CYBERSECURITY TALENT MANAGEMENT SYSTEM (CTMS)

• Citation: 6 CFR Part 158
• Sections: 79

§ 158.101 Purpose.

(a) Cybersecurity Talent Management System. This part contains regulations establishing the Cybersecurity Talent Management System (CTMS) and the resulting DHS Cybersecurity Service (DHS-CS). CTMS is designed to recruit and retain individuals with the qualifications necessary to execute the DHS cybersecurity mission and is also designed to adapt to changes in cybersecurity work, the cybersecurity talent market, and the DHS cybersecurity mission.

(b) DHS Cybersecurity Service. Under this part, the Secretary or designee establishes and manages the DHS Cybersecurity Service (DHS-CS) described in subpart B of this part.

(c) Regulations & policy. The regulations in this part provide the policy framework for establishing and administering CTMS, and establishing and managing the DHS-CS. The Secretary or designee implements this part through CTMS policy defined in § 158.104.

§ 158.102 Scope of authority.

(a) Authority. This part implements the Secretary's authority in 6 U.S.C. 658 and governs talent management involving the individuals described in § 158.103.

(b) Other laws superseded. Unless explicitly stated otherwise in this part or explicitly provided otherwise by Congress, this part supersedes all other provisions of law and policy relating to appointment, number, classification, or compensation of employees that the Secretary deems are incompatible with the approach to talent management under this part. For compensation authorized under this part, the Department provides all such compensation under the authority in 6 U.S.C. 658, and also provides some types of such compensation in accordance with relevant provisions of other laws, including provisions in 5 U.S.C. and 5 CFR, to the extent compatible with the approach to talent management under this part.

(c) Preservation of authority. Nothing in this part shall be deemed or construed to limit the Secretary's authority in 6 U.S.C. 658.

§ 158.103 Coverage.

(a) Talent management. This part covers:

(1) Establishing and administering CTMS; and

(2) Establishing and managing the DHS-CS.

(b) Individuals. This part applies to any individual:

(1) Being recruited for employment under this part;

(2) Applying for employment under this part;

(3) Serving in a qualified position under this part;

(4) Managing, or participating in the management of, any DHS-CS employee under this part, including as a supervisor or any other employee of the Department who has the authority to take, direct others to take, recommend, or approve any talent management action under this part; or

(5) Serving on the Cybersecurity Talent Management Board described in § 158.302.

§ 158.104 Definitions.

As used in this part:

Additional compensation means the compensation described in § 158.603(c).

Advisory appointment means an appointment to a qualified position under subpart J of this part.

Annuitant has the same meaning as that term in 5 CFR 553.102.

Anticipated mission impact means the influence the Department anticipates an individual will have on execution of the DHS cybersecurity mission based on the individual's CTMS qualifications and application of those qualifications to successfully and proficiently perform DHS-CS cybersecurity work.

Assignment means a description of a specific subset of DHS-CS cybersecurity work and a specific subset of CTMS qualifications necessary to perform that work, the combination of which is associable with a qualified position.

Break in service means the time when an employee is no longer on the payroll of a Federal agency.

Continuing appointment means an appointment for an indefinite time period to a qualified position.

CTMS policy means the Department's decisions implementing and operationalizing the regulations in this part, and includes directives, instructions, and operating guidance and procedures.

CTMS qualifications means qualifications identified under § 158.402(c).

Cybersecurity incident has the same meaning as the term “incident” in 6 U.S.C. 659.

Cybersecurity risk has the same meaning as that term in 6 U.S.C. 659.

Cybersecurity Talent Management Board or CTMB means the group of officials described in § 158.302.

Cybersecurity Talent Management System or CTMS means the approach to talent management, which encompasses the definitions, processes, systems, and programs, established under this part.

Cybersecurity talent market means the availability, in terms of supply and demand, of talent relating to cybersecurity and employment relating to cybersecurity, including at other Federal agencies such as the Department of Defense.

Cybersecurity threat has the same meaning as that term in 6 U.S.C. 1501(5).

Cybersecurity work means activity involving mental or physical effort, or both, to achieve results relating to cybersecurity.

Department or DHS means the Department of Homeland Security.

DHS cybersecurity mission means the cybersecurity mission described in § 158.201. As stated in that section, the DHS cybersecurity mission encompasses all responsibilities of the Department relating to cybersecurity.

DHS Cybersecurity Service or DHS-CS means the qualified positions designated and established under this part and the employees appointed to those positions under this part.

DHS-CS advisory appointee means a DHS-CS employee serving in an advisory appointment under this part.

DHS-CS cybersecurity work means cybersecurity work identified under § 158.402(b).

DHS-CS employee means an employee serving in a qualified position under this part.

Employee has the same meaning as that term in 5 U.S.C. 2105.

Excepted service has the same meaning as that term in 5 U.S.C. 2103.

Executive Schedule means the pay levels described in 5 U.S.C. 5311.

Former DHS-CS employee means an individual who previously served, but is not currently serving, in a qualified position.

Functions has the same meaning as that term in 6 U.S.C. 101(9).

Mission impact means a DHS-CS employee's influence on execution of the DHS cybersecurity mission by applying the employee's CTMS qualifications to successfully and proficiently perform DHS-CS cybersecurity work.

Mission-related requirements means characteristics of an individual's expertise or characteristics of cybersecurity work, or both (including cybersecurity talent market-related information), that are associated with successful execution of the DHS cybersecurity mission, and that are determined by officials with appropriate decision-making authority.

Preference eligible has the same meaning as that term in 5 U.S.C. 2108.

Qualification means a quality of an individual that correlates with the successful and proficient performance of cybersecurity work, such as capability, experience and training, and education and certification. A capability is a cluster of interrelated attributes that is measurable or observable or both. Interrelated attributes include knowledge, skills, abilities, behaviors, and other characteristics.

Qualified position means CTMS qualifications and DHS-CS cybersecurity work, the combination of which is associable with an employee.

Renewable appointment means a time-limited appointment to a qualified position.

Salary means an annual rate of pay under this part and is basic pay for purposes under 5 U.S.C. and 5 CFR. The salary for a DHS-CS employee is described in § 158.603.

Secretary means the Secretary of Homeland Security.

Secretary or designee means the Secretary or an official or group of officials authorized to act for the Secretary in the matter concerned.

Strategic talent priorities means the priorities for CTMS and the DHS-CS set under § 158.304.

Supervisor means an employee of the Department who has authority to hire, direct, assign, promote, reward, transfer, furlough, layoff, recall, suspend, discipline, or remove employees, or to effectively recommend such actions. A supervisor for a DHS-CS employee may be a DHS-CS employee or may be an employee of the Department serving in a position outside the DHS-CS.

Talent management means a systematic approach to linking employees to mission and organizational goals through intentional strategies and practices for hiring, compensating, and developing employees.

Talent management action has the same meaning as the term personnel action in 5 U.S.C. 2302(a)(2) for applicable actions, and the terms talent management action and personnel action may be used interchangeably in this part.

Veteran has the same meaning as that term in 5 U.S.C. 2108.

Work level means a grouping of CTMS qualifications and DHS-CS cybersecurity work with sufficiently similar characteristics to warrant similar treatment in talent management under this part.

Work valuation means a methodology through which an organization defines and evaluates the value of work and the value of individuals capable of performing that work.

§ 158.201 Cybersecurity mission.

