When an employee is moved involuntarily from a NAFI position in DOD or the Coast Guard to a GS position in DOD or the Coast Guard, respectively, with substantially the same duties and without a break in service of more than 3 days, the employee is entitled to an initial payable rate of basic pay (including any locality pay or special rate supplement) at the lowest step rate of the GS grade that is equal to or greater than the employee's rate of basic pay in the NAFI position immediately before the move.

Employees covered by § 531.216 upon appointment or reappointment to a GS position are not eligible to have pay set under the superior qualifications or special needs authority, since their NAFI employment is considered employment by the Federal Government. Otherwise, NAFI employment does not block application of this section.

Pay must be set at the minimum rate in the GS rate range for the GS position to which the employee is moving. For example, a NAFI employee moving to a GS-5 position must have his or her pay set at the minimum rate or step 1.

(1) For a Department of Defense or Coast Guard employee who moves voluntarily, without a break in service of more than 3 days, from a NAFI position in the Department of Defense or the Coast Guard to a GS position in the Department of Defense or the Coast Guard, respectively, the agency may set the employee 's initial payable rate of basic pay at the lowest step rate in the highest applicable rate range currently in effect for the employee 's GS position of record and official worksite which equals or exceeds the employee 's NAFI highest previous rate of pay, or any lower step rate, except as provided in paragraph (c) (2) or (3) of this section.