2009 Payouts Complete for NSPS Employees

In January 2009, the Department of Defense (DoD) completed performance-based payouts for employees working under NSPS. Close to 170,000 employees assigned to over 1,600 pay pools received final ratings and associated salary increases and/or bonuses. The overall average rating of record was 3.46 on a 5 point scale.

The following chart shows the distribution of performance ratings: Data source: Compensation Workbench upload files as of 1/20/09. Does not include adjustments to ratings based on reconsideration requests.

Rating level	Employees eligible to receive:
5 - Role model   4 - Exceeds Expectations   3 - Valued Performer	Performance-based payout   General Salary Increase   Local market Supplement increase
2 - Fair	No performance-based payout   General Salary Increase (GSI)   Local market Supplement increase
1 - Unacceptable	No increase

Although this year’s NSPS population included over 70,000 more employees receiving payouts, the results of the performance ratings are similar to the January 2008 results. The majority of employees were rated at the “Valued Performer” level. Less than 2% of employees were rated at the “Unacceptable” and “Fair” levels, while 4.7% were rated at the highest level, “Role Model.”

Employee Payouts

Employees who received a final rating of level 3 (Valued Performer) or higher were eligible for “shares” of the pay pool. This year, the average value of a share was 2.23% (of base salary). These shares were paid out in the form of a performance-based salary increase or cash bonus, or a combination of the two. The average performance payout for this cycle was 5.61% (3.67% salary and 1.94% bonus). In addition, all employees rated level 2 (Fair) or higher received a general salary increase of 1.74% and an average 1% increase in their local market supplement (as applicable).

*Actual Local Market Supplement increase varied by locality area. Averages are weighted.

The NSPS pay for performance system is designed to make meaningful distinctions in levels of performance and reward employees based on their performance and contribution to the mission. Employees with questions about their individual pay pool results should consult their supervisors or servicing human resources office.