nsps update

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Total Force NSPS Workshop

Thomas D. Randall

NSPS Program Manager

Steven Griffitts

Compensation Program Manager

September 2009

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Agenda

• The status of NSPS - Tom

• NSPS/Pay Pool 2009 Timeline - Tom

• DOD/DON/BUMED Rules - Tom

• NSPS Compensation Management - Steve

• Questions and Answers

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NSPS Status

• Initial Joint DoD – OPM Task Force Report Recommendations

• NDAA NSPS Provisions in House Bill

• NDAA NSPS Provisions in Senate Bill

• House-Senate Conference Status

• DoD Response and Guidance

UNCLASSIFIED//FOUOJOINT DoD – OPM NSPS TASKFORCE

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Findings and Recommendations

• On March 16, 2009, the DoD and the OPM announced a joint review of the NSPS.

• The Task Group presented its draft findings and recommendations to the Defense Business Board on 16 July 2009, and its final Report was delivered on 25 August 2009.

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Joint Taskforce NSPS Recommendations -1

1. Initiate a reconstruction of the NSPS within DoD that begins with achallenge to the assumptions and design of NSPS.

- The Task Group recommends a “reconstruction” of the NSPS. - A “fix” could not address the depth of the systemic problems discovered. - The Task Group does not recommend an abolishment of the NSPS because the performance management system that has been created is achieving alignment of employee goals with organizational goals.

• The reconstruction should include a true engagement of the workforce in designing needed changes and implementation.

• Finally, the reconstruction should include desired outcomes and data

collection to measure results.

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Joint Taskforce Recommendations - 2

2. Reestablish a DoD commitment to partnership and collaborating with employees through their unions.

3. Establish DoD’s commitment to strategic management and investment in career civil servants.

4. Continue the existing moratorium on transitions of more work units into NSPS until DoD can present a corrective action plan to address identified issues, supported by data that the implemented corrective actions will address the identified issues.

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5. In relation to NSPS, the following areas of identified concern must be addressed:

a. Pay pool - The overall process lacks transparency and is encumbered by extremely complicated sub-processes.

b. Pay Bands - The paybands have a wide impact and pay band 2 has a large component of the workforce without clear linkage to career progression.

c. Trust - Supervisors and employees have built up reserves of trust on mission performance, but not on NSPS.

d. Best Practices - The DoD Components have learned many best practices. These should be more formally collected and implemented across the Department.

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6. Continued GAO monitoring of NSPS implementation, with specific analysis of indicators of unintended Equal Employment Opportunity consequences in the NSPS workforce, would be beneficial.

7. Create a collaborative process for DoD managers and employees currently in the General Schedule system to design and implement a performance management system that ties individual employee performance goals to organizational goals. Explore the replacement of the current General Schedule classification system.

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HOUSE NDAA BILL NSPS PROVISIONS

SUMMARY

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H.R.2647 National Defense Authorization Act for Fiscal Year 2010 -1

SECDEF shall : • provide, within 12 months after the date of

enactment of this Act, for the termination of NSPS

• convert any employees and positions subject to NSPS to the statutory pay system that last applied or would have applied if no NSPS

• No employee shall suffer any loss of or decrease in pay

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H.R.2647 National Defense Authorization Act for Fiscal Year 2010 - 2

SEC. 1112. PROVISIONS RELATING NSPS• NSPS shall not apply to any individual or

position not subject to such System as of June 16, 2009

• Any individual appointed after June 16, 2009, shall be subject to the statutory pay system and all other aspects of the personnel system which would otherwise apply if NSPS had never been established

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• If SECDF is of the view that NSPS should not be terminated - submit to President and both Houses of Congress no later than 6 months after the enactment of this Act, a written report including:– whether the System should be continued with or

without changes– If recommended to be continued:

(i) a detailed description of the proposed changes; and

(ii) a description of any administrative action or legislation which may be necessary.

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• Restoration of Full Annual Pay Adjustments Under NSPS Pending Its Termination - Section 9902(e)(7) of title 5, United States Code, is amended by striking `no less than 60 percent' and all that follows and inserting `the full amount of such adjustment.'

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SENATE NDAA BILLNSPS PROVISIONS

SUMMARY

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S.1390 National Defense Authorization Act for Fiscal Year 2010 - 1

• SEC. 1101. REPEAL OF NSPS; DOD PERSONNEL AUTHORITIES.

