47840 Federal Register / Vol. 86, No. 163 / Thursday, August 26, 2021 / Rules and Regulations 

DEPARTMENT OF HOMELAND 

SECURITY 

6 CFR Part 158 

[Docket No. DHS–2020–0042] 

RIN 1601–AA84 

Cybersecurity Talent Management 

System 

AGENCY: Department of Homeland 

Security. 

ACTION: Interim final rule; request for 

comments. 

SUMMARY: The U.S. Department of 

Homeland Security (DHS) is 

establishing a new talent management 

system to address DHS’s historical and 

ongoing challenges recruiting and 

retaining individuals with skills 

necessary to execute DHS’s dynamic 

cybersecurity mission. The 

Cybersecurity Talent Management 

System (CTMS) is a mission-driven, 

person-focused, and market-sensitive 

approach to talent management. CTMS 

represents a shift from traditional 

practices used to hire, compensate, and 

develop Federal civil service employees 

and is designed to adapt to changes in 

cybersecurity work, the cybersecurity 

talent market, and the Department’s 

cybersecurity mission. CTMS will 

modernize and enhance DHS’s capacity 

to recruit and retain mission-critical 

cybersecurity talent. With CTMS, DHS 

is creating a new type of Federal civil 

service position, called a qualified 

position, and the cadre of those 

positions and the individuals appointed 

to them is called the DHS Cybersecurity 

Service (DHS–CS). CTMS will govern 

talent management for the DHS–CS 

through specialized practices for hiring, 

compensation, and development. 

Individuals selected to join the DHS–CS 

will be provided with a contemporary 

public service career experience, which 

emphasizes continual learning and 

contributions to DHS cybersecurity 

mission execution. This rulemaking 

adds regulations to implement and 

govern CTMS and the DHS–CS. 

DATES: This rule is effective on 

November 15, 2021. Comments must be 

received on or before December 31, 

2021. 

ADDRESSES: You may submit comments, 

identified by docket number DHS– 

2020–0042, using the Federal 

rulemaking portal at http://

www.regulations.gov. For instructions 

on submitting comments, see the 

‘‘Public Participation and Request for 

Comments’’ portion of the 

SUPPLEMENTARY INFORMATION section of 

this document. 

FOR FURTHER INFORMATION CONTACT: 

Technical information: Mr. Travis 

Hoadley, Department of Homeland 

Security, Office of the Chief Human 

Capital Officer: telephone 202–357– 

8700, email CTMS@hq.dhs.gov. Legal 

information: Ms. Esa Sferra-Bonistalli, 

Department of Homeland Security, 

Office of the General Counsel: telephone 

202–357–8700, email CTMS@

hq.dhs.gov. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Executive Summary 

A. CTMS Elements 

B. Administering CTMS & Managing the 

DHS–CS 

C. New 6 CFR Part 158 

D. Costs and Benefits 

II. Basis and Purpose 

III. Background 

A. Authority for a New Cybersecurity 

Talent Management System 

1. Designate & Establish Qualified 

Positions 

2. Appointment 

3. Compensation 

(a) Comparable Positions 

(b) Basic Pay 

(i) Rates of Pay and Pay Ranges 

(ii) Limitations on Maximum Rates and Pay 

Caps 

(c) Additional Compensation 

(i) Consistent With 

(ii) The Level Authorized 

B. Need for a New Approach to 

Cybersecurity Talent Management 

1. Ever-Evolving Nature of Cybersecurity 

Work Requires a Focus on the Individual 

2. Outdated, Rigid Position Classification 

Inadequately Describes Cybersecurity 

Work 

3. Generic, Inflexible Compensation Limits 

Ability To Compete for Cybersecurity 

Talent 

IV. Discussion of the Rule 

A. New Approach to Talent Management: 

Subparts A & B 

1. Subpart A—General Provisions 

(a) A New Type of Position: Qualified 

Positions 

(b) A New Definition of ‘‘Qualifications’’ 

(c) Other Definitions 

(d) Authority & Policy Framework 

2. Subpart B—DHS Cybersecurity Service 

(a) Mission 

(b) Qualified Positions 

(c) DHS–CS Employees 

(d) DHS–CS Assignments 

B. CTMS and DHS–CS Leadership: Subpart 

C 

1. Leaders 

2. Principles, Priorities, and Core Values 

C. Strategic Talent Planning: Subpart D 

1. DHS–CS Cybersecurity Work & CTMS 

Qualifications Identification 

2. CTMS Talent Market Analysis 

3. CTMS Work Valuation & Work and 

Career Structures 

4. Informing CTMS Administration and 

DHS–CS Management 

D. Acquiring Talent: Subpart E 

1. CTMS Talent Acquisition System 

2. Strategic Recruitment 

3. Qualifications-Based Assessment, 

Selection & Appointment 

(a) CTMS Assessment Program 

(b) DHS–CS Appointments 

E. Compensating Talent: Subpart F 

1. CTMS Compensation System 

2. DHS–CS Employee Compensation 

3. CTMS Salary System 

(a) CTMS Salary Range 

(b) CTMS Salary Structure 

(c) CTMS Local Cybersecurity Talent 

Market Supplement 

(d) CTMS Salary Administration 

4. CTMS Recognition 

(a) CTMS Recognition Payments 

(b) CTMS Recognition Time-Off 

(c) CTMS Honorary Recognition 

5. Other Special Payments Under CTMS 

(a) CTMS Professional Development and 

Training 

(b) CTMS Student Loan Repayments 

(c) CTMS Special Work Conditions 

Payments 

(d) CTMS Allowances in Nonforeign Areas 

6. Other Compensation Provided in 

Accordance With OPM Regulations 

7. CTMS Aggregate Compensation Limit 

F. Deploying Talent: Subpart G 

1. CTMS Deployment Program 

2. Designating Qualified Positions 

3. Designating and Staffing Assignments 

4. Official Worksite 

5. Work Scheduling 

6. DHS–CS Recordkeeping 

7. Details and Opportunities Outside of the 

DHS–CS 

G. Developing Talent: Subpart H 

1. CTMS Performance Management 

Program 

2. CTMS Career Development Program 

H. Federal Employee Rights and 

Requirements & Advisory Appointments: 

Subparts I & J 

1. Subpart I—Employee Rights, 

Requirements, and Input 

2. Subpart J—Advisory Appointments 

V. Appendix: Reference Materials 

VI. Public Participation and Request for 

Comments 

VII. Statutory and Regulatory Requirements 

A. Executive Orders 12866 (Regulatory 

Planning and Review) and 13563 

(Improving Regulation and Regulatory 

Review) 

1. Background and Purpose 

2. CTMS Costs: Designing, Establishing, 

and Administering CTMS 

3. CTMS & DHS–CS Costs: Compensating 

and Retaining DHS–CS Employees 

4. CTMS & DHS–CS Benefits: Enhancing 

the Cybersecurity of the Nation 

B. Regulatory Flexibility Act 

C. Congressional Review Act 

D. Unfunded Mandates Reform Act 

E. E.O. 13132 (Federalism) 

F. E.O. 12988 (Civil Justice Reform) 

G. E.O. 13175 (Consultation and 

Coordination With Indian Tribal 

Governments) 

H. National Environmental Policy Act 

I. National Technology Transfer and 

Advance Act 

J. E.O. 12630 (Governmental Actions and 

Interference With Constitutionally 

Protected Property Rights) 


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K. E.O. 13045 (Protection of Children From 

Environmental Health Risks and Safety 

Risks) 

L. E.O. 13211 (Actions Concerning 

Regulations That Significantly Affect 

Energy Supply, Distribution, or Use) 

M. Paperwork Reduction Act 

Table of Abbreviations 

APA—Administrative Procedure Act 

CFR—Code of Federal Regulations 

CISA—Cybersecurity and Infrastructure 

Security Agency 

CRA—Congressional Review Act 

CTMB—Cybersecurity Talent Management 

Board 

CTMS—Cybersecurity Talent Management 

System 

DHS—Department of Homeland Security 

DHS–CS—DHS Cybersecurity Service 

DHS OCIO—DHS Office of the Chief 

Information Officer 

DOD—Department of Defense 

DOD CES—Department of Defense’s 

Cybersecurity Excepted Service 

DOD DCIPS—Department of Defense’s 

Civilian Intelligence Personnel System 

DOD HQE—DOD Highly Qualified Experts 

E.O.—Executive Order 

EX—Executive Schedule 

FLSA—Fair Labor Standards Act 

GAO—Government Accountability Office 

GS—General Schedule 

HSAC—Homeland Security Advisory 

Council 

IC—Intelligence Community 

IC HQE—Intelligence Community Highly 

Qualified Experts 

LCTMS—Local Cybersecurity Talent Market 

Supplement 

OMB—Office of Management and Budget 

OPM—Office of Personnel Management 

SES—Senior Executive Service 

SL/ST—Senior Level/Scientific or 

Professional 

STRL—Scientific and Technology 

Reinvention Laboratories 

§ —Section 

U.S.C.—United States Code 

I. Executive Summary 

For more than a decade, the U.S. 

Department of Homeland Security 

(DHS) has encountered challenges 

recruiting and retaining mission-critical 

cybersecurity talent. To address those 

challenges, DHS has re-envisioned 

Federal civilian talent management for 

21st-century cybersecurity work by 

designing an innovative approach to 

talent management: The Cybersecurity 

Talent Management System (CTMS). 

DHS is establishing CTMS under the 

authority in section 658 of Title 6 of the 

United States Code (U.S.C.), which 

authorizes DHS to create a new 

approach to talent management exempt 

from major portions of existing laws 

governing talent management for much 

of the Federal civil service. 

CTMS is mission-driven, personfocused, and market-sensitive, and it 

features several interrelated elements, 

based on leading public and private 

sector talent management practices. 

Importantly, CTMS is also based on core 

Federal talent management principles 

related to upholding merit, prohibiting 

certain personnel practices, advancing 

equity, and providing equal 

employment opportunity. CTMS is 

designed to modernize and enhance 

DHS’s capacity to recruit and retain 

individuals with the skills, called 

qualifications, necessary to execute the 

DHS cybersecurity mission. CTMS is 

also designed to adapt to changes in 

cybersecurity work, the cybersecurity 

talent market, and the DHS 

cybersecurity mission, even as 

technology, sought-after expertise, and 

work arrangements change. 

With CTMS, DHS is creating a new 

type of Federal civil service position in 

the excepted service, called a qualified 

position. Qualified positions focus on 

individuals and individuals’ 

qualifications. The cadre of qualified 

positions and the individuals appointed 

to them is called the DHS Cybersecurity 

Service (DHS–CS). The goal of the DHS– 

CS is to enhance the cybersecurity of the 

Nation through the most effective 

execution of the DHS cybersecurity 

mission. DHS will use CTMS to hire, 

compensate, and develop DHS–CS 

employees to reinforce the values of 

expertise, innovation, and adaptability. 

CTMS will also provide DHS–CS 

employees with a contemporary public 

service career experience, which 

emphasizes continual learning and 

contributions to DHS cybersecurity 

mission execution. 

A. CTMS Elements 

To recruit and retain DHS–CS 

employees, CTMS features interrelated 

elements that are new processes, 

systems, and programs that implement 

new talent management concepts and 

definitions. Each CTMS element 

represents a shift from the traditional 

methods and practices Federal agencies 

typically use to hire, compensate, and 

develop civil service talent. 

Collectively, the CTMS elements form a 

complete approach to talent 

management and enable new, 

specialized talent management 

practices. CTMS is driven by the DHS 

cybersecurity mission and informed by 

internal data about the state of DHS 

cybersecurity work and talent; it is also 

informed by external data about trends 

in the field of cybersecurity and the 

talent market. 

The CTMS elements and their 

purposes are: 

• Strategic talent planning process 

enables CTMS to adapt to changes in 

cybersecurity work, the cybersecurity 

talent market, and the DHS 

cybersecurity mission by aggregating 

and using relevant information to 

inform CTMS administration on an 

ongoing basis. As part of the strategic 

talent planning process, DHS: 

Æ Identifies the set of qualifications 

necessary to perform the work required 

to execute the DHS cybersecurity 

mission. 

Æ conducts analysis of the 

cybersecurity talent market to identify 

and monitor employment trends and 

leading strategies for recruiting and 

retaining cybersecurity talent. 

Æ establishes and administers a work 

valuation system based on qualifications 

and DHS cybersecurity work, which 

DHS uses instead of the General 

Schedule (GS) or other traditional 

Federal position classification methods 

to facilitate systematic talent 

management and addresses internal 

equity. 

• Talent acquisition system supports 

qualifications-based recruitment, 

assessment, selection, and appointment 

of DHS–CS employees. 

• Compensation system provides 

sufficiently competitive, marketsensitive compensation, while 

encouraging and recognizing DHS–CS 

employee contributions, such as 

exceptional qualifications and mission 

impact. 

• Deployment program guides when 

DHS uses CTMS to recruit and retain 

talent and operationalizes aspects of the 

work valuation, talent acquisition, and 

compensation systems through 

requirements for designating qualified 

positions, designating and staffing 

assignments, work scheduling, and 

recordkeeping. 

• Performance management program 

seeks to improve the effectiveness of 

DHS–CS employees in executing the 

cybersecurity mission by ensuring 

individual accountability and 

recognizing their mission impact. 

• Career development program 

ensures the development of the 

collective expertise of DHS–CS 

employees through continual learning, 

while guiding the career progression of 

each DHS–CS employee. 

The CTMS elements rely on new 

talent management concepts and 

definitions: 

• Work and career structures, are 

constructs, analogous to General 

Schedule classes and grades, that DHS 

establishes under the CTMS work 

valuation system and uses instead of 

classes and grades from the General 

Schedule or other traditional Federal 

position classification methods. DHS 

uses work and career structures to 

support several elements of CTMS, 


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47842 Federal Register / Vol. 86, No. 163 / Thursday, August 26, 2021 / Rules and Regulations 

including the compensation system, and 

DHS determines applicable work and 

career structures for a DHS–CS 

employee as part of selection and 

appointment under the CTMS talent 

acquisition system. 

• Mission impact is the influence an 

individual has on the execution of the 

DHS cybersecurity mission by applying 

qualifications to perform DHS 

cybersecurity work. DHS determines a 

DHS–CS employee’s mission impact 

through mission impact reviews under 

the CTMS performance management 

program. Mission impact is a factor in 

DHS–CS employee compensation and 

development. 

• Mission-related requirements are 

characteristics of an individual’s 

expertise or characteristics of 

cybersecurity work, or both, that are 

associated with successful execution of 

the DHS cybersecurity mission. They 

are determined by officials with 

appropriate decision-making authority 

and are a factor in DHS–CS employee 

compensation, assignment matches, and 

development. 

• Strategic talent priorities are 

priorities for CTMS and the DHS–CS set 

by the Secretary or the Secretary’s 

designee. Strategic talent priorities are 

used in administering CTMS and 

managing the DHS–CS. 

B. Administering CTMS & Managing the 

DHS–CS 

The Secretary, or the Secretary’s 

designee, leads CTMS and the DHS–CS 

with assistance from the Cybersecurity 

Talent Management Board (CTMB). The 

CTMB comprises DHS officials 

representing organizations involved in 

executing the DHS cybersecurity 

mission and DHS officials responsible 

for developing and administering talent 

management policy. Working together, 

these officials ensure the most efficient 

operation of CTMS and the most 

effective management of the DHS–CS. 

The Secretary, or the Secretary’s 

designee, and the CTMB administer 

CTMS and manage the DHS–CS. 

The dynamic DHS cybersecurity 

mission drives CTMS. On an ongoing 

basis, DHS identifies the functions that 

execute the DHS cybersecurity mission, 

the cybersecurity work required by 

those functions, and the set of 

qualifications necessary to perform that 

work. The work identified is called 

DHS–CS work, and the set of 

qualifications identified are called 

CTMS qualifications. Under CTMS, 

qualifications are individuals’ 

cybersecurity skills, which encompass 

the full array of work-related 

characteristics and qualities that 

distinguish talent. 

Qualifications are the core of CTMS 

and its elements, and on an ongoing 

basis, DHS updates the set of CTMS 

qualifications to ensure they continue to 

reflect the collective cybersecurity 

expertise DHS requires. DHS establishes 

work and career structures based on 

CTMS qualifications, and DHS creates 

qualified positions based on DHS–CS 

employees’ CTMS qualifications. DHS– 

CS employees execute the DHS 

cybersecurity mission by applying their 

CTMS qualifications to perform DHS– 

CS cybersecurity work. In administering 

CTMS to recruit and retain DHS–CS 

employees, DHS emphasizes 

individuals’ CTMS qualifications and 

their mission impact. 

DHS uses CTMS, instead of another 

Federal personnel system, when a DHS 

organization requires talent with CTMS 

qualifications and DHS determines that 

the recruitment and retention of such 

talent would be enhanced by the 

specialized practices of CTMS. 

All individuals interested in serving 

in the DHS–CS must apply, and DHS 

proactively recruits individuals at all 

career stages, from those just beginning 

a career in cybersecurity to those with 

years of proven experience working as 

a cybersecurity technical expert or 

organizational leader. Recruitment 

includes proactively communicating 

with prospective applicants about 

DHS’s unique cybersecurity mission and 

available public service career 

opportunities in the DHS–CS. 

DHS assesses applicants using 

standardized instruments and 

procedures intended to determine the 

applicants’ CTMS qualifications. DHS 

selects an individual based on the 

individual’s CTMS qualifications. 

DHS may appoint a selected 

individual to a renewable appointment 

or continuing appointment. A 

renewable appointment is time-limited, 

may be renewed multiple times, and 

may be used for project-based work or 

other similar purposes. A continuing 

appointment is not time-limited. The 

DHS–CS can also include political 

appointees, called advisory appointees. 

Regardless of appointment type, new 

DHS–CS employees are matched with 

initial assignments based on mission 

needs and their CTMS qualifications 

upon appointment. 

Compensation for DHS–CS employees 

includes salaries and additional 

compensation. DHS provides such 

compensation in alignment with a 

CTMS compensation strategy aimed at 

ensuring sufficiently competitive 

compensation to recruit and retain the 

cybersecurity expertise DHS requires. 

Under CTMS, compensation is based 

primarily on CTMS qualifications, and 

DHS has necessary flexibility to adjust 

aspects of compensation based on 

market and mission demands. 

DHS provides salaries for DHS–CS 

employees under a market-sensitive 

salary structure bounded by an overall 

salary range. This salary range is 

comprised of a standard range and an 

extended range for use in limited 

circumstances. A DHS–CS employee’s 

salary may include a local cybersecurity 

talent market supplement, analogous to 

a locality-based comparability payment, 

to ensure a competitive salary in certain 

geographic areas. 

DHS provides additional 

compensation for DHS–CS employees 

mainly in the form of recognition, 

which includes salary increases called 

recognition adjustments, cash bonuses 

called recognition payments, paid timeoff called recognition time-off, and 

honorary awards called honorary 

recognition. Such recognition is based 

primarily on DHS–CS employees’ 

mission impact. 

CTMS additional compensation also 

includes payments for special working 

conditions, which DHS can use to 

compensate a DHS–CS employee for 

special working conditions that are 

determined to be insufficiently 

accounted for in the employee’s salary. 

For example, such conditions or 

circumstances include performing 

certain work involving unusual physical 

or mental hardship, at unexpected 

times, or for an uncommon duration of 

time. Other types of additional 

compensation available to DHS–CS 

employees are similar to or the same as 

existing offerings for many Federal 

employees: Professional development 

and training, student loan repayments, 

allowances in nonforeign areas, as well 

as traditional Federal employee benefits 

like holidays, leave, retirement, health 

benefits, and insurance programs. 

Throughout DHS–CS employees’ 

service, DHS considers increasing 

employees’ compensation based 

primarily on their mission impact. 

Compensation increases occur mainly 

through CTMS recognition as either 

recognition adjustments or recognition 

payments. CTMS does not feature 

automatic salary increases or payments; 

moreover, longevity in position or prior 

Federal government service are not 

factors in CTMS compensation. 

Each DHS–CS employee’s salary is 

subject to salary limitations, and each 

DHS–CS employee’s aggregate 

compensation, composed of the 

employee’s salary and certain types of 

additional compensation, is subject to 

an aggregate compensation limit. These 

salary limitations and the aggregate 

compensation limit implement statutory 


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1 6 U.S.C. 658(b)(1)(B). 

2 6 U.S.C. 658(b)(6). 

3 5 U.S.C. 553(b)–(d). 

4 5 U.S.C. 553(a)(2). 

5Attorney General’s Manual on the 

Administrative Procedure Act, 26. The other broad 

exemption in the APA, as amended, is for ‘‘any 

military or foreign affairs function of the United 

States’’ under 5 U.S.C. 553(a)(1). 

6 Id. at 27. 

7See, e.g., Brodowy v. U.S., 482 F.3d 1370, 1375– 

76 (Fed. Cir. 2007) (finding an agency’s new 

personnel management system to be a matter 

relating to agency management or personnel and 

exempt from the APA’s procedural requirements); 

Hamlet v. U.S., 63 F.3d 1097, 1105 (Fed. Cir. 1995) 

(holding that an agency personnel manual 

governing all phases of personnel management 

relates to matters of agency personnel, and its 

promulgation was exempt from the APA’s 

procedural requirements); Stewart v. Smith, 673 

F.2d 485, 496–500 (D.C. Cir. 1982) (holding that an 

agency’s hiring policy falls within the APA 

exception for agency management or personnel). 

requirements from the authority for 

CTMS in 6 U.S.C. 658. 

Career progression in the DHS–CS is 

based on enhancement of CTMS 

qualifications and salary progression 

resulting from recognition adjustments. 

DHS guides a DHS–CS employee’s 

career and ensures development of the 

collective expertise of DHS–CS 

employees through continual learning, 

which may include a range of 

recommended and required learning 

activities. Continual learning and 

enhancement of CTMS qualifications 

are integral to a DHS–CS employee’s 

service in the DHS–CS. New assignment 

opportunities may be an important part 

of DHS–CS employees’ continual 

learning and enhancement of CTMS 

qualifications. Through such 

assignments, DHS–CS employees are 

able to learn and perform different types 

of DHS–CS cybersecurity work and 

customize contemporary career 

experiences that maximize both their 

qualifications and their impact on the 

DHS cybersecurity mission. 

C. New 6 CFR Part 158 

This rulemaking adds new part 158 to 

Title 6 of the Code of Federal 

Regulations (CFR) to implement and 

govern CTMS and the DHS–CS. New 

part 158 contains several subparts 

setting forth the interrelated elements of 

CTMS that function together as a 

complete, and innovative, approach to 

talent management. 

D. Costs and Benefits 

From FY 2016 through FY 2020, DHS 

received approximately $49 million of 

appropriated funding to design and 

establish CTMS and the resulting DHS– 

CS. The major costs of CTMS and the 

DHS–CS are: (1) The cost of talent 

management infrastructure necessary for 

the Office of the Chief Human Capital 

Officer (OCHCO) to design, establish, 

and prepare to administer CTMS; and 

(2) the cost of compensating DHS–CS 

employees hired by DHS organizations 

using CTMS. 

In FY 2021, OCHCO received 

approximately $13 million of 

appropriated funding to both finalize 

the design of CTMS and to establish 

CTMS. For FY 2022, DHS requested that 

funding be increased to approximately 

$16 million both to launch and 

administer CTMS and to support the 

management of an expanding 

population of DHS–CS employees. 

The primary benefit of this rule is to 

ensure the most effective execution of 

the DHS cybersecurity mission by 

establishing CTMS to enhance DHS’s 

capacity to recruit and retain 

cybersecurity talent in the new DHS– 

CS. 

This rulemaking does not directly 

regulate the public. 

II. Basis and Purpose 

On December 18, 2014, Congress 

added a new section to the Homeland 

Security Act of 2002 entitled 

‘‘Cybersecurity Recruitment and 

Retention.’’ This new section is codified 

at 6 U.S.C. 658 and grants the Secretary 

broad authority and discretion to create 

a new personnel or talent management 

system for DHS’s cybersecurity 

workforce. The exercise of this authority 

and discretion is exempt from major 

portions of existing laws governing 

talent management for much of the 

Federal civil service.1 This exemption 

allows DHS to re-envision talent 

management for 21st-century 

cybersecurity work. 

This rule implements 6 U.S.C. 658 

and establishes a new talent 

management system designed based on 

DHS’s dynamic cybersecurity mission. 

Use of the new system addresses DHS’s 

historical and ongoing challenges 

recruiting and retaining mission-critical 

cybersecurity talent. 

To implement the authority in 6 

U.S.C. 658, Congress requires the 

Secretary ‘‘shall prescribe regulations’’ 

and to do so in coordination with the 

Director of the Office of Personnel 

Management (OPM).2 This rulemaking 

fulfills the requirement to prescribe 

regulations. To fulfill the requirement to 

coordinate with the Director of OPM, 

DHS engaged with OPM experts for 

assistance in understanding the talent 

management concepts invoked by the 

language of 6 U.S.C. 658 and to obtain 

feedback on DHS’s design for the new 

talent management system. 

DHS is promulgating this rule as an 

interim final rule because it is a matter 

relating to agency management or 

personnel that is exempt from the 

rulemaking requirements of the 

Administrative Procedure Act (APA). 

Rulemaking requirements of the APA 

include issuing a notice of proposed 

rulemaking, providing an opportunity 

for public comment, and an effective 

date not less than 30 days after 

publication of the rule.3 These 

requirements, however, do not apply to 

‘‘a matter relating to agency 

management or personnel or to public 

property, loans, grants, benefits, or 

contracts.’’ 4 The Attorney General’s 

Manual on the Administrative 

Procedure Act describes this exemption 

as one of two ‘‘broad exceptions’’ to 

APA rulemaking requirements,5 and 

further characterizes the agency 

management or exemption as ‘‘selfexplanatory.’’ 6 Similar to the Attorney 

General’s Manual characterization, 

Federal courts have interpreted the 

agency management exemption as 

applying to traditional personnel 

matters, such as a new personnel 

system, personnel manuals, and 

personnel policies.7

Although this rulemaking is exempt 

from the rulemaking requirements of the 

APA, DHS is seeking public comments 

on the innovative talent management 

system. Interested persons are invited to 

participate in this rulemaking by 

submitting written comments as 

described in VI. Public Participation 

and Request for Comments of this 

document. 