Cybersecurity is a matter of homeland security and one of the core missions of the Department. Congress and the President charge the Department with responsibilities relating to cybersecurity and grant the Secretary and other officials authorities to carry out those cybersecurity responsibilities. The Department's cybersecurity mission is dynamic to keep pace with the evolving cybersecurity risks and cybersecurity threats facing the Nation and to adapt to any changes in the Department's cybersecurity responsibilities. The DHS cybersecurity mission encompasses all responsibilities of the Department relating to cybersecurity.

§ 158.202 Cybersecurity Service (DHS-CS).

The Secretary or designee establishes and manages the DHS-CS to enhance the cybersecurity of the Nation through the most effective execution of the DHS cybersecurity mission.

§ 158.203 Positions in the DHS-CS.

(a) Qualified positions. The Secretary or designee designates and establishes qualified positions in the excepted service as the Secretary or designee determines necessary for the most effective execution of the DHS cybersecurity mission.

(b) Designating qualified positions. The Secretary or designee designates qualified positions under the deployment program, described in § 158.701, as part of determining when the Department uses CTMS to recruit and retain individuals possessing CTMS qualifications.

(c) Establishing qualified positions. The Secretary or designee establishes a qualified position under the talent acquisition system, described in § 158.501 of this part, by the appointment of an individual to a qualified position previously designated.

§ 158.204 Employees in the DHS-CS.

(a) DHS-CS employees. DHS-CS employees serve in the excepted service, and the Department hires, compensates, and develops DHS-CS employees using CTMS.

(b) Mission execution and assignments. DHS-CS employees execute the DHS cybersecurity mission by applying their CTMS qualifications to perform the DHS-CS cybersecurity work of their assignments.

(c) Mission impact and recognition. Application of a DHS-CS employee's CTMS qualifications to successfully and proficiently perform DHS-CS cybersecurity work results in mission impact attributable to that employee. The Department reviews a DHS-CS employee's mission impact as described in § 158.805, which may result in recognition as described in § 158.630.

(d) Compensation. In alignment with the compensation strategy described in § 158.601, the Department provides compensation to a DHS-CS employee as described in § 158.603.

(e) Recruitment and development. The Department strategically and proactively recruits individuals as described in § 158.510 and develops DHS-CS employees under the career development program, described in § 158.803, that emphasizes continual learning.

(f) Core values. The Department uses the core values, described in § 158.305, to manage the DHS-CS.

§ 158.205 Assignments in the DHS-CS.

(a) Assignments generally. Each DHS-CS employee has one or more assignments during the employee's service in the DHS-CS. The Department designates and staffs assignments under the deployment program, described in § 158.701.

(b) Initial and subsequent assignments. The Department matches an individual appointed to a qualified position with an initial assignment as described in § 158.703(c). The Department may match DHS-CS employees with one or more subsequent assignments as described in § 158.703(d).

§ 158.301 Administering CTMS and Managing the DHS-CS.

(a) The Secretary or designee is responsible for administering CTMS and managing the DHS-CS, including establishing and maintaining CTMS policy.

(b) The Cybersecurity Talent Management Board (CTMB) is responsible for assisting the Secretary or designee in administering CTMS and managing the DHS-CS.

(c) The Secretary or designee, with assistance from the CTMB, administers CTMS and manages the DHS-CS based on:

(1) Talent management principles described in § 158.303;

(2) Strategic talent priorities described in § 158.304; and

(3) DHS-CS core values described in § 158.305.

§ 158.302 Cybersecurity Talent Management Board (CTMB).

(a) Purpose. As part of assisting the Secretary or designee in administering CTMS and managing the DHS-CS, the CTMB periodically evaluates whether CTMS is recruiting and retaining individuals with the qualifications necessary to execute the DHS cybersecurity mission.

(b) Composition. The CTMB comprises:

(1) Officials representing DHS organizations involved in executing the DHS cybersecurity mission; and

(2) Officials responsible for developing and administering talent management policy within the Department.

(c) Membership. The Secretary or designee:

(1) Appoints officials to serve as members of the CTMB;

(2) Designates the Co-Chairs of the CTMB; and

(3) Ensures CTMB membership fulfills the membership requirements in this section and includes appropriate representation, as determined by the Secretary or designee, from across the Department.

(d) Operation. The Secretary or designee establishes the CTMB and minimum requirements for CTMB operation.

(e) External Assistance. The CTMB may periodically designate an independent evaluator to conduct an evaluation of CTMS.

§ 158.303 Talent management principles.

(a) Merit system principles. CTMS is designed and the Secretary or designee, with assistance from the CTMB, administers CTMS based on the principles of merit and fairness embodied in the merit system principles in 5 U.S.C. 2301(b).

(b) Prohibited personnel practices. Any employee of the Department who has the authority to take, direct others to take, recommend, or approve any talent management action under this part must comply with 5 U.S.C. 2302(b) regarding talent management actions under this part.

(c) Equal employment opportunity principles. CTMS is designed and the Secretary or designee, with assistance from the CTMB, administers CTMS and manages the DHS-CS in accordance with applicable anti-discrimination laws and policies. Thus, talent management actions under this part that materially affect a term or condition of employment must be free from discrimination.

§ 158.304 Strategic talent priorities.

The Secretary or designee, with assistance from the CTMB, administers CTMS and manages the DHS-CS based on strategic talent priorities, which the Secretary or designee sets on an ongoing basis using:

(a) Information from strategic talent planning described in § 158.401(c);

(b) The Department's financial and resources planning functions, including the functions described in 6 U.S.C. 342(b);

(c) The Department's comprehensive strategic planning, including the plan described in 5 U.S.C. 306; and

(d) Departmental priorities.

§ 158.305 DHS-CS core values.

The Secretary or designee, with assistance from the CTMB, manages the DHS-CS based on the following core values:

(a) Expertise, including enhancing individual and collective expertise regarding cybersecurity through continual learning;

(b) Innovation, including pursuing new ideas and methods regarding cybersecurity work and cybersecurity generally; and

(c) Adaptability, including anticipating and adjusting to emergent and future cybersecurity risks and cybersecurity threats.

§ 158.401 Strategic talent planning process.

(a) Purpose. On an ongoing basis, the Secretary or designee engages in a strategic talent planning process to ensure CTMS adapts to changes in cybersecurity work, the cybersecurity talent market, and the DHS cybersecurity mission.

(b) Process. The Secretary or designee establishes and administers a strategic talent planning process that comprises:

(1) Identifying DHS-CS cybersecurity work and CTMS qualifications based on the DHS cybersecurity mission as described in § 158.402;

(2) Analyzing the cybersecurity talent market as described in § 158.403;

(3) Describing and valuing DHS-CS cybersecurity work under the work valuation system described in § 158.404; and

(4) Ensuring CTMS administration and DHS-CS management is continually informed by current, relevant information as described in paragraph (c) of this section.

(c) Informing CTMS administration and DHS-CS management. The Secretary or designee aggregates information generated in the processes described in paragraphs (b)(1) through (3) of this section and information from administering CTMS, and uses that aggregated information to inform all other CTMS processes, systems, and programs under this part.

§ 158.402 DHS-CS cybersecurity work and CTMS qualifications identification.

On an ongoing basis, the Secretary or designee analyzes the DHS cybersecurity mission to identify:

(a) The functions that execute the DHS cybersecurity mission;

(b) The cybersecurity work required to perform, manage, or supervise those functions; and

(c) The set of qualifications, identified in accordance with applicable legal and professional guidelines, necessary to perform that work.

§ 158.403 Talent market analysis.

