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1476Federal Register / Vol. 64, No. 5 / Friday, January 8, 1999 / Notices

In general, those employees who fall in the inappropriately compensated - B (below the rails) category of the NPR should expect to receive greater percentage salary increases than those who fall in the inappropriately compensated - A (above the rails) category.  Over time, people will migrate closer to the normal pay range and receive a salary appropriate for their level of contribution.

Employees whose OCS would result in awarding a contribution rating increase such that the salary exceeds the maximum salary for their current broadband level may receive a contribution award equaling the difference.

The contribution rating increase fund includes what are now within-grade increases, quality step increases, and promotions between grades encompassed in the same broadband level.  The fund will be set at not less than two percent of the activity’s total salary budget (2.4 percent for the first year).  This figure will be adjusted as necessary to maintain cost discipline over the life of the demonstration project.  The amount of money available to each pay pool is determined annually by the local commander.  The general pay increase fund and the contribution rating increase fund may be transferred to another category, but the contribution award fund may not be transferred.

The contribution award fund includes what were formerly performance awards and will be used for awards given under the CCAS process.  The fund will be set at not less than one percent of the activity’s total salary budget.  This fund will not exceed 90 percent of the total awards budget so as to allow for other awards not related to the CCAS process, e.g., on-the-spot awards and group awards, which will continue to be encouraged by management to promote excellence in acquisition and attainment of organizational goals.  For the first year this fund will be set at 1.3 percent.

Each pay pool manager will set the necessary guidelines for pay adjustments in the pay pool.  Decisions will be consistent within the pay pool, reflect cost discipline over the life of the demonstration project, and be subject to command review.  The maximum available pay rate under this demonstration project will be the rate for a GS-15, step 10.  Notwithstanding any other provision of this demonstration project, if General Schedule employees receive an increase  under 5 U.S.C. 5303 that exceeds the amount otherwise required by that section on the date of this notice, the excess portion of such increase shall be paid to demonstration project employees in the same manner as to General Schedule employees.  The excess portion of such increase shall not be distributed through the pay pool process.

6.  Movement Between Broadband Levels

It is the intent of the demonstration project to have career growth accomplished through the broadband levels.  Movement within a broadband level will be determined by contribution and salary following the CCAS pay-out calculation.  Movement to a higher broadband level is normally a competitive action, based on Office of Personnel Management qualifications standards.  Movement to a lower broadband level may be voluntary or involuntary.

Broadband levels were derived from salaries of the banded GS grades.  The lowest salary of any given broadband level is that for step 1 of the lowest GS grade in that broadband level.  Likewise, the highest salary of any given broadband level is that for step 10 of the highest GS grade in that broadband level.  There is a natural overlap in salaries in the GS grades that also occurs in the broadband system.  Since the OCS is directly related to salaries, there is also an overlap between OCS across broadband levels.

Under the demonstration project, managers are provided greater flexibility in assigning duties by moving employees between positions within their broadband level.  If there are vacancies at higher levels, employees may be considered for promotion to those positions in accordance with competitive selection procedures.  Noncompetitive promotion capabilities in the current system will remain viable in the demonstration.

Under the approved competitive selection procedures, the selecting official may consider candidates from any source based on viable and supportable job-related, merit-based methodology.  Similarly, if there is sufficient cause, an employee may be demoted to a lower broadband level position according to the contribution-based reduction-in-pay or removal procedures discussed in section III E 2.

7.  Implementation Schedule

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