General
Why do we need the National Security Personnel System?
- We need a flexible civilian management system that appropriately recognizes and rewards our employees' performance and the contributions they make to achieving DoD’s mission.
- It is one of many tools we can use to attract and retain valued employees.
- It accelerates the Department's efforts to create a Total Force (military, civilian personnel, Reserve, Guard, and contractors), operating as one cohesive unit.
What advantages does it offer me?
NSPS offers you:
- Recognition and rewards based on your contributions
- The ability to take ownership of your performance and success by being proactively engaged in writing your own job objectives
- The opportunity for open communication and increased dialogue with your supervisor so you know what is expected of you
- The opportunity to develop broader skills allowing you the ability to advance in pay bands
When does my organization convert into NSPS?
- All conversions of organizations to NSPS are delayed until further notice. On March 16, 2009, the Department of Defense (DoD) and the Office of Personnel Management (OPM) announced that they will undertake a review of the National Security Personnel System (NSPS), including policies, regulations, and practices. The Defense Business Board is currently conducting this review. During the review, new organizations scheduled to convert will be delayed. Organizations already covered by NSPS will continue to operate under current NSPS policies, regulations, and procedures. They will continue to hire, promote, reassign, and take any other personnel actions necessary to accomplish their missions.
Who may be covered by NSPS?
- The vast majority of civilian employees are eligible for coverage except for wage grade employees, intelligence personnel and employees of the Defense Laboratories listed in the NSPS law.
- To learn more about exclusions, view the table ("Summary of Non-General Schedule Coverage Eligibility") on pages 17 and 18 of the Federal Register PDF file (pages 66131 and 66132 in the published hard copy). To access the Federal Register, Click Here.
Are wage grade employees covered by NSPS?
- No. Federal Wage System (FWS) employees are not eligible to be covered under NSPS.
What are implementing issuances?
- Implementing issuances carry out Department policy in implementing NSPS. They may be issued by the Secretary of Defense, Deputy Secretary
of Defense, Principal Staff Assistants (such as Under Secretaries of Defense), or Secretaries of the Military Departments.
- Implementing issuances may be found on the NSPS website.
What criteria are used to classify a position as supervisory under NSPS?
- An individual must supervise more than one employee and perform the duties of an immediate supervisor including:
- Assigning work to subordinates based on priorities, difficulty of assignments, and employee capabilities
- Providing technical oversight
- Developing performance plans and rating employees (or recommending such actions)
- Interviewing candidates for subordinate positions and recommending hiring, promotions, or reassignments
- Taking disciplinary measures, such as warnings or reprimands (or recommending such actions)
- Identifying development and training needs of employees and providing and/or arranging for needed development and training
- Supervised employees may include civilian employees, military members, uniformed service employees, volunteers, or other non-contractor personnel. Positions with oversight responsibilities over contractors only do not meet the supervisory definition.
Conversion to NSPS
Do I need to do anything to ensure my position converts to NSPS?
- No. Your position converts automatically into NSPS based on your permanent position of record.
Will I lose salary when my position converts to NSPS?
- No. Your position converts into NSPS based on your permanent position of record without a loss of pay. If eligible, you may receive a salary increase equal to the amount you would have earned towards your next within grade increase (WGI). The WGI buy-in is a process used during conversion to pay employees for time spent working towards their next step increase.
If I am at a Step 10 of my grade, do I receive a Within-Grade-Increase (WGI) buy-in?
- No. If you are at step 10 you are ineligible for a WGI buy-in because you have already received 10 step increases under the GS system.
What happens to my retirement, health insurance, and other benefits when I convert to NSPS?
- NSPS does not affect rules governing retirement benefits and eligibility, health and life insurance, leave, attendance, and other similar benefits.
How is my appraisal rating converted into NSPS?
- DoD employees who convert into NSPS and have a non-NSPS rating of record:
- Above unacceptable are assigned a rating of Level 3 (Valued Performer).
- Of unacceptable are assigned a rating of Level 1 (Unacceptable).
- Once you receive an NSPS rating of record, it replaces the converted rating.
If I am in a developmental position how do I receive pay increases under NSPS?
- If you are in a developmental position, you are eligible for performance-based pay in recognition of your performance and contributions.
- Your performance must be rated at Level 3 (Valued Performer) or higher.
- Your performance payout may be in the form of a salary increase, bonus, or combination of both.
- If you are assigned to Pay Band 1 of Professional, Analytical, or Investigative pay schedules and have a rating of record of Level 3 (Valued Performer) or higher, you are eligible for pay increases under the Accelerated Compensation for Developmental Positions (ACDP).
- Recognizes growth and development in acquiring job related competencies and successful performance of job objectives.
- Offers an increase to base salary, bonus, or combination of both based on performance.
- May increase your base salary within Pay Band 1 by up to 20 percent.
- Another type of pay increase is promotion from Pay Band 1 to Pay Band 2.
- Employees are eligible for this noncompetitive promotion because they have already competed for the next higher level.
- When management promotes employees from Pay Band 1 to Pay Band 2, employees are eligible to receive a significant pay increase (from 6 percent to 20 percent or even higher with management approval).