III. Background 

Cybersecurity is a matter of homeland 

security and one of the core missions of 

DHS. For more than a decade, DHS has 

encountered challenges recruiting and 

retaining mission-critical cybersecurity 

talent. As cybersecurity threats facing 

the Nation have grown in volume and 

sophistication, DHS has experienced 

spikes in attrition and longstanding 

vacancies in some cybersecurity 

positions, as well as shortages of certain 

critical and emerging cybersecurity 

skills. 

In response to DHS’s historical and 

ongoing challenges recruiting and 

retaining cybersecurity talent, Congress 

granted the Secretary the authority in 6 

U.S.C. 658 to ensure DHS improves its 

ability to recruit and retain missioncritical cybersecurity talent. Legislative 

history indicates that Congress granted 

the authority in 6 U.S.C. 658 in response 

to a report by the Secretary’s Homeland 

Security Advisory Council (HSAC) 

recommending DHS receive additional 

talent management flexibilities similar 


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8S. Rep. 113–207, Report of the Committee on 

Homeland Security and Governmental Affairs, U.S. 

Senate, to accompany S. 2354, ‘‘To Improve 

Cybersecurity Recruitment and Retention,’’ (July 14, 

2014), 2–3 (‘‘The [Homeland Security Advisory] 

Council also made a recommendation to Congress: 

‘Congress should grant the Department [of 

Homeland Security] human capital flexibilities in 

making salary, hiring, promotion and separation 

decisions identical to those used by the National 

Security Agency for hiring and managing its 

cybersecurity workforce and other technical 

experts.’ This bill seeks to do just that: It gives the 

Secretary of Homeland Security similar recruitment 

and retention authorities for cybersecurity 

professional as currently possessed by the Secretary 

of Defense’’). Note that S. 2354 is a previous bill, 

the language of which is now codified at 6 U.S.C. 

658. 

9Homeland Security Advisory Council, U.S. 

Department of Homeland Security, CyberSkills Task 

Force Report (Fall 2012). 

10National Defense Authorization Act for Fiscal 

Year 1997 Public Law 104–201, Sec. 1632 (Sept. 23, 

1996), codified at 10 U.S.C. 1601–1614. 

11National Defense Authorization Act for Fiscal 

Year 2016. Public Law 114–92, Sec. 1107 (Nov. 25, 

2015), codified at 10 U.S.C. 1599f. 

12See 6 U.S.C. 658(b)(4) and 658(c). 

13U.S. Department of Homeland Security, Plan 

for Execution of Authorities: Fiscal Year 2015 

Report to Congress, (May 3, 2016); U.S. Department 

of Homeland Security, Annual Report: Usage of 

Cybersecurity Human Capital Authorities Granted 

by 6 United States Code § 147, (May 3, 2016); U.S. 

Department of Homeland Security, Annual Report: 

Usage of Cybersecurity Human Capital Authorities 

Granted by 6 United States Code § 147, (Apr.4, 

2017); U.S. Department of Homeland Security, 

Comprehensive Cybersecurity Workforce Update: 

FY2018–2019 (July 2020). 

14See e.g. Cisneros v. Alphine Ridge Group, 508 

U.S. 10 (1993) (construing the use of a 

‘‘notwithstanding’’ clause, which is similar to the 

‘‘without regard to’’ clause in 5 U.S.C. 658(b)(1)(B), 

as superseding all other laws). 

15See S. Rep. 113–207, Report of the Committee 

on Homeland Security and Governmental Affairs, 

U.S. Senate, to accompany S. 2354, ‘‘To Improve 

Cybersecurity Recruitment and Retention,’’ (July 14, 

2014), 1 (stating that the language is now codified 

at 6 U.S.C. 658, ‘‘would enable DHS to better 

compete for cybersecurity talent by giving the 

Secretary of Homeland Security greater discretion 

than currently possessed when hiring and setting 

the pay and benefits of DHS cybersecurity 

employees.’’). Also see remarks in the 

Congressional Record indicating that 6 U.S.C. 658 

grants the Secretary talent management flexibilities 

to better recruit and retain top cybersecurity talent 

with a faster and more flexible hiring process and 

more competitive compensation. 160 Cong. Rec. 

H8945, 8950 (Ms. Norton: ‘‘An amendment 

introduced by Senator Carper also would add 

provisions allowing the Department of Homeland 

Security to recruit and retain cyber professionals by 

granting authority to hire qualified experts on an 

expedited basis and to pay them competitive 

salaries, wages, and incentives’’); 160 Cong. Rec. 

H8945, 8951 (Ms. Clarke: ‘‘The cyber workforce 

language included in S. 1691 generally does two 

important things. First, it grants special hiring 

authority to DHS to bring on board topnotch cyber 

recruits. The Department desperately needs a more 

flexible hiring process with incentives to secure 

talent in today’s highly competitive cyber skills 

market. Second, it requires the Secretary of the 

Department to assess its cyber workforce’’). 16 ‘‘Designate’’ means ‘‘to indicate and set apart 

for a specific purpose, office, or duty,’’ ‘‘to point out 

the location of,’’ ‘‘to distinguish as to class,’’ or 

‘‘specify, stipulate.’’ Merriam-Webster, https://

www.merriam-webster.com/dictionary/designate 

(last visited May 25, 2021). 

to those used by the National Security 

Agency.8 The HSAC report linked 

DHS’s recruitment and retention 

challenges to a global shortage of 

cybersecurity expertise and fierce 

competition among Federal agencies 

and the private sector for cybersecurity 

skills.9

The language codified at 6 U.S.C. 658 

mirrors the language in 10 U.S.C. 1601– 

1603, enacted in 1996 for the 

Department of Defense (DOD), that 

authorizes DOD’s Defense Civilian 

Intelligence Personnel System (DOD 

DCIPS).10 In addition, the language 

codified at 6 U.S.C. 658 is similar to a 

separate DOD authority, enacted a year 

after § 658, and under which DOD has 

established the DOD Cybersecurity 

Excepted Service (DOD CES) personnel 

system for its United States Cyber 

Command workforce.11

Once granted the authority to create a 

new cybersecurity talent management 

system free from existing requirements 

and practices governing Federal talent 

management, DHS formed a specialized 

team in early 2016 to design a new 

cybersecurity talent management system 

capable of addressing DHS’s recruitment 

and retention challenges. Based on the 

authority in 6 U.S.C. 658 and DHS’s 

understanding of both the cybersecurity 

talent landscape and existing Federal 

talent management practices, DHS 

concluded it could—and it must—reenvision talent management for 21stcentury cybersecurity work. As outlined 

in required reports to Congress 12 about 

DHS’s plan for and progress toward 

execution of the authority granted in 6 

U.S.C. 658, DHS is using this authority 

to create an innovative, 21st-century 

talent management system with 

solutions for its cybersecurity workforce 

recruitment and retention challenges.13

This rule establishes the new talent 

management system, which is based on 

leading public and private sector talent 

management practices and driven by the 

DHS cybersecurity mission. 

A. Authority for a New Cybersecurity 

Talent Management System 

The authority in 6 U.S.C. 658 allows 

DHS to create a new talent management 

system exempt from many existing laws 

governing Federal civilian talent 

management. Specifically, the Secretary 

may designate and establish ‘‘qualified 

positions’’ in the excepted service, 

appoint individuals to those positions, 

and compensate appointed individuals. 

See 6 U.S.C. 658(b)(1)(A). The Secretary 

may do this ‘‘without regard to the 

provisions of any other law relating to 

the appointment, number, classification, 

or compensation of employees.’’ See 6 

U.S.C. 658(b)(1)(B). The ‘‘without regard 

to’’ language supersedes all other laws 

governing appointment, number, 

classification, or compensation of 

employees.14

The language of 6 U.S.C. 658 uses 

terms that invoke fundamental talent 

management concepts. Importantly, the 

exemption from classification means 

that DHS can choose how to describe 

cybersecurity work, including by 

establishing new constructs to 

categorize work and new ways of 

defining positions performing such 

work, and relatedly, DHS can choose 

how to value cybersecurity work and 

positions, including through new 

compensation structures and practices. 

DHS has interpreted the authority in 6 

U.S.C. 658, as necessary, to fulfill the 

congressional intent in the legislative 

history: That DHS address its 

cybersecurity workforce recruitment 

and retention challenges and improve 

its capacity to compete for top 

cybersecurity talent by exercising 

greater discretion in hiring and 

compensating cybersecurity talent.15

Although DHS has authority to create 

a new talent management system free 

from existing requirements in other laws 

governing appointment, number, 

classification, and compensation of 

Federal employees, Congress provided a 

few requirements and parameters for 

exercising that authority. The following 

discussion in III.A.1 through III.A.3 of 

this document explains the scope of the 

Secretary’s authority to create a new 

talent management system. 

1. Designate & Establish Qualified 

Positions 

Under 6 U.S.C. 658, DHS has 

authority to both designate and establish 

qualified positions. Section 658(a)(5) 

defines ‘‘qualified position’’ as ‘‘a 

position, designated by the Secretary for 

the purpose of this section, in which the 

incumbent performs, manages, or 

supervises functions that execute the 

responsibilities of the Department 

relating to cybersecurity.’’ Section 

658(b)(1)(A)(i) gives authority to 

‘‘establish’’ qualified positions and 

describes qualified positions as 

positions in the excepted service that 

the Secretary determines necessary to 

carry out the responsibilities of the 

Department relating to cybersecurity. 

The authority to designate qualified 

positions includes determining the 

purpose and use of such qualified 

positions, as the Secretary determines 

necessary, for executing DHS’s 

cybersecurity responsibilities.16 The 

authority to establish qualified positions 


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17Legislative history indicates that the authority 

to ‘‘establish’’ positions means to ‘‘create new 

positions.’’ In a report accompanying S. 2354, the 

language of which is now codified at 6 U.S.C. 658, 

Congress states that ‘‘the Secretary of Defense may 

create new positions for cyber personnel’’ and 

references DOD DCIPS authority at 10 U.S.C. 1601– 

1603. S. Rep. 113–207, Report of the Committee on 

Homeland Security and Governmental Affairs, U.S. 

Senate, to accompany S. 2354, ‘‘To Improve 

Cybersecurity Recruitment and Retention,’’ (July 14, 

2014), 2. In 10 U.S.C. 1601, Congress grants the 

Secretary of Defense authority to ‘‘establish, as 

positions in the excepted service, such defense 

intelligence positions in the Department of Defense 

as the Secretary determines necessary to carry out 

the intelligence functions of the Department.’’ 

18 6 U.S.C. 658(b)(1)(B). The authority to 

designate and establish qualified positions also 

applies without regard to any other provisions of 

law relating to appointment or compensation of 

employees. 

19See e.g., 5 U.S.C. 3131(c) (‘‘The Office of 

Personnel Management, in consultation with the 

Office of Management and Budget, shall review the 

request of each agency and shall authorize . . . a 

specific number of Senior Executive Service 

positions for each agency’’); see also the Federal 

Employees Pay Act of 1945, Sec. 607 (controlling 

the number of employees and establishing 

personnel ceilings within executive branch 

agencies), repealed Public Law 81–784 (Sept. 1950). 

20 6 U.S.C. 658(b)(1)(B). 

21See Robert L. Heneman, Ph.D., Work 

Evaluation: Strategic Issues and Alternative 

Methods, prepared for the U.S. Office of Personnel 

Management, FR–00–20 (July 2000, Revised Feb. 

2002), 2–3 and 11. 

22 5 U.S.C. 5102(3). 

23A ‘‘class’’ includes all positions ‘‘sufficiently 

similar’’ regarding ‘‘kind or subject-matter of work; 

level of difficulty and responsibility; and the 

qualifications requirements of the work; to warrant 

similar treatment in personnel and pay 

administration.’’ 5 U.S.C. 5102(a)(4). 

24A ‘‘grade’’ includes all classes of position that, 

‘‘although different with respect to the kind of 

subject-matter of work, are sufficiently equivalent 

as to—level of difficulty and responsibility, and 

level of qualification requirements of the work; to 

warrant their inclusion within one range of rates of 

basic pay in the General Schedule.’’ 5 U.S.C. 

5102(a)(5). 

25 5 U.S.C. 5101(2) (requiring grouping of 

positions into classes and grades based on duties, 

responsibilities, and qualification requirements). 

26U.S. Government Accountability Office, 

Human Capital: OPM Needs to Improve the Design, 

Management, and Oversight of the Federal 

Classification System, GAO–14–677 (July 2014), 4– 

6. 

27 6 U.S.C. 658(b)(1)(B). 

28 6 U.S.C. 658(a)(5) and (b)(1)(A)(i). 

29Title 5 of the U.S. Code alone contains multiple 

definitions of the term position for purposes of 

specific Chapters, sections, or subsections. The 

multiple definitions in Title 5 describe ‘‘position’’ 

as duties and responsibilities of a position, types of 

position, and specific positions occupiable by 

individuals. See e.g., 5 U.S.C. 5102(a)(3) (defining 

‘‘position’’ for purposes of the General Schedule to 

mean ‘‘the work, consisting of duties and 

responsibilities, assignable to an employee’’); 5 

U.S.C. 5304(h)(1) (defining ‘‘position’’ for purposes 

of a particular provision regarding locality-based 

comparability payments as types of positions, 

including administrative law judges, contract 

appeals board members, and SES positions); 5 

U.S.C. 5531(2) (defining positions for purposes of 

applying dual pay provisions as a specific position 

occupiable by an individual, such as a civilian 

office or civilian positions, including a temporary, 

part-time, or intermittent position, that is 

appointive or elective in the legislative, executive, 

or judicial branch). 

is authority to create qualified positions 

in the excepted service to carry out 

DHS’s cybersecurity responsibilities.17

The authority to designate and 

establish qualified positions applies 

without regard to any other provisions 

of law relating to the number or 

classification of employees.18 In the U.S. 

Code, provisions of law relating to the 

number of employees may limit the 

number of positions, or types of 

positions, or limit the number of 

employees that may be hired into such 

positions.19 Thus, DHS is not limited in 

the number of qualified positions the 

Secretary may designate and establish, 

except by funding constraints and 

requirements in appropriations for DHS. 

Under the exemption relating to 

classification of employees,20 DHS is 

exempt from the General Schedule (GS) 

position classification system as well as 

other work valuation systems relying on 

traditional position classification 

concepts and methods. ‘‘Classification’’ 

generally is a systematic process of job 

or work valuation used to describe and 

value jobs or work and individuals 

within an organization.21 In the Federal 

civil service context, classification most 

often refers to the GS position 

classification system, which is the job 

evaluation system codified at 5 U.S.C. 

Chapter 51. Chapter 51 provides a 

definition of the term ‘‘position’’ that 

means ‘‘the work, consisting of the 

duties and responsibilities, assignable to 

an employee.’’ 22 Under the GS position 

classification system, positions are 

grouped into classes 23 and grades 24

based on duties, responsibilities, and 

qualification requirements.25

Traditional Federal position 

classification systems based on Chapter 

51, including the GS, provide job 

structures, such as classes and grades, 

that meaningfully group positions to 

facilitate systematic management of 

Federal civilian employees and address 

internal equity. With the GS or other 

similar position classification systems, 

those job structures influence many 

aspects of talent management, especially 

compensation, for positions under those 

systems and employees in those 

positions.26

Under the exemption relating to 

classification of employees,27 DHS is 

exempt from the definition of 

‘‘position’’ under the GS position 

classification system and other job or 

work valuation systems, and how the 

concept of ‘‘position’’ is used under 

those systems. Section 658 defines and 

describes qualified positions as 

positions designated and established by 

the Secretary as the Secretary 

determines necessary, and both the 

definition and description of qualified 

positions use the general, stand-alone 

term ‘‘position.’’ 28 In the U.S. Code, that 

term does not have a universal meaning 

or a specific meaning in the excepted 

service; instead the U.S. Code contains 

multiple definitions of the term 

‘‘position’’ for specific purposes.29

The authority to designate and 

establish qualified positions and the 

exemptions from existing laws provides 

the Secretary broad discretion to 

determine how to create and use 

qualified positions for purposes of 

carrying out the responsibilities of DHS 

relating to cybersecurity. In particular, 

the exemption relating to classification 

of employees means DHS may 

determine the use of qualified positions 

and create such positions as new 

positions in the excepted service 

without regard to existing definitions of 

positions, or how the concept of 

position is currently used, in 

management of Federal employees. 

As discussed subsequently in III.B of 

this document, main factors 

contributing to DHS’s challenges 

recruiting and retaining cybersecurity 

talent are the focus of existing Federal 

talent management practices on 

narrowly-defined and mostly-static jobs 

or positions instead of individuals and 

their skills, as well as the inability of 

current Federal classification methods 

to effectively describe and account for 

individuals’ cybersecurity skills. 

Therefore, as discussed further in IV.A.1 

of this document, DHS is using the 

Secretary’s broad authority and 

discretion for designating and 

establishing qualified positions, and the 

exemptions from existing laws, to create 

a new type of Federal civil service 

position based on individuals and their 

skills necessary for executing the DHS 

cybersecurity mission. To do this, DHS 

is designing CTMS with new processes, 

systems, and programs to create and use 

qualified positions based on the DHS 

cybersecurity mission and individuals’ 

skills necessary to execute that mission. 

Those processes, systems, and programs 

are called CTMS elements and include 

a new work valuation system. 

2. Appointment 

Under 6 U.S.C. 658, DHS has 

authority to create new hiring processes 

for qualified positions without regard to 

existing requirements and processes for 

hiring Federal civilian employees. 

Section 658(b)(1)(A)(ii) gives the 

Secretary authority to appoint an 

individual to a qualified position and, 

under 6 U.S.C. 658(b)(1)(B), this 


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30The authority to appoint an individual to a 

qualified position also applies without regard to 

any other provisions of law relating to 

compensation of employees. 6 U.S.C. 658(b)(1)(B). 

31See e.g., 5 U.S.C. Chapter 33, Subchapter I. 

32See e.g., 5 U.S.C. 3131(c) (‘‘The Office of 

Personnel Management, in consultation with the 

Office of Management and Budget, shall review the 

request of each agency and shall authorize . . . a 

specific number of Senior Executive Service 

positions for each agency’’); see also the Federal 

Employees Pay Act of 1945, Sec. 607 (controlling 

the number of employees and establishing 

personnel ceilings within executive branch 

agencies), repealed Public Law 81–784 (Sept. 1950). 

33See U.S. Office of Personnel Management 

website, ‘‘Classification & Qualifications,’’ https://

www.opm.gov/policy-data-oversight/classificationqualifications/ (last visited May 25, 2021). 

34 6 U.S.C. 658(b)(1)(B). The § 658 compensation 

authority also applies without regard to any other 

provisions of law relating to appointment or 

number of employees. Id. 

35 6 U.S.C. 658(b)(2)(A). 

36 6 U.S.C. 658(b)(3)(A). 

37 In 2012, the Comptroller General noted ‘‘the 

extraordinary complexity of the [F]ederal pay 

systems and the difficulties we have encountered in 

attempting to resolve ambiguities arising from pay 

laws enacted at different times over nearly 70 years 

ago.’’ Comptroller General Opinion, Pay for 

Consultants and Scientists Appointed under Title 

42, B–323357 (July 12, 2012) (determining that the 

pay cap in 5 U.S.C. 5373 is inapplicable to pay for 

consultants and scientists appointed under 42 

U.S.C. 209(f) or (g), but that such pay is limited by 

an appropriations cap), 1. The Comptroller General 

referenced a D.C. Circuit case that also noted the 

inherent complexity in resolving ambiguities in the 

Federal compensation context. Id. That D.C. Circuit 

case explained that in 1983 there were six discrete 

Federal civilian pay systems and ‘‘depending on the 

degree of disaggregation, over forty other, separate 

pay systems. These pay systems vary considerably 

in the number of employees covered and method 

for determining pay.’’ International Organization of 

Masters, Mates & Pilots v. Brown, 698 F.2d 536, 539 

appointment authority applies without 

regard to the provisions of any other law 

relating to appointment, number, or 

classification of employees.30

The exemption relating to 

appointment of employees means DHS 

may appoint individuals to qualified 

positions without regard to the Title 5 

hiring requirements and processes, 

including procedures for accepting and 

reviewing applications, making 

selections, and appointing individuals 

to positions.31 Also, the exemption 

regarding number of employees means 

there is no statutory limit on the number 

of qualified positions or number of 

appointments to such positions. As 

discussed previously, provisions of the 

U.S. Code relating to the number of 

employees may limit the number of 

positions, or types of positions, or limit 

the number of employees that may be 

hired into such positions.32 Although 

DHS is not limited in the number of 

appointments to qualified positions, 

funding constraints and requirements in 

DHS appropriations still apply. 

The exemption relating to 

classification of employees, discussed 

previously, means DHS may also 

appoint individuals to qualified 

positions exempt from the GS position 

classification system and other work 

valuation systems relying on traditional 

position classification concepts and 

methods. In the context of 

appointments, Chapter 51 and 

implementing regulations and policy 

dictate elements of the hiring process 

for GS positions. For example, OPM 

classification and qualification 

standards, policies, and processes 33

establish procedures used for defining, 

identifying, and evaluating jobs and 

applicants in order to select individuals 

for appointment to a GS position. 

As discussed subsequently in III.B of 

this document, main factors 

contributing to DHS’s challenges 

recruiting and retaining cybersecurity 

talent are the lack of focus of existing 

Federal talent management practices on 

individuals and their skills, as well as 

fierce competition for those individuals 

and their skills. Therefore, as discussed 

further in IV.C of this document, DHS 

is using the Secretary’s appointment 

authority, and the exemptions from 

existing laws, to create new hiring 

processes for qualified positions to 

recruit and hire individuals with 

mission-critical skills. To do this, DHS 

designed strategic recruitment processes 

based on leading private sector practices 

and a new skills-based assessment 

program under a new DHS-specific 

talent acquisition system. 

3. Compensation 

Under 6 U.S.C. 658(b), DHS has 

authority to create a new administrative 

compensation system covering salaries 

and other types of compensation. 

Section 658(b)(1)(A)(iii) gives authority 

to set compensation for individuals in 

qualified positions. This § 658 

compensation authority includes 

specific salary authority in 

§ 658(b)(2)(A) to fix the rates of basic 

pay for qualified positions subject to 

limitations on maximum rates of pay. 

The § 658 compensation authority also 

includes specific additional 

compensation authority in 

§ 658(b)(3)(A) to provide compensation 

in addition to basic pay, including 

benefits, incentives, and allowances. 

The § 658 compensation authority 

applies without regard to any other 

provisions of law relating to the 

classification or compensation of 

employees.34 As explained previously, 

the exemption relating to classification 

of employees exempts the authority in 

6 U.S.C. 658 from the GS position 

classification system and other Federal 

work valuation systems. In the context 

of compensation, the GS position 

classification system describes and 

groups Federal civil service positions to 

assign rates of basic pay under the 

related GS pay system in 5 U.S.C. 

Chapter 53. Thus, the § 658 

compensation authority is exempt from 

the GS pay system as well as the GS 

position classification system under 

both the exemption relating to 

classification of employees and the 

exemption relating to compensation of 

employees. 

In addition to laws establishing the 

GS pay system, the exemption relating 

to compensation of employees exempts 

the § 658 compensation authority from 

other provisions of law relating to 

compensation, which include: 

Provisions in 5 U.S.C. Chapter 53 

establishing and governing other pay 

systems; premium pay provisions in 5 

U.S.C. Chapter 55 and the minimum 

wage and overtime pay provisions of the 

Fair Labor Standards Act (FLSA); 

provisions in Title 5 regarding monetary 

awards, incentives, and certain 

differentials; the limitation on annual 

aggregate compensation in 5 U.S.C. 

5307; and provisions in 5 U.S.C. 

Chapter 61 governing work schedules, 

which impacts compensation, especially 

salary and leave. 

The § 658 compensation authority 

does provide parameters for exercising 

that authority specific to providing basic 

pay and providing additional 

compensation, and those parameters 

depend on identifying positions that are 

‘‘comparable’’ to qualified positions 

designated by the Secretary. For § 658 

basic pay, the Secretary must identify 

comparable positions in DOD and their 

associated rates of pay, and then fix 

rates of basic pay for individuals in 

qualified positions ‘‘in relation to’’ those 

DOD rates of pay.35 For § 658 additional 

compensation, if the Secretary provides 

additional compensation, the Secretary 

must identify comparable positions 

authorized by Title 5, and then provide 

only additional compensation that is 

‘‘consistent with, and not in excess of 

the level authorized for,’’ those Title 5 

positions.36

The language of, and direction in, the 

§ 658 basic pay authority and the § 658 

additional compensation authority is 

ambiguous, including the implicit 

initial requirement to identify 

‘‘comparable positions.’’ Statutory 

language for Federal compensation 

systems generally is not straight-forward 

nor unambiguous, and the responsibility 

of resolving ambiguities in the Federal 

compensation system context has been 

characterized as inherently complex.37


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(D.C. Cir. 1983), 698 F.2d 536, 538–39 (holding that 

the pay cap in 5 U.S.C. 5373 applies to government 

mariners whose pay is set in accordance with 

prevailing rates and practices in the maritime 

industry). The Comptroller General also 

commented: ‘‘The statutory scheme has only 

become more complex since 1983.’’ Comptroller 

General Opinion, B–323357 at 1. 

38United States v. Cinemark USA Inc., 348 F.3d 

569 (6th Cir. 2003) (determining that ‘‘comparable’’ 

has two possible meanings under a dictionary 

definition: (1) ‘‘similar,’’ and (2) ‘‘capable of being 

compared and concluding that the term 

‘‘comparable’’ had to mean ‘‘similar’’ in order to 

give substantive meaning to that term). 

39 Id. at 573 (explaining: ‘‘While the word 

‘comparable’ can mean ‘capable of being compared,’ 

such an interpretation would give the word no 

substantive content in this context. The other— 

obviously intended—meaning of ‘comparable’ is 

‘similar.’ Thus, in ordinary parlance, if the prices 

at one store or restaurant are ten times those of a 

competitor, one would not say that the prices are 

‘comparable,’ even though they can obviously be 

compared’’). 

