MEMORANDUM FOR SEE DISTRIBUTION
SUBJECT: Department of Defense (DoD) Nonappropriated (NAF) Pay Band System
1. The Office, Secretary of Defense (OSD), recently approved a system of pay bands for NAF employees. It will include NAF employees other than those involved in crafts and trades who are covered by the Federal Wage System and child care personnel who are covered by a separate pay band system. This new approach to NAF classification and pay is an outgrowth of a test conducted by USAREUR for the past 2 ½ years and more recently by TRADOC as part of our Civilian Personnel Modernization effort. It represents the opportunity we have wanted to implement a system with the flexibility to meet a wide range of local market conditions.
2. The new system will be implemented throughout the DoD during the period 1 October 1990 through 31 March 1992, as a pilot program. Since it is being implemented on a pilot basis with a requirement for evaluation, we are suggesting to OSD that we work together to develop a uniform evaluation methodology. Our objective is a credible evaluation which minimizes as much as possible the additional burden at the activity level. Meaningful evaluation will be essential, both to continue the pay band system on a permanent basis and to support the legislative change required to extend it to crafts and trades employees.
3. It is our goal to have all NAF employees converted to the pay band system as early as possible in calendar year 1991. Addressees (less USAREUR) are requested to develop and submit implementation plans by 7 January 1991. All activities at an installation must convert NAF employees to the new system at the same time, but installations within a MACOM may be phased, if desired. Successful implementation will require significant training of both supervisors and employees. To assist in this task, representatives of your command have been provided detailed guidance and information on the operation of the system by representatives of the Community and Family Support Center. We are also pursuing development of a uniform training package for use in resident and mobile training courses.
4. A description of the new system and accompanying changes to the DoD NAF Policy Manual are enclosed. Implementation plans should be forwarded to: Community and Family Support Center, ATTN: CFSC-HR-P, 4700 King Street, Alexandria, VA 22302-4401. POC for questions and assistance is Sandra Curran, DSN 221-7762 or (703) 325-7762.
FOR THE DEPUTY CHIEF OF STAFF FOR PERSONNEL: