President Barack Obama signed the Defense authorization bill into law Wednesday afternoon, marking the eventual end to the controversial National Security Personnel System.
HR 2647 phases out the NSPS pay-for-performance system by Jan 1, 2012, and the Pentagon has six months from Wednesday to start transferring employees over to their original pay system. For many employees, that means a return to the General Schedule.
The bill also contains a number of provisions long anticipated by federal employees:
- Federal Employment Retirement System (FERS) employees will be able to count unused sick leave toward their years of service, just as Civil Service Retirement System (CSRS) employees can. This may end the epidemic of “FERS flu,” where soon-to-retire employees burn off sick leave because they couldn’t receive credit for it.
- FERS employees returning to work for the federal government would be able to redeposit their annuities.
- CSRS employees who work part time at the end of their careers would be able to have their annuities recalculated to be based only on their full-time salaries.
- Retirees returning to work for the federal government would be able to collect their full salaries while drawing their annuities. Agencies used to be able to pay rehired annuitants a full salary only if they obtained a waiver from the Office of Personnel Management.
- Federal employees in Alaska, Hawaii and U.S. territories will now receive locality pay instead of cost of living. Employees in the continental U.S. receive locality pay.
Feel free to celebrate in the comments section below, feds!