- During the first 12 months after conversion, employees who are not eligible for the ACDP provision (not in Pay Band 1) are eligible to receive pay increases for noncompetitive promotion equivalents when:
- Grade level of the promotion is encompassed within the same pay band;
- Employee's performance warrants the pay increase; and
- Promotion would have otherwise occurred during that period.
Payouts, Performance, Promotions and Pay
If a general increase is granted to employees, am I eligible to receive it too?
- Yes. If you have a final rating of record of Level 2 (Fair) or higher, you will receive a base salary increase. In 2008, this increase was 1.5 percent.
Am I eligible to receive a local market supplement adjustment?
- If a local market supplement adjustment is granted by the Secretary of Defense and you have a final rating of record of Level 2 (Fair) or higher, you receive a local market supplement adjustment equivalent to locality pay under GS.
What happens if I do not have an NSPS rating of record, and I am not eligible for an NSPS performance payout?
- You are eligible to receive the equivalent of the government-wide pay increase (GPI) through a pay band adjustment of 1.5% (in 2008) of base salary and an additional base salary increase equivalent to the remaining portion of the GPI. In addition, you receive a local market supplement adjustment.
Is a GPI the same as a COLA?
- No. The GPI is comprised of two components: (1) an across the board base salary increase based on the change in private sector pay as measured by the Employment Cost Index (ECI); and (2) an increase based on locality. Generally, these are adjusted annually by an Executive Order following an appropriation bill from the Congress.
- A COLA, or Cost of Living Allowance, is an allowance paid by the government to white collar civilian Federal employees in Alaska, Hawaii, Guam and the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. NSPS has no impact on a COLA allowance. Additional information on COLAs may be found on the OPM web page at https://www.opm.gov/oca/cola/index.asp
Under NSPS, what types of pay increases may I receive?
- You may receive a pay increase in several ways including:
- Pay band adjustments
- Local market supplement (LMS) adjustments
- Performance-based increases
- Promotions
- Reassignments or other placement actions
- Accelerated Compensation for Developmental Positions (ACDP)
What constitutes an adjusted salary under NSPS?
- An adjusted salary includes your base pay plus local market supplement and performance-based pay adjustments.
Under NSPS, do I receive Within-Grade-Increases (WGIs)?
- Under NSPS, there are no "steps" similar to the GS system, therefore WGIs no longer exist. Money that was used for WGIs are used to help fund pay pools. Employees who receive ratings of record of 3 (Valued Performer) or higher are eligible for performance-based payouts.
What are the criteria used to determine whether I receive a WGI buy-in upon conversion from GS to NSPS?
- You are eligible for the WGI buy-in if you are below Step 10 of your assigned grade, have a rating of record of Level 2 (Fair) or higher, and are not on pay retention.
If I am a GM employee, am I eligible for the WGI buy-in?
- Yes. You are entitled to a WGI buy-in provided you meet the WGI- buy in criteria (see question above).
How are pay bands structured?
- Pay bands incorporate a salary range that represent the scope and difficulty of work. Many of the factors used to classify positions under NSPS, such as complexity and level of work, are the same as those under GS.
- The pay system sets minimum and maximum pay rates for each pay band.
- Typically, pay bands are structured as follows:
- Pay Band 1 includes entry/intern/developmental positions
- Pay Band 2 includes full-performance/journey level positions
- Pay Band 3 includes subject matter expert/program manager level positions
How can I receive a salary increase within the same pay band?
- Pay progression within the band is accomplished in a variety of ways and is affected by performance. You are no longer bound by narrow work definitions tied to discrete grade levels. Below are examples of how your salary may increase within the same pay band:
- Performance-based increase–A performance-based increase is tied to the annual performance rating and is added to your base salary. You are eligible to receive a performance-based increase if you have a rating of record of Level 3 (Valued Performer) or higher.
- Reassignment–A reassignment occurs when you move, voluntarily or involuntarily, to a different position or set of duties within your pay band or to a position in a comparable pay band. A reassignment may result in a pay increase of up to 5 percent. This increase is discretionary and must be administered fairly and within Component guidelines.
- Pay Band Adjustment–A pay band adjustment is an increase to the minimum and/or maximum of the pay band that is adjusted based on market drivers. You are eligible to receive a pay band adjustment if you have a rating of record of Level 2 (Fair) or higher.
- Local Market Supplement (LMS)–An LMS adjustment is an additional payment in specified local market areas, occupations, specializations, or pay bands. LMSs are added to your base salary. You are eligible for an LMS adjustment if you have a rating of record of Level 2 (Fair) or higher.
- Accelerated Compensation for Developmental Positions (ACDP)–An ACDP may be used to provide an increase to your base salary, a bonus, or a combination of the two if you:
- Are in Pay Band 1
- Participate in a Component developmental programs
- Have a rating of record of Level 3 (Valued Performer) or higher
What is a pay band adjustment and who gets one?
- Each pay band has a minimum and maximum level of pay.
- A pay band adjustment is the increase or decrease to the minimum and/or maximum pay.
- Pay band ranges are reviewed at least once a year, but adjustments may be made at any time.
