Pay, Performance and Payouts
Q. How are pay bands structured?
A. Pay bands incorporate a salary range that represents the scope and difficulty of work. Many of the factors used to classify positions under NSPS, such as complexity and level of work, are the same as those under GS. The pay system sets minimum and maximum pay rates for each pay band.
Typically, pay bands are structured as follows:
Pay Band 1 includes entry/intern/developmental positions
Pay Band 2 includes full-performance/journey level positions
Pay Band 3 includes subject matter expert/program manager level positions
Q. Under NSPS, what types of pay increases may I receive?
A. You may receive a pay increase in several ways including:
General pay increase (GPI)
Local market supplement (LMS) adjustments
Performance-based increases
Promotions
Reassignments or other placement actions
Accelerated Compensation for Developmental Positions (ACDP)
Q. As an NSPS employee, if a general pay increase (GPI) is granted to GS employees, am I eligible to receive it too?
A. Yes. If you have a final rating of record of Level 2 (Fair) or higher, you will receive the GPI.
Q. Is a GPI the same as a COLA?
A. No. The GPI is comprised of two components: (1) an across the board base salary increase based on the change in private sector pay as measured by the Employment Cost Index (ECI); and (2) an increase based on locality. Generally, these are adjusted annually by an Executive Order following an appropriation bill from the Congress.
A non-foreign Cost of Living Allowance, or COLA, is an allowance paid by the government to white collar civilian Federal employees in Alaska, Hawaii, Guam and the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. Additional information on COLAs may be found on the OPM web page at https://www.opm.gov/oca/cola/index.asp.
Q. What constitutes an adjusted salary under NSPS?
A. An adjusted salary includes your base salary plus a local market supplement (if applicable).
Q. Under NSPS, do I receive Within-Grade-Increases (WGIs)?
A. Under NSPS, there are no "steps" similar to the GS system, therefore WGIs no longer exist. Money that was used for WGIs is used to help fund pay pools. Employees who receive ratings of record of 3 (Valued Performers) or higher are eligible for performance-based payouts.
Q. What is a Local Market Supplement (LMS) and how does it work?
A. LMS is a geographic and occupation based supplement paid in addition to your base salary. Your entitlement to LMS is based on whether your official worksite is located in a particular local market area and/or occupation.
Q. Is a LMS the same as the locality pay employees receive under GS?
A. The standard LMS is the same as GS locality pay.
Q. Am I eligible to receive a local market supplement adjustment?
A. With the exception of certain physicians and dentists, if you have a final rating of record of Level 2 (Fair) or higher, you will receive a local market supplement adjustment equivalent to locality pay under GS.
Q. If I am in a developmental position how do I receive pay increases under NSPS?
A. If you are in a developmental position, you are eligible for performance-based pay in recognition of your performance and contributions.
Your performance must be rated at Level 3 (Valued Performer) or higher.
Your performance payout may be in the form of a base salary increase, bonus or combination of both.
If you are assigned to Pay Band 1 of a non-supervisory pay schedule and have a rating of record of Level 3 (Valued Performer) or higher, you may be eligible for pay increases under the Accelerated Compensation for Developmental Positions (ACDP). ACDP:
Recognizes growth and development in acquiring job related competencies and successful performance
of job objectives.
Offers an increase to base salary, bonus or combination of both based on performance.
May increase your base salary within Pay Band 1 by up to 20 percent.
Another type of pay increase is promotion from Pay Band 1 to Pay Band 2 of a Professional, Analytical, or Investigative pay schedule.
Employees are eligible for this noncompetitive promotion because they have already competed for the
next higher level.
When management promotes employees from Pay Band 1 to Pay Band 2, employees are eligible to
receive a significant base salary increase (from 6 percent to 12 percent and sometimes higher, subject to
higher management approval, or as necessary to meet the minimum rate of the pay band to
which promoted).
During the first 12 months after conversion, employees who are not eligible for the ACDP provision are eligible to receive a base salary increase equivalent to a noncompetitive promotion when:
The grade level of the promotion is encompassed within the same pay band;
The employee's performance warrants the pay increase; and
A promotion would have otherwise occurred during that period.
Q. What happens if I do not have an NSPS rating of record, and I am not eligible for an NSPS performance payout?
A. You are eligible to receive the equivalent of the government-wide pay increase (GPI) and a local market supplement adjustment.
