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NSPS Pay and Compensation

http://www.cpms.osd.mil

Under NSPS there are five ways employees can receive a pay increase:

(Local Market Supplement (LMS) – Under NSPS, the LMS replaces locality pay and special salary rates. Employees are eligible for an LMS adjustment if they have a rating of record of Level 2 (Fair) or higher.

Rate Range Adjustment – A change in the minimum or maximum range of a pay band based on market drivers. Employees are eligible to receive an increase in their base salary if they have a rating of record of Level 2 (Fair) or higher.

Performance-based Increase – An increase in base salary and/or a one-time bonus..

Promotion – Movement to a higher pay band on a temporary or permanent basis.

Reassignment or other placement actions – Movement within the same or similar pay band.

Performance Affects Employees’ Pay

Employees’ pay is affected by their performance and contribution as it relates to the mission. Along with performance affecting rate range and LMS adjustments, it also affects what employees receive as performance payouts. The following table summarizes what employees are eligible to receive based on their performance ratings.

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