Comment Number: OL-10508842
Received: 3/15/2005 11:04:16 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:

Paragraph 9901.342 Performance Payouts. This performance pay system is very similar to the GM pay for performance system that the Navy used in the early 1980s. the GM system placed employees in competion with each other for the allocated dollars in the pay pool and did not promote team work. The GM pay for performance system did not work then and this system will not work now. Any pay for performance system is very difficult to administer fairly. The Federal Diary of 2 March provides statistics from NASA executives first year pay for performance system, 50% of them received a pay increase of 2.5%, 27% recieved raises ranging from 0.5% to less than 2.5% and 23% received no pay increase at all. This is what happened in the GM pay for performance previously used by the Navy. Pay increases were not distributed fairly demoralizing the employees. If the NASA pay for performance system is any indication of the pay redistribution the NSPS will acheive, approximately 50% of the employees will be very disappointed each year when pay increases are distributed.