GovernmentExecutive.com

The Defense Department has released proposed regulations that would require its controversial pay-for-performance system to operate under governmentwide labor relations rules.

The draft regulations, published by Defense and the Office of Personnel Management in the Federal Register, call for modifications to the National Security Personnel System as mandated by the fiscal 2008 Defense Authorization Act.

Specifically, the proposal brings NSPS under federal regulations covering such subjects as labor relations, adverse actions, and employee appeals. Congress mandated the changes after years of litigation by federal labor unions against the Pentagon's proposed rules for NSPS.

The foundation of NSPS -- pay for performance -- will remain intact, but with some limits. The draft rules mandate that employees with ratings above unacceptable receive 60 percent of the annual pay increase, with the remaining 40 percent allocated to pay pools and distributed based on performance.

The proposal also exempts all federal wage system employees from NSPS, and requires the Government Accountability Office to conduct an annual review of employee satisfaction with the system -- both requirements of the 2008 law. The regulations also limit those employees converting to NSPS to 100,000 per year.

Defense has added more than 181,500 employees to NSPS since 2006. With wage grade employees exempted, the department is unlikely to meet its goal of converting more than 700,000 employees to the system.

Brad Bunn, program executive officer for NSPS, said last week that the proposal also adjusts and clarifies some existing regulations "to ensure uniform and consistent application of NSPS program principles."

For example, the department added regulations that provide a process for converting employees who leave their NSPS positions for non-NSPS jobs in the department. The rules promote setting more equitable pay during transfers to different pay systems.

The draft regulations also would permit coverage under NSPS for temporary employees who are appointed for 90 days or less. "Providing access to NSPS pay-setting flexibilities for these positions enhances DoD's competitive position in the labor market," said the notice.

Labor unions expressed doubt about whether the proposed regulations met the requirements of the 2008 law. "While we are still examining the new NSPS regulations released today, we are skeptical about the new regulations and their intent," John Gage, president of the American Federation of Government Employees, said last Thursday.

Susan Tsui Grundmann, general counsel for the National Federation of Federal Employees, said Tuesday that she had not yet fully examined the proposed changes, but added that the Pentagon seems to have modified portions of NSPS that were of major concern to unions. "They restored labor relations and employee appeals; they've complied with the big pieces of the law," she said. "I don't know what other surprises" are in the regulations.

COMMENTS

• Not to toot my own horn, but being my first year under NSPS, and the many accomplishments my team and I achieved, I was actually really looking forward to writing my self assessment. My supervisor was recommending I receive a 4 rating. My assessment (very well wrote) was approved by both my Rater and Senior Rater. All was going well, until my boss got the call from the pay-pool mafia, he told me not to worry, he would defend my rating to his dieing breath! So when he came back to the office (Still Alive) I just knew all went well. But when he dropped and shook his head and just said "I'm sorry, I really tried"?? To this day I still have no idea what "I tried" means.. One things for sure, my supervisor better be thankful we employees are not allowed to score or write assessments on them. Because based on his inabilities and lack in debating skills; and his piss-poor lack-luster ability to quantify my achievements and convince the pay-pool mafia that I deserve the rating, I personally would have rated him a -1 and sent his butt to the poor house)!! As you guessed they persuade him to change my rating to a 3, and after the funny math was complete, I somehow only get 2 shares. So the moral of my story (or basically what I learned from this lesson) is this, Don't lean to far forward in the fox hole; don't be proactive; don't be an over-achiever; don't set HIGH standards for yourself or your team. Because at the end of the year (assessment time) you're going to get your feelings hurt!! Hooah, Cause even with NSPS, Rangers will always Lead The Way! Gov_man_44 Posted November 18, 2008 11:24 PM
• Union leaders said agencies pushed forward the NSPS plan at the expense of employee input & collaboration, setting back their own goals as employees rejected evaluations they saw as unfair. "I don't know of a single so-called pay-for-performance system which is getting good reviews from the employees who are working under it," said Colleen Kelley National Treasury Employees Union President. American Federation of Government Employees President John Gage said issues with the size of pay pools to determine the level of performance-based payouts tied to employee ratings gave employees little faith their managers could give them fair ratings. NSPS is a huge waste of time, effort, and the American taxpayers’ money. Now we have 2 systems with NSPSers jumping ship to go to the union protected GS jobs. Get rid of the 13 page evaluation (a waste of time, money, & paper) which serves no benefit since the funding is limited & all deserving workers cannot be rewarded. The real harm will be at retirement time. Will the high 3 years count? Where will getting a 3 performance rating fit in the picture? All incentives are connected to the NSPS even your "Cost of Living" increase! Will you be able to live on your retirement? Buy food? Pay for fuel? Looks like a lot of government workers will be standing in the Welfare line! If we go by the rule the majority wins the NSPS would go down the toilet, but it seems nobody is listening! Now the government expects the American taxpayer to bail out the greedy financial institutions! ENOUGH! Ann Posted September 29, 2008 11:10 AM
• Another ineffective system that the government has spent millions on to try to make a square peg fit into a round hole. I don't know why they have to wait for the GAO to take a survey- isn't anyone reading our comments now? I think everyone should be sending emails to every government representative and each other! Get the wave going I think us high-performers were hood-winked and now see we will only be scrambling for pocket-change. Not a good way to be rewarded for 27 years of faithful service is it???? Can't Believe This! Posted August 17, 2008 10:24 AM