions and elections.
Retroactive contributions and elections will be reduced if the employee contributed to TSP as a uniformed service member while on active duty. If the employee contributes to their uniformed services TSP account while on active duty, they are responsible for providing all their military Earnings and Leave Statement forms as documentation of those contributions.
If the employee has a current outstanding TSP loan, they may request that their employing office notify TSP of their non-pay status under USERRA so that their loan payments will be suspended. The employee cannot make a loan payment to their civilian account as a deduction from their military pay, and interest will accrue while their loan payments are suspended. The employee must notify their employing office immediately upon return to civilian duty so they may notify TSP of same, in order to avoid a taxable distribution.
Retirement
An employee who is placed in LWOP status while performing active military duty continues to be covered by retirement law, e.g., the Civil Service Retirement System (CSRS) or the Federal Employees Retirement System (FERS). Death benefits will be paid as if they were still in the civilian position. If the employee becomes disabled during LWOP and has the minimum amount of civilian service necessary for disability benefits (5 years for CSRS, 18 months for FERS), the employee will become entitled to disability benefits under the retirement law. Upon eventual retirement from civilian service, the period of military service is creditable under either CSRS or FERS, subject to the rules for crediting military service. If an employee separates to enter active military duty, they will receive retirement credit for the period of separation when the employee exercises restoration rights to their civilian position. If the separated employee does not exercise the restoration right, but later reenters Federal civilian service, the military service may be credited under the retirement system, subject to the rules governing credit for military service.
CSRS Employees
A military deposit is required to receive credit for the period of military service toward civilian retirement and the deposit must be paid in full prior to retirement. If not eligible for a Social Security benefit at age 62, there is no need to pay a deposit.
If the employee is restored under USERRA (return from military service within five years; exception during a period of national emergency), the deposit will be calculated using the lesser of the CSRS or FERS retirement contributions attributed to the period of military service or the military deposit amount based on their military base pay.
If the employee is not restored under USERRA, the military deposit calculation would be based on their military base pay if their military service was performed under 10 U.S.C. If their military service was performed under 32 U.S.C., they will receive credit for six months for each calendar year while on absent - uniformed service. (Military service performed under 32 U.S.C. is not creditable unless the employee returns to civilian duty via exercise of restoration rights under USERRA, and pays the military deposit.)
Return To Civilian Duty
An employee who enters active military duty (voluntarily or involuntarily) from any position, including a temporary position, has full job protection, provided he or she applies for reemployment within the following time limits:
- Employees who serve less than 31 days must report back to work at the beginning of the next scheduled workday following their release from service and the expiration of 8 hours after a time for safe transportation back to the employee's residence.
- Employees who serve more than 30 days, but less than 181 days, must apply for reemployment within 14 days of release by the military.
- Employees who serve more than 180 days have 90 days to apply for reemployment.
- Employees who serve less than 91 days must be restored to the position for which qualified had their employment not been interrupted. Employees who serve more than 90 days have essentially the same rights, except the Agency has the option of placing an employee in a position for which qualified of like seniority, status, and pay.
Processing
LWOP
LWOP must be documented on an SF 50, Notification of Personnel Action, with Nature of Action Code (NOAC) 473/Absent – Uniformed Services, LWOP-US, and legal authorities Q3K/5 CFR 353 and ZJW/Executive Order (EO) 13223 dated 9/14/01.
Note: ZJW is a new legal authority that has been established to enable OPM and Agencies to identify reservists who are involved in military operations under the authority of Executive Order (EO) 13223, dated September 14, 2001. These same authorities must also be used on the 292/RTD action when the reservist returns to civilian employment.
Separations
If the reservist requests separation rather than LWOP, the separation must be documented with NOAC 353/Separation-US, and legal authorities Q3K/5 CFR 353 and ZJW/EO 13223 dated 9/14/01. Follow the instructions in Chapter 9 or 11 (as appropriate) of the Guide to Processing Personnel Actions, to document the reservist's restoration upon completion of their military service. Effective with the issuance of this memorandum, legal authority ZJW is revised from Operation Enduring Freedom. (This includes Operation Noble Eagle and Operation Enduring Freedom, and any other military operations subsequently established under EO 13223.)
Health Benefits and Life Insurance
For reservists with health benefits coverage while absent for reasons related to military duty, enter in block 45 of the SF 50 remark B66. Health benefits coverage will continue for 18 months unless the employee elects to terminate coverage. For reservists with FEGLI coverage, enter in block 45 of the SF 50 remark B72. FEGLI coverage continues until a reservist's time in nonpay status totals 12 months. Reservists should contact their servicing human resources office or see the FEGLI Handbook at for detailed information.
The table listed below reflects the combinations of NOAC/Authority Codes/Remarks Codes that should be used to correctly document employee FEHB and FEGLI payment considerations:
FEHB and FEGLI
|
NOAC / Authority |
Payment for FEHB |
Remarks Codes |
Current Employee Status (CES) Code Generated |
|---|---|---|---|
|
NOAC 473 Authority Code Q3K Note: Employee has restoration rights but is not qualified for differential. |
Employees will be billed for their portion of FEHB. |
Remarks code B66, Continuation of FEHB |
CES Code 9 |
|
NOAC 473 Authority Code Q3K Note: Employee has restoration rights but is qualified for differential. |
If in support of a contingency operation, Agency pays the employee portion of FEHB, and the Agency portion of the FEHB. |
Remarks Code 52M |
CES Code 1 |
|
NOAC 473 Authority Code Q3K Note: Employee has restoration rights but is qualified for differential. |
If not in support of a contingency operation, employees will be billed for their portion of FEHB. |
Remarks Code MIL, Military |
CES Code 9 |
|
NOAC 460 LWOP - NTE Note: Employee has no restoration rights. |
Employees will be billed for their portion of FEHB. |
Remarks Code B66, Continuation of FEHB |
CES Code 9 |
|
NOAC 292 RTD Authority Code Q3K 2nd Authority QRD |
N/A |
N/A |
CES Code 0 |