Performance Reward System a Work in Progress

Other guidance also will be needed on details of the pay for performance system, such as exactly how differing ratings will translate into differing amounts of pay. The proposed regs anticipate creating a pay pool with shares be paid out depending on ratings—for example, six to eight shares for a top rating in a five-level rating system, three to six shares for the fourth highest rating, one to two for the third highest and none for the lowest or second-to-lowest ratings. The amount of money available within a pay pool would normally be based on the money that would have been available for within-grade increases, quality step increases, promotions between grades that have been banded in the NSPS pay system, and applicable across-the-board pay increases. Funds previously used for end-of-rating cycle performance awards or incentive awards may also be used to fund the pay pool. A performance payout could come in the form of an increase to basic pay (which would count toward retirement), a bonus (which wouldn’t), or a combination.