Federal Manager's Daily Report

The federal general schedule salary system no longer meets

agency needs and should be replaced, the National Academy


of Public Administration has said in a report endorsing an

integrated pay-for-performance system, a combination of pay

banding and market pay.

The Department of Defense and the Department of Homeland

Security have already been authorized to reform their

personnel systems, and along with several other agencies are

working on plans to transition to pay banding and salary

increases based on performance based pay principles, said

the report.

It said planning should begin by discussing system principles

and five years is a reasonable amount of time to transition

while continuing with the GS.

Some of the characteristics of the this system are open salary

bands that provide flexibilities lacking in the GS system,

though initially occupation grades would be aligned with

current GS grades, said the report.

Pay bands in the new system would be based on career ladders

of the occupational groups in question, each with about

three or four levels — though additional bands would exist

for certain experts or for individuals on a dual-career

ladder so as to maintain salaries at or near market levels,

said NAPA.

It also said managers and supervisors would never be in the

same pay band as subordinates, and that senior executive

service salaries would cap pay for middle managers and


NAPA argued that the Office of Personnel Management should

oversee the new system by collecting and performing analysis

on market data, to help agencies and the Office of Management

and Budget develop salary increase amounts — so that federal

employees get paid market rates in their occupational fields.