40Merriam-Webster, https://www.merriamwebster.com/dictionary/similar (last visited May 25, 

2021). 41Public Law 115–91 (Dec. 2017). 

The compensation authority language in 

6 U.S.C. 658 is no exception. To 

implement the § 658 compensation 

authority, DHS has had to interpret the 

ambiguous statutory language of the 

basic pay authority and the additional 

compensation authority, as discussed in 

the following three sections of this 

document: III.A.3.(a) Comparable 

Positions, III.A.3.(b) Basic Pay, and 

III.A.3.(c) Additional Compensation. 

(a) Comparable Positions 

Section 658 does not define or 

identify comparable positions in DOD, 

comparable positions authorized by 

Title 5, nor what makes such positions 

‘‘comparable’’ to qualified positions. As 

mentioned previously, and discussed in 

IV.A of this document, DHS is using the 

Secretary’s broad authority and 

discretion for designating and 

establishing qualified positions to create 

qualified positions as a new type of 

Federal civil service position based on 

the DHS cybersecurity mission and 

individuals’ skills necessary to execute 

that mission. As such, there are no 

existing positions in DOD nor existing 

positions authorized by Title 5 that are 

obvious ‘‘comparable positions’’ to this 

new type of position for the purposes of 

implementing the § 658 basic pay 

authority and the § 658 additional 

compensation authority. Consequently, 

DHS must determine which positions in 

DOD, and which positions authorized 

by Title 5, are comparable to this new 

type of Federal civil service position. 

DHS interprets ‘‘comparable 

positions’’ to mean positions that have 

characteristics in common with a 

qualified position. A dictionary 

definition of the term ‘‘comparable’’ can 

mean ‘‘similar’’ or ‘‘capable of being 

compared;’’ however, only the ‘‘similar’’ 

definition provides guidance.38 Most—if 

not all—Federal civil service positions 

are ‘‘comparable’’ in the sense that they 

are capable of being be compared to one 

another based on some criteria or using 

a consistent metric. The ability or a 

process to compare positions does not 

result in identifying positions in DOD 

and positions authorized by Title 5 that 

are ‘‘comparable’’ for the purpose of 

implementing the § 658 basic pay 

authority and the § 658 additional 

compensation authority.39 A dictionary 

definition of the term ‘‘similar’’ is ‘‘alike 

in substance or essentials’’ or ‘‘having 

characteristics in common.’’ 40 Thus, 

positions that are ‘‘comparable’’ are 

ones that are alike in substance or 

essentials or have characteristics in 

common. 

The main characteristics of a qualified 

position can be described as a link to 

the DHS cybersecurity mission and an 

emphasis on an individual’s skills 

necessary to execute that mission. Thus, 

‘‘comparable positions’’ in DOD and 

authorized by Title 5, are those that also 

have (1) a link to cybersecurity 

responsibilities of an agency, and (2) an 

emphasis on an individual’s skills 

necessary to perform cybersecurity 

work. Some positions in DOD and some 

positions authorized by Title 5 have 

these characteristics in common with 

qualified positions, and thus are 

‘‘comparable’’ to qualified positions. 

Note that positions classified using 

traditional Federal position 

classification methods, including the GS 

position classification system, do not 

emphasize an individual’s skills. As 

explained in III.B.2 of this document, 

traditional Federal position 

classification primarily focuses on the 

work of a position and only minimally 

accounts for the skills an individual 

brings to the work of a position and how 

such skills may influence the 

performance of work. 

Positions in DOD that have or could 

have a link to cybersecurity 

responsibilities and an emphasis on an 

individual’s skills, and thus are 

comparable positions in DOD for 

purposes of implementing the § 658 

basic pay authority, include the 

following eleven types of positions: 

• Senior Level/Scientific or 

Professional (SL/ST) positions under 5 

U.S.C. 5376; 

• Senior Executive Service (SES) 

positions under 5 U.S.C. Chapter 31, 

Subchapter II; 

• Experts and consultants positions 

under 5 U.S.C. 3109; 

• Critical pay positions under 5 

U.S.C. 5377; 

• DOD CES positions under 10 U.S.C. 

1599f; 

• DOD DCIPS positions under 10 

U.S.C. 1601 et seq.; 

• DOD highly qualified experts (DOD 

HQE) positions under 5 U.S.C. 9903; 

• Intelligence Community highly 

qualified experts (IC HQE) under 50 

U.S.C. 3024(f)(3)(A)(iii); 

• Intelligence Community (IC) critical 

pay positions under 50 U.S.C. 3024(s); 

• Scientific and Technology 

Reinvention Laboratories (STRL) 

positions under 10 U.S.C. 2358c; and 

• Pilot cybersecurity professional 

positions under section 1110 of the 

National Defense Authorization Act for 

Fiscal Year 2018.41

Positions ‘‘authorized by [T]itle 5,’’ 

while not clearly defined, at least 

include positions specifically 

authorized in Title 5 provisions. Five of 

the eleven types of comparable 

positions in DOD are also authorized in 

Title 5 provisions. Thus, positions 

authorized by Title 5 that have or could 

have a link to cybersecurity 

responsibilities and an emphasis on an 

individual’s skills, and are therefore 

comparable positions authorized by 

Title 5 for purposes of implementing the 

§ 658 additional compensation 

authority, include at least the following 

types of positions: 

• SL/ST positions under 5 U.S.C. 

5376; 

• SES positions under 5 U.S.C. 

Chapter 31, Subchapter II; 

• Experts and consultants positions 

under 5 U.S.C. 3109; 

• Critical pay positions under 5 

U.S.C. 5377; and 

• DOD HQE positions under 5 U.S.C. 

9903. 


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42Section 658(b)(2)(B) also provides the Secretary 

discretionary authority for establishing a prevailing 

rate system, which is not addressed by this 

rulemaking. 

43The new salary system is also exempt from any 

other laws relating to the appointment or number 

of employees. 6 U.S.C. 658(b)(1)(B). 

44 6 U.S.C. 658(b)(2)(A). 

It is important to note that the eleven 

types of comparable positions are each 

comparable to a qualified position. As 

such, a qualified position is 

simultaneously comparable to each of 

these eleven types of comparable 

positions. This one-to-many 

relationship between a qualified 

position and the eleven types of 

comparable positions affects how DHS 

interprets and implements the § 658 

basic pay authority and the § 658 

additional compensation authority, as 

discussed in the following two sections, 

III.A.3.(b) Basic Pay and III.A.3.(c) 

Additional Compensation. 

(b) Basic Pay 

Section 658(b)(2)(A) provides the 

Secretary basic pay authority and 

parameters for exercising that authority 

by requiring the Secretary fix rates of 

basic pay for qualified positions ‘‘in 

relation to the rates of pay provided for 

employees in comparable positions in 

the Department of Defense and subject 

to the same limitation on maximum 

rates of pay established for such 

employees by law or regulation.’’ This 

authority to fix rates of basic pay is 

authority to create and administer a new 

salary system with a salary range and 

policies for setting and adjusting 

salaries.42 Under 6 U.S.C. 658(b)(1)(B), 

the new salary system is exempt from 

any other laws relating to classification 

or compensation of employees, 

including the GS position classification 

system and the associated GS pay 

system.43 The new salary system, 

however, must adhere to the two 

parameters in the § 658 basic pay 

authority regarding rates of pay and 

maximum rates. 

(i) Rates of Pay and Pay Ranges 

To ensure salaries under the new 

salary system are set in relation to the 

rates of pay provided for employees in 

comparable positions in DOD,44 the 

Department must interpret the 

ambiguous ‘‘in relation to’’ requirement, 

and apply it using the rates of pay for 

the eleven types of comparable 

positions in DOD. 

Rates of pay are organized as pay 

ranges with a minimum rate and 

maximum rate. The rates of pay 

provided for the eleven types of 

comparable positions in DOD are nine 

different pay ranges established in 

statute and DOD implementing 

documents. Because a qualified position 

is simultaneously comparable to each 

type of comparable position in DOD, all 

nine pay ranges are relevant in applying 

the ‘‘in relation to’’ requirement. The 

nine pay ranges for the eleven types of 

comparable positions in DOD are as 

follows: 

TABLE 1—PAY RANGES FOR COMPARABLE POSITIONS IN DOD 

Pay range 

Comparable position in DOD 

Minimum rate Maximum rate 

No minimum T1 ................................................... GS–15 step 10 T2 ............................................. Experts and consultants positions. 

GG–7 or pay band 2 T3 ...................................... EX–IVT4 ........................................................... DOD CES and DOD DCIPS positions. 

n/a ....................................................................... EX–IVT5 ........................................................... DOD HQE positions. 

120 percent of GS–15 minimum basic pay T6 .... EX–II (with an OPM-certified performance appraisal system, otherwise EX–III) T7.SL/ST and SES positions. 

Not less than the rate otherwise payable if not 

determined critical T8.

EX–I T9 ............................................................. Critical pay positions. 

n/a ....................................................................... EX–I with Director of National Intelligence approval otherwise EX–II T10.IC critical pay positions. 

n/a ....................................................................... Vice President’s salary T11 ............................... IC HQE positions. 

n/a ....................................................................... 150 percent of EX–I T12 ................................... STRL positions. 

n/a ....................................................................... No maximum T13 .............................................. Pilot cybersecurity professional positions. 

T1 5 U.S.C. 3109(b). T2 Id. This authority for expert and consultants positions also includes an authority to supersede this maximum rate when specifically authorized by appropriation or other statute. T3 DODI 1400.25–V3007, DOD Civilian Personnel Management System: Cyber Excepted Service (CES) Occupational Structure (Aug. 15, 

2017), 6 (Entry/Developmental Work Level 1 for Professional Work Category in CES Occupational Structure); DODI 1400.25–V2007, DOD Civilian Personnel Management System: Defense Civilian Intelligence Personnel System (DCIPS) Compensation Administration (Apr. 17, 2012), 27 

(Entry/Developmental Work Level 1 for Professional Work Category in DCIPS Occupational Structure). T4 DODI 1400.25–V3006, DOD Civilian Personnel Management System: Cyber Excepted Service (CES) Compensation Administration (Aug. 

15, 2017), 4 (‘‘basic rates of pay will comply with the maximum pay limitation of Level IV of the Executive Schedule for basic pay’’); DODI 

1400.25–V2006, DOD Civilian Personnel Management System: Defense Civilian Intelligence Personnel System (DCIPS) Compensation Administration (Mar. 3, 2012, incorporating changes effective July 6, 2020), 9 (‘‘adjusted basic pay may not exceed the rate of Level IV of the Executive 

Schedule’’). T5 5 U.S.C. 9903(b). T6 5 U.S.C. 5376(b) and 5382. T7 Id. T8 5 U.S.C. 5377(d). T9 Id. This authority for critical pay positions also includes an authority to supersede this maximum rate with written approval from the President. T10 50 U.S.C. 3024(s). This authority for IC critical pay positions also includes an authority to supersede this maximum rate with presidential 

approval. T11 ICD 623, Intelligence Community Directive Number 623, Appointment of Highly Qualified Experts (Oct. 16, 2008), 4 (‘‘The DNI may set the 

rate of basic pay for HQEs up to or equal to the salary of the Vice President of the United States (as established by 3 U.S.C. 104)’’). T12 10 U.S.C. 2358c(d) s. T13 National Defense Authorization Act for Fiscal Year 2018, Public Law 115–91, Sec. 1110(f), (Dec. 2017). 


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45Crawford v. U. S., 179 Ct. Cl. 128 (1967) cert. 

denied 389 U.S. 1041 (1968) (construing ‘‘in 

relation to’’ in Section 2353(c) of the Overseas 

Teacher Pay and Personnel Practices Act of 1959 

(Pub. L. 86–91), which directed: ‘‘The Secretary of 

each military department shall fix the rates of basic 

compensation of teachers and teaching positions in 

his military department in relation to the rates of 

basic compensation for similar positions in the 

United States . . .’’); Homezell Chambers v. U.S, 

306 F.Supp. 317 (E.D. Va 1969) (also construing the 

Section 2353(c) of the Overseas Teach Pay and 

Personnel Practices Act of 1959); see also 

Reinheimer v. Panama Canal Co., 413 F.2d 153 (5th 

1969) (construing ‘‘in relation to’’ in section 144(b) 

of title 2 of the Canal Zone Code (Pub. L. 73–431), 

which directed salaries for employees of the 

Panama Canal Zone ‘‘may be established and 

revised in relation to rates of compensation for the 

same or similar work performed in the continental 

United States,’’ as not meaning ‘‘equal to’’ but 

instead as indicating some amount of discretion); 

Binns v. Panama Canal Co., 459 F.Supp. 956, 958 

(D.C.Z. 1978) (discussing Reinheimer as holding 

that the ‘‘in relation to’’ direction in section 144(b) 

of title 2 of the Canal Zone Code ‘‘allows the 

relational establishment of wages, and therefore 

also allows deviations from wage rates which 

would be identical to those of the same or similar 

positions in the continental United States’’). 46Crawford v. U. S., 179 Ct. Cl. 128, 139 (1968) 

(stating that the authority to fix the rates of basic 

compensation in relation to the rates of basic 

compensation for similar positions ‘‘merely set the 

boundaries of the program allowing the Secretary of 

Defense to fill in the details. Nowhere did Congress 

fix salaries in Public Law 86–91 [Overseas Teachers 

Pay and Personnel Act], nor did it define the 

positions which were to be looked to in the United 

States as similar to those occupied by the overseas 

teachers . . . . That the Secretary was vested with 

discretion to issue regulations governing the fixing 

of rates of basic compensation follows unmistakably 

from the grant of authority contained in Section 

2352(a)(2) of the Act [which provided the authority 

to fix rates of basic compensation in relation to 

other rates of compensation and required 

implementing regulations]’’); Homezell Chambers v. 

U.S, 306 F.Supp. 317 (E.D. Va 1969) (affirming the 

Secretary of Defense’s discretion for determining 

overseas teacher pay). 

47See supra note 15. 

48 6 U.S.C. 658(b)(2)(A). 

49See e.g., 5 U.S.C. 5307 (entitled ‘‘Limitation on 

certain payments’’ and providing a general amount 

cap on total compensation, which is known as the 

annual aggregate compensation cap); 5 U.S.C. 5547 

(entitled ‘‘Limitation on premium pay’’ and 

providing an amount cap on the aggregate of basic 

pay and premium pay under Title 5); see also 5 

U.S.C. 5759(c) and 10 U.S.C. 1091(b). 

50See e.g., 5 U.S.C. 5376 and 5382 (stating that 

basic pay for SL/ST positions and SES positions is 

not subject to ‘‘the pay limitation in section 5306(e) 

or 5373’’); see also 10 U.S.C. 9414(d); 24 U.S.C. 

415(e); and 10 U.S.C. 1587a(e). 

51 Id. 

DHS interprets the ‘‘in relation to’’ 

requirement to mean that the Secretary 

has discretion to establish and operate 

a new salary system within the 

boundaries provided by the nine rate 

ranges for the eleven types of 

comparable positions in DOD. Congress 

has used a similar ‘‘in relation to’’ 

requirement in other compensation 

authorities, and courts have held that 

such a requirement provides boundaries 

for determining appropriate salaries 

under a compensation authority.45 The 

courts also concluded that such a 

requirement gives the agency head 

discretion to fill in the details within 

those boundaries.46 Legislative history 

indicates that 6 U.S.C. 658 grants 

compensation flexibilities to better 

recruit and retain cybersecurity talent 

with more competitive compensation.47

DHS determines that the boundaries 

of the new salary system, as provided by 

the nine rate ranges for the eleven types 

of comparable positions in DOD, may be 

from no minimum to 150 percent of EX– 

I or no maximum. The nine rate ranges, 

presented in Table 1: Rate Ranges for 

Comparable Positions in DOD, have 

several minimum rates, which start at 

no minimum, and several maximum 

rates, which range up to 150 percent of 

EX–I and no maximum. As discussed 

subsequently in III.B of this document, 

the competitiveness of compensation, 

especially salary, is a main factor 

contributing to DHS’s challenges 

recruiting and retaining cybersecurity 

talent. Therefore, as discussed further in 

IV.E.3 of this document, the Department 

is using the highest maximum rates for 

the upper boundary for the new salary 

system. 

(ii) Limitations on Maximum Rates and 

Pay Caps 

To ensure salaries under the new 

salary system are subject to the same 

limitations on maximum rates for 

employees in comparable positions in 

DOD established by law or regulation,48

DHS must identify the ‘‘limitations on 

maximum rates’’ for the eleven types of 

comparable positions in DOD, and then 

apply those same limitations to the new 

pay system. 

Just as 6 U.S.C. 658 does not identify 

comparable positions in DOD, it does 

not prescribe or identify the ‘‘limitations 

on maximum rates of pay’’ for those 

comparable positions. Thus, to 

implement the ‘‘the same limitations on 

maximum rates’’ requirement in 6 

U.S.C. 658, DHS must interpret the 

phrase ‘‘limitations on maximum rates’’ 

and apply it using the eleven types of 

comparable positions in DOD. 

DHS interprets ‘‘limitations on 

maximum rates’’ to mean salary caps. 

Congress generally uses the term 

‘‘limitation’’ within compensation 

statutes to mean a pay or salary cap. 

U.S. Code sections using the term 

‘‘limitation’’ in a compensation context 

indicate that the term means an amount 

cap.49 When used in conjunction with 

the authority to fix or adjust rates of 

pay, the term ‘‘limitation’’ means a 

salary cap.50 These U.S. Code sections 

also indicate that the term ‘‘limitation’’ 

often specifically refers to the salary cap 

for administrative pay systems in 5 

U.S.C. 5373 or 5306(e).51 The § 658 

basic pay authority is authority to create 

a new administrative compensation 

system; however, under the exemption 

relating to the compensation of 

employees in § 658(b)(1)(B), the new 

salary system is exempt from the salary 

cap in 5 U.S.C. 5373 and 5306(e). The 

new system must instead comply with 

the ‘‘same limitations on maximum 

rates’’ requirement in § 658(b)(2)(A). 

DHS interprets the ‘‘same limitations 

on maximum rates’’ requirement to 

mean that the new salary system is 

subject to the same salary caps 

applicable to the eleven types of 

comparable positions in DOD. A 

maximum rate for a rate range serves as 

a salary cap. As shown previously in 

Table 1, the pay ranges for the eleven 

types of comparable positions in DOD 

each have at least one maximum rate, 

except the pay range for pilot 

cybersecurity professional positions 

does not include a maximum rate. For 

the comparable positions in DOD that 

have more than one maximum rate, only 

the highest rate serves as a true salary 

cap because the lower maximum rate 

can be superseded under certain 

circumstances, whereas the higher rate 

serves as the absolute limit for salaries 

in that rate range. As such, comparable 

positions in DOD have six different 

salary caps based on their highest 

maximum rate. Because a qualified 

position is simultaneously comparable 

to each type of comparable position in 

DOD, all six salary caps are relevant in 

applying the ‘‘same limitations on 

maximum rates’’ requirement. The six 

relevant salary caps for the eleven types 

of comparable positions in DOD are as 

follows: 

TABLE 2—SALARY CAPS FOR COMPARABLE POSITIONS IN DOD 

Maximum rate Comparable position in DOD 

GS–15 step 10 ................................ Experts and consultants positions.T1

EX–IV .............................................. DOD CES and DOD DCIPS positions; T2 and DOD HQE positions.T3


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52The § 658 additional compensation authority is 

also exempt from any other laws relating to the 

appointment, number, or classification of 

employees. 6 U.S.C. 658(b)(1)(B). 

53Non-essential clauses, a type of non-restrictive 

element, do not limit the meaning of the words they 

modify. See William Strunk, The Elements of Style 

(1st Ed. 2004), 9 (non-restrictive elements ‘‘do not 

limit the application of the words on which they 

depend, but add, parenthetically, statements 

supplementing those in the principal [elements]’’). 54Congress has used the same punctuation and 

syntax of the ‘‘consistent with’’ requirement since 

its creation in the bill enacted as the DOD DCIPS 

authority; however, the legislative history for the 

DOD DCIPS authority does not address the 

‘‘consistent with’’ requirement. The draft bill stated: 

(c) Additional Compensation, Incentives, and 

Allowances—(1) Employees in defense intelligence 

component positions may be paid additional 

compensation, including benefits, incentives, and 

allowances, in accordance with this subpart if, and 

to the extent, authorized in regulations prescribed 

by the Secretary of Defense. (2) Additional 

compensation under this subsection shall be 

consistent with, and not in excess of the levels 

authorized for, comparable positions authorized by 

[T]itle 5. 

S. 1745 (104th Congress 2d Session, July 10, 

1996), Sec. 1132 (proposed for 10 U.S.C. 1590(c)) 

(emphasis added); H.R. 3230 (104th Congress 2d 

Session, July 10, 1996), Sec. 1132 (proposed for 10 

U.S.C. 1590(c) (also providing for allowances while 

stationed outside the continental U.S. or in Alaska 

tied to the allowance under 5 U.S.C. 5941) 

(emphasis added). 

55S. Rep. 113–207, Report of the Committee on 

Homeland Security and Governmental Affairs, U.S. 

Senate, to accompany S. 2354, ‘‘To Improve 

Cybersecurity Recruitment and Retention,’’ (July 14, 

2014), 4 (explaining the authority gives DHS 

authority to ‘‘grant additional compensation, 

incentives, and allowances consistent with 

comparable positions authorized by Title 5, United 

States Code’’). 

TABLE 2—SALARY CAPS FOR COMPARABLE POSITIONS IN DOD—Continued 

Maximum rate Comparable position in DOD 

EX–II ............................................... SL/ST and SES positions (with an OPM-certified performance appraisal system).T4

EX–I ................................................ Critical pay positions; T5 and IC critical pay positions (with Director of National Intelligence approval) T6

Vice President’s salary ................... IC HQE positionsT7

150 percent of EX–I ........................ STRL positionsT8

T1 5 U.S.C. 3109(b). T2 DODI 1400.25–V3006, DOD Civilian Personnel Management System: Cyber Excepted Service (CES) Compensation Administration (Aug. 

15, 2017), 4, and DODI 1400.25–V2006, DOD Civilian Personnel Management System: Defense Civilian Intelligence Personnel System (DCIPS) 

Compensation Administration (Mar. 3, 2012, incorporating changes effective July 6, 2020), 9. T3 5 U.S.C. 9903(b). T4 5 U.S.C. 5376(b) and 5382. T5 5 U.S.C. 5377(d). T6 50 U.S.C. 3024(s). T7 ICD 623, Intelligence Community Directive Number 623, Appointment of Highly Qualified Experts (Oct. 16, 2008), 4. T8 10 U.S.C. 2358c(d). 

Because the new salary system must 

set salaries subject to the ‘‘same’’ 

limitations on maximum rates for 

employees in comparable positions in 

DOD, each of the six salary caps applies 

to the new salary system. Congress uses 

the plural term ‘‘limitations’’ in the 

§ 658 basic pay authority, which 

indicates Congress contemplated, or at 

least accounted for, the possibility of 

more than one salary cap; however, 

Congress is silent on how multiple 

salary caps might apply to the new 

salary system. 

With the Secretary’s broad authority 

and discretion for designating and 

establishing qualified positions, 

determining comparable positions in 

DOD, establishing a salary system 

within expansive boundaries, and 

identifying salary caps to apply to the 

new salary system, it follows that the 

Secretary also has implicit authority and 

discretion for how to apply the six 

applicable salary caps. In exercising this 

authority and discretion, the Secretary 

must ensure the new salary system is 

subject to the ‘‘same’’ salary caps as 

comparable positions in DOD, and as 

such, DHS is applying all six salary caps 

to the new salary system, as discussed 

further under IV.E.3 of this document. 

(c) Additional Compensation 

Section 658(b)(3)(A) provides the 

Secretary discretionary additional 

compensation authority and parameters 

for exercising that authority by requiring 

that any discretionary additional 

compensation for employees in 

qualified positions, must be ‘‘consistent 

with, and not in excess of the level 

authorized for, comparable positions 

authorized by [T]itle 5, United States 

Code.’’ Section 658(b)(3)(B) also 

separately mandates one type of 

additional compensation, allowances in 

nonforeign areas, and also mandates 

that employees in qualified positions 

are eligible for such allowances under 5 

U.S.C. 5941 on the same basis and to the 

same extent as if the employees were 

covered under section 5941. 

The § 658 additional compensation 

authority for both discretionary 

additional compensation and the 

separate, mandatory allowances in 

nonforeign areas is exempt under 6 

U.S.C. 658(b)(1)(B) from any other laws 

relating to compensation.52 Any 

discretionary additional compensation 

DHS provides, however, must adhere to 

the two parameters that such additional 

compensation is ‘‘consistent with’’ 

comparable positions authorized by 

Title 5 and not in excess of ‘‘the level 

authorized for’’ such positions. 

(i) Consistent With 

To provide discretionary additional 

compensation that is consistent with 

comparable positions authorized by 

Title 5, DHS must interpret this 

ambiguous ‘‘consistent with’’ 

requirement, and apply it using the five 

types of comparable positions 

authorized by Title 5. As discussed 

previously in III.C.3 of this document, 

comparable positions authorized by 

Title 5 include SL/ST, SES, Experts and 

Consultants, Critical Pay, and DOD HQE 

positions. 

Based on Congress’s choice of 

punctuation and syntax, it is clear that 

discretionary additional compensation 

must be consistent with comparable 

positions authorized by Title 5. Section 

658(b)(3)(A) directs that any 

discretionary additional compensation 

be ‘‘consistent with, and not in excess 

of the level authorized for, comparable 

positions authorized by [T]itle 5.’’ In 

section 658(b)(3)(A), the phrase ‘‘and 

not in excess of the level authorized for’’ 

is set aside by commas and is a nonessential clause that is not necessary for 

reading the rest of the sentence.53 The 

sentence read without the clause states 

that such additional compensation must 

be ‘‘consistent with . . . comparable 

positions authorized by [T]itle 5.’’ 

