National Security Personnel System
Encyclopedia
The National Security Personnel System (NSPS) is a pay for performance pay system created in 2004-5 under authorization by Congress for the United States Department of Defense
United States Department of Defense
The United States Department of Defense is the U.S...

 (DoD) and implemented in mid-2006. NSPS replaces the General Schedule
General Schedule
The General Schedule is the predominant pay scale within the United States civil service. The GS includes the majority of white collar personnel positions...

 (GS) grade and step system with a pay band system intended to provide more flexibility in establishing pay levels. NSPS has differing policies concerning tenure
Tenure
Tenure commonly refers to life tenure in a job and specifically to a senior academic's contractual right not to have his or her position terminated without just cause.-19th century:...

, hiring, reassignment, promotion, collective bargaining
Collective bargaining
Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions...

, pay, performance measurement and recognition, etc. It purportedly retains EEO
EEO
EEO may refer to:*Equal Employment Opportunity, a U.S. labor term*European Enforcement Order, an EU law procedure*Evolution, Ecology, and Organismal Biology...

 and Veterans' Preference
Veterans' Preference Act
The Veterans' Preference Act is a United States federal law passed in 1944. It required the federal government to favor returning war veterans when hiring new employees in an attempt to recognize their service, sacrifice, and skills....

 protections although the system is too new to tell whether or not this is true. There is a significant level of controversy as to whether or not the flexibility gained with the new system is at the expense of the Federal employees within DoD and whether or not the flexibility gained has come at a bureaucratic price requiring significantly more effort on the part of managers to document performance and manage compensation
Remuneration
Remuneration is the total compensation that an employee receives in exchange for the service they perform for their employer. Typically, this consists of monetary rewards, also referred to as wage or salary...

. Pay increases that were automatic under the GS system do not exist under NSPS. On October 29, 2009, this pay system was repealed, restoring DOD employees to the General Schedule by no later than January 1, 2012.

Pay schedules

NSPS defines several pay schedules (PS) within four Career Groups (CG), all which break down pay into two or more pay bands (PB) .

Standard Career Group

The Standard career group includes four pay schedules:
  • Professional/Analyst (YA) This PS include positions in both professional and analytical occupations, to include attorneys. It consists of three PB.
  • Technician/Support (YB) This PS comprises technician and support work in the CG and includes three PB.
  • Supervisor/Manager (YC) This PS is for employees who supervise work in the Standard CG. There are three PB.
  • Student (YP) This program privdes for noncompetitive appointments of students to Federal positions.

Scientific and Engineering Career Group

The Scientific and Engineering career group covers professional, technician, and supervisory work in the engineering and scientific disciplines. It includes three pay schedules:
  • Professional (YD) Work classified in this schedule is limited to professional engineering and science disciplines. It has three PB.
  • Technician/Support (YE) This PS comprises specialized technician work in support of professional engineering and scientific work. It has four PB.
  • Supervisor/Manager (YF) This PS is for employees who supervise work in the Scientific and Engineering CG. It has three PB.

Medical Career Group

The Medical career group consists of four pay schedules:
  • Physician/Dentist (YG) This PS is limited to physicians and dentists based on distance compensation practices and career progression. It has just two PB.
  • Professional (YH). all other professionals in the medical field are covered by this PS. It has three PB.
  • Technician/Support (YI) This PS includes specialized technician and other medical and health support work. It has three PB.
  • Supervisor/Manager (YJ) Employees who supervise work in the Medical CG are classified in this PS. There are four PB. Only supervisory physicians and dentists are eligible for PB4.

Investigative and Protective Services Career Group

The Investigative and Protective Services career group has four pay schedules:
  • Investigative (YK) This PS covers investigative and security work and consists of three PB.
  • Fire Protection (YL) This appllies to fire fighters, fire chiefs, and fire protection inspectors/specialists. It has four PB.
  • Police/Security Guard (YM) This PS has two PB and applies exclusively to two occupations: police officer and security guard.
  • Supervisor/Manager (YN) Employees who supervise work in the Investigative and Protective Services CG are classified in this PS. There are three PB.

