| Comment Number: | OL-10504660 |
| Received: | 3/10/2005 8:04:37 AM |
| Subject: | Notice of Proposed Rulemaking, Request for Comment |
| Title: | National Security Personnel System |
| CFR Citation: | 5 CFR Chapter XCIX and Part 9901 |
| No Attachments |
Comments:
Section 9901.342 (d) (4) reads that a performance payout may be an increase in basic pay, a bonus, or a combination of the two. Given that budgetary pressures and other circumstances may result in payouts limited to bonuses only, recommend that NSPS employees be given the opportunity to contribute their bonus directly to their TSP account if they so choose. This serves to partially compensate NSPS employees for the automatic increase in their TSP accounts which would have occurred had they received an increase to their basic pay. Additionally, it encourages employees to set aside their pay bonus for retirement. For example, if an employee were to receive a bonus of $1000, the $1000, at the employee's discretion could be in total or in part added to the employee's TSP account. This would require modifying the current TSP system to include this feature for NSPS employees. Given the potential for an employee under NSPS to see no or minimial change to his basic pay, this capability would at least allow NSPS employees to save their bonus pay in a tax deferred account.