National Security Personnel System

The National Security Personnel System (NSPS) is a pay for performance pay system created in 2004-5 under authorization by Congress for the United States Department of Defense (DoD)^[1] and implemented in mid-2006. NSPS replaces the General Schedule (GS) grade and step system with a pay band system intended to provide more flexibility in establishing pay levels. NSPS has differing policies concerning tenure, hiring, reassignment, promotion, collective bargaining, pay, performance measurement and recognition, etc. It purportedly retains EEO and Veterans' Preference protections although the system is too new to tell whether or not this is true. There is a significant level of controversy as to whether or not the flexibility gained with the new system is at the expense of the Federal employees within DoD and whether or not the flexibility gained has come at a bureaucratic price requiring significantly more effort on the part of managers to document performance and manage compensation. Pay increases that were automatic under the GS system do not exist under NSPS. On October 29, 2009, this pay system was repealed, restoring DOD employees to the General Schedule by no later than January 1, 2012.

Pay schedules

NSPS defines several pay schedules (PS) within four Career Groups (CG), all which break down pay into two or more pay bands (PB) ^[2][3].

Standard Career Group

The Standard career group includes four pay schedules:

• Professional/Analyst (YA) This PS include positions in both professional and analytical occupations, to include attorneys. It consists of three PB.
• Technician/Support (YB) This PS comprises technician and support work in the CG and includes three PB.
• Supervisor/Manager (YC) This PS is for employees who supervise work in the Standard CG. There are three PB.
• Student (YP) This program privdes for noncompetitive appointments of students to Federal positions.

Scientific and Engineering Career Group

The Scientific and Engineering career group covers professional, technician, and supervisory work in the engineering and scientific disciplines. It includes three pay schedules:

• Professional (YD) Work classified in this schedule is limited to professional engineering and science disciplines. It has three PB.
• Technician/Support (YE) This PS comprises specialized technician work in support of professional engineering and scientific work. It has four PB.
• Supervisor/Manager (YF) This PS is for employees who supervise work in the Scientific and Engineering CG. It has three PB.

Medical Career Group

The Medical career group consists of four pay schedules:

• Physician/Dentist (YG) This PS is limited to physicians and dentists based on distance compensation practices and career progression. It has just two PB.
• Professional (YH). all other professionals in the medical field are covered by this PS. It has three PB.
• Technician/Support (YI) This PS includes specialized technician and other medical and health support work. It has three PB.
• Supervisor/Manager (YJ) Employees who supervise work in the Medical CG are classified in this PS. There are four PB. Only supervisory physicians and dentists are eligible for PB4.

Investigative and Protective Services Career Group

The Investigative and Protective Services career group has four pay schedules:

• Investigative (YK) This PS covers investigative and security work and consists of three PB.
• Fire Protection (YL) This appllies to fire fighters, fire chiefs, and fire protection inspectors/specialists. It has four PB.
• Police/Security Guard (YM) This PS has two PB and applies exclusively to two occupations: police officer and security guard.
• Supervisor/Manager (YN) Employees who supervise work in the Investigative and Protective Services CG are classified in this PS. There are three PB.

Controversy

An analysis of NSPS by Federal Times, a branch of the Defense News Media Group, in August 2008 found that the January 2008 issuance of performance-based pay raises and bonuses, the first large-scale payout under the new system, was filled with inequalities. The analysis found that white employees received higher average performance ratings, salary increases and bonuses than employees of other races and ethnicities. Also, employees working at DoD agencies, such as the Defense Finance and Accounting Service, Tricare, the Office of the Inspector General and the Office of the Secretary of Defense, earned higher performance ratings and payouts overall than did their civilian counterparts in the three military service branches: United States Army, United States Navy, and United States Air Force.^[4]

The American Federation of Government Employees (AFGE) stated that the analysis supports their concerns about the new system. Brian DeWyngaert, AFGE chief of staff, said. "These systems can have a discriminatory impact. Whether it’s intended or unintended, it happens nevertheless."^[5]

Legislation

In June 2009 Congresswoman Carol Shea-Porter (D-NH) was successful in attaching provisions in the House Armed Services Committees’ version of the Fiscal Year 2010 NDAA that would greatly restrict the implementation and potentially the very existence of the NSPS. If the Congresswomen provisions become law, the SECDEF will have 6 months to decide if the program warrants keeping. He would have to report to Congress that substantial improvements have been made to the pay-for-performance system. The bill calls for returning all employees under NSPS back to the GS system within one year of the bill becoming law. For the full text see House Resolution 2647 RH Section 1112.

Repeal

On October 29, 2009, President Barack Obama signed legislation repealing NSPS and restoring DOD employees to their previous pay systems. Full implementation of this legislation is to occur by no later than January 1, 2012.^[6]

NSPS superseded by similar system

NSPS provisions have migrated to Science and Technology Reinvention Laboratory (STRL) provisions so that the government can continue its experimentation. See, for example, Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 (PDF file 2010-22172.pdf) and later publications related to STRL.

See also

• General_Schedule#List_of_other_pay_scale_terms.5B8.5D

Notes

1. ^ "National Security Personnel System". Office of the Secretary of Defense. http://www.cpms.osd.mil/nsps/index.html. 
2. ^ "NSPS Worldwide Pay Table 2007". http://www.cpms.osd.mil/nsps/docs/standard2007.pdf. 
3. ^ NSPS Handbook
4. ^ Losey, Stephen, "Is DoD's New Pay System Fair?", Federal Times, August 11, 2008.
5. ^ Losey, Stephen, "Is DoD's New Pay System Fair?", Federal Times, August 11, 2008.
6. ^ "NSPS Repealed with Signing of 2010 National Defense Authorization Act". Reuters. October 29, 2009. http://www.reuters.com/article/pressRelease/idUS214520+29-Oct-2009+PRN20091029.