| Comment Number: | OL-10511168 |
| Received: | 3/16/2005 2:20:34 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:
9901.342 Performance payouts. (d) Performance payout. (3) DoD may provide for the establishment of control points within a band that limit increases in the rate of basic pay. DoD may require that certain criteria be met for increases above a control point. (4) A performance payout may be an increase in basic pay, a bonus, or a combination of the two… Implementing issuances will provide guidance for determining the payout amount and the appropriate distribution between basic pay and bonus. __________COMMENTS: The DoD appears poised to arbitrarily limit pay increases within a band under the NSPS by paying part or all of a performance payout as a lump-sum bonus. As stated in the Feb 14, 2005 Federal Register notice of NSPS Proposed Rules: “In addition, the proposed regulations allow DoD to establish ‘‘control points’’ or other mechanisms within a band, beyond which basic pay increases may be granted only for meeting criteria established by DoD.” [pg. 7560] Limiting pay increases through such methods appears arbitrary because, while band ranges and local market supplements can be tied to commercial sector pay data, there are no reputable commercial sector criteria for the establishment of “control points or other mechanisms”. The Department of Homeland Security recognized the arbitrary nature of limiting pay increases through such mechanisms and has removed them from its pay-for-performance system as noted in the Final Rules for the DHS Human Resources Management System published in the Feb 1, 2005 Federal Register: “In the proposed regulations, this section also provided DHS with the authority to establish control points within bands to limit the initial pay-setting or pay progression of employees. The labor organizations expressed concerns about the control point provisions. They felt that control points could prevent employees who are meeting or exceeding performance expectations from achieving the same level of pay they could receive under the current system … We have removed the provisions concerning control points in 9701.321(a) and (d) and 9701.342(d)(3), as well as the definition of ‘‘control point’’ in 9701.304 of the proposed regulations, as it is not our intention to unduly limit pay progression.” [pg. 5292-5293] “Lump-sum performance payouts may be paid in lieu of basic pay increases only when an employee’s rate of basic pay would otherwise exceed the band maximum rate.” [pg. 5297] As proposed, NSPS rules 9901.342 (d) (3) and (4) codify DoD’s “intention to unduly limit pay progression”. I strongly recommend, consistent with rules DHS established for its human resources management system, that DoD remove all references to “control points” from the NSPS rules and include provisions granting performance payouts as basic pay increases unless limited by band maximum rate.