On an ongoing basis, the Secretary or designee conducts an analysis of the cybersecurity talent market, using generally recognized compensation principles and practices to:

(a) Identify and monitor trends in both employment for and availability of talent related to cybersecurity, including variations in the cost of talent in local cybersecurity talent markets, defined in § 158.612(b)(1), or variations in the cost of living in those markets, or both; and

(b) Identify leading strategies for recruiting and retaining talent related to cybersecurity.

§ 158.404 Work valuation system.

(a) The Secretary or designee establishes and administers a person-focused work valuation system to facilitate systematic management of the DHS-CS and to address internal equity among DHS-CS employees. The work valuation system is designed to reflect that:

(1) The DHS cybersecurity mission is dynamic;

(2) Cybersecurity work is constantly evolving; and

(3) Individuals, through application of their qualifications, significantly influence how cybersecurity work is performed.

(b) The work valuation system is based on:

(1) CTMS qualifications; and

(2) DHS-CS cybersecurity work.

(c) The Department uses the work valuation system to establish work and career structures, such as work levels, titles, ranks, and specializations, and the Department uses these work and career structures for purposes of talent management under this part, such as:

(1) Describing and categorizing DHS-CS employees, qualified positions, and assignments;

(2) Assessing and selecting individuals for appointment to qualified positions; and

(3) Compensating DHS-CS employees under this part, including establishing and administering one or more salary structures, described in § 158.611.

(d) The Department may also use the work and career structures described in paragraph (c) of this section for budget and fiscal purposes related to administering CTMS and managing the DHS-CS.

§ 158.405 Exemption from General Schedule position classification.

The provisions of 5 U.S.C. Chapter 51 regarding classification and 5 CFR part 511 regarding classification under the General Schedule, among other similar laws, do not apply under CTMS, to the DHS-CS, or to talent management involving the individuals described in § 158.103.

§ 158.501 Talent acquisition system.

(a) The Secretary or designee establishes and administers a talent acquisition system, in accordance with applicable legal and professional guidelines governing the assessment and selection of individuals, to identify and hire individuals possessing CTMS qualifications.

(b) The talent acquisition system comprises the strategies, programs, and processes described in this subpart and in CTMS policy for proactively and strategically recruiting individuals, assessing qualifications of individuals, and considering and selecting individuals for employment in the DHS-CS and appointment to qualified positions.

§ 158.502 Exemption from other laws regarding appointment.

The provisions of the following laws, among other similar laws, do not apply under CTMS, to the DHS-CS, or to talent management involving the individuals described in § 158.103:

(a) The following provisions of 5 U.S.C.:

(1) Section 3320 regarding selection and appointment in the excepted service; and

(2) Chapter 51 regarding classification; and

(b) The following provisions of 5 CFR:

(1) Part 211 regarding veteran preference;

(2) Part 302 regarding employment in the excepted service (except § 302.203 regarding disqualifying factors);

(3) Part 352 regarding reemployment rights (except subpart C regarding detail and transfer of Federal employees to international organizations); and

(4) Part 511 regarding classification under the General Schedule.

§ 158.510 Strategic recruitment.

(a) On an ongoing basis, the Department develops and implements strategies for publicly communicating about the DHS cybersecurity mission and the DHS-CS and for proactively recruiting individuals likely to possess CTMS qualifications.

(b) The Department develops and implements strategies described in paragraph (a) of this section based on:

(1) CTMS qualifications and DHS-CS cybersecurity work; and

(2) Strategic talent priorities.

(c) In developing and implementing strategies described in paragraph (a) of this section, the Department may collaborate with:

(1) Other Federal agencies including the Department of Defense, the Office of Personnel Management, and the Department of Veterans Affairs;

(2) Institutions of higher education, as defined in 20 U.S.C. 1001, including historically Black colleges or universities, as described in 20 U.S.C. 1061(2), and other minority-serving institutions, as described in 20 U.S.C. 1067q(a);

(3) National organizations, including veterans service organizations recognized by the Department of Veterans Affairs, and professional associations chartered by Congress under 36 U.S.C. Part B; and

(4) Other similar organizations and groups.

(d) The Department considers the availability of preference eligibles and veterans for appointment under this part, and develops and implements specific strategies to proactively recruit such individuals.

§ 158.511 Outreach and sourcing.

(a) The Department uses a variety of sources, including publicly available information, to identify individuals or groups of individuals for recruitment under this subpart.

(b) CTMS policy implementing this subpart addresses:

(1) Communication of opportunities for employment in the DHS-CS;

(2) Communication of the application processes to individuals being recruited under this part or applying for employment under this part; and

(3) Acceptance and treatment of applications for employment in the DHS-CS, including minimum application requirements established under this part.

§ 158.512 Interview expenses.

(a) An individual being considered for employment in the DHS-CS may receive payment or reimbursement for travel to and from preemployment interviews, which may include participating in the assessment program described in § 158.520.

(b) The Department pays or reimburses interview expenses, described in paragraph (a) of this section, in accordance with 5 U.S.C. 5706b and the Federal Travel Regulations at 41 CFR chapters 301 through 304.

§ 158.520 Assessment.

(a) The Department determines individuals' CTMS qualifications under the assessment program described in this section. To be considered for employment in the DHS-CS, an individual must participate in the assessment program and meet applicable rating or scoring thresholds in each assessment process in which that individual participates.

(b) The Department establishes and administers an assessment program, with one or more assessment processes, based on CTMS qualifications. The assessment program is designed to efficiently and accurately determine individuals' CTMS qualifications.

(c) Each assessment process compares the qualifications of an individual to CTMS qualifications. The Department develops and administers each assessment process in accordance with applicable legal and professional guidelines governing the assessment and selection of individuals.

(d) An assessment process may use standardized instruments and procedures to measure qualifications. An assessment process may also use demonstrations of qualifications determined appropriate by the Secretary or designee, such as rewards earned from the cybersecurity competition described in Executive Order 13870, published, peer-reviewed cybersecurity research, or a cybersecurity invention or discovery granted a patent under 35 U.S.C. Part II.

(e) The Department makes available information to assist individuals in understanding the purpose of, and preparing for participation in, an assessment process.

(f) To maintain the objectivity and integrity of the assessment program, the Department maintains control over the security and release of materials relating to the assessment program, including assessment plans, validation studies, and other content. Except as otherwise required by law, the Department does not release the following:

(1) Sensitive materials relating to the design and administration of the assessment program;

(2) Names or lists of individuals applying for employment in the DHS-CS; and

(3) Results or relative ratings of individuals who participated in the assessment program.

§ 158.521 Employment eligibility requirements and employment-related criteria.

(a) Employment eligibility requirements. To be eligible for employment in the DHS-CS, an individual must:

(1) Meet U.S. citizenship requirements as described in governing Appropriation Acts; and

(2) Comply with Selective Service System requirements described in 5 U.S.C. 3328.

(b) Employment-related criteria. The Department determines criteria related to employment in the DHS-CS, reviews individuals applying for employment in the DHS-CS using such criteria, and, as part of an offer of appointment to a qualified position, provides written notice of specific, applicable employment-related criteria necessary to obtain and maintain, employment in the DHS-CS. Employment-related criteria include:

(1) Fitness standards and similar factors described in Executive orders, 5 CFR 302.203, and policies of the Department;

(2) Personnel security requirements related to fitness standards and similar factors described in paragraph (b)(1) of this section;

(3) Geographic mobility requirements; and

(4) Other criteria related to any aspect of appointment or employment, including selection, appointments, qualified positions, or assignments, or some or all of the foregoing.