• Repeal of Authority To Establish NSPS - Section 9902 of title 5, USC one year after the date of the enactment of this Act

• SECDEF shall ensure the orderly transition of all organizational and functional units from NSPS by not later than one year after the date of the enactment of this Act. The Secretary shall ensure that no employee is subject to a reduction in pay as a result of such transition.

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S.1390 National DefenseAuthorization Act for Fiscal Year 2010 - 2

• At the time of any annual adjustment to pay schedules pursuant to section 5303 of such title during the transitional period provided in paragraph (1), the rate of basic pay for each employee described in section 9902(e)(7), as so in effect, shall be adjusted by 100 percent of the amount of such adjustment.

• CURRENT RULES INVALID- Any rule or implementing issuance adopted before the date of the enactment of this Act to implement any provision of section 9902 of title 5, United States Code (other than subsections (d), (e), and (f) of such section (as redesignated by subsection (a)(2))), shall cease to be effective on the date that is one year after the date of the enactment of this Act.

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• (a) Personnel Management- (1) The Secretary may waive the requirements of chapter 33, and the regulations implementing such chapter, to the extent the Secretary considers appropriate to establish and implement regulations providing for the following:

• `(A) Fair, credible, and transparent methods of establishing qualification requirements for, recruitment for, and appointments to employment positions.

• `(B) Fair, credible, and transparent methods of assigning, reassigning, detailing, transferring, or promoting employees.

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• In implementing this subsection, the Secretary shall comply with the provisions of section 2302(b)(11), regarding veterans' preference requirements, in a manner comparable to that in which such provisions are applied under chapter 33.

• Any action taken by the Secretary under this subsection, or to implement this subsection, shall be subject to the requirements subsection (c) and chapter 71. [collective bargaining]

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• The Secretary may establish a fund to be known as the ‘DOD Civilian Workforce Incentive Fund’

• For:– (i) For incentive payments to employees based on

individual or team performance.– `(ii) For incentive payments to employees for

purposes of the employment and retention as employees of qualified individuals with particular competencies or qualifications.

Subject to the requirements of subsection (c) and chapter 71. [collective bargaining]

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• The Secretary may waive the requirements of chapters 43 (other than sections 4302 and 4303(e)) and 45, and the regulations implementing such chapters, to the extent the Secretary considers appropriate to establish and implement regulations providing for the following:

• `(A) A fair, credible, and transparent performance appraisal system for employees.

• `(B) A fair, credible, and transparent system for linking employee bonuses and other performance-based actions to performance appraisals of employees.

• `(C) A process for ensuring ongoing performance feedback and dialogue among supervisors, managers, and employees throughout the appraisal period and setting timetables for review.

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Subsection C:

In establishing any new personnel management system or new performance management and workforce incentive system, the Secretary shall--

• `(1) adhere to merit principles set forth in section 2301;• `(2) include a means for ensuring employee

involvement in the design and implementation of such system;

• `(3) provide for adequate training and retraining for supervisors, managers, and employees in the implementation and operation of such system;

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• `(4) include effective transparency and accountability measures and safeguards to ensure that the management of such system is fair, credible, and equitable, including appropriate independent reasonableness reviews, internal assessments, and employee surveys; and

• `(5) ensure that adequate agency resources are allocated for the design, implementation, and administration of such system.'

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House – Senate Conference Status

• Unscheduled at this time

• Conferees not yet named

• House and Senate are back in session

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DOD/Administration Response - 1

• No hint of an intent to abolish NSPS

• Objected to language that would repeal NSPS

• Opposed to any legislation on NSPS

• Of the two versions, it prefers the less restrictive Senate language

• Administration officials are reviewing NSPS and have said they will take a position on it in the fall

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DoD/Administration Response - 2

• The termination of NSPS would be disruptive and potentially have a negative impact on the department's mission and its in-sourcing efforts, which require streamlined and timely hiring flexibilities as provided by NSPS.

• While waiting for Congress to act to retain NSPS [House language], the Pentagon would have to take steps to prepare for moving some 200,000 employees now under NSPS back into the general schedule.

• A House provision requiring that all newly hired white collar employees be placed in the GS rather than NSPS even in components now under NSPS would be "extremely disruptive" to those components.

• A Senate provision giving DoD certain flexibilities and authority to establish a performance incentive payment fund should NSPS be repealed would be subject to bargaining and would take a long time to establish.

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DOD/DON Guidance

• At present, NSPS-covered organizations and employees will continue to operate as usual under current NSPS policies, regulations and procedures.

• Routine personnel actions for individual employees moving into existing, reclassified and new positions in organizations already under NSPS will continue to be processed under the NSPS rules.