Congress reads the § 658 additional 

compensation authority in just this 

manner in the legislative history when 

it treats the syntax and punctuation of 

the ‘‘consistent with’’ requirement as 

purposeful 54 and omits the nonessential clause in describing the 

authority.55 A report accompanying a 

previous bill, the language of which 

now is codified at 6 U.S.C. 658, does not 

correct the syntax or punctuation of the 

language, nor does it directly quote the 


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56 Id. Note that the additional compensation 

language of then-bill S. 2354 is identical to the 

language codified in 6 U.S.C. 658(b)(3). 57A dictionary definition of ‘‘consistent with’’ 

means ‘‘marked by harmony, regularity, or steady 

continuity: free from variation or contradiction’’ 

and ‘‘marked by agreement: Compatible–usually 

used with with.’’ Merriam-Webster, www.merriamwebster.com/dictionary/consistent (last visited May 

25, 2021). Variation’’ means ‘‘the act or process of 

varying: the state or fact or being varied’’ and 

‘‘vary’’ means ‘‘to make a partial change in: make 

different in some attribute or characteristic.’’ 

Merriam-Webster, https://www.merriamwebster.com/dictionary/variation (last visited May 

25, 2021); https://www.merriam-webster.com/ 

dictionary/vary (last visited May 25, 2021). 

‘‘Contradiction’’ means ‘‘the act or instance of 

contradicting’’ and ‘‘contradict’’ means ‘‘to assert 

the contrary of; take issue with’’ and ‘‘to imply the 

opposite or denial of.’’ Merriam-Webster, https://

www.merriam-webster.com/dictionary/ 

contradiction (last visited May 25, 2021); https://

www.merriam-webster.com/dictionary/contradict 

(last visited May 25, 2021). This dictionary 

definition has limited use because being free from 

variation, which would not permit partial changes, 

is different from being free from contradiction, 

which would not permit anything that is the 

opposite. 

58Courts have not had an opportunity to consider 

this or any other ‘‘consistent with’’ requirement in 

the Federal compensation context. In Vry v. Martine 

Marietta Materials, Inc., 2003 WL 297309 (U.S. Dist 

Court, D. Minnesota) (2003). a district court held 

that a company offered compensation and benefits 

‘‘at levels consistent with’’ prior levels as required 

by a corporate merger agreement, even though new 

and prior compensation and benefits levels were 

not the same. For example, while an employee’s 

salary did not increase as expected, it did not 

decrease; the 401k plan matching contributions by 

the old company were dollar-to-dollar up to 4 

percent of an employee’s contributions, and the 

new company only matched 50-cents-per-dollar, 

but up to 7 percent of an employee’s salary; pension 

plans were different, but the new company’s plan 

conferred greater benefits; and health insurance 

programs differed with the old company offering a 

high deductible plan with negligible premiums and 

the new company offering a plan with monthly 

premiums, 15 percent copays, and no deductible, 

but both plans imposed similar burdens on the 

employee and reflect similar and reasonable 

calculations and allocations of risk from an 

employee’s perspective. 2003 WL 297309. Note, 

however, that the court was interpreting language 

that required levels of compensation to be 

consistent with levels of compensation, which 

differs from the language in 6 U.S.C. 658 requiring 

compensation to be consistent with positions. 

59See e.g., 5 U.S.C. 4502 (making available 

incentive awards of cash awards, honorary 

recognition, and time-off awards to an ‘‘employee’’ 

who satisfies other award-specific criteria that do 

not include position type) and 5 U.S.C. 8333 and 

8410 (stating that retirement annuity is available to 

‘‘an employee’’ who satisfies certain eligibility 

requirements that do not include position type). 

60 ‘‘Statutory construction . . . is a holistic 

endeavor.’’ Smith v. U.S., 508 U.S. 223, 233 (1993). 

The entire context of a section or statute may clarify 

meaning of ambiguous language or terminology. See 

id. (‘‘A provision that may seem ambiguous in 

isolation is often clarified by the remainder of the 

statutory scheme—because the same terminology is 

used elsewhere in a context that makes its meaning 

clear, or because only one of the permissible 

readings produces a substantive effect that is 

compatible with the rest of the law’’). 

61 6 U.S.C. 658(b)(3)(A). This paragraph heading 

is also borrowed from the DOD DCIPS authority at 

10 U.S.C. 1603(a). This heading was not in the draft 

bill for the DOD DCIPS authority, but Congress 

added it when Congress moved the additional 

compensation authority to its own paragraph before 

enactment. Originally, Congress included the DOD 

DCIPS authority for additional compensation and 

nonforeign allowances in one subsection with the 

title: ‘‘Additional Compensation, Incentives, and 

Allowances.’’ S. 1745 (104th Congress 2d Session, 

July 10, 1996), Sec. 1132. Congress eventually 

moved these compensation authorities to a separate 

section, codified at 10 U.S.C. 1603, and retained the 

original subsection title as the new section heading 

in the enacted version. Compare 10 U.S.C. 1603 and 

S. 1745 (104th Congress 2d Session, July 10, 1996), 

Sec. 1132. In 10 U.S.C. 1603, Congress placed the 

additional compensation authority in paragraph (a) 

and added the heading indicating that Congress was 

granting DOD the authority to offer additional 

compensation that is based on Title 5 additional 

compensation provisions. 

62 6 U.S.C. 658(b)(3)(B). 

63See e.g. 5 U.S.C. Chapter 45 (‘‘Incentive 

Awards’’), Chapter 59 (‘‘Allowances’’), and 8903 

(‘‘Health benefit plans’’). 

64See e.g. 5 U.S.C. 4505a (‘‘Performance-based 

cash awards’’), 5379 (‘‘Student loan repayments’’), 

and 6303–6304 (‘‘Annual leave’’). 

65A dictionary definition of the verb ‘‘based’’ 

means ‘‘to make, form, or serve as a base for’’ or 

‘‘to find a foundation or basis for.’’ MerriamWebster, https://www.merriam-webster.com/ 

dictionary/base (last visited May 25, 2021); see also 

Black’s Law Dictionary (5th Ed.) (defining ‘‘basis’’ 

as ‘‘fundamental principle; groundwork; support; 

the foundation or groundwork of anything; that 

upon which anything may rest or the principal 

component parts of a thing’’). 

66Section 658(b)(3)(B) mandates that the 

Secretary provide an employee in a qualified 

position an allowance in nonforeign areas under 5 

U.S.C. 5941 ‘‘on the same basis and to the same 

extent as if the employee was an employee covered 

by such section 5941, including eligibility 

conditions, allowance rates, and all other terms and 

conditions in law or regulation.’’ 

language, but uses slightly different 

language to describe the requirement 

that discretionary additional 

compensation must be consistent with 

comparable positions authorized by 

Title 5.56

Neither 6 U.S.C. 658 nor the 

legislative history explain or identify 

how compensation can be consistent 

with a position. A dictionary definition 

of the phrase ‘‘consistent with’’ signals 

that the phrase does not require 

sameness.57 A case addressing the 

phrase ‘‘consistent with’’ in a corporate 

merger agreement confirms that 

‘‘consistent with’’ does not require 

sameness, and also indicates that this 

phrase has meaning only when 

comparing similar things.58 Additional 

compensation and positions are not the 

same, or even similar things, and are not 

usually compared. 

Moreover, most additional 

compensation provided under Title 5 

depends not on an individual’s position, 

but on whether the individual is an 

‘‘employee,’’ as defined in Title 5. 

Under Title 5, most types of additional 

compensation are available to an 

employee, regardless of the employee’s 

type of position.59

Although the language of the 

‘‘consistent with’’ requirement is 

ambiguous and confusing, the entire 

context of 6 U.S.C. 658 indicates that 

the ‘‘consistent with’’ requirement can 

be satisfied by basing additional 

compensation on authorities in Title 

5.60 The heading of the subparagraph 

providing the discretionary additional 

compensation authority, and the 

‘‘consistent with’’ requirement, is 

‘‘Additional Compensation Based on 

Title 5 Authorities.’’ 61 Therefore, 

Congress characterizes additional 

compensation that must be consistent 

with comparable positions authorized 

by Title 5 as being based on Title 5 

authorities. This characterization is in 

contrast to the subparagraph heading 

mandating allowances in nonforeign 

areas, which is ‘‘Allowances in 

Nonforeign Areas’’ and does not further 

characterize this type of additional 

compensation.62

Thus, DHS interprets the ‘‘consistent 

with’’ requirement as being satisfied by 

ensuring any discretionary additional 

compensation is based on Title 5 

authorities, and those Title 5 authorities 

are provisions regarding any type of 

additional compensation. In 6 U.S.C. 

658(b)(3)(A), Congress identifies three 

types of additional compensation: 

Benefits, incentives, and allowances. 

The terms ‘‘benefits,’’ ‘‘incentives,’’ and 

‘‘allowances’’ are not defined in 6 U.S.C. 

658, nor in Title 5, but are used in 

specific chapters, subchapters, and 

sections of Title 5,63 along with other 

terms describing additional 

compensation under Title 5.64 Even if a 

type of Title 5 additional compensation 

is not necessarily a ‘‘benefit,’’ 

‘‘incentive,’’ or ‘‘allowance,’’ Congress 

gave the Secretary the ability to consider 

such compensation under the § 658 

additional compensation authority by 

using the term ‘‘including,’’ which 

signals that the list of three possible 

examples of discretionary additional 

compensation is not exhaustive. 

DHS understands this responsibility 

to base any discretionary additional 

compensation on Title 5 provisions as 

providing DHS discretion over which, if 

any, types of additional compensation 

to provide, as well as how to provide 

them. A base or foundation 65 is not 

usually the entirety of a thing, but it is 

instead something on which more is 

built. Moreover, in contrast to the 

language mandating allowances in 

nonforeign areas that explicitly requires 

following all terms and conditions in 

Title 5 for those allowances, the 

language of the discretionary additional 

compensation authority does not require 

DHS use the terms and conditions of 

Title 5 provisions.66 Congress uses 


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67Russello v. U.S., 464 U.S. 16, 23 

(1983)(‘‘[W]here Congress includes particular 

language in one section of a statute but omits it in 

another section of the same Act, it is generally 

presumed that Congress acts intentionally and 

purposely in the disparate inclusion or exclusion’’); 

see also Bailey v. United States, 516 U.S. 137, 146 

(1995) (‘‘We assume that Congress used two terms 

because it intended each term to have a particular, 

nonsuperfluous meaning. While a broad reading of 

‘‘use’’ undermines virtually any function for 

‘‘carry,’’ a more limited, active interpretation of 

‘‘use’’ preserves a meaningful role for ‘‘carries’’ as 

an alternative basis for a charge’’). 

68 5 U.S.C. 5307. 

69 5 U.S.C. 5307(a). 

70 5 U.S.C. 5307(d)(1); 10 U.S.C. 9903(d)(3) 

(stating ‘‘[n]otwithstanding any other provision of 

this section or of section 5307,’’ no additional 

payments may be made to an employee in an HQE 

position if such payment would cause the 

employee’s total annual compensation to exceed the 

Vice President’s salary). 

71The specialized DHS team reviewed many 

studies and reports as part of its analysis. The most 

relevant reference materials are listed in V. 

Appendix: Reference Materials of this document. 

entirely different language for the 

discretionary additional compensation, 

which signals a different requirement 

for such additional compensation.67

DHS must base any discretionary 

additional compensation on Title 5 

provisions regarding types of additional 

compensation, and DHS may combine 

and streamline such provisions as long 

as it is clear which specific Title 5 

provisions serve as the base or 

foundation for discretionary additional 

compensation. As discussed 

subsequently in III.B of this document, 

the current inability to quickly construct 

and nimbly adjust competitive total 

compensation packages is a main factor 

in DHS’s challenges recruiting and 

retaining cybersecurity talent. 

Therefore, as discussed further in IV.E 

of this document, DHS is combining and 

streamlining several provisions of Title 

5 to establish types of additional 

compensation specific to the new talent 

management system, as well as 

providing traditional Federal employee 

benefits, such as retirement, health 

benefits, and insurance programs. 

(ii) The Level Authorized 

To provide additional compensation 

that is not in excess of the level 

authorized for comparable positions 

authorized by Title 5, DHS must 

identify ‘‘the level’’ that applies for the 

five types of comparable positions 

authorized by Title 5. The definite 

article ‘‘the’’ in 6 U.S.C. 658(b)(3)(A) 

limits ‘‘level’’ to being a specific level 

authorized for those comparable 

positions. 

The one, specific level under Title 5 

that applies to Title 5 additional 

compensation for the five types of 

comparable positions authorized by 

Title 5 is the aggregate compensation 

cap in 5 U.S.C. 5307. The aggregate 

compensation cap limits certain cash 

payments if, when added to total basic 

pay, such a payment would cause the 

employee’s annual total pay to exceed 

level I of the Executive Schedule (EX) or 

the salary of the Vice President.68 The 

cap amount that applies—EX–I or the 

salary of the Vice President—depends 

on position type. As discussed 

previously in III.A.3 of this document, 

comparable positions authorized by 

Title 5, at the very least, include SL/ST, 

SES, experts and consultants, critical 

pay, and DOD HQE positions. All 

individuals in such positions that 

qualify as an ‘‘employee’’ are subject to 

the aggregate compensation cap: The 

EX–I cap amount applies to experts and 

consultants positions and critical pay 

positions,69 and the Vice President’s 

salary amount cap applies to SL/ST, 

SES, and DOD HQE positions.70

Because discretionary additional 

compensation must not be in excess of 

the level authorized for comparable 

positions authorized by Title 5, such 

additional compensation when added to 

the salary of an employee in a qualified 

position may not cause that employee’s 

aggregate compensation to exceed either 

EX–I or the Vice President’s salary. Both 

annual aggregate compensation cap 

amounts are relevant in applying ‘‘the 

level’’ to discretionary additional 

compensation for qualified positions 

because both cap amounts apply for the 

five types of comparable positions 

authorized by Title 5, and a qualified 

position is simultaneously comparable 

to each such type of comparable 

position. 

With the Secretary’s broad authority 

and discretion for designating and 

establishing qualified positions, for 

determining comparable positions 

authorized by Title 5, for deciding 

whether to provide discretionary 

additional compensation, including 

what types and how to provide them, 

and for identifying the aggregate 

compensation cap as the level for such 

additional compensation, it follows that 

the Secretary also has implicit authority 

and discretion for how to apply the two 

cap amounts. In exercising this implicit 

authority and discretion, the Secretary 

must ensure that any discretionary 

additional compensation does not cause 

aggregate compensation for employees 

in qualified positions to exceed the 

applicable amount for that limit, and as 

such, DHS is applying both annual 

aggregate compensation cap amounts, as 

discussed further under IV.E.7 of this 

document. 

B. Need for a New Approach to 

Cybersecurity Talent Management 

To implement the broad authority and 

discretion in 6 U.S.C. 658, DHS set out 

to design a cybersecurity talent 

management system capable of solving 

DHS’s historical and ongoing challenges 

recruiting and retaining cybersecurity 

talent. To do so, the specialized design 

team formed in 2016 analyzed: 

• Historical DHS cybersecurity 

workforce data, including input from 

current DHS employees and leaders 

about talent requirements and gaps; 

• notable changes to talent 

management at Federal agencies since 

the 1970s, including efforts commonly 

referred to as personnel demonstration 

projects or alternative personnel or pay 

systems; 

• recommendations since the 1980s 

from non-profits, academia, and public 

service experts related to modernizing 

the Federal civil service and better 

supporting specialized, technical fields 

like cybersecurity; 

• major trends and market forces 

affecting contemporary workers in 

public service and in the field of 

cybersecurity; and 

• leading practices in both the public 

and private sectors for recruiting and 

retaining cybersecurity talent.71

This analysis confirmed the main 

factors contributing to DHS’s challenges 

recruiting and retaining cybersecurity 

talent: (1) The ever-evolving nature of 

cybersecurity work; (2) an outdated and 

rigid position classification system; and 

(3) a generic and inflexible 

compensation approach based on 

position classification. Constant, often 

unpredictable, changes in cybersecurity 

work require a focus on individuals and 

their skills instead of a focus on 

narrowly-defined and mostly-static jobs 

or positions created for predictable, 

stable work. Significantly, DHS 

organizations struggle to effectively 

describe cybersecurity work using 

outdated and rigid position 

classification methods designed to 

apply generically across government 

and myriad fields of expertise. DHS 

organizations also struggle to 

competitively compensate employees 

using generic and inflexible 

compensation structures that are closely 

linked to those classification methods. 

The following discussion in III.B.1 

through III.B.3 of this document 

explains these main factors and DHS’s 

need for a new approach to 

cybersecurity talent management. 


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72See e.g., Bernard Marr, The Future of Work: 5 

Important Ways Jobs Will Change the 4th Industrial 

Revolution, Forbes, July 15, 2019, available at 

https://www.forbes.com/sites/bernardmarr/2019/ 

07/15/the-future-of-work-5-important-ways-jobswill-change-in-the-4th-industrial-revolution/ 

#3ffd62b754c7 (last visited May 25, 2021); see also 

U.S. Office of Personnel Management, A Fresh Start 

for Federal Pay: The Case for Modernization, (Apr. 

2002), 7 and 42. 

73 Id. 

74See e.g., William Crumpler & James A. Lewis, 

The Cybersecurity Workforce Gap, (Jan. 2019) 

available at https://www.csis.org/analysis/ 

cybersecurity-workforce-gap (last visited May 25, 

2021); (ISC2), Strategies for Building and Growing 

Strong Cybersecurity Teams, (ISC2) Cybersecurity 

Workforce Study, 2019, available at https://

www.isc2.org/Research/2019-CybersecurityWorkforce-Study (last visited May 25, 2021); Martin 

C. Libicki et al., H4CKER5 WANTED: An 

Examination of the Cybersecurity Labor Market, 

National Security Research Division, RAND 

Corporation (2014) available at https://

www.rand.org/content/dam/rand/pubs/research_

reports/RR400/RR430/RAND_RR430.pdf (last 

visited May 25, 2021). 

75 Id. 

76See e.g., (ISC)2, Hiring and Retaining Top 

Cybersecurity Talent: What Employers Need to 

Know About Cybersecurity Jobseekers (2018), 

available at https://www.isc2.org/Research/HiringTop-Cybersecurity-Talent (last visited May 25, 

2021). 

77See e.g., (ISC)2, Strategies for Building and 

Growing Strong Cybersecurity Teams, (ISC)2

Cybersecurity Workforce Study, 2019, available at 

https://www.isc2.org/Research/2019-CybersecurityWorkforce-Study (last visited May 25, 2021); Emil 

Sayegh, As the End of 2020 Approaches, The 

Cybersecurity Talent Drought Gets Worse, Forbes, 

Sep. 22, 2020, available at https://www.forbes.com/ 

sites/emilsayegh/2020/09/22/as-the-end-of-2020- 

approaches-the-cybersecurity-talent-drought-getsworse/?sh=104825545f86 (last visited May 25, 

2021). 

1. Ever-Evolving Nature of 

Cybersecurity Work Requires a Focus on 

the Individual 

To adequately accommodate the everevolving nature of cybersecurity work, 

DHS must design and operate a new 

talent management system with a 

greater focus on individuals and 

individuals’ skills instead of focusing on 

narrowly-defined and mostly-static jobs 

or positions. It is important to note that 

the term ‘‘skills,’’ as used in this 

document, encompasses a full array of 

knowledge, skills, abilities, behaviors, 

aptitudes, competencies, and other 

characteristics and qualities that 

distinguish talent. 

Cybersecurity work, including the 

work necessary to execute the dynamic 

DHS cybersecurity mission, constantly 

changes as technologies and threats 

change. Cybersecurity work is 

knowledge work that requires 

individuals to apply their skills to solve 

problems and achieve outcomes, often 

in unpredictable ways. As cybersecurity 

work changes, both the skills necessary 

to perform that work and how those 

skills are applied to perform that work 

also change. With cybersecurity work, 

as with some other types of knowledge 

work, an individual, because of that 

individual’s specific skills, can have a 

significant influence on how work 

activities and tasks are performed as 

well as the quantity and quality of 

resulting outcomes for the organization. 

Additionally, cybersecurity work is 

intrinsically multidisciplinary, 

requiring individuals with a variety of 

skills associated with multiple academic 

disciplines and areas of professional 

specialization. Cybersecurity work is 

frequently performed in a team format 

in which individuals combine, and 

recombine, a variety of skills to generate 

effective, and potentially novel, 

solutions to problems. The manner in 

which they apply their collective skills 

is unique to the circumstances of each 

problem and cannot always be 

anticipated or described in advance. 

This collaborative work is often 

performed on an ad hoc or project basis. 

Notably, there is no singular or 

standard cybersecurity career path, and 

work arrangements for cybersecurity 

talent continue to change. For some 

contemporary workers, a 30-year 

Federal career is not desirable, and it is 

increasingly common for individuals to 

have careers with multiple significant 

shifts between employers, fields of 

work, and types of jobs.72 A 

cybersecurity career may include a 

variety of work arrangements, including 

part-time work, longer-term jobs or 

assignments, and project-based work for 

limited periods of time. Also, 

collaborative cybersecurity work is often 

performed entirely through digital 

means by geographically dispersed 

individuals. 

To succeed amidst such constant 

changes in cybersecurity work, 

individuals with cybersecurity skills 

look for career opportunities that allow 

them to continually learn in order to 

keep their expertise current and to 

acquire new skills.73 In coming years, 

the proliferation of machine learning, 

artificial intelligence, collaborative 

digital technology, and other advances 

will continue to transform cybersecurity 

work, further reinforcing the 

requirement for individuals performing 

cybersecurity work to maintain and 

acquire relevant, valuable cybersecurity 

skills. As cybersecurity work evolves, 

some cybersecurity skills can quickly 

become obsolete, while some new, 

difficult-to-obtain skills may emerge and 

become highly prized. 

Currently, the demand for 

cybersecurity talent is high and the 

supply of cybersecurity talent is low, 

with studies continuing to document 

and project dramatic critical skills 

shortages in terms of hundreds of 

thousands of employees.74 With this 

shifting and growing skills gap, the 

competition for cybersecurity talent 

among Federal agencies and the private 

sector also shifts and grows. With more 

cybersecurity jobs nationally than 

qualified candidates, many individuals 

with sought-after cybersecurity skills are 

not active job seekers, having secured 

jobs performing work aligned to their 

interests.75 When an individual with 

uncommon cybersecurity skills accepts 

a new cybersecurity job, it is often after 

being pursued by several organizations 

interested in the individual’s 

cybersecurity expertise.76

Private sector employers have 

adjusted to the evolving nature of 

cybersecurity work, careers, and work 

arrangements by adopting new personand skill-focused talent management 

practices that enable them to compete 

for critical talent. Such new practices 

include: Proactive recruitment to 

identify and seek out individuals who 

could be successful at cybersecurity 

work, even if they have never held a job 

in the field; eliminating traditional job 

requirements, like academic degrees, to 

avoid unnecessarily limiting applicant 

pools; and providing training to help 

employees keep skills current.77

DHS can address its historical and 

ongoing challenges recruiting and 

retaining cybersecurity talent by 

designing a new talent management 

system with a focus on the individual 

and individuals’ skills. To do so, DHS 

must create qualified positions based on 

individuals and skills. DHS must design 

and operate recruitment, application, 

and hiring processes to identify 

individuals with necessary skills as well 

as individuals likely to perform DHS 

cybersecurity work successfully, 

including those starting their careers 

who show promise and have an interest 

in public service. DHS must also design 

and operate a compensation system 

providing flexibility to adjust to 

cybersecurity talent market demands 

and recognize how employees influence 

and contribute to the cybersecurity 

mission. DHS can do this under the 

authority and exemptions in 6 U.S.C. 

658, especially the Secretary’s broad 

authority and discretion for designating 

and establishing qualified positions and 

the exemption relating to classification 

of employees. 

2. Outdated, Rigid Position 

Classification Inadequately Describes 

Cybersecurity Work 

Instead of using position classification 

methods and related talent management 


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78U.S. Government Accountability Office reports: 

Human Capital: OPM Needs to Improve the Design, 

Management, and Oversight of the Federal 

Classification System, GAO–14–677 (July 2014) 14– 

18; Human Capital: Opportunities to Improve 

Executive Agencies’ Hiring Process, GAO–03–450 

(May 2003), 14. 

79 Joseph W. Howe, History of the General 

Schedule Classification System, prepared for the 

U.S. Office of Personnel Management, Final Report 

FR–02–25 (Mar. 2002) (Howe Final Report FR–02– 

25) 8, 91, 93. 

80Public Law 81–429 (Oct. 28, 1949). 

81Public Law 67–516 (Mar. 4, 1923). The purpose 

of the Classification Act of 1949 was to improve the 

design and administration of the work valuation 

system from 1923 and improve the pay plan that 

developed around the 1923 work valuation system. 

See Howe Final Report FR–02–25 at 1. The 

Classification Act of 1923 was repealed by the 

Classification Act of 1949, and that Act was 

repealed in 1966 by the law enacting Title 5 and 

codifying the provisions of the Classification Act of 

1949 in 5 U.S.C. Chapters 51 and 53. See Public 

Law 89–544 (Aug. 1966). 

82Public Law 95–454 (Oct. 1978); Howe Final 

Report FR–02–25 at 148 (‘‘The cumulative effect of 

the new statute and the reorganization [the Civils 

Service Reform Act of 1978 and the Reorganization 

Plan No. 2 of 1978] was to change virtually every 

aspect of personnel management—except for job 

evaluation under the General Schedule and the 

Federal Wage System, both of which were 

untouched by civil service reform’’). 

83 Knowledge work involves problem solving and 

leveraging a worker’s knowledge to accomplish the 

work, which may be in the form of a job, process, 

task, or goal. Knowledge work is contrasted with 

manual work that involves simple unskilled 

motions, and adding knowledge to that manual 

work influences the way the motions are put 

together organized and executed. See Peter F. 

Drucker, Knowledge Worker Productivity: The 

Biggest Challenge, 41 California Management 

Review 79 (Winter 1999). 

84U.S. Government Accountability Office reports: 

Federal Workforce: Talent Management Strategies 

to Help Agencies Better Compete in a Tight Labor 

Market, GAO–19–723T (Sept. 2019), 5; Priority 

Open Recommendations: Office of Personnel 

Management, GAO–19–322SP (Apr. 2019), 2; and 

Human Capital: OPM Needs to Improve the Design, 

Management, and Oversight of the Federal 

Classification System, GAO–14–677 (July 2014), 

GAO Highlights section. 