(c) Accepting and maintaining employment-related criteria. To be appointed to a qualified position, an individual must accept and satisfy the specific, applicable employment-related criteria associated with the individual's offer of appointment concurrent with the individual's acceptance of the offer of appointment. An individual's acceptance of an appointment to a qualified position constitutes acceptance of applicable employment-related criteria for that qualified position and the individual's agreement to satisfy and maintain those criteria.

(d) Changes to employment-related criteria. Employment-related criteria may change, and DHS-CS employees may be required to accept and satisfy such changes to maintain employment in the DHS-CS.

(e) Disqualification. The Department may disqualify an individual from consideration for employment in the DHS-CS or from appointment to a qualified position for: Providing false information to the Department, engaging in dishonest conduct with the Department, unauthorized disclosure of assessment materials for purposes of giving any applicant an advantage in the assessment process, or other actions related to an individual's character or conduct that may negatively impact the integrity or efficiency of the DHS-CS.

§ 158.522 Selection and appointment.

(a) The Department selects an individual for employment in the DHS-CS based on the individual's CTMS qualifications, as determined under the assessment program described in § 158.520.

(b) Prior to finalizing the selection of an individual for employment in the DHS-CS, the Department considers the availability of preference eligibles for appointment under this part, including those recruited based on specific strategies described in § 158.510(d), who have participated in the assessment program and met applicable rating or scoring thresholds, as described in § 158.520(a). When a selection is imminent and there are both preference eligibles and non-preference eligibles undergoing final consideration, the Department regards status as a preference eligible as a positive factor in accordance with CTMS policy.

(c) The Department appoints an individual to a qualified position under the authority in 6 U.S.C. 658 and this part, and all such appointments are in the excepted service and are one of the following types of appointment:

(1) A renewable appointment under § 158.523(a);

(2) A continuing appointment under § 158.523(b); or

(3) An advisory appointment under § 158.523(c).

(d) As part of selecting an individual for employment in the DHS-CS and appointing an individual to a qualified position under this part, the Department:

(1) Determines applicable work and career structures, including the individual's initial work level, using the work valuation system described in § 158.404;

(2) Sets the individual's initial salary using the salary system as described in § 158.620; and

(3) Matches the individual with an initial assignment as described in § 158.703(c).

(e) No qualified position may be established through the non-competitive conversion of a current Federal employee from an appointment made outside the authority of this part to an appointment made under this part.

(f) An individual who accepts an appointment to a qualified position under this part voluntarily accepts an appointment in the excepted service.

(g) A DHS-CS employee serves in the same qualified position throughout a single continuing appointment under this part and throughout multiple, consecutive renewable or continuing appointments under this part, regardless of any changes in the employee's assignments, including primary DHS organization, or changes in the employee's official worksite.

§ 158.523 Appointment types and circumstances.

(a) Renewable appointment. Appointment of an individual to a renewable appointment is for up to three years. The Department may renew a renewable appointment for any time period of up to three years, subject to any limitation in CTMS policy regarding the number of renewals. Subject to any additional limitation in CTMS policy, the Department may change an unexpired renewable appointment to a continuing appointment for a DHS-CS employee receiving a salary in the standard range described in § 158.613(b). The following types of renewable appointments include special conditions:

(1) Reemployed annuitant. Under this part, the Department may appoint an annuitant to a qualified position and must appoint the annuitant to a renewable appointment. An annuitant appointed to a qualified position serves at the will of the Secretary.

(2) Uncompensated service. Under this part, the Department may appoint to a qualified position an individual to provide uncompensated service, any such service is gratuitous service, and the Department must appoint such an individual to a renewable appointment. The gratuitous nature of service must be a condition of employment of such an appointment. The Secretary or designee must approve the appointment of each individual providing uncompensated service by name, and such individual if not providing gratuitous service would otherwise be eligible to receive a salary under this part at or above the amount described in § 158.614(a)(2). An individual providing uncompensated service serves at the will of the Secretary. An individual for appointment to a qualified position to provide uncompensated service need not be assessed under this part, and the documentation associated with that individual's qualified position need not include all the information listed in § 158.706(c).

(b) Continuing appointment. Appointment of an individual to a continuing appointment is for an indefinite time period.

(c) Advisory appointment. Appointment of an individual, including a former DHS-CS employee, to an advisory appointment is governed by subpart J of this part.

(d) Former DHS-CS employee. Appointment under this part of a former DHS-CS employee is governed by § 158.525.

(e) Restoration to duty from uniformed service or compensable injury. In accordance with 5 CFR part 353, the Department restores to duty a DHS-CS employee who is a covered person described in 5 CFR 353.103.

(f) Current and former political appointees. Appointment under this part of a current political appointee and a former political appointee, both as defined by OPM, may be subject to additional requirements outside of this part, including coordination with OPM.

§ 158.524 Initial service period.

(a) All individuals appointed under this part serve an initial service period that constitutes a probationary period of three years beginning on the date of appointment.

(b) Except as stated in paragraph (c) of this section, service in the DHS-CS counts toward completion of a current initial service period under paragraph (a) of this section. No other service in an appointment made outside the authority of this part may count toward completion of an initial service period under paragraph (a) of this section.

(c) Service as a DHS-CS advisory appointee, as a reemployed annuitant described in § 158.523(a)(1), or providing uncompensated service described in § 158.523(a)(2) does not count towards completion of an initial service period in a subsequent appointment to a qualified position.

(d) CTMS policy implementing this section addresses computation of each DHS-CS employee's initial service period, including accounting for working schedules other than full-time schedules described in § 158.705 and for periods of absence while in pay and nonpay statuses.

§ 158.525 Hiring of former DHS-CS employees.

(a) Rejoining the DHS-CS. To facilitate future service in the DHS-CS by former DHS-CS employees, the Department aims to:

(1) Maintain communication with former DHS-CS employees to understand their interest in future service in the DHS-CS;

(2) Provide opportunities for former DHS-CS employees to be considered for appointment again to qualified positions; and

(3) Acknowledge former DHS-CS employees' enhancements to qualifications while outside the DHS-CS.

(b) Rehiring. Except as provided in paragraphs (c) through (e) of this section, to be appointed again to a qualified position a former DHS-CS employee must:

(1) Participate again in the assessment program described in § 158.520 for the Department to determine the former DHS-CS employee's current CTMS qualifications; and

(2) Meet employment eligibility and accept and satisfy applicable employment-related criteria as described in § 158.521.

(c) Reassessment. A former DHS-CS employee whose most recent appointment to a qualified position was a renewable appointment or a continuing appointment must participate again in the assessment program described in § 158.520 unless the Department determines otherwise based on factors relevant to the former DHS-CS employee, such as:

(1) Time elapsed since the former DHS-CS employee's most recent appointment to a qualified position under this part;

(2) Similarity of cybersecurity work performed by the former DHS-CS employee since that individual's most recent appointment to a qualified position under this part; or

(3) Similarity of the former DHS-CS employee's CTMS qualifications during the former employee's most recent appointment under this part to the CTMS qualifications of a newly identified assignment under the deployment program in § 158.701.

(d) Former advisory and political appointees. Appointment under this part of a former DHS-CS employee who previously served in an advisory appointment or other political appointment may be subject to additional requirements, including coordination with the Office of Personnel Management.

(e) Prospective advisory appointees. Appointment of any former DHS-CS employee to an advisory appointment is governed by subpart J of this part.

§ 158.601 Compensation strategy.

