Second Panel Endorses DoD Reforms

The House Armed Services Committee has approved many elements of the Defense Department’s proposed personnel reforms, incorporating them in the annual DoD authorization bill (HR-1588). The measure would allow DoD to apply department-wide many of the alternative personnel systems it has tested on a pilot basis, including pay banding and a pay-for-performance system for its general schedule employees. Many of the other provisions are similar to the authorities granted last year in the law creating the Department of Homeland Security, including: establishment of a “merit-based” personnel system that would include hiring preferences for veterans and collective bargaining at the national and local levels; creation of a collaborative process to involve employee representatives in the development of the new system; establishment of an independent review process for appeals of personnel disputes; early retirement and buyout authority; continuation of current policies relating to political activities and ethical requirements; an increase in the total compensation cap for senior executives, including pay, bonuses and other forms of compensation to the level of the Vice President’s salary (currently $198,600); authority to hire certain experts for up to six years non-competitively and at higher salaries; and authority to rehire annuitants for up to two years without a reduction in pay or annuity.