| Comment Number: | OL-10511842 |
| Received: | 3/16/2005 5:42:52 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:
1. Potential conflict of interest - Management could compete against non- management employees for pay increases. Nothing in the regulations prohibits supervisors and other managers from being placed in the same pay pools as non-management employees. This means that supervisors could compete against the employees they rate (and provide pay increases and bonuses to each year) for the same pay pool funds. This is an obvious conflict of interest. Management could intentionally hold down the ratings and pay increases of employees to ensure that more funds are available for supervisors and managers in the pay pools. Section 9901.342(b) “Performance Pay Pools” states: “DoD will issue implementing issuances for the establishment and management of pay pools for performance payouts.” Since no details exist in this regulation regarding the pay pool structure, the possibility that managers and non-managers could be in the same pay pools is a real concern. This system would result in the distrust of management, decreased morale, and lower productivity, ultimately harming national security. No changes should be made to the current pay system used by DoD agencies until complete and detailed proposals are provided, and a full comment and review period is completed, followed by a full collective bargaining process with the unions representing DoD employees. 2. Potential for abuse of pay pool funds – No limits exist on the amount of pay increases, bonuses, and other awards that management can award themselves or others, leaving little or nothing for the remaining employees in the pay pools. Nothing in these regulations limits the amount of pay increases and bonuses that management can award themselves or others each year, other than the maximum salary rates of their respective pay bands, and the amount of money in the pay pools. Since pay pool funding is limited, once the funding is gone, no other payouts can be made. If managers and top performers are awarded large pay increases, bonuses, Extraordinary Pay Increases (defined in section 9901.344 and on 7560), Organizational Achievement Recognition (described on page 7560), and other payouts from pay pool funds, the pay pools could be depleted, leaving nothing for the remaining employees. Section 9901.342(c) “Performance Shares” states: “DoD will issue implementing issuances regarding the assignment of a number or range of shares for each rating of record level, subject to paragraph (c)(2) of this section.” Since no details exist regarding the range or value of shares, the possibility exists that managers or other “top performers” could be awarded many shares worth a significant portion of the pay pool funding. For example, in a pay pool of 20 employees, with $20,000 of available pay pool money, management could decide that the top 4 performers deserve $5,000 each, leaving nothing for the 16 other employees in the pay pool. This is clearly unfair, and would result in distrust of management, decreased morale, and lower productivity, ultimately harming national security. No changes should be made to the current pay system used by DoD agencies until complete and detailed proposals are provided, and a full comment and review period is completed, followed by a full collective bargaining process with the unions representing DoD employees. 3. Satisfactory and higher performing employee’s pay could be frozen. Nothing in these regulations prohibit management from freezing the pay of fully successful, highly satisfactory, excellent, or other successful employees. One way to freeze a fully successful employee’s pay is with “control points”, which can be implemented in each pay band to freeze salaries at a certain level. Section 9901.342(d)(3) states: “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.” The regulations also state on page 7560: “An example of such a control point is a requirement for the employee to have achieved the highest performance rating.” If a control point exists that requires employees to receive the highest rating to receive a pay increase, employees who get the 2nd highest rating and lower would receive nothing, and their pay would be frozen, possibly for the rest of their career. Another way that the DoD can freeze satisfactory employee’s pay is by not increasing the minimum rate of a pay band. Section 9901.322(d) states: “DoD may adjust the minimum and maximum rates of a pay band by different percentages. Section 9901.323(a) states: “… employees with a current rating of record above “unacceptable” will receive a percentage increase in basic pay equal to the percentage by which the minimum of their rate range is increased.” If the DoD does not increase the minimum rate of a particular pay band, fully successful employees in that pay band could receive nothing. This is clearly unfair, and would result in distrust of management, decreased morale, and lower productivity, ultimately harming national security. No changes should be made to the current pay system used by DoD agencies until complete and detailed proposals are provided, and a full comment and review period is completed, followed by a full collective bargaining process with the unions representing DoD employees. ADDITIONAL COMMENTS REGARDING PAY (LOCALITY PAY) Subpart C - Pay and Pay Administration Page 7582, Section 9901.333 - Setting and adjusting local market supplements. This section states that DoD has the sole and exclusive discretion to set and adjust local market supplements, which if implemented, will replace the current locality pay system. Currently, locality pay is set and adjusted using salary data and input from OPM, OMB, the Labor Dept., and the Federal Salary Council, which includes employee representatives. This system has, for the most part, resulted in reliable, fair, accurate, and competitive locality pay rates, which have allowed the DoD to hire and retain qualified employees in every job category all across the country. Replacing this reliable system with a sole and exclusive decision by DoD to set local market supplements seems arbitrary, unfair, and irresponsible. It will likely result in uncompetitive pay rates in critical jobs in many areas, decreasing the DoD's ability to retain qualified employees, and impacting national security. I recommend that the current locality pay process be retained to ensure fair, reasonable and competitive pay rates based on valid data.