FAA employees received some welcome news to begin 2010, with Administrator Randy Babbitt announcing significant incentive-based pay increases. Here is the relevant text from Babbitt’s note to employees:
As I announced earlier, I am happy to report that I have approved a full, 100 percent Organizational Success Increase (OSI) for eligible employees under the Core Compensation Plan. We met 28 of our 31 Performance Targets for FY2009; while we still have work to do, we should all take pride in everything we have accomplished as a team. In line with past practices, meeting 90 percent of our performance targets equates to a full OSI payout.
As a result, Core Compensation employees will receive a 2.5 percent OSI increase, effective January 3, 2010. This is in addition to locality pay, which averages 0.5 percent across the country. Employees in the FG and FM pay systems will receive the same 1.5 percent increase as other Federal General Schedule (GS) employees, plus locality play. Executives will receive a 1.5 percent increase, plus locality pay.
On a related — and very important — note, I have decided to increase the pay bands under Core Comp by an average of 3.4 percent. This year, our analysis found that our level of competitiveness with the GS salary tables and the external market varies among band levels. We addressed this by adjusting each band by at least 1.5 percent and, in some cases, as much as 4.0 percent. Pay bands for executives will increase by 1.5 percent.
This is not the first time that the agency has moved the pay bands by a variable amount, but it is the first time in a long while. I believe this is an appropriate approach to bring our pay band structure closer to alignment with the GS salary tables and the external market, with which we compete for talent.
The pay band structure change is not a salary increase, but rather represents additional salary-earning potential. OSI and the SCI (Superior Contribution Increase) are the vehicles by which salaries are increased on an annual basis.