[Federal Register Volume 73, Number 136 (Tuesday, July 15, 2008)]
[Notices]
[Pages 40500-40502]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-16066]
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DEPARTMENT OF COMMERCE
National Institute of Standards and Technology
Alternative Personnel Management System (APMS) at the National
Institute of Standards and Technology
AGENCY: National Institute of Standards and Technology, Department of
Commerce.
ACTION: Notice of Modifications with Request for Comment.
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SUMMARY: This notice provides for changes to the existing provisions of
the National Institute of Standards and Technology's (NIST) Alternative
Personnel Management System (APMS) published October 21, 1997 (62 FR
54606), and May 6, 2005 (70 FR 23996) primarily to improve flexibility
in rewarding new and mid-level employees and to broaden the ability to
make performance distinctions.
DATES: This notice is effective on October 1, 2008. Comments will be
accepted until close of business on August 14, 2008.
ADDRESSES: Send or deliver comments to Robert Kirkner, Chief Human
Capital Officer, National Institute of Standards and Technology,
Building 101, Room A-531, 100 Bureau Drive Mail Stop 1700,
Gaithersburg, MD 20899-1700, FAX: (301) 948-6107 or e-mail comments to
[email protected].
FOR FURTHER INFORMATION CONTACT: For questions or comments, please
contact Robert Kirkner at the National Institute of Standards and
Technology, (301) 975-3002; or Pamela Boyland at the U.S. Department of
Commerce, (202) 482-1068.
SUPPLEMENTARY INFORMATION:
Background
In accordance with Public Law 99-574, the NIST Authorization Act
for 1987, the Office of Personnel Management (OPM) approved a
demonstration project plan, ``Alternative Personnel Management System
(APMS) at the National Institute of Standards and Technology (NIST),''
and published the plan in the Federal Register on October 2, 1987 (52
FR 37082). The project plan has been modified twice to clarify certain
NIST authorities (54 FR 21331 of May 17, 1989, and 55 FR 39220 of
September 25, 1990). The project plan and subsequent amendments were
consolidated in the final APMS plan, which became permanent on October
21, 1997, (62 FR 54604). NIST published an amendment on May 6, 2005 (70
FR 23996) which became permanent on June 6, 2005.
The plan provides for modifications to be made as experience is
gained, results are analyzed, and conclusions are reached on how the
system is working. This notice formally modifies the APMS plan to
refine the links between pay and performance. Comments will be
considered and any changes deemed necessary will be made.
Dated: July 7, 2008.
James M. Turner,
Deputy Director.
Table of Contents
I. Executive Summary
II. Basis for APMS Plan Modification
III. Changes in the APMS Plan
I. Executive Summary
The National Institute of Standards and Technology's (NIST)
Alternative Personnel Management System (APMS) is designed to (1)
Improve hiring and allow NIST to compete more effectively for high-
quality researchers through direct hiring, selective use of higher
entry salaries, and selective use of recruiting allowances; (2)
motivate and retain staff through higher pay potential, pay-for-
performance, more responsive personnel systems, and selective use of
retention allowances; (3) strengthen the manager's role in personnel
management through delegation of personnel authorities; and (4)
increase the efficiency of personnel systems through installation of a
simpler and more flexible classification system based on pay banding
through reduction of guidelines, steps, and paperwork in
classification, hiring, and other personnel systems, and through
automation.
Since implementing the APMS, according to findings in the Office of
Personnel Management's ``Summative Evaluation Report National Institute
of Standards and Technology Demonstration Project: 1988-1995,'' NIST is
more competitive for talent; NIST retained more top performers than a
comparison group; and NIST managers reported significantly more
authority to make decisions concerning employee pay. This modification
builds on this success by refining the link between pay and
performance. In 2005, NIST made the first significant changes to the
APMS since its inception. NIST replaced its 100-point rating scale with
six performance ratings and provided for automatic bonuses for high
performing pay-capped employees. NIST also adjusted its provisions on
retention service credit for reduction in force and annual adjustments
to basic pay to correspond with the 2005 changes.