Controversy

An analysis of NSPS by Federal Times
Federal Times
Federal Times is the premier source of information for senior U.S. government managers on trends and issues facing them in their job performance and career. Federal Times is part of Army Times Publishing Company, which is a part of the Gannett Company ....

, a branch of the Defense News Media Group, in August 2008 found that the January 2008 issuance of performance-based pay raises and bonuses, the first large-scale payout under the new system, was filled with inequalities. The analysis found that white employees received higher average performance ratings, salary increases and bonuses than employees of other races and ethnicities. Also, employees working at DoD agencies, such as the Defense Finance and Accounting Service
Defense Finance and Accounting Service
The Defense Finance and Accounting Service is an agency of the United States Department of Defense that provides finance and accounting services for the civil and military members of the Department. Headquartered in Indianapolis, IN, it was activated on Jan. 18, 1991...

, Tricare
TRICARE
TRICARE, formerly known as the Civilian Health and Medical Program of the Uniformed Services , is a health care program of the United States Department of Defense Military Health System. TRICARE provides civilian health benefits for military personnel, military retirees, and their dependents,...

, the Office of the Inspector General
Office of the Inspector General
Office of the Inspector General is an office that is part of Cabinet departments and independent agencies of the United States federal government as well as some state and local governments. Each office includes an Inspector General and employees charged with identifying, auditing, and...

 and the Office of the Secretary of Defense
Office of the Secretary of Defense
The Office of the Secretary of Defense is a headquarters-level staff of the Department of Defense of the United States of America. It is the principal civilian staff element of the Secretary of Defense, and it assists the Secretary in carrying out authority, direction and control of the Department...

, earned higher performance ratings and payouts overall than did their civilian counterparts in the three military service branches: United States Army
United States Army
The United States Army is the main branch of the United States Armed Forces responsible for land-based military operations. It is the largest and oldest established branch of the U.S. military, and is one of seven U.S. uniformed services...

, United States Navy
United States Navy
The United States Navy is the naval warfare service branch of the United States Armed Forces and one of the seven uniformed services of the United States. The U.S. Navy is the largest in the world; its battle fleet tonnage is greater than that of the next 13 largest navies combined. The U.S...

, and United States Air Force
United States Air Force
The United States Air Force is the aerial warfare service branch of the United States Armed Forces and one of the American uniformed services. Initially part of the United States Army, the USAF was formed as a separate branch of the military on September 18, 1947 under the National Security Act of...

.

The American Federation of Government Employees
American Federation of Government Employees
The American Federation of Government Employees is an American labor union representing over 625,000 employees of the federal government, about 5,000 employees of the District of Columbia, and a few hundred private sector employees, mostly in and around federal facilities...

 (AFGE) stated that the analysis supports their concerns about the new system. Brian DeWyngaert, AFGE chief of staff, said. "These systems can have a discriminatory impact. Whether it’s intended or unintended, it happens nevertheless."

Legislation

In June 2009 Congresswoman Carol Shea-Porter (D-NH) was successful in attaching provisions in the House Armed Services Committees’ version of the Fiscal Year 2010 NDAA that would greatly restrict the implementation and potentially the very existence of the NSPS. If the Congresswomen provisions become law, the SECDEF will have 6 months to decide if the program warrants keeping. He would have to report to Congress that substantial improvements have been made to the pay-for-performance system. The bill calls for returning all employees under NSPS back to the GS system within one year of the bill becoming law. For the full text see House Resolution 2647 RH Section 1112.

Repeal

On October 29, 2009, President Barack Obama signed legislation repealing NSPS and restoring DOD employees to their previous pay systems. Full implementation of this legislation is to occur by no later than January 1, 2012.

NSPS superseded by similar system

NSPS provisions have migrated to Science and Technology Reinvention Laboratory (STRL) provisions so that the government can continue its experimentation. See, for example, Federal Register / Vol. 75, No. 174 / Thursday, September 9, 2010 (PDF file 2010-22172.pdf) and later publications related to STRL.
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