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National Security Personnel System

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The National Security Personnel System (NSPS) was a pay for performance pay system created in 2004-5 under authorization by Congress for the United States Department of Defense (DoD) and implemented in mid-2006. NSPS replaced the General Schedule (GS) grade and step system for the DoD with a pay band system intended to provide more flexibility in establishing pay levels. NSPS had differing policies concerning tenure, hiring, reassignment, promotion, collective bargaining, pay, performance measurement and recognition, etc. It purportedly retained EEO and Veterans' Preference protections although the system was not in place long enough to tell whether or not this was true. There was a significant level of controversy as to whether or not the flexibility gained with the new system was at the expense of the Federal employees within DoD and whether or not the flexibility gained came at a bureaucratic price requiring significantly more effort on the part of managers to document performance and manage compensation. Pay increases that were automatic under the GS system did not exist under NSPS. On October 29, 2009, this pay system was repealed, restoring all DoD employees to the General Schedule by January 1, 2012.
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