This amendment modifies the May 2005 amendment. Specifically, NIST
will introduce a seventh level to its six level performance ratings
system, broadening flexibility to make performance distinctions. Pay
increases will continue to be based upon an annually determined
percentage of the mid-point salary for each pay band in the career path
and linked directly to
[[Page 40501]]
the top four performance ratings. This amendment will allow the
percentage of the mid-point salary to vary not only by career path but
also by pay bands within a career path, which will expand NIST's
ability to reward new, early-career and mid-level employees. This
amendment will also modify the provisions on retention service credit
for reduction in force to correspond with these changes.
NIST will continually monitor the effectiveness of this amendment.
II. Basis for APMS Plan Modification
The need to modify the current Pay for Performance System (PPS),
which was first implemented in fiscal year 2006, surfaced in the
results of the 2007 NIST Employee Surveys, the NIST Research Advisory
Committee 2007 Report to the NIST Director, the 2007 OPM Pay-for-
Performance Report to NIST, and in discussions of the NIST Leadership
Board. Generally, feedback indicated a need to clarify the system and
address consequences of the May 2005 changes. One concern raised was
that the system disproportionately rewarded employees in higher pay
bands to the detriment of new and early-career employees. Another
concern was that there was not enough flexibility to make meaningful
performance distinctions. A work group of internal NIST stakeholders
was tasked with evaluating the feedback and developing responsive
modifications. The resulting adjustments are incorporated into this
amendment.
The NIST APMS proposed modifications include adding a seventh level
to the current six level system, to permit an additional performance
distinction. From highest to lowest, the seven performance ratings are:
Exceptional Contributor, Superior Contributor, Meritorious Contributor,
Significant Contributor, Contributor, Marginal Contributor, and
Unsatisfactory.
Performance ratings are determined based on the cumulative ratings
and relative weights of the critical elements. Critical elements are
rated using benchmark standards and supplemental standards/success
measures. The ratings for the critical elements are: exceeds
expectations (E), fully successful (S), minimally meets expectations
(M), or unsatisfactory (U).
Performance pay increases will continue to be based on the annually
determined percentage of the mid-point salary for each pay band in the
career path. When the percentage is applied to the mid-point salary in
each pay band, the resulting dollar amount is the unit of salary
increase or ``I'' for that pay band and career path. ``I'' percentages
may differ by pay band and career path. The ``I'' percentage used for
any given career path and band will apply system-wide, except that the
Director may authorize a particular operating unit to use a lower ``I''
percentage for reasons related to solvency.
Actual salary increases based on multiples of ``I'' are granted to
employees in the top four performance levels as follows: Exceptional
Contributor: ``I'' x 5; Superior Contributor: ``I'' x 3; Meritorious
Contributor: ``I'' x 2; and Significant Contributor: ``I.'' A salary-
capped employee with an Exceptional Contributor or Superior Contributor
rating must receive a bonus at least equivalent to the salary increase
that would have been received if the employee's salary were not capped.
In addition to receiving a performance pay increase, employees with
Exceptional Contributor, Superior Contributor, Meritorious Contributor,
and Significant Contributor ratings receive the full annual basic pay
adjustment (general and locality pay increases) and are eligible for a
discretionary bonus. Employees with a Contributor rating do not receive
a performance pay increase but do receive the full annual basic pay
adjustment and are eligible for a discretionary bonus. Employees rated
Marginal Contributor or Unsatisfactory do not receive a performance pay
increase, discretionary bonus, or annual basic pay adjustment.
The current provision on additional service credit for reduction-
in-force purposes is revised to correspond with these changes. For
retention purposes, this modification grants ten additional years of
service for a rating of Exceptional Contributor, eight additional years
of service for a rating of Superior Contributor, four additional years
of service for a rating of Meritorious Contributor, three additional
years of service for a rating of Significant Contributor, and one
additional year of service for a rating of Contributor.
