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National Security Personnel System: Opening Doors for Defense Transformation

This article discusses the key provisions of the National Security Personnel System (NSPS) legislation and its relationship to the existing civilian personnel system. It explores the way ahead for the Department of Defense (DoD) and the Army in implementing the NSPS.

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National Security Personnel System: Opening Doors for Defense Transformation

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  1. National Security Personnel SystemOpening Doors for Defense TransformationJanuary 8, 2004

  2. Agenda • Background • Key provisions of NSPS legislation • Relationship to existing civilian personnel system • The way ahead for DoD and the Army • Conclusion

  3. Key civilian functions The Army Civilian Workforce 499K Active Duty 205K USAR 350K ARNG 221K APF US 26K Foreign National 28K NAF Logistics Medical Engineering, Science IT Administration BASOPS, MWR MANY DOD CIVILIAN HR SYSTEMS US Civil Service 6 main FN systems Intelligence HR system DoD NAF HR system Acquisition Demo 5 Laboratory Demos

  4. NSPS Overview • Authority for DoD civilian personnel system: flexible, contemporary, streamlined • National Defense Authorization: authority, framework, key areas • System details built on Demonstration Project Best Practices for staffing, performance management, job classification • System details to be built by DoD work groups for labor relations, discipline, appeals, premium pay • Preserves civil service principles and veterans’ preference -- in law • Respects collective bargaining -- in law • Opportune timing: high projected losses, keen competition • Gives DoD opportunities to standardize as well as gear to mission • Phases implementation over a two year period • OSD mandate

  5. Office of Personnel Management Merit Systems Protection Board Federal Labor Relations Authority Federal Civil Service, US Code Title 5 Agencies incl DoD Mil Services Secretary of Defense and OPM, with collaboration by employee reps at national level Limited role for MSPB, FLRA National Defense Personnel System, US C Title 5, Ch 99 Mil Services + Federal Civil Service e.g., allowances, leave, training, benefits Building the Civilian HR System Legal Basis Regulator Implementer Before NSPS After NSPS

  6. A System in Transformation BOTTOM LINE: Performance, contribution based system - Makes it easier to hire, employ, compensate, reward high quality civilians - Demands significant leader involvement

  7. NSPS in Relation to Current System NSPS No Change from Title 5: • Merit system principles • Rules against prohibited personnel practices • Benefits • Allowances for travel, subsistence • Training • Leave and work schedules • Other personnel systems in law • Current Lab Demos until FY 09 • Anti-discrimination laws BP Concepts for Collaboration: • Job classification • Staffing • Reduction in force • Performance management • Pay setting In Development: • Labor relations • Appeals • Adverse actions • Premium pay Continuing Component Responsibility for Policy and Execution: • Human resource management - Leader Development - Support tools • Recruiting - Worklife programs - Mobilization and • Workforce diversity - Reorganization planning deployment • Career management - Workforce planning

  8. The Way Ahead for DoD AMBITIOUS

  9. The Way Ahead for Army: Fulfill OSD Mandate – Tailor for Army

  10. In Conclusion • Monumental change: bigger than Civil Service Reform Act of 1978 • All management officials including military supervisors of civilians, career field proponents, institutional schools • Most DoD civilian employees • Most DoD/Army civilian HR rules, policies, business processes, IT tools • Historical opportunity; significant challenges

  11. Backup Charts

  12. Civil Service Merit Principles • Recruit qualified individuals from all segments of society; select and advance employees on the basis of merit after fair and open competition. • Treat employees and applicants fairly and equitably without regard to political affiliation, race, color, religion, national origin, sex, marital status, age, or handicapping condition. Do not violate their privacy or constitutional rights. • Provide equal pay for substantially equal work; reward excellent performance. • Maintain high standards of integrity, conduct, and concern for the public interest. • Use the workforce effectively and efficiently. • Retain employees on the basis of his/her performance. Separate employees who cannot/do not improve their performance to meet required standards. • Educate and train employees when it will result in better organizational or individual performance. • Protect employees from arbitrary action, improper political influence, and personal favoritism. • Protect employees against reprisal for lawful disclosures of information in “whistleblower” situations like when the employee reasonably believes there is illegal activity, gross waste of funds, abuse of authority, substantial danger to public health or safety.