85U.S. Government Accountability Office, 

Human Capital: Opportunities to Improve Executive 

Agencies’ Hiring Process, GAO–03–450 (May 2003), 

14. 

86 Id. 

87U.S. Office of Personnel Management, 

Introduction to the Position Classification 

Standards (2009), 20. 

88Howe Final Report FR–02–25 at 78. 

89 Id. at 283. 

90See e.g., U.S. Office of Personnel Management, 

Job Family Standard for Administrative Work in the 

Information Technology Group, 2200, (May 2001, 

revised Aug. 2003, Sept. 2008, May 2011, Oct. 2018) 

(documenting that in the first two decades of the 

21st-century this classification standard was 

updated only four times, and before May 2001, the 

predecessor Computer Specialist Series, GS–334, 

which covered the majority of two-grade interval 

work in this field, was last revised in July 1991). 

91U.S. Office of Personnel Management, A Fresh 

Start for Federal Pay: The Case for Modernization, 

(Apr. 2002), 27 (‘‘In the Federal Government, job 

evaluation points = grade = base pay. Under this 

approach, job evaluation does not simply inform 

base pay; it dictates base pay) (emphasis original). 

92 Id. (‘‘The [Federal compensation] system’s 

architecture and guidelines do not permit Federal 

agencies to allow non-classification factors—such 

as the importance of the work to the employing 

agency, salaries paid by competing employers, 

turnover rates, and added value derived from 

employees acquiring additional competencies 

practices, DHS must create a new work 

valuation system that recognizes that 

cybersecurity work is constantly 

evolving and that the performance of 

cybersecurity work is highly dependent 

on the skills of individuals. 

Traditional Federal position 

classification serves as the foundation 

for many existing Federal civilian talent 

management practices and provides 

structures that influence talent 

management for much of the Federal 

civil service across agencies. The design 

and operation of traditional Federal 

position classification methods, 

however, presume that mission 

requirements, technology, fields of 

work, and position duties are generally 

static and stable.78 Traditional Federal 

position classification is based on the 

core concepts that Federal work is 

largely predictable and can be defined 

and valued using the same processes 

regardless of mission, the nature of the 

work, or the individual performing the 

work.79

Traditional Federal position 

classification methods are too rigid and 

outdated for cybersecurity talent 

management at DHS because they 

cannot effectively describe and support 

the ever-evolving cybersecurity work 

associated with DHS’s dynamic 

cybersecurity mission. Traditional 

Federal position classification has been 

the foundation of most Federal civilian 

talent management practices since the 

GS position classification system was 

established in the Classification Act of 

1949,80 which was based on the first law 

regarding work valuation, the 

Classification Act of 1923.81 While the 

core concepts and major features of the 

GS position classification system were 

established almost 100 years ago, they 

have remained largely unchanged. 

Notably, classification reform was 

excluded from the largest 

transformation of Federal talent 

management in the last 50 years, the 

Civil Service Reform Act of 1978.82

Traditional Federal position 

classification primarily focuses on the 

work of a position and minimally 

accounts for the individual or the 

individual’s skills, including how the 

individual’s skills may influence the 

performance of work. For decades 

scholars and practitioners have 

discussed the problems with traditional 

Federal position classification’s ability 

to describe knowledge work,83

particularly when multiple disciplines 

are applied by one position or 

individual and when work assignments 

change quickly. For example, the U.S. 

Government Accountability Office 

(GAO) recently highlighted that, almost 

since the inception of the GS position 

classification system in 1949, critics 

have raised questions about its ability to 

keep pace with the evolving nature of 

government work.84 GAO had 

previously explained: ‘‘The 

classification process and standard job 

classifications were generally developed 

decades ago when typical jobs were 

more narrowly defined and, in many 

cases, were clerical or administrative. 

However, today’s knowledge-based 

organizations’ jobs require a broader 

array of tasks that may cross over the 

narrow and rigid boundaries of job 

classification.’’ 85 GAO emphasized that 

under traditional Federal position 

classification, ‘‘the resulting job 

classifications and related pay might not 

match the actual duties of the job. This 

mismatch can hamper efforts to fill the 

positions with the right people.’’ 86

Additionally, position classification 

standards, which supply the criteria for 

classifying positions, describe work as it 

existed and was performed throughout 

Federal agencies at the time the 

standards were developed.87 Rigid 

position classification standards are 

not—and have never been—able to 

adequately support the emerging field of 

cybersecurity or keep pace with rapid 

changes in how cybersecurity work is 

performed. For example, the first 

position classification standards for the 

digital computer occupation were 

published in 1958, but ‘‘rapid changes 

in technology’’ necessitated updates to 

those newly published standards only 

one year later in 1959.88 Decades later 

in 1989, the Merit System Protection 

Board highlighted that Federal 

computer-focused work was subject to 

more rapid change than work in other 

fields.89 Despite such findings, updates 

to position classification standards 

related to cybersecurity have remained 

infrequent, even as technological change 

has accelerated.90 Currently, a 

classification determination using 

outdated position classification 

standards dictates a cybersecurity 

position’s salary under Title 5 and such 

a determination also constricts potential 

future salary for any individual 

appointed to the position.91 Existing 

position classification methods cannot 

accommodate or address significant 

changes in the cybersecurity work of 

such a position or easily acknowledge 

changes in the skills needed to perform 

the work.92


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applicable to the same level of work—to influence 

base pay, other than by notable exception.’’) 

93The DOD DCIPS authority was a consolidation 

of two predecessor DOD authorities relating to 

civilian intelligence personnel in 10 U.S.C. 1604 

specific to the Defense Intelligence Agency (DIA) 

and in 10 U.S.C. 1590 for other civilian intelligence 

officers and employees. See National Defense 

Appropriations Act for Fiscal Year1997 Public Law 

104–201, Sec. 1632 and 1633(a) (Sept. 1996). 

94 10 U.S.C. 1590 (1995) and 10 U.S.C. 1604 

(1995). 

95The DOD DCIPS exemption authority came 

from those two predecessor DOD authorities, and 

the § 658 exemption language mirrors the DOD 

DCIPS exemption authority. See 10 U.S.C. 1590 

(1995); 10 U.S.C. 1604 (1995); and 10 U.S.C. 1601(b) 

(2014). 

96S. Rep. 98–481, Authorizing Appropriation for 

Fiscal Year 1985 For Intelligence Activities of the 

U.S. Government, The Intelligence Community 

Staff, the Central Intelligence Agency Retirement 

and Disability System (CIARDS), and for other 

purposes, Report [To accompany S. 2713] (May 24, 

1984), 8. 

97 Id. 

98 Id. at 9. 

99See generally, U.S. Office of Personnel 

Management, A Fresh Start for Federal Pay: The 

Case for Modernization, (Apr. 2002), 31–34. 

100 Id. at 4–11. 

101See generally, U.S. Office of Personnel 

Management, A Fresh Start for Federal Pay: The 

Case for Modernization, (Apr. 2002), 26–30. 

102 Id. 

103 Id. 

104See supra note 74. 

105See supra note 76. 

Congress has long recognized the role 

traditional Federal position 

classification plays in hampering 

flexibility and innovation when 

addressing recruitment and retention 

challenges. As part of authorizing a 

series of human capital flexibilities for 

civilian intelligence organizations in 

DOD in the 1980s, now consolidated 

within the DOD DCIPS authority,93

Congress included an exemption from 

laws relating to ‘‘classification’’ for 

those DOD organizations.94 This 

classification exemption in the DCIPS 

predecessor authorities is the origin of 

the similar exemption relating to 

classification in 6 U.S.C. 658(b)(1)(B).95

Nearly 40 years ago, in the legislative 

history for one of the DOD DCIPS 

predecessor authorities, Congress 

recognized that the Defense Intelligence 

Agency ‘‘must be able to compete 

effectively in the job market for these 

skills [in foreign intelligence analysis] 

and offer rewarding career prospects to 

retain personnel.’’ 96 Congress also 

recognized: ‘‘Intelligence personnel 

management systems also need to be 

flexible to adjust to changing 

intelligence interests as driven by a 

dynamic world environment.’’ 97 In this 

legislative history, Congress specifically 

called out the classification exemption 

stating: ‘‘Classification authority would 

be granted to permit establishment of 

compensation based on individual 

capabilities and to ensure timely 

assignment and utilization of high 

quality personnel to meet changing 

intelligence requirements.’’ 98

The exemption relating to 

classification in 6 U.S.C. 658 exempts 

DHS from traditional Federal position 

classification systems and methods and 

allows DHS to establish a new work 

valuation system to serve as a new 

foundation for new, specialized talent 

management practices. A new work 

valuation system must have new 

structures to adequately describe everevolving DHS cybersecurity work. It 

must also support creating qualified 

positions based on cybersecurity skills 

and the individuals with those skills 

and operating new talent management 

practices for those positions. 

Importantly, a new work valuation 

system is necessary for a new 

compensation system and must enable 

and support new practices for providing 

competitive compensation. 

3. Generic, Inflexible Compensation 

Limits Ability To Compete for 

Cybersecurity Talent 

Instead of existing compensation 

practices linked to traditional Federal 

position classification, DHS needs a 

new, market-sensitive salary system and 

an agile approach to providing other 

compensation for cybersecurity talent. 

Current Federal civilian compensation 

practices under Title 5 authority are 

designed to apply and be administered 

across a range of agencies, missions, and 

types of work.99 DHS needs a different 

compensation approach for the same 

reasons that DHS needs to create a new 

work valuation system: To recognize 

that cybersecurity work is constantly 

evolving and to recognize that the 

performance of cybersecurity work is 

highly dependent on the skills of 

individuals. Changing the underlying 

work valuation system of a talent 

management system also necessitates 

changing the connected compensation 

system.100

Current compensation approaches for 

most positions in the Federal civil 

service are based on the same core 

concepts as traditional Federal position 

classification: Federal work is presumed 

to be largely predictable and able to be 

described and valued using the same 

processes regardless of mission, the 

nature of the work, or the individual 

performing the work. Such Federal 

compensation approaches use 

traditional Federal position 

classification structures, including 

classes and grades, to facilitate 

systematic management of Federal 

employees and address internal equity 

among similar positions across Federal 

agencies.101 These structures ensure that 

positions are described and paired with 

salary rates in a consistent manner using 

generic salary structures, including the 

GS pay system, that apply across myriad 

fields of work and cannot effectively 

account for an individual’s 

cybersecurity skills or the cybersecurity 

work an individual performs.102 For 

example, the specific requirements for 

salary progression under the GS pay 

schedule, including grade and step 

increases, assume that an employee 

becomes better at work, more qualified, 

and more valuable to an agency with 

each passing year.103

As discussed previously, however, 

cybersecurity work is constantly 

changing and performance of DHS 

cybersecurity work depends on 

individuals with mission-critical skills, 

which also change as technology and 

threats change. Moreover, the 

cybersecurity skills that are the most 

valuable to DHS today might not be as 

valuable to DHS in five, ten, or 30 years. 

For example, DHS, like many 

cybersecurity employers, now needs 

individuals with skills related to mobile 

technology, cloud computing, the 

Internet of Things, embedded and cyberphysical systems, blockchain, 

cryptocurrency and ransomware and 

cyber extortion; the DHS cybersecurity 

mission did not require all these skills 

and specializations ten or even five 

years ago. 

Additionally, there is a specific, 

competitive talent market for 

cybersecurity that comprises both 

cybersecurity talent, which is 

individuals with cybersecurity skills, 

and cybersecurity employers, including 

Federal agencies and private sector 

employers. As discussed previously, the 

current demand for cybersecurity talent 

is high, and the supply of cybersecurity 

talent is low.104 This relationship 

between demand for and supply of 

cybersecurity talent causes competition 

among employers for top cybersecurity 

talent, and as a result, individuals with 

cybersecurity skills, especially 

uncommon skills, have their choice of 

employment opportunities.105

In competing for top cybersecurity 

talent, DHS has the advantage of its 

unique cybersecurity mission. DHS’s 

cybersecurity mission offers DHS 

cybersecurity talent the opportunity to 

work across organizations and with key 

external partners and stakeholders to 

identify and mitigate national 

cybersecurity risks. Unfortunately, DHS 

cannot currently compete with 

compensation packages offered by many 


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106See generally, U.S. Office of Personnel 

Management, A Fresh Start for Federal Pay: The 

Case for Modernization, (Apr. 2002), 4–11, 18. 

107 Id. at 6, 18. 

108See, U.S. Office of Personnel Management, A 

Fresh Start for Federal Pay: The Case for 

Modernization, (Apr. 2002), 4 (‘‘The divergence 

between the Federal pay system and the broader 

world of work where the war for talent must be 

fought has led observers to call for reform of the 

Federal system. To support achievement of the 

Government’s strategic goals, a new, more flexible 

system may be called for, one that better supports 

the strategic management of human capital and 

allows agencies to tailor their pay practices to 

recruit, manage, and retain the talent to accomplish 

their mission’’). 

109See e.g., 5 U.S.C. 4502 (providing awards for 

a suggestion, invention, superior accomplishment 

or other meritorious effort); 5 U.S.C. 4503 

(providing agency awards for special acts); 5 U.S.C. 

4505a (providing performance-based awards for GS 

employees); 5 U.S.C. 4523 (providing foreign 

language capabilities awards for law enforcement 

officers); and 5 U.S.C. 5753–5754 (providing 

recruitment incentives, relocation incentives, and 

retention incentives). 

110See id. For example, 5 U.S.C. 5753 and 5754 

provides incentives for recruitment, relocation, and 

retention, which are commonly referred to as the 

‘‘3Rs’’; however, the 3Rs have separate 

requirements for each of specific situations. 

111See, U.S. Office of Personnel Management, A 

Fresh Start for Federal Pay: The Case for 

Modernization, (Apr. 2002), 12–16. 

private sector employers. DHS’s ability 

to offer competitive compensation to top 

cybersecurity talent, including 

individuals with uncommon, missioncritical skills, is limited by generic 

Federal salary structures, inflexible 

rules and practices for setting and 

adjusting salaries, and inflexible rules 

and practices for providing other 

compensation. 

In contrast, many private sector 

employers can offer individuals with 

cybersecurity expertise competitive 

starting salaries as well as the 

possibility of more rapid raises and 

significant other compensation, such as 

automatic signing bonuses.106 Many 

private sector employers are also able to 

swiftly adjust their compensation 

packages to recruit and retain top talent, 

and they do so with an understanding 

of their major competitors and those 

competitors’ approaches to 

compensation. These private sector 

employers have compensation strategies 

and techniques with built-in agility to 

respond to business or market 

changes.107

In addition to salaries, compensation 

in the cybersecurity talent market 

includes types of other compensation. 

DHS could offer other compensation 

using the existing Federal compensation 

toolset; however, it is both cumbersome 

to use and ineffective for constructing 

market-sensitive compensation packages 

capable of recruiting highly-skilled 

cybersecurity talent.108 That toolset 

comprises a complex set of separate 

types of compensation for specific 

Federal talent management situations 

and are not intended to form a cohesive 

set. For example, there are multiple 

types of incentives and cash payments 

available,109 and each type applies to a 

different recruitment or retention 

situation and has different rules and 

requirements, including approvals, 

amount limitations, and administration 

processes.110 This incohesive toolset 

also is designed to complement generic 

Federal salary structures, and much like 

those structures, it is designed to apply 

and be administered across a range of 

agencies, missions, and fields of work, 

and is not intended to be marketsensitive.111 To construct a competitive 

compensation package, especially one 

that is responsive to the talent market, 

requires piecing together these separate 

types of compensation and attempting 

to do so in a timely manner. 

The compensation authority in 6 

U.S.C. 658, as well as the exemptions 

relating to classification and 

compensation, allows DHS to establish 

a new compensation system to 

effectively recruit and retain 

cybersecurity talent by offering 

competitive compensation. And if DHS 

is creating a new work valuation system, 

DHS must create a new compensation 

approach that is based on that new work 

valuation system. A new compensation 

system also must be based on 

cybersecurity skills, people with those 

skills, and the value of those skills to 

DHS. Such an approach to 

compensation must be informed both by 

DHS mission needs and trends affecting 

compensation of individuals with 

cybersecurity skills in the broader 

cybersecurity talent market. A new 

compensation system must provide 

flexibility to adjust to cybersecurity 

talent market demands and recognize 

mission impact, instead of rewarding 

longevity in position or Federal 

government service; it must also provide 

flexibility to consider an individual’s 

total compensation and quickly 

construct and nimbly adjust a 

competitive total compensation 

package. 

IV. Discussion of the Rule 

To address the Department’s 

historical and ongoing challenges 

recruiting and retaining cybersecurity 

talent, DHS is re-envisioning talent 

management for 21st-century 

cybersecurity work under the authority 

in 6 U.S.C. 658. The result is CTMS. 

CTMS is a mission-driven, personfocused, and market-sensitive approach 

to talent management. CTMS relies on 

new concepts and definitions and 

features interrelated elements, which 

are new processes, systems, and 

programs, that are based on leading 

public and private sector talent 

management practices. 

CTMS is designed to be responsive to 

the ever-evolving field of cybersecurity 

and the dynamic DHS cybersecurity 

mission. This innovative talent 

management approach is intended to 

support and remain aligned to the 

cybersecurity work that executes the 

DHS cybersecurity mission, even as 

technology, relevant expertise, and 

cybersecurity work arrangements 

change. 

The result of this approach to talent 

management is the DHS–CS. The DHS– 

CS comprises qualified positions 

created under CTMS and employees 

serving in those positions and covered 

by CTMS. 

The DHS–CS is a new cadre within 

the broader DHS cybersecurity 

workforce supporting execution of the 

DHS cybersecurity mission. The DHS– 

CS is not intended to replace the DHS 

civilian employees and United States 

Coast Guard Military personnel 

currently performing work relating to 

cybersecurity. 

DHS will first use CTMS and hire the 

first DHS–CS employees in the 

Cybersecurity and Infrastructure 

Security Agency (CISA) and DHS Office 

of the Chief Information Officer (DHS 

OCIO). DHS will operate CTMS in work 

units consistent with its rights and 

obligations under the Federal Service 

Labor Management Relations Statute. 

Additionally, 6 U.S.C. 658(e) prohibits 

the involuntary conversion of existing 

DHS employees into the DHS–CS. 

Accordingly, current DHS employees 

will not be placed into qualified 

positions or required to join the DHS– 

CS. All individuals interested in 

supporting the DHS cybersecurity 

mission by serving in the DHS–CS, 

including current DHS employees, other 

Federal employees, and private citizens, 

must apply for employment under 

CTMS. 

DHS is adding a new part 158 to Title 

6 of the Code of Federal Regulations to 

implement and govern CTMS and the 

DHS–CS. Part 158 contains several 

subparts setting forth the interrelated 

CTMS elements that function together 

as a complete talent management 

system. The subparts and sections in 

part 158 contain internal crossreferences indicating where one element 

of the system influences another 

element. 

Subparts A and B of part 158 address 

the new approach to talent management, 

new talent management concepts and 

CTMS-specific definitions, and the 


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112 6 U.S.C. 658(a)(5). 

113 6 U.S.C. 658(b)(1)(A)(i). 

DHS–CS. Subpart C addresses CTMS 

and DHS–CS leadership. Subpart D 

introduces the CTMS element of 

strategic talent planning that enables 

CTMS to be mission-driven, personfocused, and market-sensitive. Subparts 

E, F, G, and H address CTMS elements 

for acquiring talent, compensating 

talent, deploying talent, and developing 

talent, respectively. Subpart I addresses 

Federal civil service employee rights 

and requirements that apply under 

CTMS and in the DHS–CS and Subpart 

J addresses CTMS political 

appointments, known as advisory 

appointments. 

New part 158 establishes CTMS and 

the DHS–CS and the policy framework 

for both. Part 158 sets the parameters for 

how DHS will administer CTMS and 

manage the DHS–CS. Internal DHS 

policy implementing part 158 will 

provide operational detail. Part 158 

implements the Secretary’s authority in 

6 U.S.C. 658 and it is the Secretary or 

the Secretary’s designee who establishes 

and administers CTMS and establishes 

and manages the DHS–CS. Part 158 also 

makes clear that it is the Secretary or the 

Secretary’s designee who establishes 

and administers the CTMS elements, 

while it is the ‘‘Department’’ that 

operates the elements. As defined in 

§ 158.104, the term ‘‘Department’’ 

means the Department of Homeland 

Security. In internal DHS policy 

implementing part 158, the Secretary 

will, as necessary, delegate authority 

and designate and delineate roles and 

responsibilities for specific DHS 

organizations and officials. 

A. New Approach to Talent 

Management: Subparts A & B 

Subpart A in new 6 CFR part 158 

addresses the design, establishment, and 

coverage of CTMS and the DHS–CS, the 

authority for part 158, and new talent 

management concepts and CTMSspecific definitions. Subpart B in new 

part 158 addresses the DHS–CS and sets 

out the main aspects of the DHS–CS and 

employment in the DHS–CS. 

1. Subpart A—General Provisions 

Part 158, subpart A, General 

Provisions, contains regulations 

addressing the design and establishment 

of CTMS. CTMS encompasses the 

definitions and processes, systems, and 

programs established under part 158. As 

stated in § 158.101, CTMS is designed to 

recruit and retain individuals with the 

qualifications necessary to execute the 

DHS cybersecurity mission. CTMS is 

also designed to adapt to changes in 

cybersecurity work, the cybersecurity 

talent market, and the DHS 

cybersecurity mission. 

Along with CTMS, DHS is 

establishing the DHS–CS. See § 158.101. 

As defined in § 158.104, the DHS–CS 

comprises all qualified positions 

designated and established under CTMS 

and all employees appointed to 

qualified positions. DHS hires, 

compensates, and develops DHS–CS 

employees using CTMS. Section 

158.103 explains that part 158 covers 

CTMS, the DHS–CS, all individuals 

interested in joining the DHS–CS, all 

DHS–CS employees, and all individuals 

involved in managing DHS–CS 

employees and all individuals involved 

in any talent management actions using 

CTMS. 

The adaptable design of CTMS 

enables DHS to manage the DHS–CS 

with a focus on mission-critical 

qualifications, even as cybersecurity 

work, the cybersecurity talent market, 

and the DHS cybersecurity mission 

change. 

As discussed previously in III.A of 

this document, the authority in 6 U.S.C. 

658, especially the authority and 

discretion for designating and 

establishing qualified positions and the 

exemption from laws relating to 

classification, enable DHS to create this 

new mission-driven, person-focused, 

and market-sensitive approach. As also 

discussed previously in III.B, DHS 

needs this new approach for 21stcentury cybersecurity work and to 

address DHS’s challenges recruiting and 

retaining cybersecurity talent. 

(a) A New Type of Position: Qualified 

Positions 

Under part 158, ‘‘qualified position’’ 

means CTMS qualifications and DHS– 

CS cybersecurity work, the combination 

of which is associable with an 

employee. See § 158.104. The purpose 

of this conceptual definition of qualified 

position is to capture the relationship 

between CTMS qualifications and DHS– 

CS cybersecurity work: An individual 

with those qualifications should be able 

to successfully and proficiently perform 

that range of cybersecurity work. The 

cybersecurity work of a qualified 

position represents a range of potential 

DHS cybersecurity work, in 

acknowledgement that qualifications 

can be applied in a variety of ways to 

produce a variety of work outcomes, 

including some that are hard to predict 

or describe in detail in advance. DHS 

also uses the term qualified position in 

the administration and operation of 

CTMS to refer to the specific qualified 

position established for a DHS–CS 

employee upon appointment. A DHS– 

CS employee’s qualified position is the 

employee’s assessed CTMS 

qualifications and the range of work that 

employee can successfully and 

proficiently perform with those 

qualifications. When DHS documents a 

DHS–CS employee’s qualified position 

as part of recordkeeping under 

§ 158.706, DHS is documenting that 

employee’s CTMS qualifications and the 

employee’s related range of work. 

DHS is creating qualified positions as 

a new type of Federal civil service 

position with a focus on individuals and 

qualifications under the Secretary’s 

authority and discretion for designating 

and establishing qualified positions and 

the exemption from laws relating to 

classification in 6 U.S.C. 658. DHS is 

not using existing types of positions 

defined under Chapter 51 position 

classification, or processes from Title 5 

or other laws, to create qualified 

positions. 

As explained previously in III.C.1 of 

this document, under the authority and 

exemptions in 6 U.S.C. 658, DHS may 

determine the use of qualified positions 

and create such positions as new 

positions in the excepted service. DHS 

may do so without regard to existing 

definitions of positions, and how the 

concept of position is currently used, in 

other Federal talent management 

systems. DHS designates and establishes 

qualified positions based on the DHS 

cybersecurity mission and the skills, or 

qualifications, individuals must possess 

to execute that mission. 

Designating and establishing qualified 

positions based on the DHS 

cybersecurity mission and individuals’ 

qualifications implements the statutory 

definition and description of qualified 

position. Section 658 defines a qualified 

position as a position, designated by the 

Secretary, in which the incumbent 

performs, manages, or supervises 

functions that execute the 

responsibilities of DHS relating to 

cybersecurity.112 The statute also 

describes qualified positions as 

positions the Secretary, in establishing 

those positions, determines are 

necessary to carry out DHS’s 

cybersecurity responsibilities.113 In both 

instances, the statute vests substantial 

discretion in the Secretary to determine 

which positions are qualified positions 

under the statute. This rule retains that 

discretion. 

Designating and establishing qualified 

positions as a new type of position also 

implements the statutory description of 

establishing qualified positions, which 

indicates they may be a type of position 

or a category that includes several types 

of positions. The statutory description 

of establishing qualified positions states 


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114 6 U.S.C. 658(a)(b)(1)(A)(i)(I)–(II). 

115Congress also explicitly excludes any 

‘‘qualified positions’’ established under 6 U.S.C. 

658 from the definition of ‘‘Senior Executive 

Position’’ under Title 5. 5 U.S.C. 3132 (a)(2)(iii). 

116While the Secretary has broad authority and 

discretion to create qualified positions, the 

Secretary may not create qualified positions from 

existing DHS positions through the involuntary 

conversion of positions, and DHS employees 

serving in those positions, from the competitive 

service to the excepted service. 6 U.S.C. 658(e). 