To ensure the DHS-CS fulfills its purpose, as stated in § 158.202, the Secretary or designee aims to establish and administer a compensation system, described in § 158.602, that:

(a) Ensures the compensation for DHS-CS employees is sufficiently competitive to recruit and retain individuals possessing CTMS qualifications;

(b) Values, encourages, and recognizes, in alignment with the DHS-CS core values described in § 158.305:

(1) Exceptional CTMS qualifications and mission impact,

(2) Excellence and innovation in the performance of DHS-CS cybersecurity work, and

(3) Continual learning to adapt to evolving cybersecurity risks and cybersecurity threats; and

(c) Acknowledges the unpredictable nature of cybersecurity work and the expectation that DHS-CS employees occasionally work unusual hours and extended hours, as needed, to execute the DHS cybersecurity mission, especially in response to exigent circumstances and emergencies, including cybersecurity incidents; and

(d) Reflects an understanding of the cybersecurity talent market, including:

(1) Leading compensation practices and trends,

(2) Current cybersecurity work expectations and arrangements, and

(3) An understanding of the concepts of total compensation and total rewards.

§ 158.602 Compensation system.

(a) The Secretary or designee establishes and administers a compensation system based on:

(1) The compensation strategy in § 158.601;

(2) Information from strategic talent planning described in § 158.401(c);

(3) Generally recognized compensation principles and practices; and

(4) Strategic talent priorities.

(b) The compensation system comprises:

(1) The salary system described in § 158.610; and

(2) Additional compensation described in § 158.603.

§ 158.603 Employee compensation.

(a) Compensation. As compensation for service in the DHS-CS, a DHS-CS employee receives a salary as described in paragraph (b) of this section. A DHS-CS employee may also receive additional compensation as described in paragraph (c) of this section.

(b) Salary. Except as provided in paragraphs (b)(1) and (2) of this section, a DHS-CS employee receives a salary under the salary system described in § 158.610. The Department sets a DHS-CS employee's salary as described in § 158.620, and salary may include a local cybersecurity talent market supplement described in § 158.612. The Department adjusts a DHS-CS employee's salary as described in § 158.621.

(1) Uncompensated service. A DHS-CS employee providing uncompensated service described in § 158.523(a)(2) does not receive a salary under this part.

(2) Advisory appointees. A DHS-CS advisory appointee receives a salary as described under subpart J of this part.

(c) Additional compensation. In alignment with the compensation strategy in § 158.601 and subject to the requirements of this subpart F, the Department may provide the additional compensation described in paragraph (c)(1) of this section to DHS-CS employees, unless a DHS-CS employee is providing uncompensated service under § 158.523(a)(2).

(1) Types. Additional compensation under CTMS is:

(i) Recognition under §§ 158.632 through 158.634;

(ii) Other special payments under §§ 158.640 through 158.643; and

(iii) Other types of compensation, including leave and benefits, authorized under §§ 158.650 through 158.654 and provided in accordance with relevant provisions of other laws.

(2) Combining types. A DHS-CS employee, except such an employee providing uncompensated service and a DHS-CS advisory appointee, may receive any type of additional compensation described in paragraph (c)(1) of this section in combination with any other such type subject to the requirements of this subpart F, and subject to the limit described in paragraph (c)(3) of this section.

(3) Limit. Additional compensation described in paragraph (c)(1) of this section is subject to, and may be limited by, the aggregate compensation limit described in § 158.604.

(4) Advisory appointees. A DHS-CS advisory appointee may receive additional compensation as described in subpart J of this part.

(5) Department discretion. Any payment or nonpayment of additional compensation under this part, or the amount of any such compensation, is under the Department's discretion, and may be reviewable only as provided for under subpart I of this part.

§ 158.604 Aggregate compensation limit.

(a) Limiting aggregate compensation. A DHS-CS employee may not receive additional compensation listed in in paragraphs (b)(1)(i) through (iv) of this section if such receipt would cause a DHS-CS employee's aggregate compensation for a calendar year to exceed the aggregate compensation limit applicable to that employee. A DHS-CS employee's applicable aggregate compensation limit is the limit amount assigned to the subrange of a salary structure, described in § 158.611, that contains the employee's salary. The Department assigns an aggregate compensation limit to each subrange in a salary structure by assigning the amounts referenced in 5 U.S.C. 5307(d)(1) in ascending order to the subranges, such that each subrange has an aggregate compensation limit that is greater than or equal to the salary maximum of that subrange.

(b) Aggregate compensation. For purposes of this part—

(1) A DHS-CS employee's aggregate compensation means the total of the employee's salary, including any local cybersecurity talent market supplement, and the following types of additional compensation the employee receives under this part:

(i) Recognition payments;

(ii) Payments for special working conditions;

(iii) Payments for quarters allowances, overseas differentials and allowances, and remote worksite allowances, foreign currency allowances, and hostile fire pay; and

(iv) Other similar payments described in CTMS policy as being authorized under this part and provided in accordance with other relevant provisions of law.

(2) The following types of compensation a DHS-CS employee receives under this part are excluded from the employee's aggregate compensation:

(i) Payments or reimbursements for professional development and training;

(ii) CTMS student loan repayments;

(iii) CTMS allowances in nonforeign areas;

(iv) Back pay because of an unjustified or unwarranted talent management action;

(v) Severance pay;

(vi) Lump-sum payments for accumulated and accrued annual leave;

(vii) Voluntary separation incentive payments;

(viii) Payments for reservist differentials; and

(ix) Monetary value of any honorary recognition, leave, or other benefits.

(c) Forfeiture of compensation exceeding limit amount. Except under corrective action described in paragraph (d) of this section, a DHS-CS employee may not receive any portion of a payment for the additional compensation listed in paragraphs (b)(1)(i) through (iv) of this section that would cause the employee's aggregate compensation in any calendar year to exceed the applicable limit amount for that employee described in paragraph (a) of this section and the DHS-CS employee forfeits any such portion of a payment.

(d) Corrective actions. The Department may make a corrective action if the Department underestimated or overestimated a DHS-CS employee's aggregate compensation in a calendar year, including if an applicable aggregate compensation limit amount changed, resulting in the employee receiving aggregate compensation in excess of the applicable limit amount for a DHS-CS employee or the Department limiting or prohibiting an employee's aggregate compensation incorrectly. Corrective actions may include the Secretary or designee waiving a debt to the Federal Government for a DHS-CS employee under 5 U.S.C. 5584, if warranted, or making appropriate corrective payments to a DHS-CS employee.

§ 158.605 Exemption from other laws regarding compensation.

The provisions of the following laws, among other similar laws, do not apply under CTMS, to the DHS-CS, or to talent management involving the individuals described in § 158.103:

(a) The following provisions of 5 U.S.C.:

(1) Chapter 51 regarding classification,

(2) Chapter 53 regarding pay rates and systems (except section 5379 regarding student loan repayments),

(3) Chapter 55, Subchapter V regarding premium pay (except section 5550a regarding compensatory time off for religious observances),

(4) Chapter 61 regarding work schedules (except sections 6103-6104 regarding holidays),

(5) Section 4502 regarding cash awards and time-off awards,

(6) Section 4503 regarding agency awards (except regarding honorary recognition),

(7) Section 4505a regarding performance-based cash awards,

(8) Sections 4507 and 4507a regarding presidential rank awards,

(9) Section 5307 regarding limitation on certain payments,

(10) Section 5384 regarding performance awards for the Senior Executive Service,

(11) Section 5753 regarding recruitment and relocation bonuses,

(12) Section 5754 regarding retention bonuses,

(13) Section 5755 regarding supervisory differentials, and

(14) Section 5757 regarding extended assignment incentives;

(b) The provisions of 29 U.S.C. 206 and 207 regarding minimum wage payments and overtime pay under the Fair Labor Standards Act of 1938, as amended; and

(c) The following provisions of 5 CFR:

(1) Part 451 regarding awards (except regarding honorary recognition);

(2) Part 511 regarding classification under the General Schedule;

(3) Part 530 regarding pay rates and systems;

(4) Part 531 regarding pay under the General Schedule;

(5) Part 534 regarding pay under other systems;

(6) Part 536 regarding grade and pay retention;

(7) Part 550, subparts A regarding premium pay, I regarding pay for duty involving physical hardship or hazard, M regarding firefighter pay, N regarding compensatory time off for travel, and P regarding overtime pay for border patrol agents;

(8) Part 551 regarding pay administration under the Fair Labor Standards Act;

(9) Part 575 regarding recruitment, relocation, and retention incentives, supervisory differentials; and extended assignment incentives; and

(10) Part 610 regarding hours of duty (except subpart B regarding holidays).

