FAA Compensation System

1
FAA CompensationSystem

• Basic Overview of the Core Compensation Plan

FAA Managers Bernadette OBrien, AGL-14 Charlene
Argo, AHP-300 January 30-31, 2008
2
Todays Topics

• Background
• FAA Compensation System
• Market Surveys

• Annual Pay Adjustments
• Pay Setting Flexibilities
• References

3
Fundamental Principles

• Performance Based
• Market Based
• Broad Pay Bands
• Accountability Based
• Flexibility Driven

4
FAA Core Compensation SystemBackground

• Why change?
• Challenged by Congress Personnel Reform (1996)
• Subsequent legislation modified personnel
  authority
• Title 5 Exemptions
• Title 5 Non-exemptions

5
FAA Compensation System

• Several integrated plans
• Core Compensation Plan (FV)
• Executive Compensation Plan (EV)
• Air Traffic Specialized Pay Plan for Controllers
  (AT)

6
FAA Compensation System (Cont.)

• Common set of philosophies values
• Value, Productivity, Development of Intellectual
  Capital
• Ensure Fairness, Reflect FAAs Culture and
  Values, Maintain Fiscal Responsibility
• Performance-based and market-based
• All plans, including negotiated plans, contain
  pay-for-performance components
• Pay ranges for Core Plan based on pay for
  comparable positions outside of FAA

7
Core Compensation Pay Plan

• Intended to cover most of FAA
• Excludes Executives and Specialized Pay Plans
• Reflects best practices of private/public sectors
• Broad pay bands
• Pay-setting flexibility

8
Core Compensation Plan (Cont.)

• Market-based band adjustments
• Ensures competitiveness in recruitment/ retention
  of well-qualified candidates
• Performance-based pay adjustments
• Recognizes employees for organizational and
  individual performance and contributions
• Withholds pay adjustments from employees who fail
  to meet minimum performance/conduct requirements

9
Core Plan - Highlights
10
Core Plan - Job Categories
Para Professional
Student
Clerical Support
Admin Support
Technical Support
Engineering
Specialized
Professional
Technical
Series are Grouped Into 9 Job Categories Based on
Nature of Work Being Performed and External
Market Value
11
Core Plan Pay Band Levels within each Job
Category
12
Core Plan Structure - Market Surveys

• Used in establishing and updating pay bands

13
FAA Core Comp 2008 Pay Bands(excluding locality
pay)

• Pay Band Minimum Midpoint
  Maximum
• A 16900 20700 24500
• B 19300 23700 28400
• C 21800 27300 32700
• D 25100 31400 37700
• E 28900 36100 43400
• F 33100 41400 49700
• G 38700 49400 60000
• H 47300 60300 73300
• I 57600 73400 89300
• J 70300 89600 109000
• K 83900 107000 130000
• L 100400 128000 155600
• M 118300 139000 159700

Pay rates for FAA employees, including
locality pay, are capped by law as of January 6,
2008, at 172,200.
14
FAA Core Compensation PlanAnnual Pay Adjustments

• Combination of OSI and SCI constitute one of four
  pay adjustment levels

15
FAA Core Compensation PlanAnnual Pay Adjustments
(Cont.)

• Funding
• OSI/SCI use same pool of funds previously spent
  under GS/FG (general increases, WGI, QSI)
• Pool applied uniformly to all LOBs and Staff
  Offices no authority to apply differently
• Payment of annual adjustments
• Administrator sets effective date following end
  of performance year
• Typically starts first pay period in January

16
FAA Core Compensation PlanAnnual Pay Adjustments
(Cont.)

• OSI Payout
• Approved OSI percentage added to current base pay
• Any portion of the new base pay that exceeds band
  maximum, is paid as lump sum
• If current base pay is equal to or above the band
  maximum, is paid as lump sum

17
FAA Core Compensation PlanAnnual Pay Adjustments
(Cont.)

• OSI process
• OSI based on Flight Plan initiatives
• 90 of Flight Plan goals must be achieved for
  100 OSI payout
• If less than 90, Administrator makes OSI payout
  determination
• OSI max payout is General Increase 1
  (e.g., If General Increase is 2.5 , OSI
  maximum is 3.5 )

18
FAA Core Compensation PlanAnnual Pay Adjustments
(Cont.)

• SCI process
• Same criteria applied to all employees
• Collaboration
• Customer Service
• Impact on Organizational Success
• Management Leadership
• Contribution Assessment Decision Aid (CADA)
  documents first level mgr decision

19
FAA Core Compensation PlanAnnual Pay Adjustments
(Cont.)

• Employee eligibility requirements for OSI/SCI
• 90 days of FAA service
• Meets minimum performance requirements
  not on ODP at end of performance year
• Must meet minimum conduct requirements
• LOB may approve exception for
• suspensions

20
FAA Core Compensation PlanPay Setting
Flexibilities

• New Hires/Rehires
• Promotion
• Reassignment Increase
• Reassignment Bonus
• In-position Increase
• Expert Level
• Demotions

21
FAA Core Compensation PlanResources

• Core Compensation Plan policies are contained in
  HR Policy Manual Volume 2
• https//employees.faa.gov/org/staffoffices/ahr/pol
  icy_guidance/hr_policies/hrpm/hrpmtoc/comp
• Questions and Answers