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Bush Signs Defense Authorization Bill, Key Portions of NSPS Repealed

January 29, 2008

Washington, DC—President George W. Bush yesterday signed the National Defense Authorization Act for Fiscal Year 2008 (H.R. 4986) into law. Included in the bill was language to fundamentally alter the National Security Personnel System (NSPS), a controversial personnel reform at the Department of Defense (DoD). The bill also contained favorable new rules for the Bush Administration’s competitive sourcing initiative.

Section 1106 of the bill includes language modifying NSPS. The language will restore collective bargaining rights and employee appeal rights for Defense workers under NSPS. It also exempts blue collar workers from NSPS entirely. The language left in place DoD’s authority to create a pay for performance system. However, the measure would guarantee that NSPS employees get 60 percent of the annual pay raise given to most federal workers if they perform at a satisfactory level or above. Only the remaining 40 percent of the pay adjustment, which is set annually by Congress, would go toward performance pay. Defense workers will also continue to receive locality pay when performance is satisfactory.

NAGE applauds Congress for including reforms to NSPS and competitive sourcing in this bill.