President Signs Defense Bill, NSPS Repealed

President Obama signed the 2010 National Defense Authorization Act this week, which included a provision to repeal the controversial National Security Personnel System (NSPS). The bill also contained several provisions impacting retirement benefits for the federal workforce.  

“We applaud President Obama and Congress for their bold decision to repeal this anti-worker personnel system,” said IAM-NFFE Federal District 1 President William R. Dougan. “This shows that they are seriously committed to building a stronger, more just workplace at DoD.”

The NSPS provisions in the bill dictate a repeal of the system and a conversion of the over 200,000 covered employees back into existing pay systems by January 1, 2012.  NSPS workers will be guaranteed the full annual GS pay adjustment over the transitional period.

Also included in the Defense Bill are provisions offering employees enrolled in the Federal Employee Retirement System (FERS) credit for their unused sick leave upon retirement, and extending locality pay to workers stationed outside of the mainland United States – both critical IAM-NFFE priorities.

“We are pleased to see that these crucial federal pay and retirement benefits have finally been extended to everyone in the federal workforce,” said Dougan. “These are common sense policies that are going to make a real difference for employee morale and the performance of federal agencies.”