• Routine actions include reassignments, promotions, transfers and placements, and hiring actions for individual employees

UNCLASSIFIED//FOUONOMINAL NSPS 2009 TIMELINE

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BUMED 2009 NSPS Timeline - 1

July – August 2009

• 2 July - All employees must be under an approved performance plan, either in the Performance Appraisal Application (PAA) or with signed hard copy DD 2906

• 3 July - 30 Sep - Early annual appraisals completed if rating officials/employees leave or change positions

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September 2009

• Wk of 1 Sep - Pay pools began to validate pay pool ID for employees in the pay pool

• o/a 15 Sep - Employees and Rating Officials began drafting final appraisals

• 23-30 Sep – Final Appraisal Workshops – employees

• 30 Sep - 2009 NSPS rating cycle ends

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October 2009

• 1 Oct - 2010 Rating Cycle begins. Performance plans must be in place w/i 30 days (unless extended by Pay Pool Manager( PPM))

• 1 Oct – 7 Oct – Final Appraisal Workshops – employees

• o/a 7 October - Employees complete final self assessments

• 1 Oct – 15 Oct – Final Appraisal Workshops – ROs

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• o/a 15 October - ROs complete final assessments

• o/a 20 October - Higher Level and Chain of command review

• o/a 26 October - Final assessments due to PPM

• o/a 28 October - Pay Pool Panel(s) Pre-Brief

• 30 Oct - 2010 performance plans to be in place (unless date is extended by the PPM)

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November 2009

• ___ Nov - sub-pay pools meet• ___ Nov - Pay Pool(s) meets*• ___ November - Additional pay pool meetings + quality

control• o/a late Nov - PPM briefs Performance Review Authority

(PRA); pay pool results finalized

* All supervisors and higher level officials must be available for discussion with pay pool panel if needed

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December 2009

• 1 Dec – PPM certifies Compensation Workbench (CWB) and uploads extract files to DCPDS

• o/a 1st/2nd week in December - Rating officials provide ratings/appraisals to employees

• 11 Dec – Final CWB upload with all mismatches resolved

• 18 Dec – Final day to submit Requests for Personnel Action (RPAs) for Specially Situated Employees

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January - February 2010

• 1 Jan 2010 - Appraisals become effective• 3 January 2010 – Effective date of payout• 4 January 2010 - Reconsideration period begins o/a 29

January 2010 - PPM completes reconsideration process• 4 - 8 Jan ROs meet with employees and employees

acknowledge Completed Appraisal• 31 January 2010 Pay Pool results must be

communicated to NSPS employees

February 2010• o/a 15 Feb 2010 - PRA completes reconsideration

process (if applicable)

UNCLASSIFIED//FOUOKEY POINTS FROM THE DOD PAY POOL REGULATIONS

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DOD Pay Pool Regulations - 1

SC1940.10.2 Forced Distribution. Forced distribution of ratings (setting preestablished limits for the percentage or number of ratings that may be assigned at any level) is prohibited.

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DOD Pay Pool Regulations - 2

Because the rating of record is directly linked to pay and retention decisions (see SC1930), it is of utmost importance that employees receive an appropriate, fair, unbiased rating that reflects their performance and contribution.

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DOD Pay Pool Regulations – 3Employee Assessments are Voluntary

• At the conclusion of the appraisal period, the rating official (normally the first-level supervisor) will request that employees provide self-assessments describing their own accomplishments for each objective in the performance plan in sufficient time to consider in their supervisory assessment. Provision of this assessment is entirely voluntary. The employee should describe his or her accomplishments relative to performance expectations, including job objectives, contributing factors, organizational mission and goals, team goals, etc.

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DOD Pay Pool Regulations – 4Pay Pool Procedures

• Pay pool panel decisions should be based on a consensus of the members. However, if agreement cannot be reached, the pay pool manager will make the final decision.

• Changes made to a recommended performance rating, share assignment or payout distribution should be communicated back to the rating official along with the rationale for the change.

• The pay pool manager will notify the rating official of the concern(s) with the recommendation(s) and will afford the rating official the opportunity to provide further justification before a final decision is rendered.