  13. Civil ServiceProhibited Personnel Practices • Don't DISCRIMINATE on the basis of race, color, religion, sex, national origin, age, handicapping condition, marital status, or political affiliation. • Don't SOLICIT OR CONSIDER employment recommendations based on factors other than personal knowledge or records of job-related abilities or characteristics. • Don't COERCE the political activity of any person. • Don't DECEIVE OR WILLFULLY OBSTRUCT any person’s right to compete for employment. • Don't INFLUENCE any person to withdraw from competition for any position in order to improve or injure the employment prospects of any other person. • Don't GIVE UNAUTHORIZED PREFERENCE OR ADVANTAGE to any person to improve or injure the employment prospects of any particular employee or applicant. • Don't ENGAGE IN NEPOTISM. (I.e., as a public official, do not hire, promote or advocate the hiring or promotion of relatives within your agency.) • Don't THREATEN OR RETALIATE against employees or applicants who exercise their appeal rights or who disclose “whistleblower” information to an agency Inspector General or the Special Counsel, or – if not prohibited by law, national defense interest, or Executive Order -- in other channels. • Don't DISCRIMINATE based on personal conduct that is not adverse to the job performance of the employee, applicant, or others. • Don't VIOLATE or recommend violation of a veterans’ preference requirement. • Don't VIOLATE any law, rule, or regulation that implements or directly concerns the merit system principles.

  14. NSPS: Key Provisions • Pay for Performance system: merit, equity, fairness, linkage to agency strategic plans • DoD authority to design rules for • Staffing flexibilities to hire, promote, reassign, remove • Reduction in force system emphasizing performance • Improved, streamlined premium pay • New ways to handle discipline, adverse actions

  15. What May Be Different? KEY FEATURE CURRENT PRACTICE NSPS BP CONCEPT

  16. NSPS: Key Provisions, cont. • New labor relations system, including bargaining at national level • Develop in collaboration with employee representatives • Base on collaborative, issue-based approach • Provide for third party review of disputes • Sunset in six years unless extended in law • New employee appeals process • Base on due process for all employees, standards and procedures consistent with merit system principles • Give right to appeal to full Merit Systems Protection Board • Provisional for seven years; then permanent unless Congress acts

  17. Other Key NDAA Provisions for DoD • Permanent authority for voluntary early retirement and separation incentive payments for restructuring as well as reduction in force • Elimination of pay offset for reemployed annuitants • Higher Senior Executive pay cap • Term appointments and special pay for up to 2,500 highly qualified experts in DoD • Special pay and benefits for certain DoD employees abroad who are engaged in hazardous activities or specialized functions

  18. DoD Best Practices Pay Features • White collar pay banding for assignment flexibility, growth in performance • Supervisor pay: extended pay ranges • Conscious management decisions about pay, both initially and with annual performance assessment • Pay retention for two years maximum April Federal Register

  19. BP Classification System NONSUPERVISORY PAY BANDS

  20. ES/ST GS-15 SES/ST Above GS-15 $102,168 p/a min $110,682 p/a max GS-14 $85,140 p/a min CG2/Level 3 GS-13 $72,381 p/a min $79,629 p/a max GS-12 $61,251 p/a min CG2/Level 2 GS-11 $51,508 p/a min $55,873 p/a max GS-9 $42,976 p/a min CG2/Level 1 GS-7 $35,519 p/a min GS-5 $29,037 p/a min $23,442 p/a min KEY: Grade/Level threshold Pay progression BP Classification System Comparing Grade/Level and Pay Progression BP proposed pay band/performance pay progression GS grade/in-grade pay progression BP April Federal Register

  21. DoD Best Practices Staffing Features • Broader rating groups for referral; more flexibility in selection choices • Probation up to three years upon appointment; one year upon change to job with higher earning potential • Emphasis on employee performance for retention in reductions in force • Veterans’ preference observed for referral and reduction in force April Federal Register

  22. DoD Best Practices Performance Features • At risk pay: General Pay Increase plus pay pool factor for equivalents of within grade increases, promotions, quality step increases, and bonuses • Seven standard performance factors • Performance review board decisions on pay advancement and performance incentives April Federal Register

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