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January 2009 NSPS Payouts Approaching

The NSPS general salary increase is an across-the-board salary adjustment for NSPS employees who are rated “2” or higher under the NSPS performance management system

With NSPS payouts approaching in January, it is important to understand the various components that make up the January pay changes under NSPS.

The NSPS general salary increase is an across-the-board salary adjustment for NSPS employees who are rated “2” or higher under the NSPS performance management system. The amount of this increase is 60% of the government-wide General Schedule pay increase for Federal employees.

The NSPS payout consists of:

● Performance-based payouts in the form of base salary increases, bonuses, or a combination of both
● An NSPS general salary increase of 1.74%, which is equal to 60% of the General Schedule increase
● An increase to local market supplements (LMS) equal to the increases to General Schedule locality pay rates.

For 2009, the General Schedule increase is set at 2.9 percent. Of this percentage:

● 60 percent—or 1.74 percent—is designated for increases to base salaries and paid to NSPS employees who receive a rating of record of 2 or higher.
● 40 percent—or 1.16 percent—is allocated to performance pay pool funds and distributed through the pay pool panel process as performance-based salary increases.

NSPS employees receive local market supplements based on the General Schedule locality pay rates. The increases to these local market supplements will mirror the General Schedule locality increases and be paid to employees with a performance rating of 2 or higher. For 2009, the overall average increase to General Schedule locality rates is 1 percent, but an employee’s actual increase depends on his/her duty location.

To view the 2009 pay tables and local market supplements, click here.

Employees who receive a final rating of record of 3 or higher are eligible for performance-based payouts, in addition to the general salary increase and the increase to local market supplements. Employees who do not receive a 2008 final rating of record will receive the full General Schedule increase (2.9 percent) and the applicable increase to the local market supplement.

To see an example of how an employee who works in the Washington, DC area may be compensated under NSPS in 2009, read this pdf.

2009 Fact Sheet on NSPS Payouts

For more information on the January pay changes under NSPS, please review the January 2009 NSPS Payout Fact Sheet.