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REQUIRED COMMUNICATIONS PERFORMANCE REVIEW AUTHORITY

ANDPAY POOL MANAGER

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DOD Required Communications to NSPS Employees - PRA/PPM - 1

• Preferably within the first 90 days of the appraisal period but not less than 90 days prior to the end of the appraisal period, pay pool members (i.e., NSPS workforce covered by that pay pool) will be advised of:

- SC1940.11.3.1.1. Roles and responsibilities of the Performance Review Authority (PRA), the Pay Pool Manager, and the Pay Pool Panel;

- SC1940.11.3.1.2. Identity or membership of the PRA, the Pay Pool Manager, and the Pay Pool Panel;

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DOD Required communications to NSPS Employees - PRA/PPM - 2

- SC1940.11.3.1.3. Pay pool composition (organizations, functions, groups that describe the makeup of the pay pool);

- SC1940.11.3.1.4. General pay pool policies; and

- SC1940.11.3.1.5. Factors that may be considered in making specific share assignments and allocations between base salary and bonus.

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• SC1940.11.4. Employees who are first hired into an NSPS-covered position but who will not be rated because they will not have performed for the minimum period required by section 9901.407 of reference (b) before the last day of the appraisal period will be advised that they are ineligible for the pay pool payout for the current appraisal period.

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• SC1940.11.3.3. Pay Pool Results. Not later than 30 calendar days after the effective date of the payout, the PRA, directly or through Pay Pool Managers will communicate general pay pool results to the NSPS workforce in all subordinate pay pools. Communication of pay pool results must be accomplished in a manner that will not compromise employee confidentiality or violate the Privacy Act. In unusual cases, results may be aggregated at a higher level in the organization.

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• Results will include the following data at a minimum and will be made available to the NSPS workforce in written medium: - number of pay pools (if aggregate pay pool results are necessary), - number of employees rated, - rating and share distribution, - average rating, - average share assignment, - share value (average share value if aggregated pay pool results are necessary) and - average payout expressed as a percentage of base salary;

UNCLASSIFIED//FOUOREQUIRED COMMUNICATIONS RATING OFFICIAL

(SUPERVISOR)

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DOD Required Conversations and Communications to NSPS Employees from

Supervisors/Rating Officials - Policy

• SC1940.5.3. Communicating Performance Expectations. Communication between supervisors and employees is critical to the success of the performance management system; therefore, performance expectations and year-to-date progress will be the subject of several discussions throughout the year between supervisors and employees. Supervisors and employees will have meaningful dialogue on performance expectations, including but not limited to:

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1 - Setting performance objectives

Due date -NLT 30 Oct, unless extended by the PPM. (During the rating cycle, within 30 days from the entrance on duty of a new employee, or employee job change). Rating officials responsibilities include:

• SC1940.4.4.1.3. Clearly communicating performance expectations and holding employees responsible for accomplishing them;

• SC1940.4.4.1.5. Developing written job objectives reflective of expected accomplishments and contributions for the appraisal period and identifying applicable contributing factors;

• SC1940.4.4.1.6. Explaining to employees that conduct will be considered when evaluating their performance, both conduct that would raise the level of the employee’s performance and conduct that would lower that level;

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1 - Setting performance objectives (cont)

Meeting with and communication to employees:• SC1940.5.3.1. Job objective(s) and

performance indicator(s) appropriate for the pay band and current salary to which the employee is assigned and how they relate to organizational mission and goals;

• SC1940.5.3.2. Selected contributing factors and how these relate to the accomplishment of the job objective(s);

• SC1940.5.3.3. Weight of each job objective, if applicable;

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1 - Setting performance objectives (cont)

• SC1940.5.3.4. Examples of how the supervisor expects the employee to exhibit contributing factors in the execution of assigned duties and how these factors could modify ratings on the job objective;

• SC1940.5.3.5. Measures of job objective accomplishment (quantitative, qualitative, timeliness); and

• SC1940.5.3.6. Developmental expectations

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2 – Interim Review

Due date - half way through employee’s rating cycle

• SC1940.4.4.1.7. Providing employees meaningful, constructive, and candid feedback relative to performance expectations, including at least one documented interim review;

• SC1940.6.4. Interim Reviews. While ongoing informal dialogue and feedback are essential throughout the rating cycle, one or more formal interim performance reviews will be held between supervisors and employees. At least one interim performance review will be prepared and documented during the appraisal period. Interim reviews for appraisal periods exceeding 180 days must be in writing.

• SC1940.6.4.1. A formal interim review will acknowledge achievements and suggest areas for improvement, and provide meaningful dialogue and exchange of concerns. Developmental suggestions also may be provided to the employee, as appropriate.

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3 - End of rating cycle supervisory performance assessment

Due date -In October, after end of NSPS rating cycle.