§ 158.610 Salary system.

(a) Under the compensation system, described in § 158.602 of this part, the Department establishes and administers a salary system with the goals of maintaining:

(1) Sufficiently competitive salaries for DHS-CS employees as stated in § 158.601(a); and

(2) Equitable salaries among DHS-CS employees.

(b) The salary system comprises:

(1) At least one salary structure, described in § 158.611 of this part, bounded by the salary range described in § 158.613 and incorporating the salary limitations described in § 158.614;

(2) The process for providing a local cybersecurity talent market supplement described in § 158.612; and

(3) The salary administration framework described in §§ 158.620 through 158.622.

§ 158.611 Salary structure.

(a) Under the salary system, described in § 158.610, the Department establishes and administers one or more salary structures based on the strategy, information, principles and practices, and priorities listed in § 158.602(a).

(b) A salary structure:

(1) Is bounded by the salary range described in § 158.613;

(2) Incorporates, as described in paragraph (d) of this section, the salary limitations described in § 158.614; and

(3) May incorporate other salary and cost control strategies, such as control points.

(c) A salary structure includes subranges, within the salary range described in § 158.613 that are associated with work levels established by the work valuation system, described in § 158.404. Each such subrange is associated with at least one such work level.

(d) The Department incorporates the salary limitations described in § 158.614 into a salary structure by assigning each such salary limitation to at least one subrange of the salary structure. The Department assigns such salary limitations in ascending order to the subranges such that each subrange has a salary limitation that is greater than or equal to the salary maximum of that subrange.

(e) The Department may adjust a salary structure annually, or as the Secretary or designee determines necessary, based on the strategy, information, principles and practices, and priorities listed in § 158.602(a).

§ 158.612 Local cybersecurity talent market supplement (LCTMS).

(a) General. The Department may provide a DHS-CS employee a LCTMS to ensure the employee receives a sufficiently competitive salary, as described in § 158.610(a). A LCTMS accounts for the difference between a salary as determined under a salary structure, described in § 158.611, and the Department's determination as to what constitutes a sufficiently competitive salary for that local cybersecurity talent market. The Department determines whether a LCTMS is necessary, and establishes and periodically adjusts local cybersecurity talent markets and local cybersecurity talent market supplement percentages, based on the strategy, information, principles and practices, and priorities listed in § 158.602(a).

(b) Definitions. As used in this section:

(1) Local cybersecurity talent market means the cybersecurity talent market in a geographic area that the Department defines based on the talent market analysis described in § 158.403, and that may incorporate any pay locality established or modified under 5 U.S.C. 5304.

(2) Local cybersecurity talent market supplement percentage means a percentage the Department assigns to a local cybersecurity talent market to increase the amount of a salary provided under a salary structure.

(c) Salary supplement. A LCTMS is considered part of salary under this part and for purposes of applying the aggregate compensation limit described in § 158.604. A LCTMS is also basic pay for purposes under 5 U.S.C. and 5 CFR, except for purposes of determining pay under 5 U.S.C. 7511 and 7512 and 5 CFR part 752.

(d) Eligibility and termination. (1) The Department determines eligibility for a LCTMS under this section and CTMS policy implementing this section. A DHS-CS employee is eligible for a LCTMS if the employee's official worksite, as determined under § 158.704, is located in a local cybersecurity talent market with an assigned local cybersecurity talent market supplement percentage for the salary structure under which the employee's salary is provided.

(2) The Department terminates a LCTMS a DHS-CS employee receives when the employee's official worksite, as determined under § 158.704, is no longer in a local cybersecurity talent market with an assigned local cybersecurity talent market supplement percentage, or the salary structure under which the employee's salary is provided no longer has an assigned local cybersecurity labor market supplement, or both.

(3) A reduction in salary for a DHS-CS employee because of a change in any LCTMS for that employee is not a reduction in pay for the purposes of 5 U.S.C. 7512 and 5 CFR part 752.

(e) Limitation. A DHS-CS employee may not receive, and is not entitled to, any portion of a LCTMS that would cause the employee's salary to exceed the applicable salary limitation assigned to the subrange of a salary structure as described in § 158.611 that contains the employee's salary, but the employee may receive the portion of such a LCTMS that would not cause the employee's salary to exceed the applicable salary limitation. A DHS-CS employee may receive a LCTMS that would cause the employee's salary to be in the extended range, described in § 158.613(c), only if the Secretary or designee invokes the extended range under § 158.613(c)(2) for that employee.

§ 158.613 Salary range.

(a) Range. The salary range provides the boundaries of the salary system described in § 158.610. The salary range comprises a standard range and an extended range, and the standard range applies unless the Secretary or designee invokes the extended range under paragraph (c) of this section.

(b) Standard range. The upper limit of the standard range is equal to the amount of total annual compensation payable to the Vice President under 3 U.S.C. 104.

(c) Extended range. The upper limit of the extended range is 150 percent of the annual rate of basic pay for level I of the Executive Schedule (150% of EX-I). Only DHS-CS employees serving in renewable appointments may receive a salary amount in the extended range, and only if the Secretary or designee invokes the extended range for those employees as described in this paragraph (c).

(1) The Secretary or designee may invoke the extended range for a DHS-CS employee when the Secretary or designee determines, based on the compensation strategy in § 158.601, that the employee's qualifications, the employee's mission impact, and mission-related requirements warrant adjusting the employee's salary beyond the standard range. The Secretary or designee must approve the salary adjustment of each such employee by name, and to receive a salary in the extended range the employee must either already be in a renewable appointment or accept a renewable appointment. While the employee is receiving a salary in an amount in the extended range, the Department may not change that employee's appointment to a continuing appointment.

(2) The Secretary or designee may invoke the extended range for an individual selected for appointment to a qualified position when the Secretary or designee determines, based on the compensation strategy in § 158.601, that the individual's qualifications, the individual's anticipated mission impact, and mission-related requirements warrant setting the individual's salary beyond the standard range. The Secretary or designee must approve the appointment of each such individual to a qualified position by name, and the individual must be appointed to a renewable appointment only. While that individual is receiving a salary under this part in an amount in the extended range, the Department may not change that individual's appointment to a continuing appointment at any time.

(d) Maximum. No DHS-CS employee may receive a salary under this part in excess of 150% of EX-I.

§ 158.614 Salary limitations.

(a) The salary system, described in § 158.610, has the following limitations on maximum rates of salary that apply within the CTMS salary range described in § 158.613 of this part:

(1) The annual rate of basic pay for GS-15, step 10 under the General Schedule (excluding locality pay or any other additional pay as defined in 5 CFR chapter 1);

(2) The annual rate of basic pay for level IV of the Executive Schedule;

(3) The annual rate of basic pay for level II of the Executive Schedule;

(4) The annual rate of basic pay for level I of the Executive Schedule; and

(5) The total annual compensation payable to the Vice President under 3 U.S.C. 104.

