Federal pay freeze also impacts NAF employees Published Feb. 25, 2011 Air Force Personnel, Services and Manpower Public Affairs SAN ANTONIO -- The recently implemented two-year pay freeze for federal employees applies to Department of Defense nonappropriated fund, or NAF, employees in crafts and trades (CT) and pay banded (NF/CY) pay schedules. Under legislation signed in late December, the pay freeze impacts basic pay, special pay rates and cost-of-living allowances for nearly two million federal employees through Dec. 31, 2012. The pay freeze doesn't apply to performance awards, bonuses, performance pay adjustments, promotions, within grade increases or premium payments such as overtime pay. Wage and salary surveys used to adjust federal pay will continue to be conducted as scheduled and new wage schedules will be issued with no increase in hourly pay. Increases will not be authorized to existing special rates nor approval of new special rate requests except under special circumstances. Based on a provision in public law, pay adjustments for crafts and trades may not be less than pay adjustments received by general schedule (GS) employees. Since there was no general increase for GS employees in January 2011, the adjustment for CT was zero percent. Crafts and trades wage schedules that were issued on or after fiscal year 2011 will be rescinded. New wage schedules will be issued with no change in hourly pay. The pay freeze policy may not apply to any increase that is required by a collective bargaining agreement that was already executed. Unlike the nearly 150,000 federal civilian employees that are paid out of the federal appropriated fund budget, the 25,000 Air Force NAF employees are paid by money that is generated by NAF activities, such as Air Force clubs, bowling centers, golf courses and youth centers. These facilities provide a community environment for Air Force families to live, work and play. For more information on the pay freeze, visit the Department of Defense Civilian Personnel Management Service website at http://www.cpms.osd.mil/NAFPPO/NAFPPO_index.aspx. Specific questions may be directed to a local human resources office.