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National Security Personnel System Implementation

This document outlines the implementation overview of the National Security Personnel System (NSPS) as of January 8, 2004. It details key provisions such as simplified job classification through pay banding, a new performance management system linking pay to performance, streamlined hiring and advancement procedures, and updated reduction-in-force rules that prioritize performance over longevity. The document also discusses constraints for implementation in the Department of Defense, including eligibility and performance management certification. Collaboration strategies with unions and communication plans are emphasized for effective execution.

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National Security Personnel System Implementation

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  1. National Security Personnel System Implementation Overview January 8, 2004

  2. Key Provisions: Personnel System • Pay banding (simplified job classification) • New performance management system, linking pay to performance • Streamlined, flexible hiring and advancement procedures • Streamlined premium pay • New reduction in force rules, emphasis on performance over longevity • New labor management relations system • New, streamlined employee appeals process

  3. Key Provisions: Stand Alone • Voluntary early retirement & separation incentive pay authority (limited to 25K employees per year, not including BRAC) • Elimination of pay offset for rehired annuitants • Appointment authority for up to 2,500 highly qualified experts • Special pay and benefits for certain employees outside the US

  4. Constraints • DoD may implement NSPS to 300K employees (the remaining requires certification of performance management system and training) • Ten DoD labs excluded from NSPS (until 2008) • Civilian pay dollars (FY 04 to FY 08) may not be less than would have been allocated under old system (to the extent practicable) • Parity required between civilian/military increases (to the extent practicable) • Design process specified by statute

  5. Design Process • NSPS • Job classification • Pay banding • Staffing flexibilities • Pay for performance • “Stand-alone” Provisions • VERA/VSIP authority • Reemployed Annuitants • Experts • Exec pay and performance system BP Labor Management Relations System Employee Appeals (in consultation with MSPB) Work Groups 90 day collaboration Not subject to 90 day collaboration

  6. Anticipated Issues • Collaboration strategy with unions • OPM involvement • External oversight/scrutiny (Congress, GAO) • Overcoming negative perception (unions/employee groups, media) • Readiness of HR information systems • Defense Civilian Personnel Data System • Defense Civilian Pay System

  7. NSPS Program Office • Est. under DUSD(CPP) • Component & CPMS detail staff • AcqDemo program office migration

  8. Critical Tasks • Establish NSPS Program Implementation Office • Develop and execute communications plan • Develop NSPS Policy/Procedural framework • Design labor management relations system • Design employee appeals system • Develop & execute training strategy • Modify HR information systems • Publish guidance

  9. Implementation Strategy • Navy, AF, WHS (incl. serviced population), OSD, other Fourth Estate agency (pending input) – first wave • White collar and blue collar (blue collar pay to be addressed separately) • Assumptions (initial 300K) • Accommodate Component preferences (if possible) • Meet criteria for exceeding 300K limit as early as possible • Include SES (pending decision on executive pay and performance system) • Address NAF, LN in second year of implementation • Coordination with Components to refine numbers

  10. Communications & Outreach • Website updates • Focus groups • Logo chosen • Communications plan in development

  11. Status • Standing up program office, with funding for operations, manpower, and contractor support • Enlisting Component participation and support • Awarded contract for implementation support • Marketing & outreach • Training development • Project support and evaluation • Developing overarching communications plan and materials • Issuing policies for stand-alone provisions

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