• SC1940.9.1. An integral part of the performance management process is the supervisory assessment of performance relative to job objectives, including the impact of selected contributing factors. This written assessment captures the employee’s accomplishments or lack thereof, if applicable, during the appraisal period and is used in the rating process. Assessing performance involves evaluating employee performance relative to communicated performance expectations, including job objectives and contributing factors, for the appraisal period.

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3 - End of rating cycle supervisory performance assessment (cont)

SC1940.9.3. Supervisory Assessment of Employees. The supervisor (or rating official, if different) must prepare a narrative assessment for each eligible employee. Supervisors will provide a narrative assessment addressing each job objective describing the employee’s accomplishments and contributions to the organization relative to his or her performance expectations, including an assessment of each job objective and associated contributing factors.

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3 - End of rating cycle supervisory performance assessment (cont)

• SC1940.10.3.2. When rating job objectives, a supervisor must consider all applicable performance and conduct information, including, but not limited to, employee and closeout assessments that apply to the current appraisal period.

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4 - Communication of approved rating, share assignment and payout distribution

• Due date - During December, after the pay pool process and PPM and PRA approval:

• SC1940.11.3.2. Prior to the effective date of the payout, supervisors (or rating official, if different) will communicate to employees their approved rating of record, share assignment, and payout distribution. [Written – Addendum to DD2906]

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Other Communications – Close Out Assessments - 1

• SC1940.9.3.2. Any time after an employee has completed the minimum period and the supervisor-employee reporting relationship or assignment changes, the supervisor will provide a closeout assessment in accordance with the procedures in SC1940.6.5. If such change occurs within 90 days of the end of the appraisal period, the supervisor will complete an early annual recommended rating of record in accordance with section 9901.412 of Reference (b). Exceptions, as determined by the Pay Pool Manager, may be allowed based on individual circumstances.

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• SC1940.6.5. Closeout Assessment. A supervisor will complete a brief narrative description of employee performance, accomplishments and contributions during the current appraisal period when it is known that the supervisor will cease to exercise duties related to monitoring, developing, and rating employee performance (due to job change, extended absence, retirement, etc.) for such employees. This condition may result from a job change by the supervisor or the employee.

• SC1940.6.5.1. A supervisor will prepare a closeout assessment for an employee when it is known that the employee will change positions resulting in a new supervisor. Additionally, a supervisor will prepare a closeout assessment, as needed, for employees on details or other previously occupied positions, as input for an employee’s rating of record.

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• SC1940.6.5.2. A closeout assessment is only required if an employee has been assigned to a specific supervisor and has been on an approved performance plan for more than 30 consecutive days. This is a minimum requirement, and DoD Components may define additional requirements.

• SC1940.6.5.3. Closeout assessments will be accomplished in a timely manner and will be considered by the appropriate rating official when determining the recommended rating of record, share assignment, and payout distribution.

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Other Communications – Early Annual Recommended Rating of Record - 1

• SC1940.10.8.1. The criteria for issuing an early annual recommended rating of record are identified in section 9901.412 of Reference (b). [next slide]

• If these criteria are met, the departing or "losing" supervisor (or rating official, if different) will assess employee performance and contribution in accordance with this subchapter and will recommend a rating of record, share assignment, and payout distribution.

• This recommendation will go to the Pay Pool Panel to which the employee is assigned at the close of the appraisal period for reconciliation.

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• (1) An early annual recommended rating of record will be issued when—

(i) The supervisor (or rating official if different) ceases to exercise the duties relative to monitoring, developing, and rating employee performance within 90 days before the end of the appraisal period; or

(ii) The employee is reassigned, promoted, or reduced in band resulting in the assignment of a new rating official within 90 days before the end of the appraisal period (5 CFR 9901.412)

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SC1940.10.8.2. The period of time between the date of the event that triggered the early annual recommended rating of record and the normal end of the rating cycle will be carried forward into the next appraisal period.

Note that this requires resetting the Appraisal Period Start and End Dates, and the Appraisal Effective Date from the defaults in the PAA when creating the new performance plan.

UNCLASSIFIED//FOUOPERFORMANCE REVIEW AUTHORITY RESPONSIBILITIES

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Performance Review Authority (PRA) Responsibilities - 1

SC1940.11.6. PRA Responsibilities. The PRA will oversee the operation of pay pools established under NSPS and ensure procedural and funding consistency among pay pools under its authority. The PRA is tasked with the following:

-SC1940.11.6.1. Managing the civilian performance-based pay budget and discretionary performance payout fund; (See SC1930.9.8.1)

- SC1940.11.6.2. Addressing issues associated with multiple pay systems during the conversion to NSPS;

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• SC1940.11.6.3. Overseeing the composition of the pay pool in accordance with the established guidelines, this subchapter, and statutory constraints;

• SC1940.11.6.4. Providing guidance to Pay Pool Managers;

• SC1940.11.6.5. Monitoring and adjusting pay pool fund distribution;

• SC1940.11.6.6. Overseeing publication of any notices to employees; and,

• SC1940.11.6.7. Deciding challenges to job objective ratings and ratings of record.

