The National Security Personnel System program office has released a fact sheet on local market supplements — additional payments to employees in specified areas, occupations, specializations, or pay bands.
Even though a federal judge struck down labor-management and appeals provisions in the departments new system, the pay and benefits provisions of the new performance management
system are likely to take effect so the fact sheet applies to the 700,000 civilians the system will eventually cover.
According to the fact sheet, LMSs replace locality pay and special salary rates in NSPS, there are no special salary rates, and LMSs are added to base salary.
It said that for the 11,000 or so employees converting in the first phase of the roll-out as of April 30, spiral 1.1, the standard LMS will be the same as GS locality-pay for
each area.
The fact sheet said that employees are eligible to receive a LMS adjustment if they have a rating of record of Level 2 or higher.
It also said LMSs are considered basic pay for retirement deductions, contributions, and benefits, life insurance premiums and benefits, premium pay, severance pay, recruitment, relocation, and retention incentives, supervisory differentials, and extended assignment incentives.
