ALCGPSC 048/22 - GUIDANCE FOR UNITS IMPACTED BY THE $15 PER HOUR MINIMUM PAY RATE FOR NON-APPROPIATED FUND (NAF) EMPLOYEES AT MORALE, WELL-BEING, RECREATION (MWR) ACTIVITIES AND CHILD DEVELOPMENT CENTERS (CDC)

ALCGPSC 048/22

SUBJ: GUIDANCE FOR UNITS IMPACTED BY THE $15 PER HOUR MINIMUM PAY
RATE FOR NON-APPROPIATED FUND (NAF) EMPLOYEES AT MORALE, WELL-BEING,
RECREATION (MWR) ACTIVITIES AND CHILD DEVELOPMENT CENTERS (CDC)
A. Coast Guard Nonappropriated Fund Personnel Manual, COMDTINST
M12271.1C
B. Coast Guard Nonappropriated Fund Instrumentalities (NAFI) Manual,
COMDTINST M7010.5C
C. Coast Guard Morale, Well-Being, and Recreation Manual, COMDTINST
M1710.13 (series)
D. Child Development Services Manual, COMDTINST M1754.15

1. On January 22, 2021, the President issued an Executive Order on
Protecting the Federal Workforce (EO 14003). In response to the
Presidential directive in EO 14003, OPM issued a memorandum for heads
of Executive departments and agencies that provides implementing
guidance for adjusting pay rates for federal employees stationed in
the United States (including its territories and possessions) to at
least $15 per hour. These wage increases apply to NAF employees and
will impact MWR Category B and C activities as their salaries are
paid from revenues generated from business activities.

2. This increase in salary is great for employees and gives the Coast
Guard an advantage in finding the best qualified candidates for jobs
within our Non-appropriated Fund Instrumentalities. However, several
units will be significantly impacted by this new wage scale and must
adjust business practices to account for this additional expense. The
Community Services Command (CSC) and CDC Program (CG-111) are working
closely with DOL and FORCECOM to assist units impacted by this recent
change. Per Ref (A), CSC Human Resources staff has already contacted
affected units and made the initial adjustments to pay for every
impacted employee. In addition, the CSC is exploring the possibility
of appropriated fund support for impacted units in conjunction with
the other military services.

3. CSC/CG-111/DOL/FORCECOM Action: CSC/CG-111 will work with
DOL/FORCECOM to provide funding to offset the increased salary
expenses for the $15 per hour mandate. The amount of support will
only be available for a portion of the difference in salary for
affected employees. NOTE: This is a one-year plan for support and
will only be provided in FY22. The following units have been
identified as being impacted and will be the only units supported in
FY22, pending the availability of funds:
MWR Air Station Barbers Point
MWR Air Station Atlantic City (Townsend)
MWR Aviation Training Center
MWR Base Boston
MWR Base Detachment Borinquen
MWR Base Cape Cod
MWR Base Elizabeth City
MWR Base Honolulu
MWR Base Ketchikan
MWR Base Kodiak
MWR Base Portsmouth
MWR Base San Juan
MWR CG Academy
MWR CG Yard
MWR Training Center Cape May
MWR Training Center Yorktown
CDC CG Academy
CDC Alameda
CDC Borinquen
CDC Cape Cod
CDC Cape May
CDC Kodiak
CDC San Juan

4. Unit action: Units with MWR activities and CDCs activities are
required to modify business operations to adapt to challenges from
the cost increase in accordance with REFs (B) through (D). Each unit
is required to make program adjustments per the following guidance:
a. For FY22, immediately adjust (increase) service fees or reduce
operating costs to mitigate 50% of the cost increase to
impacted programs that results from the increased labor cost.
The anticipated funding support discussed in paragraph 3 above
will offset 50% of the salary differences for impacted
employees.
b. For FY23, programs should plan to meet 100% of the salary
expenses and be fully sustainable. No funding support will
be provided.
c. MWR and CDC programs that are hit the hardest and are unable to
adjust to the increased salary costs by FY23, should submit
their request for additional funding support through their
chain of command to CSC for consideration by 30 April 2022. In
these isolated cases, the unit should provide a plan to achieve
sustainable operations by FY24. CSC will review and provide
response on funding availability for the unit plan by
15 May 2022.

5. Units will be required to respond to data calls for funding
support and this support will be provided based on need. Commands
should send requests for support for NAF salary and benefits to CSC
via their chain of command. For approved requests, CSC will execute
transfers of NAF to eligible units. Send requests to
Mr. Stephen Bishop at stephen.j.bishop2@uscg.mil.

6. CSC MWR Program POC is Matt Perciak; 757-842-4903 or
matt.f.perciak@uscg,mil. CG-1112 Child Development Services Program
POC is Renee L Podolec; 202 475-5160 or renee.l.podelec@uscg.mil. CSC
Human Resources POC is Virginia Cameron; 757-842-4906 or
virginia.cameron@cgexchange.org.

7. Released: RDML S.N. Gilreath, Commander, Personnel Service Center.
The Service Center for our most important resource - Our People.

8. Internet release authorized.