117OPM defines a competency as ‘‘a measurable 

pattern of knowledge, skills, abilities, behaviors and 

other characteristics that an individual needs in 

order to perform work roles or occupational 

functions successfully.’’ Office of Personnel 

Management, Delegated Examining Operations 

Handbook: A Guide for Federal Agency Examining 

Offices (June 2019), page 2–13. Examples of 

competencies include oral communication, 

flexibility, customer service, and leadership. Id. 

118See National Research Council, 

Professionalizing the Nation’s Cybersecurity 

Workforce?: Criteria for Decision-Making, The 

National Academies Press (2013) available at 

https://doi.org/10.17226/18446 (last visited May 25, 

2021) (examining workforce requirements for 

cybersecurity and the segments and job functions in 

which professionalization is most needed; the role 

of assessment tools, certification, licensing, and 

other means for assessing and enhancing 

professionalization; and emerging approaches, such 

as performance-based measure). 

119 29 CFR part 1607 and U.S. Equal Employment 

Opportunity Commission, Questions and Answers 

to Clarify and Provide a Common Interpretation of 

the Uniform Guidelines on Employee Selection 

Procedures, EEOC–NVTA–1979–1 (Mar. 1, 1979). 

120American Psychological Association, 

Principles for the Validation and Use of Personnel 

Selection Procedures, (5th Ed. Aug. 2018), available 

at https://www.apa.org/ed/accreditation/about/ 

policies/personnel-selection-procedures.pdf (last 

visited May 25, 2021). 

that qualified positions may include 

positions ‘‘formerly identified as’’ SL/ 

ST positions and SES positions.114 The 

‘‘formerly identified as’’ language 

identifies SL/ST positions and SES 

positions as examples of types of 

positions the Secretary may designate 

and establish as qualified positions.115

Thus, qualified positions may be similar 

to SL/ST positions and SES positions, 

but these non-exhaustive examples do 

not limit the Secretary to creating 

qualified positions only as SL/ST-like 

positions and SES-like positions.116

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. See § 158.203. 

Designating and establishing qualified 

positions is discussed further in IV.A.2 

of this document. 

(b) A New Definition of ‘‘Qualifications’’ 

As mentioned previously, DHS is 

defining individuals’ cybersecurity 

skills as ‘‘qualifications’’ for purposes of 

designating and establishing qualified 

positions. Individuals’ cybersecurity 

skills encompass a full array of 

characteristics and qualities that 

distinguish talent. 

Under part 158, ‘‘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. See § 158.104. A capability 

is a cluster of interrelated attributes that 

is measurable or observable or both. A 

capability under CTMS is analogous to 

a grouping of competencies.117

Interrelated attributes under CTMS 

include knowledge, skills, abilities, 

behaviors, and other characteristics. 

DHS must create its own 

qualifications for its unique 

cybersecurity mission because the field 

of cybersecurity currently lacks formal, 

universal standards for cybersecurity 

skills on which to base CTMS 

qualifications. As discussed previously 

in III.B.1 of this document, 

cybersecurity skills continue to change 

at a staggering pace because of the everevolving nature of cybersecurity work. 

This rapid change hampers 

professionalization in the field of 

cybersecurity, including the 

establishment of universal standards for 

cybersecurity skills.118 Moreover, DHS’s 

unique cybersecurity mission requires 

specialized skills and specific 

combinations of those skills. Therefore, 

DHS needs to identify, validate, and 

maintain its own set of qualifications 

necessary to execute the DHS 

cybersecurity mission, including the 

unique functions and responsibilities of 

DHS organizations. 

DHS identifies CTMS qualifications as 

part of the strategic talent planning 

process. See §§ 158.401 and 158.402. On 

an ongoing basis, DHS identifies the 

functions that execute the DHS 

cybersecurity mission, the cybersecurity 

work required to perform, manage, or 

supervise those functions, and the 

qualifications necessary to perform that 

work. DHS comprehensively identifies 

DHS cybersecurity work, and identifies 

a set of qualifications necessary to 

perform that work. This comprehensive 

set of CTMS qualifications reflects the 

collective expertise necessary to execute 

the DHS cybersecurity mission. 

With the assistance of both industrial 

and organizational psychologists and 

DHS cybersecurity experts, DHS 

identifies, documents, and verifies those 

qualifications. To ensure CTMS 

qualifications are appropriately workrelated, DHS identifies CTMS 

qualifications in accordance with 

appropriate legal and professional 

guidelines, such as the Uniform 

Guidelines on Employee Selection 

Procedures 119 and the Principles for the 

Validation and Use of Personnel 

Selection Procedures.120

DHS organizes CTMS qualifications 

into broad categories defined primarily 

in terms of capabilities, such as general 

professional capabilities, cybersecurity 

technical capabilities, and leadership 

capabilities. Such categories of 

capabilities are further defined using 

proficiency standards or scales. 

Professional capabilities, such as critical 

analysis, customer orientation, and 

effective communication, are required 

in some capacity for all DHS 

cybersecurity work. Cybersecurity 

technical capabilities, such as 

cybersecurity engineering, digital 

forensics, and vulnerability assessment, 

are required in different combinations 

and at different proficiency levels for 

specific categories of cybersecurity 

work. For example, individuals 

performing entry-level cybersecurity 

work often require very little 

proficiency in technical capabilities to 

be successful, and those performing 

expert-level, highly-specialized work 

often require a high level of proficiency 

in one or more technical capabilities to 

be successful. Cybersecurity work 

related to leading people and 

organizations requires leadership 

capabilities, such as leading change, 

leading organizations, and resource 

management, and DHS cybersecurity 

senior leadership requires the highest 

levels of proficiency in such 

capabilities. 

CTMS qualifications derived from the 

dynamic DHS cybersecurity mission are 

the core of CTMS and its elements. DHS 

determines which individuals to recruit 

and retain based on the specific CTMS 

qualifications they are likely to possess 

and have been demonstrated to possess. 

CTMS qualifications are a key 

component of the work valuation 

system, the talent acquisition system, 

the compensation system, the 

performance management program, and 

the career development program, each 

discussed subsequently in this 

document. 

DHS is using qualifications as the core 

of CTMS and may do so under the 

Secretary’s authority and discretion for 

designating and establishing qualified 

positions and the exemption from laws 

relating to classification in 6 U.S.C. 658. 

(c) Other Definitions 

In subpart A, § 158.104 defines terms 

used throughout part 158, several of 

which incorporate new concepts and are 

specific to CTMS, like qualified 

positions and qualifications, discussed 


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121 6 U.S.C. 658(b)(3)(A) (‘‘compensation (in 

addition to basic pay), including benefits, 

incentives, and allowances’’). 

previously. Other new terms and 

definitions in § 158.104 include the 

following: 

• ‘‘Assignment’’ means a description 

of a specific subset of DHS cybersecurity 

work and a specific subset of CTMS 

qualifications necessary to perform that 

work, the combination of which is 

associable with a qualified position. 

This conceptual definition of 

assignment connects the performance of 

particular work to broader qualifications 

and cybersecurity work of a qualified 

position. DHS also uses the term 

assignment in the administration and 

operation of CTMS to refer to and 

document the details of a DHS–CS 

employee’s current role related to the 

cybersecurity mission. A DHS–CS 

employee’s assignment is a description 

of a specific subset of DHS–CS 

cybersecurity work, a specific subset of 

the employee’s CTMS qualifications, 

and how the employee is expected to 

apply those qualifications to perform 

that work. Assignments are discussed 

further in IV.A.2 of this document. 

• ‘‘CTMB’’ means the Cybersecurity 

Talent Management Board that assists 

the Secretary, or the Secretary’s 

designee, in administering CTMS and 

managing the DHS–CS. The Secretary or 

the Secretary’s designee appoints 

officials to serve on the CTMB and 

designates the CTMB’s Co-Chairs. 

• ‘‘Cybersecurity work’’ means 

activity involving mental or physical 

effort, or both, to achieve results relating 

to cybersecurity. 

• ‘‘DHS–CS cybersecurity work’’ 

means the cybersecurity work identified 

based on the DHS cybersecurity 

mission. 

• ‘‘DHS cybersecurity mission’’ 

encompasses all responsibilities of DHS 

relating to cybersecurity and is fully 

described in § 158.201. 

• ‘‘Mission impact’’ means a DHS–CS 

employee’s influence on execution of 

the DHS cybersecurity mission through 

application of the employee’s CTMS 

qualifications to successfully and 

proficiently perform DHS–CS 

cybersecurity work. Mission impact is a 

factor in DHS–CS employee 

compensation, performance 

management, and development. Mission 

impact is discussed further as part of the 

compensation system, the performance 

management program, and the career 

development program in IV.E and IV.G, 

of this document respectively. 

• ‘‘Anticipated mission impact’’ 

means the influence DHS anticipates an 

individual to 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. 

Anticipated mission impact of an 

individual selected for appointment to a 

qualified position can be a factor in 

providing compensation for that 

individual, including initial salary and 

any recognition payment or recognition 

time-off offered as a signing bonus. 

Anticipated mission impact is discussed 

further as part of the compensation 

system in IV.E of this document. 

• ‘‘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 (1) associated with 

successful execution of the DHS 

cybersecurity mission, and that are (2) 

determined by officials with appropriate 

decision-making authority. Missionrelated requirements are relevant for 

addressing emerging or urgent mission 

circumstances that are not yet reflected 

in the set of CTMS qualifications, or that 

may be temporary in nature, but need to 

be addressed nonetheless. Missionrelated requirements are a factor in 

salary setting and DHS–CS employee 

recognition under the compensation 

system, matching DHS–CS employees 

with assignments under the deployment 

program, and guiding DHS–CS 

employee career progression under the 

career development program, all 

discussed subsequently. 

• ‘‘Strategic talent priorities’’ means 

the priorities for CTMS and the DHS–CS 

set by the Secretary or the Secretary’s 

designee on an ongoing basis under 

§ 158.304. The Secretary or the 

Secretary’s designee uses strategic talent 

priorities for administering CTMS and 

managing the DHS–CS. Strategic talent 

priorities inform strategic recruiting 

under the talent acquisition system, 

salary setting and DHS–CS employee 

recognition under the compensation 

system, matching DHS–CS employees 

with assignments under the deployment 

program, and guiding DHS–CS 

employee career progression under the 

career development program, all 

discussed subsequently. 

Other terms used throughout part 158 

that are not necessarily new, but are 

defined in § 158.104 specific to CTMS 

include the following: 

• ‘‘Additional compensation’’ is 

several types of CTMS-specific 

compensation and is described in 

§ 158.603(c) as recognition, other special 

pay, and other types of compensation 

such as leave and benefits. Note that 

benefits for Federal employees provided 

under Title 5, such as leave and 

retirement, are usually treated as 

separate from Federal pay or 

compensation, but under 6 U.S.C. 658 

benefits are explicitly considered 

compensation.121

• Appointment types under CTMS 

are: ‘‘renewable appointment,’’ 

‘‘continuing appointment,’’ and 

‘‘advisory appointment.’’ Each type of 

appointment is analogous to a type of 

appointment under Title 5 and is 

discussed further in IV.C.3. of this 

document. 

• ‘‘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 DOD. DHS 

analyzes the cybersecurity talent market 

to identify and monitor employment 

trends and to identify leading strategies 

for recruiting and retaining 

cybersecurity talent. That analysis is 

part of the strategic talent planning 

process and informs the compensation 

system, discussed subsequently. 

• ‘‘Salary’’ means an annual rate of 

pay under CTMS and is basic pay for 

purposes under Title 5. Note that 

instead of the term basic pay, the term 

salary is used to describe a DHS–CS 

employee’s annual rate of pay. 

• ‘‘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. DHS purposefully uses the 

term talent management for CTMS 

because of its focus on people and its 

association with integrated, strategic 

approaches to recruitment and retention 

of talent in alignment with 

organizational goals. This contrasts with 

traditional Federal terms, such as 

human resources and personnel 

management, which are often 

characterized by tactical execution of 

administrative processes and 

compliance activities. Note, however, 

that a ‘‘talent management action’’ 

under CTMS has the same meaning as 

‘‘personnel action’’ under Title 5. 

• ‘‘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 

CTMS. For example, similar 

characteristics may include level or type 

of technical expertise or a level or type 

of leadership responsibility. Work level 

is one of the work and career structures 

established by the new work valuation 

system, and is discussed further in 

IV.C.3 of this document. 


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• ‘‘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. Under CTMS, DHS uses the new 

person-focused work valuation system 

instead of the GS or another traditional 

Federal position classification system 

based on 5 U.S.C. Chapter 51. 

Other terms used throughout part 158 

with definitions set forth in § 158.104 

include ‘‘DHS–CS employee,’’ and 

‘‘DHS–CS advisory appointee,’’ and 

other terms already defined in law, such 

as ‘‘cybersecurity risk,’’ ‘‘cybersecurity 

threat,’’ and ‘‘functions,’’ which are 

defined in Title 6 of the U.S. Code. An 

additional term defined in § 158.104 is 

‘‘CTMS policy,’’ which is internal DHS 

policy, and means DHS’s decisions 

implementing and operationalizing the 

regulations in part 158, and includes 

directives, instructions, and operating 

guidance and procedures for DHS 

employees. 

(d) Authority & Policy Framework 

In subpart A, § 158.102 states that 6 

U.S.C. 658 is the authority for part 158 

and CTMS and explains the scope of 

that authority. As discussed in III.C of 

this document, DHS has broad authority 

to design and establish CTMS as a new 

approach to talent management and 

establish the resulting DHS–CS. By 

statute, the Secretary’s authority 

‘‘applies without regard to the 

provisions of any other law relating to 

the appointment, number, classification, 

or compensation of employees.’’ See 6 

U.S.C. 658(b)(1)(B). Consistent with this 

authority, § 158.102 explains that part 

158 supersedes all other provisions of 

law and policy relating to appointment, 

number, classification, or compensation 

of employees that conflict with 6 U.S.C. 

658, the regulations in part 158, or 

CTMS policy implementing part 158. 

Also, subparts C, D, E, and F each 

contain a section that lists specific 

provisions of other laws that, under the 

exemption in 6 U.S.C. 658 regarding 

appointment, number, classification, 

and compensation of employees, are 

inapplicable under CTMS. See 

§§ 158.405, 158.502, 158.605, and 

158.709. 

Section 158.102 also explains that 

some compensation under CTMS is 

provided in accordance with other 

provisions of law, including OPM 

regulations, but that CTMS 

compensation is only authorized under 

part 158. Additionally, § 158.102 

explains that when some CTMS 

compensation is provided in accordance 

with relevant provisions of other laws, 

including OPM regulations, DHS 

follows those other provisions to the 

extent compatible with talent 

management under CTMS. To maintain 

the integrity of CTMS, DHS may need to 

modify application of relevant 

provisions of other laws regarding 

compensation for the DHS–CS. This is 

because some of the terms, or concepts, 

used in those other relevant provisions 

are not used under CTMS, and DHS may 

have to extrapolate between those terms 

and concepts and CTMS terms and 

concepts to apply those other 

provisions. 

The regulations in part 158 set up the 

policy framework for CTMS and the 

DHS–CS, and DHS administers CTMS 

and manages the DHS–CS under part 

158 and CTMS policy implementing 

part 158, which is internal DHS policy. 

See § 158.101. If DHS determines 

additional provisions of other laws or 

policy concerning Federal employment 

apply under CTMS, DHS will 

implement those other laws or policy in 

CTMS policy. When any talent 

management situation or emerging issue 

regarding the DHS–CS needs 

clarification, DHS will do so in CTMS 

policy. 

Section 158.102 also includes a 

preservation of authority clause to 

ensure it is clear that nothing in part 

158 shall be deemed or construed to 

limit the authority under 6 U.S.C. 658 

and any further implementation or 

interpretation of that authority. If DHS 

determines any such implementation or 

interpretation necessitates a change in 

part 158, DHS will issue an amendment 

to this rule. 

2. Subpart B—DHS Cybersecurity 

Service 

Subpart B, DHS Cybersecurity 

Service, contains regulations addressing 

the DHS cybersecurity mission and the 

DHS–CS. Regulations in subpart B also 

explain the main aspects of employment 

for DHS–CS employees, including 

assignments in the DHS–CS. This 

subpart provides an overview of CTMS 

from an applicant or DHS–CS employee 

perspective and provides references to 

other rule sections for more information. 

This subpart explains generally the 

mission-driven, person-focused, marketsensitive approach that DHS is 

establishing under the authority and 

exemptions in 6 U.S.C. 658. 

(a) Mission 

The DHS cybersecurity mission drives 

talent management under CTMS and 

§ 158.201 describes the DHS 

cybersecurity mission for purposes of 

CTMS. This mission encompasses all 

responsibilities of DHS relating to 

cybersecurity. It is dynamic to keep 

pace with the evolving cybersecurity 

risks and cybersecurity threats facing 

the Nation and to adapt to any changes 

in DHS’s cybersecurity responsibilities. 

As part of establishing CTMS, DHS is 

also establishing the DHS–CS, the 

purpose of which is to enhance the 

cybersecurity of the Nation through the 

most effective execution of the DHS 

cybersecurity mission. See § 158.202. 

The DHS–CS comprises all qualified 

positions designated and established 

under CTMS and all employees serving 

in qualified positions. 

(b) Qualified Positions 

DHS designates qualified positions 

under the deployment program, 

described in § 158.701. See § 158.203. 

Designating qualified positions is part of 

determining whether DHS needs to use 

CTMS to recruit and retain individuals 

possessing CTMS qualifications. The 

process of designating qualified 

positions is set out in § 158.702. This 

process, and the deployment program 

generally, are discussed further in IV.F 

of this document. 

DHS establishes qualified positions 

under the talent acquisition system, 

described in § 158.501, by appointing an 

individual to a previously designated 

qualified position. See § 158.203. DHS 

establishes and fills qualified positions 

concurrently. The talent acquisition 

system, and the processes for assessing, 

selecting, and appointing an individual, 

are discussed further in IV.D of this 

document. 

(c) DHS–CS Employees 

All employees serving in qualified 

positions are DHS–CS employees and 

all DHS–CS employees are in the 

excepted service. DHS hires, 

compensates, and develops DHS–CS 

employees using CTMS. See § 158.204. 

DHS manages the DHS–CS based on 

DHS–CS core values of expertise, 

innovation, and adaptability, set out in 

§ 158.305 and discussed subsequently. 

DHS–CS employees execute the DHS– 

CS cybersecurity mission by applying 

their CTMS qualifications to perform 

the DHS–CS cybersecurity work of their 

assignments. See § 158.204. Successful 

and proficient performance of that work 

results in mission impact, which is 

defined in § 158.104 as the employee’s 

influence on the DHS cybersecurity 

mission. DHS reviews and recognizes a 

DHS–CS employee based on the 

employee’s mission impact. See 

§§ 158.204, 158.630, and 158.805. 

DHS provides compensation to DHS– 

CS employees in alignment with the 

CTMS compensation strategy, and 

compensation under CTMS includes 

both salary and additional 


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compensation. See §§ 158.204, 158.601, 

and 158.603. Also, DHS strategically 

and proactively recruits individuals for 

employment in the DHS–CS, and DHS 

guides the development and career 

progression of DHS–CS employees. See 

§§ 158.204, 158.510, and 158.803. 

(d) DHS–CS Assignments 

As explained in § 158.205, each DHS– 

CS employee has one or more 

assignments during the employee’s 

service in the DHS–CS. 

Each DHS–CS employee receive an 

initial assignment upon appointment to 

a qualified position. See §§ 158.205 and 

158.703. A DHS–CS employee may later 

receive a subsequent assignment, but a 

DHS–CS employee may only have one 

assignment at a time. 

DHS designates and staffs 

assignments under the deployment 

program. See §§ 158.205 and 158.703. 

The deployment program, and the 

processes for designating and staffing 

assignments, is discussed further in IV.F 

of this document. 

B. CTMS and DHS–CS Leadership: 

Subpart C 

Subpart C, Leadership, sets up the 

leadership structure for administering 

CTMS, including the Cybersecurity 

Talent Management Board (CTMB). 

Subpart C also contains regulations 

addressing the influence of the merit 

system principles on CTMS and the 

DHS–CS, and establishing strategic 

talent priorities and DHS–CS core 

values. 

1. Leaders 

As stated in § 158.301, the Secretary, 

or the Secretary’s designee, is 

responsible for administering CTMS and 

managing the DHS–CS. This includes 

establishing and maintaining CTMS 

policy implementing part 158. 

The Cybersecurity Talent 

Management Board (CTMB) assists the 

Secretary, or the Secretary’s designee, in 

administering CTMS and managing the 

DHS–CS. See § 158.301. The CTMB 

comprises officials representing DHS 

organizations involved in executing the 

DHS cybersecurity mission and officials 

responsible for developing and 

administering talent management 

policy. See § 158.302. The Secretary or 

the Secretary’s designee appoints 

officials to serve on the CTMB and 

designates the CTMB’s Co-Chairs. 

The CTMB shapes and monitors 

CTMS and the DHS–CS. The CTMB 

periodically evaluates whether CTMS is 

recruiting and retaining individuals 

with the qualifications necessary to 

execute the DHS cybersecurity mission. 

See § 158.302. The CTMB may use 

information from this evaluation to 

recommend, or make, adjustments to 

CTMS, which may include 

improvements to the administration or 

operation of CTMS elements and 

practices. The CTMB may designate an 

independent evaluator to conduct an 

evaluation, as necessary. 

2. Principles, Priorities, and Core Values 

The Secretary or Secretary’s designee, 

with assistance from the CTMB, 

administers CTMS and manages the 

DHS–CS based on: Talent management 

principles that address merit system 

principles, advancing equity, and equal 

employment opportunity; strategic 

talent priorities for CTMS and the DHS– 

CS; and DHS–CS core values. These 

principles, priorities, and core values 

are set out in §§ 158.303 through 

158.305. 

As stated in § 158.303, CTMS is 

designed and administered based on the 

core Federal talent management 

principles of merit and fairness 

embodied by the merit system 

principles in 5 U.S.C. 2301(b). While 

CTMS is an innovative approach to 

talent management, featuring new, 

specialized practices not present in 

many Federal civilian personnel 

systems, CTMS remains a merit system 

in which Federal employment is based 

on merit and individual competence 

instead of political affiliation, personal 

relationships, or other non-merit factors. 

CTMS features elements and practices 

for acknowledging individuals’ 

qualifications and ensuring individuals 

are treated equitably based on merit and 

for ensuring DHS–CS employees are 

managed in the public interest. 

Additionally, the prohibited personnel 

practices in 5 U.S.C. 2302(b) apply to 

CTMS and the individuals covered by 

CTMS. 

In addition to the influence of the 

merit system principles and application 

of prohibited personnel practices, CTMS 

is designed, and administered, and DHS 

manages the DHS–CS, in accordance 

with applicable anti-discrimination 

laws and policies. See § 158.303. Talent 

management actions under CTMS that 

materially affect a term or condition of 

employment must be free from 

discrimination. See § 158.303. Through 

such commitment to antidiscrimination, DHS aims to reinforce 

the design of CTMS as a merit system, 

in which all individuals, including 

those belonging to underserved 

communities that have been denied 

consistent and systematic fair, just, and 

impartial treatment in cybersecurity and 

Federal employment historically, are 

treated equitably and without 

discrimination. In alignment with 

Executive Order 13985, underserved 

communities for which DHS seeks to 

ensure equal employment opportunity 

include Black, Latino, and Indigenous 

and Native American persons, Asian 

Americans and Pacific Islanders and 

other persons of color; members of 

religious minorities; lesbian, gay, 

bisexual, transgender, and queer 

(LGBTQ+) persons; persons with 

disabilities; persons who live in rural 

areas; and persons otherwise adversely 

affected by persistent poverty or 

inequality. 

Under § 158.304, the Secretary or 

Secretary’s designee, with assistance 

from the CTMB, sets strategic talent 

priorities for CTMS and the DHS–CS on 

an ongoing basis using a variety of 

information. Importantly, information 

from strategic talent planning is used to 

set strategic talent management 

priorities. As discussed subsequently, 

this is information that is generated by 

the strategic talent planning process and 

its underlying processes, as well as 

information from administering CTMS. 

Setting strategic talent priorities based 

on the types of information aggregated 

in strategic talent planning ensures that 

such priorities reflect the latest strategic 

information about the DHS 

cybersecurity mission, cybersecurity 

work, and the cybersecurity talent 

market. Other information used in 

setting strategic talent priorities is 

information from DHS financial 

planning and strategic planning, and 

DHS priorities outside of CTMS and the 

DHS–CS. Strategic talent priorities are 

reviewed and updated to ensure that 

CTMS is administered and the DHS–CS 

is managed in a manner that addresses 

the latest DHS priorities, which may 

include making adjustments based on 

new mission or market demands. 

Under part 158, strategic talent 

priorities inform overall administration 

of CTMS and management of the DHS– 

CS, as well as specifically influence 

strategic recruiting under the CTMS 

talent acquisition system, DHS–CS 

employee recognition under the CTMS 

compensation system, matching DHS– 

CS employees with assignments under 

the CTMS deployment program, and 

guiding DHS–CS employee career 

progression under the CTMS career 

development program. 

The Secretary or Secretary’s designee, 

with assistance from the CTMB, also 

administers CTMS and manages the 

DHS–CS using DHS–CS core values. As 

set out in § 158.305, those values are 

expertise, innovation, and adaptability. 

These core values reinforce the design 

and purpose of CTMS: Adapting to 

changes in cybersecurity work, the 

cybersecurity talent market, and the 


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122See e.g., Pearl Meyer, 2020 Cyber Security 

Salary Survey, available for purchase at https://

www.pearlmeyer.com/knowledge-share/researchreport/2020-cyber-security-compensation-survey 

(last visited May 25, 2021). 

123See e.g., eCornell, Compensation Studies 

Cornell Certificate Program, available at https://

ecornell.cornell.edu/certificates/human-resources/ 

compensation-studies/ (last visited May 25, 2021); 

SHRM, Foundations of Compensation, available at 

https://store.shrm.org/Foundations-ofCompensation (last visited May 25, 2021); and 

WorldatWork, Certified Compensation Professional, 

available at https://www.worldatwork.org/ 

certification/Certified-compensation-professional 

(last visited May 25, 2021). 