- New pay band ranges are effective the first full pay period in January.
- Each pay band range can increase, decrease, or remain the same depending on market drivers (specific labor market, occupational, or other demands).
- In order to receive a salary increase:
- The minimum level of pay must be increased
- Your salary must not be top of the pay band
- You must have a rating of record of Level 2 (Fair) or higher
Who has the authority to make decisions on pay band adjustments?
- The Secretary of Defense has the authority to set and adjust pay band ranges.
What is a Local Market Supplement (LMS) and how does it work?
- A LMS replaces GS system locality pay.
- At least once a year, DoD reviews each LMS and makes appropriate adjustments.
- Factors reviewed in making LMS determinations:
- Mission requirements
- Labor-market conditions
- Availability of funds
- Allowances and differentials, such as those paid to employees overseas and in Alaska and Hawaii
- Similar pay adjustments received by employees of other federal agencies
- Other relevant factors
- You must have a rating of record of Level 2 (Fair) or higher to be eligible to receive a LMS adjustment.
Is a LMS the same as the locality pay employees receive under GS?
- Until determined otherwise by the Secretary of Defense, the standard LMS is the same as GS locality pay for each area at the time of conversion.
How are special salary rates converted to NSPS?
- In most cases, special salary rates are included within the broader pay ranges of pay bands (including the addition of the standard LMS).
- For employees paid from a special salary table with a maximum that exceeds the pay band maximum (and the applicable standard LMS), a targeted LMS may be established.
- The targeted LMS ensures that affected employees convert to NSPS without a loss of pay.
Can I receive a pay increase if I am reassigned to a different position?
- Yes, based on performance and the opportunities you seek for promotions and reassignments including:
- Employee-initiated reassignment: You may receive up to a cumulative 5 percent in base salary increase in a 12-month period no matter how many times you are voluntarily reassigned in a given period.
- Management-directed reassignment: You may receive up to 5 percent in base salary increase for each reassignment. There is no limit to the number of times you may receive a management-directed reassignment.
- Voluntarily move to a lower pay band: Your base salary must be set within the assigned pay band. Management may increase your base salary by up to 5 percent (not to exceed the maximum of the rate range).
How much of a pay increase can I expect when I am promoted?
- A promotion is a temporary or permanent move to a position in a higher pay band.
- When you receive a promotion, your pay increases by a minimum of 6 percent and typically may increase up to 12 percent. However, increases greater than 12 percent may occur if higher-level management has approved a greater increase in accordance with NSPS regulations and Component policy.
- If the promotion is temporary, your base salary reverts to that of your permanent position upon termination of temporary promotion.
How does DoD ensure the money is really paid out to the employees as part of the pay pool process?
- The law requires that the aggregate amount of money allocated for civilian compensation for organizations under NSPS may not be less than the amount that would have been allocated under the GS system.
- Components must certify that pay pool funds are used only for the compensation of civilian employees.
If my salary exceeds GS-15, step 10, (e.g., near the maximum for YA or YC-3) can I receive any premium pay?
- No. Since your salary alone exceeds the GS-15, step 10 cap, you may not receive premium pay.
- NSPS has limitations that govern the amount of premium pay that employees receive. The categories of premium pay covered by these limitations include:
- Overtime pay (except overtime pay earned by nonexempt employees under the Fair Labor Standards Act)
- Compensatory time off (except compensatory time off for travel)
- Premium pay for regularly scheduled standby duty (applies to certain firefighters and emergency medical technicians)
- Availability pay for criminal investigators
- Holiday pay
- Night pay
- Sunday pay
How can a supervisor use management-directed reassignments to provide me with added opportunity and compensation?
- Supervisors have the flexibility to align individual work with organizational goals, provide employees with increased opportunity to expand skill sets and develop new competencies. With management-directed reassignments, supervisors may exercise this flexibility and offer you up to a 5% salary increase when local or Component-level policies permit.
What factors are considered if a supervisor wants to grant a promotion increase of more than 6 percent?
Supervisors consider the following factors:
- Difficulty and criticality of the assignment
- Minimum and maximum rates of the new pay band
- Employee’s relevant work experience and past/anticipated performance contributions
- Labor market conditions, including rates paid for similar types of work
- Internal equity including salary levels of other employees within the organization who have greater experience
- Long-term costs and resulting multi-year budget implications
Performance Management
How is my supervisor held accountable for equitably and fairly rating me?
- Supervisors and managers are trained and evaluated on how well they exercise their performance management responsibilities. Their effectiveness is an important factor in determining their own evaluations and pay increases.
- NSPS is designed to use pay pool panels (groups of management officials) to evaluate and reconcile an organization’s performance ratings. The pay pool process is a means of checks and balances for employee performance ratings and rewards.
What if I don’t agree with my final rating of record?
- You are entitled to a reconsideration if you do not agree with your final rating of record. Within 10 calendar days of receipt of the rating of record, you must submit a written request for reconsideration to the pay pool manager and provide a copy to your rating official and the servicing human resources office (HRO). For further details on the reconsideration process, please contact your servicing HR Office.