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• SC1940.11.6.8. Conducting an analysis of results within and across pay pools within 120 calendar days after the payout. The purpose of this analysis is to examine and improve performance management system operations in such matters as training, performance plan and assessment quality, rater leadership skills, pay pool processes and feedback, and communication with the workforce.

UNCLASSIFIED//FOUODraft DON Pay Pool Guidance

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DON Draft Guidance On Pay Pool Membership

• Members of the PRA, the PPM, and PPP members will not participate in deliberations or decisions that directly impact their own performance ratings or performance payouts.

• Individuals may not serve on pay pool panels or sub-pay pool panels at any level of an organization when such a construct puts them in the position of deliberating over or deciding upon the performance of people they are subordinate to in a supervisor/employee relationship.

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DON Draft Guidance on Objectives

• The use of standardized or identical objectives even for employees who are in the same series or who perform like work is not an acceptable practice.

• This includes the use of a standardized supervisory objective, since not all supervisors manage the same type of workforce or have the same level of responsibility.

BUMED has sample supervisory objective language – not prescribed.

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DON Draft Guidance on Supervisory Objectives - 1

• Supervisor’s plans must have at least one supervisory job objective.

• Not less than 20% weight.• Held accountable for performance

management for subordinates, e.g., plan, monitor, develop, correct and assess employees’ performance.

• The “Leadership” contributing factor must be selected for the supervisory job objective.

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DON Draft Guidance on Supervisory Objectives - 2

• Adding special NSPS objectives or including in plans is not preferred/required for supervisor responsibilities such as: Audit Follow-up, Management Control, EEO, Inventory Management ,Regulatory Reinvention, Classified Info. Management, and Safety)

• When applicable, Rating Officials need to reflect that these requirements were considered when documenting performance assessments.

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DON Draft Guidance On Contributing Factors

• Unless an organization has a business rule that deals specifically with the use and effect of multiple contributing factors for a single objective, only one contributing factor should be selected for each objective in a performance plan.

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DON Draft Guidance On Interim Reviews

• Since an annual performance rating is based upon the totality of employee performance and associated conduct during the rating cycle, items discussed during interim reviews must be considered as part of the annual performance review.

UNCLASSIFIED//FOUOBUMED Business Rules

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BUMED Business Rules - 1

• The BUMED NSPS Oversight Group (NOG) provides overarching pay pool guidance.

• The BUMED Deputy Chief of Staff for Resources (M8) will formulate the annual performance cycle Pay Pool Funding Plan for approval by the NOG for application throughout the Navy Medicine Regions.

• The composition of Pay Pools will be structured along organizational lines.

• Regional Commanders may submit exceptions to the organizational structure approach to the NOG for approval.

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• Commanders/Commanding Officers will be the Performance Review Authority (PRA) at each Command/activity. COs may delegate PRA responsibility to the XO.

• The Regional Command COS will be the PRA for multi-activity pay pools.

• A pay pool will have a minimum of 25 employees and a maximum of 250 employees.

• Only activities with more than 250 employees will have more than one pay pool.

• Sub pay pools will have a minimum of 25 employees

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• Regional Commanders will be responsible for organizing multi-activity pay pools within their Region for commands/activities with less than 25 NSPS employees.

• The notional pay pool panel will be comprised of the Directors of the activity representing the employees in the pay pool, or the equivalent senior leadership. However, the ideal number of panel members is five to seven. An odd number allows for a “tie-break” vote, should it be necessary.

• The XO or the most senior Director will be the Pay Pool Manager.

• Sub Pay Pool Panels will be comprised of Department Head level managers

Note: Use appropriate activity titling equivalents

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• Anecdotal Information. Pay pool panel members shall only consider what is written about the employee's performance in the rating official assessment and the employee's self assessment and not offer information or personal opinions about the employee. Only under the following circumstances can anecdotal information be considered:

1) The panel member has first-hand knowledge concerning some aspect of the performance of an employee; and

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2) The information is not addressed in either the rating official or employee assessment; and

3) The information is considered of such importance as to have an impact on the employee's rating; and

4) The rating official is called into the pay pool panel and agrees to amend his or her assessment to address the particular information.

