NSPS Transition Update

1. April 2010 NSPS Transition Update Mr. John H. James, Jr. Director, NSPS Transition Office

2. Today’s Discussion • NSPS Today • NSPS in Transition • What We Are Hearing • Key Take Aways • Next Steps

3. NSPS Today • By the end of April, approximately 218,000 under NSPS • NSPS employees maintain status quo until actual conversion date • Follow NSPS rules and regulations • Performance management activities continue • With certain exceptions, new hires must be brought on board as GS employees

4. Projected Transitions in FY2010 Source: Component Transition Plans • *Post FY 2010 Transitions • Alternative Personnel Systems • Acquisition Demonstration Project • New Science and Technology • Reinvention Laboratories • BRAC Moves/Closures • Medical (Health Care) 4

5. Source: DoD NSPS Transition Office, based on February 2010 NSPS workforce

6. Conversion Status: As of 04/2010 6

7. What We’re Hearing – NSPS Web Feedback • Relatively little feedback – approximately 15 comments a week • Shared concerns – the “me” issues • Classification determinations • Deployed civilians • Performance payout eligibility for this cycle • Retained pay • Transition dates • To GS • To other systems • Transition impact on retirement “high 3” • NSPSTO has limited ability to address unique concerns Employees need to know where to get their questions answered and issues addressed

8. Key Take Aways • Communicate conversion information before employees transition • What will be my GS grade and step? • What performance management system applies? • What does it look like? • How will my performance under NSPS be rewarded? • Will I receive an NSPS rating? • Who can I contact if I have questions? • Start with the supervisor - move to the human resources servicing organization Don’t rely on the SF-50 as your communication vehicle

9. Personnel Reform – An Agency Imperative • DoD personnel authorities granted under NDAA 2010 • Enterprise–wide performance management system • Link appraisals to bonuses • Workforce incentive fund – recruit, recognize, reward • Redesigned hiring procedures • Work within Title 5 • Partner with OPM and labor representatives • Reform the system to better meet needs of the Department and workforce

10. Status and Next Steps • Leads established within NSPSTO • Initial sessions held with OPM, FMA and employee representatives • Stakeholder conference in the works – the start point for system design • Working groups to meet throughout the summer • Report due to Congress in October 2010

11. Questions

12. Back-up slides

13. What is a Future Search Conference? • Large scale planning approach for diverse stakeholder communities seeking common ground • Structured, participatory sessions facilitate informed decision making and stakeholder investment • Provides continuing opportunities to explore group ideas within a larger context • Observations and ideas shared and explored through multiple lenses

14. Classification Determinations • Based on assigned duties and responsibilities • Salary not a factor • May differ from when position was transitioned into NSPS • If change in duties • If change in classification criteria • If position misclassified under the GS system

15. Deployed Civilians - Pending Guidance • Excluded from transition from NSPS until such time as their deployment: • Ends or • Is renewed or • December 31, 2011, whichever occurs first • Exclusion is retroactive to the date of transition in the case of organizations that have already transitioned

16. Performance Payout Eligibility • January 3, 2011 payout date • Employees must be covered by NSPS on the payout date to receive it • Employees transitioning prior to January 3, 2011, will not be eligible for a 2011 NSPS payout • Upon transition to GS, employees will become eligible for within-grade-increases and all recognition and awards available under Chapter 43

17. Retained Pay • Provision under GS that allows GS employees to retain their salary when it exceeds the 10th step of their assigned grade • Provision allows for NSPS employees to transition to GS with no loss of or decrease in pay upon conversion out of NSPS • Based on law and applies equally to employees under GS

18. Transition Date • Based on law, all NSPS employees and positions will be transitioned no later than January 1, 2012 • Moving expeditiously, but prudently, to transition the majority of employees out by September 30, 2010 • Employees will be provided classification info prior to conversion • Supervisors, HR Specialists, and NSPS website are good sources of information • Components’ transition schedules based on readiness factors • Avoidance of undue interruption to mission and hardship • Established classification processes • Existence of an appropriate legacy performance management system • IT capability

19. Transition to Other Systems • Leadership assessing requirements of those organizations previously covered under personnel systems other than GS • No loss or decrease in pay upon conversion out of NSPS

20. Transition Impact on Retirement High 3 • Government-wide retirement rules apply • Determined by finding highest average basic pay over any cumulative three year period • Pay from an earlier period can be used if it was higher than last three years of pay