124See e.g., Barry Gerhart and Jerry Newman, 

Compensation (13th Ed. 2020) available for 

purchase at https://www.mheducation.com/ 

highered/product/compensation-gerhart-newman/ 

M9781260043723.toc.html (last visited May 25, 

2021); WorldatWork, The WorldatWork Handbook 

of Total Rewards: A Comprehensive Guide to 

Compensation, Benefits, HR & Employee 

Engagement (2nd Ed.) available for purchase at 

https://www.worldatwork.org/product/physical/theworldatwork-handbook-of-total-rewards (last visited 

May 25, 2021). 

DHS cybersecurity mission. DHS–CS 

employees require expertise, 

innovation, and adaptability to keep 

pace with the ever-evolving nature of 

cybersecurity work and DHS’s dynamic 

cybersecurity mission, as well as to 

remain competitive in the talent market. 

These core values, and managing the 

DHS–CS using them, also underscores 

the expectation of continual learning for 

DHS–CS employees. DHS–CS core 

values influence the CTMS performance 

management program and CTMS career 

development program, and are 

embedded in the CTMS compensation 

strategy, all discussed subsequently. 

C. Strategic Talent Planning: Subpart D 

Subpart D, Strategic Talent Planning, 

contains regulations addressing how 

DHS establishes and administers a 

strategic talent planning process to 

enable CTMS to adapt to changes in 

cybersecurity work, the cybersecurity 

talent market, and the DHS 

cybersecurity mission. The strategic 

talent planning process comprises 

several processes and systems by which 

DHS identifies CTMS qualifications and 

DHS–CS cybersecurity work, analyzes 

the cybersecurity talent market, and 

describes and values DHS–CS 

cybersecurity work, while also 

aggregating information to inform the 

overall administration of CTMS and 

management of the DHS–CS. See 

§ 158.401. 

The design of CTMS, especially the 

strategic talent planning process, 

implements the Secretary’s broad 

discretion to determine how to create 

and use qualified positions, discussed 

previously in III.A.1 of this document. 

1. DHS–CS Cybersecurity Work & CTMS 

Qualifications Identification 

As discussed previously, CTMS 

qualifications are the core of CTMS, and 

CTMS qualifications are derived from 

the DHS cybersecurity mission. DHS 

identifies CTMS qualifications as part of 

the strategic talent planning process. As 

part of the strategic talent planning 

process, DHS identifies the functions 

that execute the DHS cybersecurity 

mission, as well as the cybersecurity 

work required to perform, manage, or 

supervise those functions, and the set of 

qualifications necessary to perform that 

work. See § 158.301. On an ongoing 

basis, DHS updates this comprehensive 

set of CTMS qualifications to ensure it 

reflects the dynamic DHS cybersecurity 

mission and the collective expertise 

necessary to execute that mission. 

Also, as discussed previously, DHS 

identifies CTMS qualifications in 

accordance with applicable legal and 

professional guidelines governing the 

assessment and selection of individuals. 

Doing so ensures the qualifications 

identified are appropriately workrelated and do not disproportionately or 

improperly impact protected 

individuals or groups. 

2. CTMS Talent Market Analysis 

As part of the strategic talent planning 

process, DHS conducts analysis of the 

cybersecurity talent market on an 

ongoing basis. See § 158.403. The 

analysis includes reviewing data on 

cybersecurity talent across the Nation 

such as aggregated salary and total 

compensation data in compensation 

surveys.122 As part of market analysis, 

DHS makes compensation comparisons 

and considers salaries as well as types 

of additional compensation, including 

bonuses and benefits. By examining 

total compensation or total rewards, 

which may also include non-monetary, 

work-life balance benefits, DHS is better 

able to more accurately compare 

features of the CTMS compensation 

system with features of the total 

compensation or total rewards programs 

of other cybersecurity employers, 

including private sector organizations. 

DHS conducts analysis of the 

cybersecurity talent market using 

generally recognized compensation 

principles and practices. See § 158.403. 

Such principles and practices include 

fundamental concepts and analytical 

methods often integrated into formal 

courses of study for compensation 

practitioners.123 Such principles and 

practices are also outlined in 

publications, intended to support 

compensation practitioners when 

establishing a compensation 

philosophy, conducting competitive 

compensation analysis, and developing 

compensation structures and 

processes.124 Using these compensation 

principles and practices ensures the 

design and administration of 

compensation addresses DHS 

organizational goals and complies with 

legal requirements, including those 

prohibiting discrimination in 

compensation. 

DHS uses analysis of the 

cybersecurity talent market to identify 

and monitor trends in both employment 

for and availability of talent related to 

cybersecurity, including variations in 

the cost of talent or the cost of living in 

local cybersecurity talent markets, or 

both. Local cybersecurity talent markets 

are described in § 158.612 as the 

cybersecurity talent markets in 

geographic areas defined by DHS and 

are discussed further in IV.D. of this 

document. DHS analyzes average cost of 

talent because such cost can vary 

significantly in different local 

cybersecurity talent markets. Similarly, 

variations in cost of living can 

significantly influence how 

organizations compensate cybersecurity 

employees in specific locations. DHS 

also uses analysis of the cybersecurity 

talent market to identify leading 

strategies for recruiting and retaining 

talent related to cybersecurity. 

3. CTMS Work Valuation & Work and 

Career Structures 

As part of the strategic talent planning 

process, DHS uses a new, DHS-specific 

work valuation system to define and 

value DHS–CS cybersecurity work, with 

a focus on qualifications necessary to 

perform that work. See § 158.404. As 

discussed previously in III.A.1 of this 

document, under the authority in 6 

U.S.C. 658 DHS may create a new 

person-focused work valuation system. 

Although DHS is exempt from 

traditional Federal position 

classification under 6 U.S.C. 658, 

including the GS position classification 

system, DHS is choosing to use a work 

valuation system to establish structures 

to facilitate systematic management of 

DHS–CS employees and address 

internal equity. Like traditional Federal 

position classification that influences 

many aspects of talent management, 

especially compensation, the CTMS 

work valuation system also influences 

many aspects of talent management 

under CTMS. 

Like traditional Federal position 

classification, the CTMS work valuation 

system is a method of work valuation, 

but features different core concepts and 

different practices. The GS position 

classification system is a system of ‘‘job 


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125National Academy of Public Administration, 

Modernizing Federal Classification: An Opportunity 

for Excellence (July 1991), xix–xx. 

126 5 U.S.C. 5101(2). 

127 Joseph W. Howe, History of the General 

Schedule Classification System, prepared for the 

U.S. Office of Personnel Management, Final Report 

FR–02–25 (Mar. 2002), 20. 

128 Id. 

129Robert L. Heneman, Ph.D., Work Evaluation: 

Strategic Issues and Alternative Methods, prepared 

for the U.S. Office of Personnel Management, FR– 

00–20 (July 2000, Revised Feb. 2002), 2. 

130The new work valuation system is similar to 

a rank-in-person work valuation system, which 

determines the value or worth of an employee to the 

organization based on the employee’s skills. See 

U.S. Government Accounting Office, Description of 

Selected Systems for Classifying Federal Civilian 

Positions and Personnel, GGD–84–90 (July 1984), 5 

(‘‘Assigning Value to Persons’’). The new work 

valuation system, however, does not maintain a 

seniority-based or time-based promotion process 

like rank-in-person systems. See Harry J. Thie et al, 

Future Career Management Systems for U.S. 

Military Officers, Santa Monica, CA: RAND 

Corporation, MR–470–OSD, prepared for the Office 

of the Secretary of Defense (1994), 89–95 available 

at https://www.rand.org/pubs/monograph_reports/ 

MR470.html (last visited May 25, 2021). 

131U.S. Government Accounting Office, 

Description of Selected Systems for Classifying 

Federal Civilian Positions and Personnel, GGD–84– 

90 (July 1984), 1–2 (‘‘The GS and FWS [Federal 

Wage Schedule] are rank-in-position methods that 

assess the value of the job rather than the job 

occupant’’) and 5 (‘‘Assigning Value to Positions’’). 

evaluation’’ that describes work by 

delineating it into jobs defined in terms 

of duties, responsibilities, and 

qualification requirements of a 

position.125 As explained previously in 

III.B.2 of this document, the GS position 

classification system accounts only 

minimally for the individual or the 

individual’s skills, including how the 

individual’s skills may influence the 

performance of work. Although GS 

position classification is based on 

duties, responsibilities, and 

qualification requirements of 

positions,126 ‘‘the framers of the [GS] job 

evaluation system meant the 

qualifications requirements inherent in 

the work—an abstract concept—not the 

qualifications of specific 

individuals.’’ 127

The CTMS work valuation system is 

a system of ‘‘work evaluation’’ 128 that 

describes cybersecurity work in more 

flexible, holistic terms with a focus on 

the qualifications of individuals 

necessary to perform DHS cybersecurity 

work. Creating a new system of work 

valuation, instead of ‘‘job evaluation,’’ 

recognizes that ‘‘jobs have become more 

flexible, dependent upon the job 

incumbent,’’ and that work evaluation 

or valuation ‘‘is a more encompassing 

concept than job evaluation and better 

captures contributions of the job, 

person, or team.’’ 129

The CTMS work valuation system is 

a person-focused work valuation system 

that DHS uses to determine the value or 

worth of a DHS–CS employee to DHS 

based on the employee’s 

qualifications.130 This is in contrast to 

traditional Federal position 

classification or work valuation 

methods that determine the value or 

worth of positions based on the duties 

and responsibilities of the positions, 

regardless of the person in the 

position.131 The design of the CTMS 

work valuation system reflects that the 

DHS cybersecurity mission is dynamic, 

cybersecurity work is constantly 

evolving, and that individuals and their 

qualifications significantly influence 

how cybersecurity work is performed. 

Especially for cybersecurity work, an 

individual can dramatically alter how 

work is performed, including the tactics, 

techniques, and procedures brought to 

bear and the quality and quantity of 

outcomes produced. 

The CTMS work valuation system is 

based on the set of CTMS qualifications 

and the DHS–CS cybersecurity work 

identified in the strategic talent 

planning process. See § 158.404. The 

work valuation system recognizes that 

critical qualifications come and go with 

individuals, not positions, and that 

individuals and the qualifications they 

possess significantly influence how 

cybersecurity work is performed. 

Individuals, through their respective 

and collective qualifications, influence 

how problems are tackled, how long 

initiatives take, and how effective new 

solutions are. 

DHS uses the work valuation system 

to establish work and career structures, 

such as work levels, titles, ranks, and 

specializations. See § 158.404. DHS 

establishes such work and career 

structures by grouping and valuing 

qualifications and categories of 

qualifications based on criticality to the 

DHS cybersecurity mission. DHS uses 

these CTMS work and career structures 

instead of GS classes and grades and 

other traditional Federal position 

classification job structures. Much like 

the classes and grades established by the 

GS position classification system, the 

work and career structures support a 

variety of aspects of systematic talent 

management under CTMS. 

DHS uses the work and career 

structures to organize other elements of 

CTMS and to ensure those other 

elements maintain a consistent focus on 

qualifications. DHS uses such work and 

career structures to describe and 

categorize DHS–CS employees, qualified 

positions, assignments, and 

cybersecurity work. For example, the 

description of an individual’s qualified 

position includes a work level, such as 

early-career or executive, and a title, 

such as Cybersecurity Specialist or 

Cybersecurity Executive. 

Importantly, DHS uses the work and 

career structures as part of the CTMS 

compensation system, discussed 

subsequently, in determining 

compensation for individuals in 

qualified positions with a focus on 

CTMS qualifications. For example, in 

setting an individual’s initial salary, 

DHS considers applicable work and 

career structures, including the 

individual’s work level. See § 158.620. 

DHS may also use the work and career 

structures for budget and fiscal purposes 

related to administering CTMS and 

managing the DHS–CS. See § 158.404. 

This is analogous to how agencies use 

GS grades and occupations to inform 

resource planning processes. 

As discussed in III.A.1 of this 

document, the authority in 6 U.S.C. 658 

to create a new talent management 

system is exempt from the GS position 

classification system, and other work 

valuation systems relying on position 

classification based on 5 U.S.C. Chapter 

51. As such, § 158.405 states that 

Chapter 51 and related laws do not 

apply under CTMS or to the DHS–CS or 

to talent management under CTMS. 

4. Informing CTMS Administration and 

DHS–CS Management 

DHS aggregates information generated 

in the processes and systems that are 

part of the strategic talent planning 

process in order to inform all other 

CTMS elements. See § 158.401. 

Incorporating this information from the 

strategic talent planning process into the 

other CTMS elements ensures that those 

elements reflect a strategic 

understanding of internal issues 

affecting employees in the DHS–CS as 

well as external issues affecting 

cybersecurity employment generally in 

the cybersecurity talent market. 

For example, information about 

CTMS qualifications from the strategic 

talent planning process ensures that the 

talent acquisition system remains 

focused on the qualifications most 

critical for the DHS cybersecurity 

mission, including newly-identified 

qualifications that DHS had not 

recruited and assessed talent for 

previously. Also, information from 

analysis of the cybersecurity talent 

market ensures other elements of CTMS 

reflect an understanding of the 

cybersecurity talent market and serve to 

enable DHS to better recruit and retain 

top cybersecurity talent for employment 

in the DHS–CS. 

As part of strategic talent planning, 

DHS also aggregates information from 

administering CTMS under the other 


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132American Psychological Association, The 

Standards for Educational and Psychological 

Testing, (2014 Ed.), available for purchase at https:// 

www.apa.org/science/programs/testing/standards 

(last visited May 25, 2021). 133 6 U.S.C. 658(b)(1)(A)(ii). 

CTMS elements and uses that 

information to inform CTMS elements. 

See § 158.401. Using information from 

administering CTMS in this manner 

ensures that the interrelated elements of 

CTMS function together as a complete 

talent management system. A common, 

comprehensive set of information about 

the current state of the administration of 

CTMS informs each respective element 

of CTMS, resulting in coherent, 

intentional practices for hiring, 

compensating, and developing DHS–CS 

employees. For example, information 

from the CTMS deployment program 

might indicate that the set of CTMS 

qualifications does not effectively 

capture the expertise required for some 

DHS cybersecurity work, and DHS 

needs to update the set of qualification 

under the strategic talent planning 

process. Similarly, information from the 

deployment program, such as 

assignments that are difficult to staff, 

can assist DHS in measuring the 

effectiveness of the talent acquisition 

system. 

D. Acquiring Talent: Subpart E 

Subpart E, Acquiring Talent, contains 

regulations establishing the CTMS talent 

acquisition system, which involves 

strategic and proactive recruitment, 

qualifications assessment, and selection 

and appointment. The talent acquisition 

system aligns with DHS’s design for 

creating and using qualified positions 

under CTMS and implements the 

appointment authority in 6 U.S.C. 658, 

discussed previously in III.A.2 of this 

document. Under that authority, and the 

exemptions from laws relating to 

appointment, number, and 

classification, DHS is creating a new 

talent acquisition system with a focus 

on CTMS qualifications, finding 

individuals who likely possess those 

qualifications, and hiring those who 

demonstrate that they do. 

1. CTMS Talent Acquisition System 

The CTMS talent acquisition system 

provides DHS with an enhanced ability 

to identify and hire individuals with 

CTMS qualifications. The talent 

acquisition system comprises strategies, 

programs, and processes for strategically 

recruiting individuals, assessing 

qualifications of individuals, and 

considering and selecting individuals 

for employment in the DHS–CS and 

appointment to qualified positions. See 

§ 158.501. The talent acquisition system 

reflects an emphasis on seeking out 

individuals likely to possess CTMS 

qualifications and then verifying 

individuals’ qualifications before 

matching those individuals with DHS– 

CS cybersecurity work and finalizing 

selections. 

DHS establishes and administers the 

talent acquisition system in accordance 

with applicable legal and professional 

guidelines governing the assessment 

and selection of individuals. See 

§ 158.501. Those guidelines are the 

same guidelines DHS uses for ensuring 

qualifications identified as part of the 

strategic talent planning process are 

work-related, as discussed previously. 

Legal and professional guidelines used 

for the talent acquisition system also 

include the Standards for Educational 

and Psychological Testing.132 Such 

guidelines provide frameworks for 

proper design and use of selection 

procedures based on established 

scientific findings and generally 

recognized professional practices. Such 

guidelines also contain principles to 

assist employers in complying with 

Federal laws prohibiting discriminatory 

employment practices. 

Recruiting, assessing, selecting, and 

appointing talent under the talent 

acquisition system represents a shift 

from existing Federal hiring practices 

for other Federal civil service positions. 

As discussed previously in III.A.2 of 

this document, the authority in 6 U.S.C. 

658 to create a new talent acquisition 

system is exempt from any other 

provision of law relating to appointment 

of employees, including veterans’ 

preference requirements, as well as 

other provisions of law relating to 

number or classification of employees. 

As such, § 158.502 lists existing laws 

relating to the process of appointing an 

individual that do not apply under 

CTMS, to the DHS–CS, or to talent 

management under CTMS. 

2. Strategic Recruitment 

Under the CTMS talent acquisition 

system, DHS strategically and 

proactively recruits individuals likely to 

possess CTMS qualifications. See 

§§ 158.510 and 158.511. DHS develops 

strategies for publicly communicating 

about the DHS cybersecurity mission 

and the DHS–CS, and for recruiting 

individuals for employment in the 

DHS–CS. 

DHS develops and updates CTMS 

recruitment strategies based on CTMS 

qualifications, DHS–CS cybersecurity 

work, and strategic talent priorities. 

Developing and updating recruitment 

strategies in this manner ensures CTMS 

recruitment efforts remain effective in 

supporting execution of the dynamic 

DHS cybersecurity mission and 

furthering DHS goals, such as the 

advancement of diversity and inclusion 

in DHS’s cybersecurity workforce. 

In developing and implementing 

CTMS recruitment strategies, DHS may 

collaborate with other organizations and 

groups, including other Federal 

agencies, institutions of higher 

education, and national organizations 

such as veterans service organizations. 

DHS recognizes that such partnerships 

can be critical to identifying individuals 

with desired qualifications and 

encouraging those individuals to apply. 

As part of diversity and inclusion 

recruitment efforts, DHS anticipates 

collaborating with professional 

associations and institutions of higher 

education, including historically Black 

colleges and universities and other 

minority-serving institutions, including 

Hispanic-serving institutions, Tribal 

colleges and universities, and Asian 

American and Native American Pacific 

Islander-serving institutions. Through 

such collaboration, DHS aims to (1) 

reinforce the design of CTMS as a merit 

system, which provides equitable 

treatment; and (2) advance the hiring of 

people from all backgrounds and 

representing a diverse set of 

perspectives, including individuals 

belonging to traditionally 

underrepresented or underserved 

groups. In alignment with Executive 

Order 13985, CTMS recruitment 

strategies focus on reaching 

underrepresented and underserved 

groups, including Black, Latino, and 

Indigenous and Native American 

persons, Asian Americans and Pacific 

Islanders and other persons of color; 

members of religious minorities; 

lesbian, gay, bisexual, transgender, and 

queer (LGBTQ+) persons; persons with 

disabilities; persons who live in rural 

areas; and persons otherwise adversely 

affected by persistent poverty or 

inequality. 

Additionally, collaborating with DOD, 

the Department of Veterans Affairs, and 

groups such as veteran service 

organizations helps DHS to consider the 

availability of preference eligibles for 

appointment to qualified positions as 

required by 6 U.S.C. 658. As discussed 

previously DHS may create new hiring 

processes for appointing individuals to 

qualified positions; however under 6 

U.S.C. 658(b)(1)(B), DHS may only 

appoint an individual to a qualified 

position after taking into consideration 

the availability of preference eligibles 

for appointment to the position.133 As 

used in 6 U.S.C. 658, the term 

‘‘preference eligible’’ has the same 


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134 6 U.S.C. 658(a)(4); 5 U.S.C. 2108(3). 

135Compare 6 U.S.C. 658(b)(1)(A)(ii) and 5 U.S.C. 

3309–3320. 

136U.S. Office of Personnel Management website, 

Veterans Service, ‘‘Veterans’ Preference in 

Appointments,’’ www.opm.gov/policy-dataoversight/veterans-services/vet-guide-for-hrprofessionals/. 

137Wilks v. Department of the Army, 91 M.S.R.P 

70 (2002) (determining that because DOD’s 

authority under 10 U.S.C. 1601 applies ‘‘without 

regard to the provisions of any other law relating 

to the appointment . . . of employees,’’ then ‘‘Title 

5 provisions relating to veterans’ preference 

appointment rights do not factor into the 

selections’’ under that authority); see also Young v. 

Fed. Mediation & Conciliation Service, 93 M.S.P.R. 

99, ¶ 8 (2002) (‘‘The Office of Personnel 

Management has written that when an agency is 

authorized to make appointment without regard to 

the civil service laws, the agency is thereby 

empowered to make such appointment ‘without 

regard to the usual competitive or civil service laws, 

including veterans’ preference.’ 58 FR 131919, 

13192 (Mar. 10, 1993)’’ (emphasis original)). 

meaning as that term is defined under 

Title 5.134

The requirement in 6 U.S.C. 658 to 

consider the availability of preference 

eligibles for appointment is different 

from veteran preference requirements in 

the Title 5 that mandates specific 

priorities, procedures, and rules for 

preference eligibles in hiring.135 The 

term ‘‘preference eligible’’ for Title 5 

purposes, is associated with the concept 

of ‘‘veterans’ preference,’’ which gives 

advantage to certain veterans and 

related individuals for appointments to 

Federal civilian positions in order to 

recognize the sacrifice and economic 

loss suffered by a citizen who has 

served the Nation in uniform and 

prevent such citizens from being 

penalized for their time in military 

service when seeking Federal 

employment.136 Congress defines 

‘‘veterans’ preference requirement’’ in 5 

U.S.C. 2302(e) clarifying that the 

concept of veterans’ preference applies 

to hiring as well as to other aspects of 

civil service staffing, such as retention. 

Congress, however, does not use the 

term ‘‘veterans’ preference’’ in the § 658 

appointment authority. Moreover, the 

§ 658 appointment authority is exempt 

from other provisions of law relating to 

appointment of employees, which 

includes Title 5 hiring processes and 

related veterans’ preference 

requirements.137

Although the § 658 appointment 

authority is exempt from veterans’ 

preference requirements, the Secretary 

must consider the availability of 

preference eligibles for appointment, 

and DHS intends to honor the public 

policy purposes of veterans’ preference. 

DHS recognizes that many preference 

eligibles and veterans likely possess the 

qualifications needed to support the 

DHS cybersecurity mission, especially 

those that received cybersecurityfocused active duty training and 

experience. 

DHS considers the availability of 

preference eligibles for appointment to 

qualified positions, and provides such 

individuals advantage in the CTMS 

talent acquisition system, through 

strategic recruitment. See § 158.510. The 

new talent acquisition system includes 

strategic recruitment strategies aimed 

specifically at recruiting and hiring 

preference eligibles and other veterans, 

including individuals with military 

service experience who might not meet 

the statutory definition of preference 

eligibles. Strategic recruitment of 

preference eligibles and veterans 

includes identifying preference eligibles 

and members of the larger veteran 

community, proactively communicating 

to them about the DHS–CS, and 

encouraging their applications. DHS 

may tailor and refine CTMS recruitment 

strategies targeting preference eligibles 

and veterans to ensure such strategies 

further DHS’s existing commitment to 

veteran recruitment, hiring, and 

representation within the DHS 

workforce. As a result of CTMS strategic 

recruitment efforts, DHS anticipates 

preference eligibles and veterans to be 

well represented in the population of 

individuals ready to be selected and 

appointed to qualified positions, and 

matched with assignments in the DHS– 

CS. Note that because veterans’ 

preference requirements do not apply 

under CTMS, it is unnecessary to 

examine prohibited personnel practices 

relating to veteran preference 

requirements under the CTMS talent 

acquisition system. 

In addition to developing and 

implementing CTMS recruitment 

strategies and collaborating with other 

organizations and groups, DHS uses a 

variety of other sources to identify 

individuals or groups of individuals for 

recruitment. See § 158.511. CTMS 

policy implementing CTMS outreach 

and sourcing will address 

communication of opportunities for 

employment in the DHS–CS, 

communication of application processes 

to individuals being recruited or 

applying for employment; and 

acceptance and treatment of 

applications for employment in the 

DHS–CS, including minimum 

application requirements established 

under this subpart. Outreach and 

sourcing under CTMS is likely use a 

variety of sources of information and 

communication channels, such as social 

media tools and key industry 

conferences, to connect with 

individuals and share information. 

Under § 158.512, DHS may provide 

payment or reimbursement to 

prospective DHS–CS employees for 

travel to and from pre-employment 

interviews, which may include 

participating in an assessment process 

under the CTMS assessment program. 

Reimbursement for any such interview 

expenses are in accordance with 

existing laws, 5 U.S.C. 5706b and the 

Federal Travel Regulations at 41 CFR 

chapters 301–304, governing such 

reimbursement. 

3. Qualifications-Based Assessment, 

Selection & Appointment 

Under the CTMS talent acquisition 

system, DHS determines individuals’ 

qualifications under the CTMS 

assessment program and make 

selections for, and appointments to, 

qualified positions based on 

individuals’ demonstrated CTMS 

qualifications. See § 158.520. Any 

individual interested in employment in 

the DHS–CS must participate in the 

CTMS assessment program and meet 

applicable rating or scoring thresholds 

in the assessment processes in which 

that individual participates. To be 

eligible for selection and appointment, 

an individual must also meet Federal 

employment eligibility requirements 

and satisfy applicable employmentrelated criteria. See § 158.521. 

(a) CTMS Assessment Program 

The CTMS assessment program is 

designed to efficiently and accurately 

determine individuals’ qualifications. 

See § 158.520. The assessment program 

includes one or more assessment 

processes based on CTMS 

qualifications. Each assessment process 

compares the qualifications of an 

individual to CTMS qualifications. The 

assessment program is designed to 

measure qualifications for individuals at 

all career stages, from those just 

beginning a career in cybersecurity to 

those with years of proven experience 

working as a cybersecurity technical 

expert or organizational leader. The 

assessment program is also designed to 

reduce reliance on subjective decisionmaking and avoid potential bias through 

systematic approaches to assessing 

qualifications with objectivity and 

fairness. 