(b) The Department may establish additional limitations on maximum rates of salary for the salary system.

(c) The salary system incorporates each limitation on maximum rates of salary described in this section into each salary structure established under § 158.611.

§ 158.620 Setting salaries.

(a) The Department sets the salary for an individual accepting an appointment to a qualified position as part of selection and appointment of the individual, described in § 158.522. The Department sets the individual's salary within a subrange of a salary structure described in § 158.611 based on consideration of:

(1) The individual's CTMS qualifications, determined under the assessment program described in § 158.520;

(2) Applicable work and career structures, including the individual's initial work level, determined as part of selection and appointment under § 158.522;

(3) The individual's anticipated mission impact;

(4) Mission-related requirements; and

(5) Strategic talent priorities.

(b) In setting the salary for an individual appointed to a qualified position under this part, the Department may set the individual's salary without regard to any prior salary of the individual, including any salary or basic pay while serving in a previous appointment under this part or in another previous Federal appointment made outside the authority of this part.

(c) In setting the salary for an individual appointed to a qualified position under this part, the Department may provide a local cybersecurity talent market supplement described in § 158.612.

§ 158.621 Adjusting salaries.

(a) The Department adjusts a DHS-CS employee's salary, or the salaries of a group of DHS-CS employees, by paying a recognition adjustment under § 158.631, or paying a local cybersecurity talent market supplement under § 158.612, or both.

(b) The Department does not provide DHS-CS employees with any automatic salary increase or any salary increase based on length of service in the DHS-CS or in any position outside the DHS-CS.

(c) If the Department adjusts a salary structure under § 158.611(e) that results in an increase to the salary minimum for one or more subranges of the salary structure, for any DHS-CS employee receiving a salary in an affected subrange at the affected salary minimum, DHS adjusts the employee's salary to reflect the adjustment to the salary structure and the new salary minimum for the affected subrange. Such a salary adjustment is not considered a recognition adjustment under § 158.631.

§ 158.622 Administering salary in accordance with relevant provisions of other laws.

(a) Except as stated in paragraph (b) of this section, the Department administers salary under this part in accordance with the provisions of 5 CFR part 550 regarding pay administration generally.

(b) The following provisions of 5 CFR part 550 do not apply to administering salary under this part and do not apply under CTMS, to the DHS-CS, or to talent management involving the individuals described in § 158.103 of this part:

(1) Subpart A regarding premium pay;

(2) Subpart I regarding pay for duty involving physical hardship or hazard;

(3) Subpart M regarding firefighter pay;

(4) Subpart N compensatory time-off for travel; and

(5) Subpart P regarding overtime for board patrol agents.

(c) The Department also administers salary under this part in accordance with the provisions of the following:

(1) 5 U.S.C. 5520, 42 U.S.C. 659 and 5 CFR parts 581 and 582, regarding garnishment;

(2) 31 U.S.C. 3702 and 5 CFR part 178 regarding claims settlement;

(3) 31 U.S.C. 3711 and 3716 and 31 CFR chapter IX parts 900 through 904 regarding debt collection;

(4) 5 U.S.C. Chapter 55 Subchapter VII regarding payments to missing employees; and

(5) Other relevant provisions of other laws specifically adopted in CTMS policy.

(d) For purposes of salary administration under this section, the Department administers salary based on consideration of a DHS-CS employee's work schedule under the work scheduling system, described in § 158.705, and may convert the employee's salary into an hourly rate, biweekly rate, or other rate.

§ 158.630 Employee recognition.

(a) DHS-CS employees. In alignment with the compensation strategy in § 158.601 and the performance management program described in § 158.802 of this part, the Department may provide recognition under §§ 158.631 through 158.634, on a periodic or ad hoc basis, to a DHS-CS employee based on the employee's mission impact. In providing such recognition, the Department may also consider mission-related requirements and strategic talent priorities.

(b) Prospective employees. In alignment with the compensation strategy in § 158.601, the Department may offer, and provide upon appointment, recognition payments under § 158.632(b) and recognition time-off under § 158.633(b), on a periodic or ad hoc basis, to an individual selected for employment in the DHS-CS based on:

(1) The individual's CTMS qualifications determined under the assessment program described in § 158.520;

(2) The individual's anticipated mission impact;

(3) Mission-related requirements; and

(4) Strategic talent priorities.

(c) Eligibility. The Department determines eligibility for recognition under this section, §§ 158.631 through 158.634, and CTMS policy implementing this section. The Department may defer providing recognition to a DHS-CS employee under this part if the Department is in the process of determining whether the employee's performance is unacceptable, as defined in 5 U.S.C. 4301(3), or whether the employee has engaged in misconduct. If the Department determines a DHS-CS employee's performance is unacceptable, as defined in 5 U.S.C. 4301(3), or the employee receives an unacceptable rating of record under § 158.804, or the Department determines the employee has engaged in misconduct, the employee is ineligible to receive recognition under this part.

(d) Policy. CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for recognition provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing recognition;

(4) Any limitations on the total number, frequency, or amount of recognition a DHS-CS employee may receive within any specific time period;

(5) Any service agreement requirements; and

(6) Processes for evaluating the effectiveness of recognition in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(e) Advisory appointees. Recognition under this part for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

§ 158.631 Recognition adjustments.

(a) Under this section and § 158.630, the Department may provide a recognition adjustment to a DHS-CS employee for the reasons and bases stated in § 158.630(a). A recognition adjustment is an adjustment to the DHS-CS employee's salary provided under a salary structure described in § 158.611. A recognition adjustment does not alter any local cybersecurity talent market supplement for that employee.

(b) No DHS-CS employee may receive a recognition adjustment that would cause the employee's salary to exceed the salary range maximum described in § 158.613(d) or the applicable salary limitation assigned to the subrange of a salary structure as described in § 158.611(d) that contains the employee's salary. A DHS-CS employee may not receive a recognition adjustment that would cause the employee's salary amount to be in the extended range, described in § 158.613(c), unless the Secretary or designee invokes the extended range for that employee under § 158.613(c)(1).

(c) A recognition adjustment under this section is not a promotion for any purpose under Title 5 U.S.C. or 5 CFR.

(d) A recognition adjustment under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

§ 158.632 Recognition payments.

(a) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(a), the Department may provide a recognition payment to a DHS-CS employee in an amount of up to 20 percent, or up to 50 percent with approval of the Secretary or designee, of the receiving DHS-CS employee's salary. The Department may require a service agreement of not less than six months and not more than three years as part of providing a recognition payment to a DHS-CS employee.

(b) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(b) and as part of an offer of employment in the DHS-CS, the Department may offer a recognition payment to an individual selected for employment in the DHS-CS in an amount of up to 20 percent of the receiving individual's initial salary in the DHS-CS. The Department requires a service agreement of not less than six months and not more than three years as part of providing, upon appointment, a recognition payment to an individual selected for employment in the DHS-CS.

(c) The Department may provide a recognition payment as a lump sum payment, an installment payment, or a recurring payment.

(d) The Department may provide a recognition payment under this section to a former DHS-CS employee or to the legal heirs or estate of a former DHS-CS employee in accordance with 5 U.S.C. 4505.

(e) Acceptance of a recognition payment constitutes agreement for Federal Government use of any idea, method, device, or similar that is the basis of the payment.

(f) A recognition payment under this section is subject to and may be limited by the aggregate compensation limit described in § 158.604.

