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Release No: 441-08
May 22, 2008

DoD Submits Proposed NSPS Regulations to Federal Register

The Department of Defense and the Office of Personnel Management have issued proposed joint regulations revising the National Security Personnel System, one of DoD’s human resources management systems. NSPS was originally authorized by the National Defense Authorization Act for Fiscal Year 2004 and amended by NDAA 2008.     
While Congress made significant changes to the underlying NSPS statute, the core features of NSPS remain essentially intact, including the pay banding and classification structure, compensation flexibilities, and pay for performance system.  
·          Brings NSPS under government-wide rules for:
o    labor-management relations 
o    disciplinary and adverse actions and employee appeals of adverse actions
o    workforce shaping (reduction in force, furlough, and transfer of function)
·          Excludes Federal Wage System (blue collar) employees from coverage under NSPS.
·          Extends and expands exclusion from NSPS coverage for certain DoD laboratories through October 1, 2011.
·          Requires DoD to collectively bargain when implementing NSPS for DoD bargaining unit employees.
·          Requires advanced congressional notification for OPM/DoD jointly-prescribed NSPS regulations.
·          Mandates that all employees with a performance rating above “unacceptable” or who do not have current performance rating receive no less than sixty percent of the annual Government-wide General Schedule pay increase (with the balance allocated to pay pool funding for the purpose of rewarding employees with pay increases based on their performance).
·          Requires that all NSPS employees with a performance rating above “unacceptable” or who do not have current performance rating receive locality pay in the same manner as General Schedule employees.
                In addition to making regulation changes resulting from NDAA 2008, additional updates that adjust and clarify other NSPS principles include:
·         Enabling NSPS coverage for employees appointed for less than 90 days.
·          Providing a conversion/movement out process for employees moving to GS positions, to ensure consistent pay setting practices for NSPS employees.
·          Allowing employees to request reconsideration of an individual job objective rating, in addition to the ability to request reconsideration of the overall final rating of record.
§         Grandfathering GS pay retention timelines for employees covered by GS grade or pay retention rules at the time of their conversion to NSPS
NSPS proposed regulation is posted on the Federal Register and will be open for public comment for the next 30 days. This regulation may be accessed on line at:   http://www.gpoaccess.gov/fr/index.html
The public may submit written comments through two methods:
·      Electronically through the Federal Rulemaking Portal: http://www.regulations.gov
·      Via mail to: DOD/OPM/NSPS Public Comments, P.O. Box 14474, Washington, DC 20044
Following the 30-day comment period, remarks will be collected, analyzed and considered for incorporation in the regulations. Final publication is anticipated this fall.
The updated NSPS regulations govern how classification, compensation and performance management flexibilities will be implemented. 
NSPS remains on schedule and will continue implementation throughout the DoD. Currently, NSPS covers approximately 180,000 DoD civilian employees. The next DoD organizations will convert into NSPS in the late 2008 - early 2009 timeframe. 

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