As many as 54,000 employees still covered by the Defense Department's National Security Personnel System will receive 2.26 percent pay raises this month, according to a Dec. 27 memo obtained by Federal Times. (Defense Department)
As many as 54,000 employees still covered by the Defense Department's National Security Personnel System this month could receive performance-based pay raises or bonuses averaging 2.26 percent of all employees' salaries, according to a Dec. 27 memo obtained by Federal Times.
The memo, signed by Undersecretary of Defense for Personnel and Readiness Clifford Stanley, also said the employees could receive additional performance-based bonuses determined by their component agencies.
The 2.26 percent of all NSPS employees' salaries will go into a pay pool that will be distributed based on employees' performance in fiscal 2010. The raises and bonuses will come from funds that, had the employees not been part of NSPS, would otherwise have paid for General Schedule within-grade increases, quality step increases and promotions between grades. Step increases for General Schedule employees range from 2.6 percent to 3.3 percent.
Defense has in the past pulled additional money for NSPS raises from the governmentwide pay increase. But President Obama and Congress canceled that increase in 2011 and 2012 as part of a pay-scale freeze, and as a result NSPS raises will be smaller than usual.
The Pentagon will move all remaining NSPS employees back to their old pay systems by the end of 2011. Congress in 2009 canceled the large and controversial pay-for-performance system, which had been criticized as complex and unfair, and said all employees should receive at least the full GS raise until they are transferred out of NSPS.
The memo also establishes a so-called choke point at $155,500, or level IV of the Executive Schedule, and said NSPS employees may not receive further performance-based increases if they are making more than that amount or would make more than that with a performance raise.
Defense transferred about 172,000 employees out of NSPS and back to GS in fiscal 2010. The remaining employees will be transferred to alternative personnel systems.