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• Share Assignment. Pay pool managers will award shares to an employee in the performance payout process based on the final unrounded rating (figured to the second decimal point) and then applying that rating to the appropriate range in the following table with the corresponding number of shares.

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• Payout Distribution (the split of an employee's payout between salary and bonus). The default distribution of the performance payout will be 70 percent allocated to base salary increase and 30 percent to bonus (70/30). However, pay pool managers must use their discretion to deviate from the 70/30 default when circumstances warrant.

• Final determinations concerning the impact of the performance payout on an employee's base salary must always take into account the percentage of the General Pay Increase (GPI) that is provided automatically across the board to all employees with a final rating of two or higher.

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• Weighting of Objectives. Objectives shall be weighted so that the sum of weights equals 100%. No single objective shall be weighted greater than 60% nor less than 10%. The process for determining the weight (i.e. relative importance) of an objective should be a collaborative process among the employee, the rating official, and the higher level reviewer. The rating official will make the final determination, subject to review by the higher level reviewer.

• Prorating of Payout. At this time there will be no prorating of the payout based on longevity. Only under circumstances in which it might be directed by DoD or DON shall prorating occur for the 2009 performance cycle.

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• Control Points. Last year's (EY-08) Pay Pool Business Rule pertaining to "Control Points," which was based on the GS scale, will not be applied for the 2009 performance cycle.

• In accordance with reference (c) it is DON policy that the Compensation Design Models (CDMs) will be used as the primary tool to manage salary progression under NSPS and that it is no longer appropriate to use control points based on the GS system. The CDMs are not intended to provide strict control points but to serve as guidelines and "stop and think" points to help managers make sound compensation business decisions.

• Details in a minute from Steve!

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Pay Pool Funding

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Pay Pool Fund

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Funding Pay Pool Element 1

• DoD will establish and periodically adjust the minimum Element 1 funding floor. This DoD-set funding floor minimum must be met in aggregate at the Echelon 1 and 2 command level.

• Element 1 consists of basic pay funds that were historically spent on within grade increases, quality step increases, and promotions between General Schedule grade levels that no longer exist under NSPS.

• Funds in Element 1 must be spent on increases to base salary; however, if the funding floor has been met, additional funds may be spent on bonus.

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• Element 2 consists of funds made available (if any) from the government-wide general pay increase (GPI), after the Secretary of Defense has exercised authority to fund any rate range adjustment and/or local market supplements.

• Element 2 is mandated by the 2008 National Defense Authorization Act (NDAA) – the total amount must be spent at the pay pool level.

• Funds in Element 2 must be spent on increases to base salary and cannot be spent on bonus.

Current NDAA specifies 40% of GPI for Element 2

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• Element 3 consists of an optional amount for performance-based cash awards (bonuses).

• The DON recommends that pay pools allocate 1-1.5% for Element 3. However, commands may vary from these recommendations in accordance with organizational priorities, culture, and business-based factors.

• Funds in Element 3 must be spent on increases to bonus.

BUMED minimum funding for Element 3 for FY09 is 1.25 percent.

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Performance Review Authority Responsibilities (1)

• Manage the civilian performance-pay budget and discretionary performance payout fund.

• Address issues associated with multiple pay systems.

• Oversee the composition of the pay pool.

• Provide guidance to pay pool managers.

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Performance Review Authority Responsibilities (2)

• Issue and adjust estimated share values.

• Manage any performance-pay reserve fund.

• Monitor and adjust pay pool fund distribution.

• Oversee publication of any Notices to Employees.

• Final decision on reconsideration requests on ratings of record.

• Analyze pay pool results.

• Communicate pay pool results.

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Pay Pool Manager Responsibilities

• Oversee the pay pool panel.• Resolve discrepancies.• Ensure consistency and equity in pay pool.• Approve pay pool panel recommendations.• Provide DoD-requested information.• Ensure communication of results.• Ensure rating officials are trained.• Make initial decisions on reconsideration

requests.

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Pay Pool Panel Responsibilities

• Review rating of record, share assignment, and payout distribution recommendations.

• Resolve discrepancies.

• Make adjustments which would result in equity and consistency across the pay pool.

• Elevate disagreement between the panel and the supervisory chain to the pay pool manager for resolution, when needed.

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Pay Pool Advisor Responsibilities

• Assists the pay pool manager in fulfilling requirements to:– Ensure the organizational and financial structures

exist to meet the goals of the pay pool.

