GovernmentExecutive.com

Employees under the Defense Department's new personnel system will still receive a pay raise equivalent to the formula Congress approved in an authorization bill, despite a presidential veto last week.

Pentagon officials said in a Web post Thursday that the 110,000 employees to convert to the National Security Personnel System in the first wave will receive 60 percent of the General Schedule's base pay increase as an adjustment to their base salary, provided they earn an acceptable performance rating. The remaining 40 percent will be added to the pay pools and distributed based on performance.

The General Schedule's final 2008 base pay raise will be 2.5 percent, with a 1 percent locality-based increase. Based on that formula, NSPS employees will be eligible for a 1.5 percent base pay raise, a 1 percent raise tied to job performance and a 1 percent locality pay supplement granted in the same manner as GS locality pay, according to officials.

NSPS employees who have not transitioned in the first wave and did not receive a 2007 final rating of record will receive the equivalent of the 2008 governmentwide increase, officials added.

The move marks a reversal of a September decision by Deputy Defense Secretary Gordon England to change the policy outlining the way NSPS employees would receive the 2008 pay increase, opting instead for a 50-50 split between base pay and performance-based increases. The plan angered many Defense employees, who feared they could receive a lower overall raise than the one slated for the General Schedule.

The decision spurred opposition from many lawmakers, who last month passed final authorizing legislation for Defense that would implement the 60-40 split. The bill also would restore collective bargaining and appeal rights for employees in NSPS.

But last week, President Bush pocket-vetoed the Defense authorization bill over an unrelated provision that would open up the Iraqi government to lawsuits.

While the department was not yet required to implement the 60-40 split recommended by Congress, England moved forward with the policy on Monday, said Tara Landis, an NSPS spokeswoman.

"The department has been working with Congress on a way ahead for NSPS," Landis said. "It made sense to align our policy with what is in the authorization bill, since we expect this will eventually apply."

COMMENTS

• Appears that this is a good venting forum. I have personally worked with over 20 different Gov. agencies, and the fact is that, pay for tenure (GS) does not incentivise improvements. Pay for performance will pay less than you may be used to at first, because most (data shows over 80%) GS employees rate in the highest two categories. If everyone is such a wonderful worker, how come I regularly experience the come-late/leave-earlies, complaints about learning new ways of doing things, see 'problem children' promoted and moved (rather than having their shortcomings addressed), etc.? The new "3" rating is a "valued performer." I see a lot of complaining about this. The inflated ratings of the past are more difficult to fudge. The culture of entitlement will take a while to overcome. GS is based on overpaying and overprotecting underachievers and lifers. I'm not a huge proponent of NSPS as being fault-free, however, like democracy - it's the best we've got. Observer Posted June 4, 2008 1:18 PM
• NSPS fair - I got a fail mark on my #3 objective but the remarks were totally inconsistant with my object. I was supposed to reach a 75% expectation and I was failed for not reaching 100% Did the reviewers on the pay board make a mistake and not read what objective #3 was. I am filing for reconsideration. Jim Posted February 1, 2008 2:28 PM
• If you believe the increase you received is not fair and equitable, writing to Govenment Executive will not get you results but if you are convinced you have a case, taking your complaint to the Office of the Special Counsel may well do so. HR Specialist Posted January 29, 2008 5:14 AM