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Will the Defense Authorization Act Affect Your Pay?

Will the Defense Authorization Act Affect Your Pay?

The NSPS is the Department of Defense’s (DoD) civilian management system


The Program Executive Office of the National Security Personnel System (PEO NSPS) recently completed the 2008 performance-based payouts for employees who make meaningful contributions to DoD’s mission.

In January 2008, over 110,000 civilian employees received performance ratings and payouts for their contributions in 2007. Over the next few months the PEO will bring another 57,000 Defense employees under NSPS and continue to make payouts in accordance with the new law.

Under the 2008 law, the Human Resources elements of NSPS, including performance management, remain relatively unchanged. “For employees, the modifications that affect NSPS will be fairly transparent,” said Mary Lacey, Program Executive Officer, NSPS. “The main change they will see is the allocation of the yearly general pay increase. Other than that, they should see very little difference – NSPS will be operating under currently implemented procedures.”

Lacey is referring to the allocations of the annual Government-wide pay increases (GPI). The NDAA language guarantees employees with a rating above unacceptable (level 2) no less than 60 percent of the pay increase be allocated to base pay. The 40 percent balance is allocated to pay pool funding and paid out as performance-based salary increases. Employees received this increase, which was effective 6 January 2008, in their mid-January pay.

Employees under NSPS will also continue to receive and operate under the same provisions as the rest of federal government for:
Benefits (retirement, health, life, etc.)
● Employee protections and fundamental due process requirements (such as veterans’ preference, whistleblower protection, rules against prohibited personnel practices, anti-discrimination laws, and collective bargaining rights)
● Allowances and travel/subsistence expenses
● Training programs

But are you become eligible for a payout? Remember that the 2008 authorization excludes Federal Wage System (blue collar) employees and prohibits employees of certain DoD laboratories from entering the system before 2011. Hopefully, more information will be released as to the specifics of which employees are eligible soon.

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