– Communicate pertinent information to the pay pool panel.

– Work with (sub) pay pools to establish a shared understanding of performance and reach the outcomes of each phase of the pay pool process.

– Evaluate the pay pool process and recommend improvements.

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Pay Pool Administrator Responsibilities

• Sets up rating official hierarchies and relationships in the Performance Appraisal Application (PAA).

• Ensures job objectives, interim reviews, annual appraisals and recommendations are input into the system.

• Prepares and distributes pay pool panel materials for the Pay Pool Members

• Operates the Compensation Workbench (CWB) during pay pool panel deliberations.

• Processes payouts via CWB and RPAs

• Assists PPM and PRA with reconsideration process

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DON Guidance on Rating Official Qualifications - 1

• In order to recommend a rating of record for consideration by the pay pool panel, the rating official must be adequately prepared through appropriate training in the basic elements of NSPS performance management.

• Rating Officials’ NSPS performance management training will be documented.

• PRAs may set additional training requirements and require periodic refresher training or remedial training.

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DON Guidance on Rating Official Qualifications - 2

• PPMs will certify, in writing, that each rating official meets identified standards, before permitting the Rating Official to recommend an employee’s rating of record. A copy of the written approval will be provided to the rating official and to the servicing Human Resources Office.

• A decertified rating official may be recertified in accordance with PPM or PRA policy and procedures.

UNCLASSIFIED//FOUONSPS Training Resources

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DOD CPMS NSPS Connect Website

• NSPS Connect: Your One-Stop Source for NSPS The NSPS Program Executive Office has developed a single comprehensive web page for accessing NSPS learning materials, resources and tools.

• NSPS Connect - Your Gateway to NSPS Information, provides one, centralized portal for accessing NSPS products such as online training courses, fact sheets, tips sheets, worksheets, brochures, user guides, automated tools and more.

• http://www.cpms.osd.mil/nsps/nspsconnect

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Key NSPS Training

DOD CPMS NSPS Connect website:http://www.cpms.osd.mil/nsps/nspsconnect/

- Discovering the Performance Management – Pay Pool Connection

- NSPS 101- iSuccess- Pay Pools, Performance, and You- Practicing Pay Pools

DON:https://www.donhr.navy.mil/nsps/nspstrainingtopics.aspDON Performance Management Learning Guide

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Pay Pool Administrator Training

• Army course: Pay Pool Administrator Functional Training

• http://www.chra.army.mil/webcourses/PPA_Functional_Training/index.html

• Revised 28 July 2009

• Takes about 4 hours

• Ignore Army specific procedures/policies

UNCLASSIFIED//FOUOPay Pool Panel Meetings

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• Review rating of record, share assignment, and payout distribution recommendations.

• Resolves discrepancies.

• Make adjustments which would result in equity and consistency across the pay pool.

• Elevates disagreement between the panel and the supervisory chain to the pay pool manager for resolution, when needed.

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Pay Pool Ethics

• Standards of conduct

• Confidentiality

• Informed judgment

• Mutual respect

• Merit System Principles

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Mechanics of Performance

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Rating Process

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Rating Changes

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Communicate Results

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Reporting Pay Pool Results

• Within 30 days, the PRA is required to report results from the pay pool to the NSPS workforce.

• Within 120 days, the PRA completes a pay pool analysis. The pay pool analysis assesses and improves performance management system operations.

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Feedback to the Pay Pool Members - 1

Communication of results will include the following data at a minimum and will be made available to the NSPS workforce in written medium:

- number of pay pools (if aggregate pay pool

results are necessary),

- number of employees rated,

- rating and share distribution,

- average rating,

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Feedback to the Pay Pool Members - 2

- average share assignment,

- share value (average share value if

aggregated pay pool results are

necessary) and

- average payout expressed as a

percentage of base salary;

• Town Hall/All Hands meeting optional but recommended

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Behind Closed Doors

In the interest of transparency - a look at what really goes on in pay pool panel meetings…

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Pay Pool Panel Secrets

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DON NSPS Compensation Philosophy

• Manage Compensation Fairly

• Support all compensation decisions by sound business reasons

• Ensure internal pay equity

• Pay competitively and fairly

• Minimize internal competition for talent

UNCLASSIFIED//FOUONSPS Compensation

Management

Steven Griffitts

nsps update

Business

nsps nsps

status of nsps

nsps section

design of nsps

nsps workforce

thetermination of nsps

fiscal year

joint dod opmnsps taskforce