III. Changes in the APMS Plan
The APMS at the NIST, published in the Federal Register October 21,
1997 (62 FR 54604) and May 6, 2005 (70 FR 23996), is amended as
follows:
1. Link Between Performance and Retention: The subsection titled
``Link Between Performance and Retention'' (70 FR 23998) is replaced
with the following:
Link Between Performance and Retention
An employee with a performance rating of Exceptional Contributor is
credited with ten additional years of service for retention purposes.
An employee with a performance rating of Superior Contributor is
credited with eight additional years of service for retention purposes.
An employee with a performance rating of Meritorious Contributor is
credited with four additional years of service for retention purposes.
An employee with a performance rating of Significant Contributor is
credited with three additional years of service for retention purposes.
An employee with a performance rating of Contributor is credited with
one additional year of service for retention purposes. The total credit
is based on the employee's three most recent annual performance ratings
of record received during the four-year period prior to an established
cutoff date, for a potential total credit of thirty years. No
reduction-in-force credit converts to this system from any other
performance appraisal system.
2. Performance Ratings: The subsection titled ``Performance
Ratings'' (70 FR 23998) is replaced with the following:
Performance Ratings
The NIST APMS performance ratings are Exceptional Contributor,
Superior Contributor, Meritorious Contributor, Significant Contributor,
Contributor, Marginal Contributor, and Unsatisfactory. Performance
ratings are determined based on the cumulative ratings and weights of
the critical elements in the performance plan. Performance in each
critical element is evaluated using the benchmark standards and any
supplemental standards or success measures, and the element is assigned
a rating of exceeds expectations (E), fully successful (S), minimally
meets expectations (M), or unsatisfactory (U).
The rating of the element is then matched with the weighted value
of that critical element to produce a value for the element. For
example, if an element is weighted 4 and the element is assigned a
rating of exceeds expectations (E), then that element has a value of
4E.
Once this matching is completed and the elements are totaled,
performance ratings are assigned using the following table.
[[Page 40502]]
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Performance rating Critical element ratings
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Exceptional Contributor................... At least 8E; None below S.
Superior Contributor...................... At least 6E; None below S.
Meritorious Contributor................... At least 4E; None below S.
Significant Contributor................... At least 3E; Up to 2M.
Contributor............................... Up to 3M.
Marginal Contributor...................... 4 or more M.
Unsatisfactory............................ 1 or more U.
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An employee with unsatisfactory performance in one or more critical
elements is considered unsatisfactory overall and is given a
performance improvement plan and an opportunity to improve. If the
employee's performance remains unsatisfactory at the end of an
opportunity to improve, the supervisor initiates appropriate follow-up
action, i.e., reassignment, proposed change to a lower pay band, or
proposed removal.
3. Performance Pay Decisions: The subsection titled ``Performance
Pay Decisions'' (62 FR 54612) is replaced with the following:
Performance Pay Decisions
Annually, the NIST Director determines the amount of a unit of
increase, or ``I,'' based on a percentage of the mid-point salary for
each pay band of each career path. The percentage may vary by career
path and by pay bands within a career path. Performance pay increases
are linked directly to performance ratings. An employee with an overall
performance rating of Exceptional Contributor receives a performance
pay increase equal to five units of increase, or 5 x ``I.'' A Superior
Contributor receives a performance pay increase equal to 3 x ``I.'' A
Meritorious Contributor receives a performance pay increase equal to 2
x ``I.'' A Significant Contributor receives a performance pay increase
equal to ``I.'' The actual dollar amount of a performance pay increase
depends upon an employee's career path and pay band. Employees may not
receive an increase that causes their salary to exceed the maximum rate
for their pay band.
Employees with Contributor, Marginal Contributor, and
Unsatisfactory ratings do not receive performance pay increases.
[FR Doc. E8-16066 Filed 7-14-08; 8:45 am]
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