Q. As an NSPS employee, can I receive a pay increase if I am reassigned to a different NSPS position?
A. Yes, you can based on performance and the opportunities you seek for reassignments including:
Employee-initiated reassignment: You may receive up to a cumulative 5 percent in base salary increase
in a 12-month period no matter how many times you voluntarily move during that period. An exception to
the 12-month limitation may be approved by an authorized management official.
Management-directed reassignment: You may receive up to 5 percent in base salary increase for each
reassignment. There is no limit to the number of times you may receive a management-directed
reassignment and you are eligible for a base salary increase of up to 5 percent with each reassignment.
Voluntary movement to a lower pay band: Your base salary must be set within the assigned pay band.
Management may increase your base salary by up to 5 percent (not to exceed the maximum of the
rate range).
Q. How much of a pay increase can I expect when I am promoted to another NSPS position?
A. A promotion is a temporary or permanent move to a position in a higher pay band. When you receive a promotion, your base salary increases by a minimum of 6 percent and a maximum of 12 percent. However, increases greater than 12 percent may occur if higher level management has approved a greater increase in accordance with NSPS regulations and Component policy or as necessary to meet the minimum rate of the higher pay band. If the promotion is temporary, your base salary reverts to that of your permanent position upon termination of temporary promotion.
Q. How does DoD ensure that money is really paid out to NSPS employees as part of the pay pool process?
A. The law requires that the aggregate amount of money allocated for civilian compensation for organizations under NSPS may not be less than the amount that would have been allocated under the GS system. There is a requirement that Components must certify that they have spent no less than what they would have spent on compensation of civilian employees if the employees had not converted to NSPS.
Q. If my salary exceeds GS-15, step 10 (e.g., near the maximum for YA-3 or YC-3), can I receive any premium pay?
A. In most cases, the answer is no. NSPS employees are generally covered by the GS premium pay limitations established under 5 U.S.C. 5547 and related regulations. There are special cases that allow for exceptions to the annual premium pay limit (i.e. employees assigned to the CENTCOM area of responsibility). However, barring a special circumstance, you may not receive premium pay when your salary exceeds the GS-15, step 10 cap. NSPS generally follows the GS limitations that govern the amount of premium pay that employees receive with some slight modifications. The categories of premium pay covered by these limitations include:
Overtime pay (except overtime pay earned by nonexempt employees under the Fair Labor Standards Act)
Compensatory time off (except compensatory time off for travel)
Premium pay for regularly scheduled standby duty (applies to certain firefighters and emergency
medical technicians)
Availability pay for criminal investigators
Holiday pay
Night pay
Sunday pay
Q. How can a supervisor use a management-directed reassignment to provide me with added opportunity and compensation?
A. Supervisors have the flexibility to align individual work with organizational goals and provide employees with increased opportunity to expand skill sets and develop new competencies. With management-directed reassignments, a supervisor may exercise this flexibility and offer you up to a 5 percent base salary increase when local or Component-level policies permit.
Q. What factors are considered if a supervisor wants to grant a promotion increase of more than 6 percent?
A. Supervisors consider the following factors:
Critical mission or business requirements
Employee’s past and anticipated performance and contribution
Employee’s specialized skills or knowledge
Labor market conditions, including availability of candidates and rates paid for similar types of work
Base salary paid to other employees in similar positions in the higher pay band
Location of the position
Performance Management
Q. How is my supervisor held accountable for equitably and fairly rating me?
A. Supervisors and managers are trained and evaluated on how well they exercise their performance management responsibilities. Their effectiveness is an important factor in determining their own evaluations and pay increases.
NSPS is designed to use pay pool panels (groups of management officials) to evaluate and reconcile an organization’s performance ratings. The pay pool process is a means of checks and balances for employee performance ratings and rewards.
Q. What if I don't agree with my final rating of record?
A. You are entitled to a reconsideration if you do not agree with your final rating of record. Within 10 calendar days of receipt of the rating of record, you must submit a written request for reconsideration to the pay pool manager and provide a copy to your rating official and the servicing human resources office (HRO). For further details on the reconsideration process, please contact your servicing HR Office.
Q. I have a very high performing staff. Are quotas set for the number of employees who receive the highest rating?
A. No. NSPS regulations prohibit forced distribution of performance ratings.
Q. What is forced distribution and is it permitted?
A. Forced distribution occurs when managers assign performance ratings based on a pre-determined rating distribution by percent of the population or number of employees. In forced distribution rating systems, employees are ranked relative to one another, rather than the evaluation of individual employee job performance assessed against rating criteria.
The NSPS regulations (5 CFR §9901.412(a)) expressly prohibit the use of forced or pre-determined distribution of ratings.
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