(g) A recognition payment is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.

(h) A recognition payment under this section is based on the following types of awards and incentives provided under 5 U.S.C.:

(1) Cash awards under 5 U.S.C. 4502;

(2) Agency awards under 5 U.S.C. 4503;

(3) Performance-based cash awards under 5 U.S.C. 4505a and 5384;

(4) Presidential rank awards under 5 U.S.C. 4507 and 4507a; and

(5) Recruitment, relocation, and retention incentives 5 U.S.C. 5753 and 5754.

(i) A recognition payment under this section is in lieu of the types of awards and incentives provided under 5 U.S.C. listed in paragraph (h) of this section, and a DHS-CS employee is ineligible to receive any such awards or incentives.

(j) An individual selected for employment in the DHS-CS is ineligible to receive, as part of the offer of employment, any other offer of a monetary award or incentive, a payment in addition to salary, or other monetary recognition from the Department except as provided in this section and § 158.630. An individual appointed to an advisory appointment is also ineligible to receive, as part of an offer of employment in the DHS-CS, any offer of recognition under this section.

(k) A recognition payment under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

§ 158.633 Recognition time-off.

(a) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(a), the Department may provide recognition time-off to a DHS-CS employee for use within a designated timeframe not to exceed 26 work periods, as defined in § 158.705(c). Recognition time-off is time-off from duty without charge to leave or loss of compensation.

(b) Under this section and § 158.630, and for the reasons and bases stated in § 158.630(b) and as part of an offer of employment in the DHS-CS, the Department may offer up to 40 hours of recognition time-off to an individual selected for employment in the DHS-CS for use within a designated timeframe not to exceed 26 work periods, as defined in § 158.705(b). The Department may require a service agreement as part of providing, upon appointment, recognition time-off to an individual selected for employment in the DHS-CS.

(c) All recognition time-off provided, and the use of such time-off, must be recorded in a timekeeping system for purposes of salary administration and leave administration under this part.

(d) Recognition time-off provided under this section may not, under any circumstances, be converted to a cash payment to the receiving DHS-CS employee or any other type of time-off or leave.

(e) Recognition time-off under this section is based on time-off awards provided under the provisions of 5 U.S.C. 4502(e).

(f) Recognition time-off under this section is in lieu of the time-off awards provided under 5 U.S.C. 4502(e), and a DHS-CS employee is ineligible to receive any such awards.

(g) An individual selected for employment in the DHS-CS is ineligible to receive, as part of the offer of employment, any other offer of time-off or time-off award from the Department except as provided in this section and §§ 158.630 and 158.651. An individual appointed to an advisory appointment is also ineligible to receive, as part of an offer of employment in the DHS-CS, any offer of recognition under this section.

(h) A recognition time-off provided under this section to a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

§ 158.634 Honorary recognition.

(a) Under this section and § 158.630, the Department may establish one or more honorary recognition programs to provide honorary recognition to DHS-CS employees for the reasons and bases stated in § 158.630(a). The Department may incur necessary expenses for honorary recognition under an honorary recognition program established under this section.

(b) Honorary recognition under this section is based on honorary recognition provided under the provisions of 5 U.S.C. 4503, and a DHS-CS employee may be eligible to receive honorary recognition under 5 U.S.C. 4503 and 5 CFR part 451 in addition to any honorary recognition under this section.

(c) The Department may provide honorary recognition under this section to a former DHS-CS employee or to the legal heirs or estate of a former DHS-CS employee in accordance with 5 U.S.C. 4505.

(d) Honorary recognition under this section for a DHS-CS advisory appointee is subject to additional requirements in subpart J of this part.

§ 158.640 Professional development and training.

(a) In alignment with the compensation strategy described in § 158.601 and the career development program described in § 158.803, the Department may provide professional development and training opportunities, payments, and reimbursements for DHS-CS employees.

(b) CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for professional development and training opportunities, payments, and reimbursements provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing professional development and training opportunities, payments, and reimbursements;

(4) Any limitations on the total number or frequency of professional development and training opportunities, and any limitations on the total number, frequency, or amount of professional development and training payments and reimbursements a DHS-CS employee may receive, within any specific time period;

(5) Any service agreement requirements;

(6) Requirements for communicating to DHS-CS employees and their supervisors about professional development and training opportunities; and

(7) Processes for evaluating the effectiveness of the professional development and training in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(c) Any payment or reimbursement under this section is excluded from the aggregate compensation limit described in § 158.604.

(d) Any payment or reimbursement under this section is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.

(e) Professional development and training under this section is based on the following training and professional development opportunities, payments, and reimbursements provided under 5 U.S.C.:

(1) Sabbaticals under 5 U.S.C. 3396;

(2) Academic degree training under 5 U.S.C. 4107;

(3) Expenses of training under 5 U.S.C. 4109;

(4) Expenses of attendance at meetings under 5 U.S.C. 4110; and

(5) Payment of expenses to obtain professional credentials under 5 U.S.C. 5757.

(f) In addition to any professional development and training under this section, a DHS-CS employee may be eligible to receive the training and professional development opportunities, payments, and reimbursements provided under 5 U.S.C. listed in paragraph (e) of this section.

(g) Professional development and training under this section for a DHS-CS advisory appointee is subject to additional requirements and restrictions in subpart J of this part.

§ 158.641 Student loan repayments.

(a) In alignment with the compensation strategy described in § 158.601, the Department may provide a student loan repayment to a DHS-CS employee under this section and in accordance with 5 U.S.C. 5379 and 5 CFR part 537, except that:

(1) The maximum payment amounts under 5 U.S.C. 5379 and 5 CFR part 537 do not apply, and the Department may provide and a DHS-CS employee may receive a student loan repayment under this section so long as such repayment does not exceed $16,500 per employee per calendar year and a total of $90,000 per employee;

(2) The minimum service period length of three years under 5 U.S.C. 5379 and 5 CFR part 537 does not apply, and instead the length of a minimum service period for a DHS-CS employee receiving a student loan repayment under this section is determined under CTMS policy and based on the amount of the repayment received by the employee; and

(3) Eligibility criteria related to time-limited appointments under 5 U.S.C. 5379 and 5 CFR part 537 do not apply, and a DHS-CS employee in a renewable appointment may receive a student loan payment under this section.

(b) In alignment with eligibility criteria under 5 U.S.C. 5379 and 5 CFR part 537:

(1) If the Department determines a DHS-CS employee's performance is unacceptable, as defined in 5 U.S.C. 4301(3), or the employee receives an unacceptable rating of record under § 158.804, or the Department determines the employee has engaged in misconduct, the employee is ineligible to receive a student loan repayment under this section.

(2) A DHS-CS advisory appointee is ineligible to receive a student loan repayment under this section.

(c) CTMS policy implementing this section addresses:

(1) Eligibility criteria;

(2) Requirements for documenting the reason and basis for a student loan repayment provided to a DHS-CS employee;

(3) Appropriate levels of review and approval for providing a student loan repayment;

(4) Service agreement requirements, including minimum service periods;

(5) Any additional limitations on student loan repayments; and

(6) Processes for evaluating the effectiveness of student loan repayments in supporting the purpose of CTMS described in § 158.101, the purpose of the DHS-CS described in § 158.202, and the operationalization of the compensation strategy described in § 158.601.

(d) Any student loan repayment provided under this section is excluded from the aggregate compensation limit described in § 158.604.

(e) Any student loan repayment provided under this section is not salary under this part and is not basic pay for any purpose under 5 U.S.C. or 5 CFR.