| Comment Number: | OL-10508243 |
| Received: | 3/14/2005 10:02:22 PM |
| 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:
II wish to submit the following comments concerning the NPRS rules: 9901.33 Market Supplements: (a) Cost of living adjustments are currently granted on an annual basis as authorized by Congress and approved by the President. The NSPS regulations appears to abolish cost of living payments, and replaces them with Market Supplements. However, DoD has sole discretion to set market supplements based upon mission requirements and availability of funds. DoD also determines which employee groups are eligible for Market Supplements and the timing for granting these supplements. My experience is that inflation is relentless and affects the buying power of all employees. Allowing discriminatory (amounts, periods, and types of employees) application of Market Supplements has nothing to do with pay for performance. If implemented as written, employees will suffer wage erosion based on inflation beyond their control. High inflation will work against employees as market supplements will be competing against mission requirements. (b) Further this concept will set the stage for elimination of COLA for retirees. If working employees may be denied a market supplement under DoD’s discretion, why should a non working retiree who contributes nothing to a mission requirement be eligible for any cost of living adjustment? 9901.334 Performance Payouts: (a) Performance payouts consist of a combination of a pay bonus, pay increase, or combination at DoD’s discretion. I am concerned that DoD will make excessive use of pay bonuses and minimize pay increases. This will have the net effect of holding down employee pay and future employee retirement benefits which especially hampers FERS employees who must contribute a percentage of their pay into TSP in an attempt to have a realistic retirement. The regulations are careful to put maximum limits on pay increases but are silent on minimum limits. Recommend that a minimum pay increase for acceptable/exceptional performance is defined. Otherwise it is possible for an acceptable/exceptional performing employee spend an entire career with out ever getting a pay increase under NSPS. (b) Rating of Record is used to determine performance payouts, however, DoD retains the right to issue a new rating of record at any time. This would allow employees to be denied performance payouts by issuing a new rating of record downgrade, whose requirement could be dictated by reductions in available funding, or competing mission requirements rather than actual changes in performance. I think that it is reasonable to use only the annual rating of record for performance payout purposes.