The assessment program focuses on 

requiring applicants to demonstrate 

their qualifications at a particular work 

level. Applicants choose the work level 

for which they wish to be considered. 

For applicants who are experienced 

cybersecurity professionals, this 

includes choosing the cybersecurity 

technical areas in which they are 


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interested and for which they wish to be 

assessed. 

CTMS assessment processes are 

formal and multi-part, which means an 

applicant may need to participate in one 

or more standardized instruments and 

procedures intended to measure the 

applicant’s qualifications and 

proficiency in those qualifications. Such 

standardized instruments and 

procedures include a variety of tools. 

Examples of such standardized 

instruments and procedures include 

written knowledge tests, computer 

adaptive tests, work simulations, and 

structured interviews. 

As part of a CTMS assessment 

process, DHS also may use 

demonstrations of qualifications, such 

as rewards earned from a cybersecurity 

competition, publication of peerreviewed cybersecurity research, or a 

patented cybersecurity invention or 

discovery. The use of such 

demonstrations provides additional 

options for DHS to assess individuals 

who possess expertise beyond that 

expected of most applicants and enables 

rapid assessment of such individuals’ 

qualifications. 

DHS develops and administers each 

assessment process, including those that 

use standardized instruments and 

procedures, in accordance with 

applicable legal and professional 

guidelines governing the assessment 

and selection of individuals. Such legal 

and professional guidelines are the same 

guidelines mentioned previously that 

DHS uses to establish and administer 

the CTMS acquisition system. 

In order to maintain the objectivity 

and integrity of the CTMS assessment 

program, DHS does not release 

assessment program materials except as 

otherwise required by law. See 

§ 158.520. Circumstances required by 

law under which DHS would release 

assessment materials include providing 

individuals with their own testing 

results. While DHS maintains control 

and security over assessment materials, 

DHS makes available information to 

assist individuals in understanding the 

purpose of and preparing for 

participating in the assessment program. 

In addition to participating in the 

CTMS assessment program, any 

individual interested in employment in 

the DHS–CS must meet employment 

eligibility requirements and satisfy 

certain employment-related criteria. See 

§ 158.521. Employment eligibility 

criteria are U.S. citizenship 

requirements and Selective Service 

System requirements. Employmentrelated criteria includes fitness 

standards for Federal employment and 

related security requirements, 

geographic mobility requirements, and 

other criteria related to any aspect of 

appointment to or employment in the 

DHS–CS. See § 158.521. DHS provides 

written notice of any applicable 

employment-related criteria as part of 

an offer of appointment to a qualified 

position, and an individual must accept 

and satisfy those criteria to be 

appointed. DHS–CS employees must 

continue to satisfy and maintain 

applicable employment-related criteria. 

Employment-related criteria may change 

over time and DHS–CS employees may 

be required to accept any changes in 

that criteria to maintain employment in 

the DHS–CS. Also, DHS may disqualify 

an individual from consideration or 

appointment to the DHS–CS for 

providing false information to the 

Department, and other conduct 

described in § 158.521. 

(b) DHS–CS Appointments 

DHS selects an individual for 

employment in the DHS–CS based on 

the individual’s qualifications as 

determined under the CTMS assessment 

program. See § 158.522. Through an 

individual’s participation in the 

assessment program, DHS determines 

both an individual’s CTMS 

qualifications and the DHS–CS 

cybersecurity work the individual 

should be able to perform successfully 

and proficiently. 

In addition to the providing 

preference eligibles advantage in the 

CTMS talent acquisition system through 

specific strategic recruitment strategies, 

as previously discussed, DHS again 

considers the availability of preference 

eligibles for appointment to qualified 

positions when selecting an individual 

for employment in the DHS–CS. See 

§ 158.522. Through individuals’ 

participation in the assessment program, 

DHS may encounter cases where more 

than one individual who have met 

applicable rating or scoring thresholds 

are undergoing final consideration 

based on their demonstrated CTMS 

qualifications. When a selection is 

imminent and final consideration 

includes both preference eligibles and 

non-preference eligibles, the 

Department carefully reviews the 

demonstrated CTMS qualifications of 

such individuals, weighs any applicable 

strategic talent priorities, and regards an 

individual’s status as a preference 

eligible as a positive factor in 

accordance with CTMS policy. 

DHS appoints a selected individual to 

a qualified position under the authority 

in 6 U.S.C. 658. All such appointments 

are in the excepted service and an 

individual who accepts an appointment 

to a qualified position voluntarily 

accepts an appointment in the excepted 

service. No qualified position may be 

established through the non-competitive 

conversion of a current Federal 

employee from an appointment made 

outside the authority in 6 U.S.C 658. See 

§ 158.522. 

An appointment under CTMS to the 

DHS–CS is one of three types: A 

renewable appointment, a continuing 

appointment, or an advisory 

appointment. See §§ 158.104, 158.522 

and 158.523. A renewable appointment 

is a time-limited appointment to a 

qualified position for up to three years. 

A renewable appointment is analogous 

to a time-limited appointment under 

Title 5, except a renewable appointment 

may be renewed more than once for 

time periods up to three years, subject 

to any limitation in CTMS policy 

regarding the number of renewals. A 

continuing appointment is an 

appointment to a qualified position 

without a specific time limit and is 

analogous to a permanent appointment 

under Title 5. An advisory appointment 

is a political appointment to a qualified 

position governed by part 158, subpart 

J, which addresses advisory 

appointments and DHS–CS advisory 

appointees generally. An advisory 

appointment is treated like a Schedule 

C appointment under Title 5, except 

regarding appointment and 

compensation, which are done under 

CTMS talent acquisition and 

compensation systems. See 

§§ 158.1001–158.1003. DHS may change 

an unexpired renewable appointment to 

a continuing appointment for a DHS–CS 

employee receiving a salary in the 

standard range, subject to any additional 

limitation in CTMS policy. As discussed 

subsequently, a DHS–CS employee 

receiving a salary in the extended range 

must be and must remain serving in a 

renewable appointment while receiving 

a salary in the extended range. 

DHS may use CTMS renewable 

appointments to appoint reemployed 

annuitants and individuals providing 

uncompensated service, which is 

gratuitous service. See § 158.523. 

Individuals appointed in this manner 

serve at the will of the Secretary. DHS 

may only appoint individuals to provide 

uncompensated service if the individual 

would otherwise be eligible to receive a 

salary under CTMS that is equivalent to 

or higher than EX–IV because such 

uncompensated service is solely for the 

purpose of experts providing DHS 

senior leaders with specialized advising. 

As such, the Secretary or designee must 

approve the appointment of each 

individual providing uncompensated 

service by name and the individual 


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must be appointed to a renewable 

appointment only. 

DHS may also use CTMS 

appointments to appoint DHS–CS 

employees being restored to duty. See 

§ 158.523. In accordance with 5 CFR 

part 353, which addresses restoration to 

duty from uniformed service or 

compensable injury, DHS restores to 

duty a DHS–CS employee who is a 

covered person described in 5 CFR 

353.103. 

A DHS–CS employee serves in the 

same qualified position for the duration 

of employment in the DHS–CS. See 

§ 158.522. In this manner, CTMS, as a 

person-focused approach to talent 

management, allows for a DHS–CS 

employee’s qualified position to evolve 

over time as the employee’s career 

progresses. CTMS does not require a 

DHS–CS employee to change positions 

in order for DHS to acknowledge 

enhancements to the employee’s CTMS 

qualifications or to recognize the 

employee with greater levels of 

compensation. A DHS–CS employee 

may also have the opportunity to 

perform different DHS–CS cybersecurity 

work or a different assignment, 

including an expanded subset of related 

work, without needing to change 

positions. DHS–CS employees do not 

progress through their careers at DHS 

based on longevity in a qualified 

position or through promotions. Career 

progression under CTMS is based on 

enhancement of CTMS qualifications 

and salary progression resulting from 

recognition adjustments. See § 158.803. 

As discussed previously in III.B.1 of 

this document, there is no singular or 

standard career path for individuals 

with cybersecurity skills, and the CTMS 

talent acquisition system specifically 

accounts for this by ensuring former 

DHS–CS employees can easily return to 

the DHS–CS. The design of CTMS 

recognizes the possibility that talent 

might leave the DHS–CS and desire to 

return to the DHS–CS at a later point in 

time. To facilitate future service in the 

DHS–CS by former DHS–CS employees, 

under § 158.525 DHS aims to maintain 

communication with former DHS–CS 

employees and to provide opportunities 

for former DHS–CS employees to be 

considered for appointment again to 

qualified positions. DHS also aims to 

acknowledge any enhancements to 

former DHS–CS employees’ 

qualifications while outside of the DHS– 

CS, which might affect salaries for such 

former employees upon return to the 

DHS–CS. 

Under § 158.525, a former DHS–CS 

employee must participate again in the 

CTMS assessment program unless DHS 

determines otherwise based on relevant 

factors. DHS must assess that former 

DHS–CS employee’s qualifications 

again, unless relevant factors indicate 

that an assessment is unnecessary. Such 

assessment ensures that DHS has the 

latest information about the individual’s 

qualifications, which can influence 

salary and other aspects of talent 

management under CTMS. Factors 

which might make assessment 

unnecessary include time elapsed since 

last appointment and similarity of 

cybersecurity work performed since 

leaving the DHS–CS. For example, a 

new assessment would likely be 

unnecessary if only a few months have 

passed since the former DHS–CS 

employee’s last appointment to a 

qualified position. 

Appointment to a renewable or 

continuing appointment of a former 

DHS–CS advisory appointee, or other 

political appointee as defined by OPM, 

may be subject to additional 

requirements, including coordination 

with OPM under laws governing 

conversion of political appointees to 

non-political excepted service positions. 

Appointment of a former DHS–CS 

employee to an advisory appointment is 

governed by part 158, subpart J. 

As required in 6 U.S.C. 658(d), all 

individuals appointed under CTMS 

serves an initial service period that 

constitutes a probationary period of 

three years beginning on the date of 

appointment. See § 158.524. Service in 

the DHS–CS counts toward completion 

of a current initial service period, but 

service in an appointment outside of the 

DHS–CS does not count. Because of the 

new approach to talent management 

under CTMS, including the new personfocused work valuation system and the 

new talent acquisition system, service in 

other Federal appointments are not be 

deemed equivalent or automatically 

credited as such. Also, service as a 

DHS–CS advisory appointee, as a 

reemployed annuitant in a qualified 

position, or providing uncompensated 

service in the DHS–CS do not count 

towards completion of an initial service 

period for any subsequent service in the 

DHS–CS. See § 158.524. Service as a 

DHS–CS advisory appointee, as a 

reemployed annuitant, or providing 

uncompensated service is qualitatively 

different than other service in the DHS– 

CS, either due to its policy-making 

nature or specialized advising status or 

the Federal retiree status of the 

individual. DHS addresses 

computations of initial service periods 

in CTMS policy, including accounting 

for less than full-time work schedules 

and certain absences that may affect 

computation of a DHS–CS employee’s 

initial service period. 

E. Compensating Talent: Subpart F 

Subpart F, Compensating Talent, 

contains regulations addressing the 

CTMS compensation system, including 

the CTMS salary system and CTMS 

additional compensation. The 

compensation system implements the 

compensation authority in 6 U.S.C. 658, 

discussed previously in III.A.3 of this 

document. Under that authority in 6 

U.S.C. 658 and the exemption from laws 

relating to classification and 

compensation, DHS is creating a new 

compensation system with a focus on 

CTMS qualifications, individuals with 

those qualifications, and the value of 

those qualifications to DHS. 

1. CTMS Compensation System 

The CTMS compensation system 

provides DHS with an enhanced ability 

to establish and adjust overall 

compensation for the DHS–CS based on 

the individual’s qualifications, national 

and local cybersecurity talent market 

trends, and DHS–CS employees’ 

mission impact. The compensation 

system includes the CTMS salary 

system and CTMS additional 

compensation, both discussed 

subsequently. See §§ 158.601 and 

158.602. 

DHS establishes and administers the 

compensation system based on a 

compensation strategy. See §§ 158.601 

and 158.602. The CTMS compensation 

strategy establishes four goals for the 

compensation system. See § 158.601. 

Those goals provide a framework for 

ongoing, methodical review and 

maintenance of the compensation 

system. These goals also guide use of 

the compensation system for 

recruitment and retention purposes. 

The first goal is to ensure the 

compensation of DHS–CS employees is 

sufficiently competitive to recruit and 

retain individuals possessing CTMS 

qualifications See § 158.601. As 

discussed previously in III.B of this 

document, the competitiveness of 

compensation is a main factor 

contributing to DHS’s challenges 

recruiting and retaining cybersecurity 

talent. To further this compensation 

strategy goal, DHS determines whether 

compensation is sufficiently 

competitive by conducting 

cybersecurity talent market analysis to 

understand if it needs to adjust aspects 

of compensation, such as salary ranges, 

to account for trends in the 

cybersecurity talent market. In addition, 

DHS aims to maintain sufficiently 

competitive compensation by analyzing 

data regarding the effectiveness of 

CTMS in recruiting and retaining DHS– 

CS employees, including the degree to 


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which application abandonment, 

appointment offer rejection, and 

employee attrition rates can be 

attributed to individuals’ dissatisfaction 

with compensation. 

The second goal under the CTMS 

compensation strategy is to value, 

encourage, and recognize exceptional 

qualifications and mission impact; 

excellence and innovation in the 

performance of cybersecurity work; and 

continual learning to adapt to evolving 

cybersecurity risks and cybersecurity 

threats. See § 158.601. As discussed 

previously in III.B of this document, 

main factors contributing to DHS’s 

challenges recruiting and retaining 

cybersecurity talent are the lack of focus 

of existing Federal talent management 

practices on individuals and their skills, 

as well as fierce competition for those 

individuals and their skills. This 

compensation strategy goal aligns to the 

DHS–CS core values of expertise, 

innovation, and adaptability, described 

in § 158.305, and focuses the 

compensation system on individuals’ 

qualifications and competing for those 

qualifications. The DHS–CS best fulfills 

its purpose of enhancing the 

cybersecurity of the Nation when DHS– 

CS employees are focused on: 

Enhancing qualifications and impacting 

the DHS cybersecurity mission; 

producing quality work products and 

developing new methods to perform 

cybersecurity work; and continually 

learning to counter emerging or novel 

risks and threats. Compensating 

employees to support and foster such 

outcomes helps to ensure the DHS–CS 

fulfills its purpose and ensure that 

compensation under CTMS reinforces 

the core values of the DHS–CS. 

The third goal under the CTMS 

compensation strategy is to 

acknowledge the unpredictable nature 

of cybersecurity work and the 

expectation that all 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. See 

§ 158.601. As discussed previously in 

III.B of this document, cybersecurity 

work is knowledge work that requires 

individuals to apply their skills to solve 

problems and achieve outcomes, often 

in unpredictable ways. Toward this 

compensation strategy goal, DHS–CS 

employees are salaried and are not 

considered hourly employees. 

Accordingly, under the compensation 

system, each DHS–CS employee 

receives a salary. Such a salary accounts 

for the unpredictable nature of 

cybersecurity work and the expectation 

that DHS–CS employees occasionally 

work unusual and extended hours, and 

DHS–CS employees are expected to 

successfully and proficiently perform 

cybersecurity work in exchange for the 

compensation provided in their salaries 

and are not entitled to more 

compensation for occasionally working 

unusual and extended hours in order to 

perform that work. Under CTMS, Title 

5 premium pay provisions, overtime pay 

provisions of the FLSA, and most Title 

5 compensatory time-off provisions do 

not apply. See § 158.605. Instead, CTMS 

utilizes the CTMS salary system and 

types of additional compensation 

intended to ensure DHS–CS employees 

are compensated appropriately for their 

qualifications and impact on the DHS 

cybersecurity mission. Under the CTMS, 

DHS monitors hours worked by DHS– 

CS employees using the CTMS work 

scheduling system described in 

§ 158.705, and hours worked is 

important for administering salary and 

is a factor in providing some types of 

additional compensation. DHS can 

address employees’ mission impact 

through recognition payments under 

§ 158.632, and DHS can address special 

working conditions, including 

circumstances that exceed the 

expectation of occasional unusual and 

extended hours, under the CTMS 

special working conditions payment 

program described in § 158.642. 

The fourth goal under the CTMS 

compensation strategy is to reflect an 

understanding of the cybersecurity 

talent market, including leading 

compensation practices and trends and 

current work expectations and 

arrangements, an understanding of the 

concepts of internal and external equity, 

and an understanding of the concepts of 

total compensation and total rewards. 

See § 158.601. As discussed previously 

in III.B of this document, there is a 

specific, competitive talent market for 

cybersecurity that comprises 

cybersecurity employers, including 

Federal agencies and private sector 

employers, and cybersecurity talent, 

which is individuals with cybersecurity 

expertise. In a field as dynamic as 

cybersecurity, DHS cannot establish a 

static approach to compensation and 

assume it will remain competitive 

enough over time to recruit and retain 

individuals with the qualifications 

necessary to execute the DHS 

cybersecurity mission. DHS must 

maintain an understanding of 

compensation in the cybersecurity 

talent market, and in designing and 

adjusting aspects of CTMS 

compensation, DHS must attempt to 

make like comparisons between the 

total compensation packages offered by 

employers in the cybersecurity talent 

market and DHS–CS employees’ salaries 

and additional compensation, including 

the complete set of traditional Federal 

employee benefits. DHS must also 

ensure its approach to compensation 

remains informed by changes in how 

individuals might expect and prefer to 

perform cybersecurity work, as well as 

work opportunities commonly available 

at employers in the cybersecurity talent 

market. Therefore, DHS may need to 

consider how it offers work 

arrangements, such as part-time work 

schedules and project-based and remote 

work, and DHS may need to customize 

CTMS compensation and compensation 

administration to such arrangements. 

DHS also establishes and administers 

the compensation system based on 

information from strategic talent 

planning, generally recognized 

compensation principles and practices, 

and strategic talent priorities. § 158.602. 

The CTMS compensation strategy, 

together with the talent market analysis 

from strategic talent planning, ensures 

that the compensation system provides 

a market-sensitive approach to 

compensation, enabling DHS to better 

compete for top cybersecurity talent. 

The generally recognized principles and 

practices are the same principles and 

practices, discussed previously, that 

DHS uses for conducting talent market 

analysis. Using these principles and 

practices for the compensation system 

ensures the design and administration 

of CTMS compensation addresses DHS 

organizational goals and complies with 

legal requirements, including those 

prohibiting discrimination in 

compensation. 

Compensating DHS–CS employees 

using a new market-sensitive 

compensation system guided by a 

compensation strategy intended to keep 

DHS competitive when recruiting and 

retaining cybersecurity talent represents 

a shift from existing Federal 

compensation practices for other 

Federal civil service positions. As 

discussed previously in III.A.3 of this 

document, the authority in 6 U.S.C. 658 

to create a new compensation system is 

exempt from any other provision of law 

relating to compensation of employees, 

as well as from other provisions of law 

relating to classification. As such, 

§ 158.605 lists existing laws relating to 

compensation that do not apply under 

CTMS, to the DHS–CS, or to talent 

management under CTMS. The laws 

listed in § 158.605 include provisions in 

5 U.S.C Chapter 53 establishing and 

governing other pay systems; premium 

pay provisions in 5 U.S.C. Chapter 55 

and the minimum wage and overtime 

pay provisions of the FLSA; provisions 


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in Title 5 regarding monetary awards, 

incentives, and certain differentials; the 

limitation on annual aggregate 

compensation in 5 U.S.C. 5307; and 

provisions in 5 U.S.C. Chapter 61 

governing work schedules. 

2. DHS–CS Employee Compensation 

Compensation for DHS–CS employees 

is salary and additional compensation. 

See § 158.603. As defined in § 158.104, 

salary means an annual rate of pay 

under CTMS. Compensation for DHS– 

CS advisory appointees also is salary 

and additional compensation under 

CTMS, subject to additional 

requirements and restrictions. Subpart J, 

discussed subsequently, addresses 

compensation for DHS–CS advisory 

appointees. 

A DHS–CS employee receives a salary 

under the CTMS salary system. See 

§ 158.603. A DHS–CS employee 

providing uncompensated service, 

however, does not receive a salary. A 

DHS–CS employee’s salary may include 

a local cybersecurity talent market 

supplement, which, as discussed 

subsequently, is similar to localitybased comparability payments under 

Title 5. 

In addition to salary, DHS–CS 

employees, except those providing 

uncompensated service, may receive 

additional compensation. As defined in 

§ 158.104, additional compensation is 

several types of compensation described 

in § 158.603(c). CTMS additional 

compensation includes: CTMS 

recognition, such as recognition 

payments; other special payments under 

CTMS; and other compensation 

provided in accordance with relevant 

provisions of laws, including leave and 

benefits. The types of additional 

compensation are set out in separate 

sections in subpart F. 

CTMS additional compensation 

implements the discretionary additional 

compensation authority in 6 U.S.C. 

658(b)(3)(a). As previously discussed in 

III.A.3 of this document, DHS interprets 

this additional compensation authority 

as requiring DHS to base any 

discretionary CTMS additional 

compensation on Title 5 provisions 

regarding types of additional 

compensation, and DHS may combine 

and streamline such provisions as long 

as it is clear which specific Title 5 

provisions serve as the base or 

foundation for CTMS additional 

compensation. As discussed previously 

in III.B of this document, the current 

inability to quickly construct and 

nimbly adjust competitive total 

compensation packages is a main factor 

in DHS’s challenges recruiting and 

retaining cybersecurity talent. 

Therefore, DHS is combining and 

streamlining several provisions of Title 

5 to establish types of additional 

compensation specific to the new talent 

management system, as well as 

providing traditional Federal employee 

benefits, such as retirement, health 

benefits, and insurance programs. 

For CTMS additional compensation, 

DHS is creating a new toolset based on 

Title 5 authorities for additional 

compensation. The CTMS toolset 

provides a cohesive set of tools tailored 

to the mission-driven, person-focused, 

market-sensitive design of CTMS. 

The new toolset has three categories: 

CTMS recognition, other special pay 

under CTMS, and other CTMS 

compensation provided in accordance 

with relevant provisions of other laws. 

CTMS recognition, described in 

§§ 158.630–158.634, comprises three 

types of additional compensation, 

which are recognition payments, 

recognition time-off, and honorary 

recognition. CTMS recognition is based 

on Title 5 authorities for cash awards 

and incentives, performance-based 

awards, time-off awards, and honorary 

awards. 

The category of other special pay 

under CTMS comprises four types of 

additional compensation: CTMS 

professional development and training, 

described in § 158.640, based on Title 5 

authorities for training and professional 

development; CTMS student loan 

repayments, described in § 158.641, 

based on Title 5 authorities for student 

loan repayments; CTMS special working 

conditions payments, described in 

§ 158.642, based on Title 5 authorities 

for certain payments; and CTMS 

allowances in nonforeign areas, 

described in § 158.643, as mandated in 

6 U.S.C 658(b)(3)(B). 

The category of other CTMS 

compensation provided in accordance 

with relevant provisions of other laws 

includes other traditional types of 

additional compensation authorized in 

Title 5, such as holidays, leave, and 

benefits, described in §§ 158.650– 

158.655, that DHS is authorizing under 

6 U.S.C. 658. 

DHS provides additional 

compensation in alignment with the 

CTMS compensation strategy and under 

the separate sections in subpart E that 

govern each type of additional 

compensation. Those separate sections, 

each discussed subsequently, set out the 

requirements and eligibility for each 

type of additional compensation, as well 

as the provisions of Title 5 on which 

each type of CTMS additional 

compensation is based. 

A DHS–CS employee, except one 

providing uncompensated service, may 

receive any type of additional 

compensation in combination with any 

other type of additional compensation, 

subject to the requirements and 

eligibility criteria in the separate 

sections governing each type of 

additional compensation and the CTMS 

aggregate compensation limit, discussed 

subsequently. 

3. CTMS Salary System 

The CTMS compensation system 

includes a salary system, which 

comprises at least one salary structure, 

a process for providing local 

cybersecurity talent market 

supplements, and a framework for 

administering salary under CTMS. See 

§ 158.610. DHS establishes and 

administers the CTMS salary system 

with the goals of maintaining 

sufficiently competitive salaries for 

DHS–CS employees for recruitment and 

retention purposes and equitable 

salaries among DHS–CS employees. 

These goals align with the 

compensation strategy in § 158.601 and 

with the talent management principles 

of merit and fairness in § 158.303. With 

the salary system, DHS addresses 

external equity between the DHS–CS 

and the cybersecurity talent market so 

that DHS can compete for cybersecurity 

talent, and DHS does so through the 

CTMS compensation strategy that 

ensures consideration of the 

cybersecurity talent market. With the 

salary system, DHS also addresses 

internal equity within the DHS–CS 

through the work valuation system. 

Internal equity for salaries among DHS– 

CS employees is one outcome of the 

work and career structures established 

under the work valuation system; DHS 

aims to maintain equitable salaries for 

DHS–CS employees in the same work 

level and with similar qualifications and 

mission impact. 

In addition to the goals of external 

and internal equity, DHS also 

establishes and operates the salary 

system within the boundaries provided 

by the CTMS salary range. 

(a) CTMS Salary Range 

The CTMS salary range comprises a 

standard range, which has an upper 

limit of the Vice President’s salary 

($255,800 in 2021), and an extended 

range for use in limited circumstances, 

which has an upper limit of 150 percent 

of EX–I ($332,100 in 2021). See 

§ 158.613. 

The salary range implements the basic 

pay authority in 6 U.S.C. 658(b)(2)(a) 

regarding rates of pay. As discussed 

previously in III.A.3 of this document, 

DHS interprets this basic pay authority 

to mean that the boundaries of the new 


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138 DOD pilot cybersecurity professional positions 

do not have a maximum rate. National Defense 

Authorization Act for Fiscal year 2017, Public Law 

15–91, Sec. 1110(f), (Dec. 2017). 

139Provided for DOD STRL positions in 10 U.S.C. 

2358c(d). 

140Provided for IC HQE positions under 50 U.S.C. 

3024(f)(3)(A)(iii) and ICD 623, Intelligence 

Community Directive Number 623, Appointment of 

Highly Qualified Experts (Oct. 16, 2008), 4. 

salary system, as provided by the nine 

rate ranges for the eleven types of 

comparable positions in DOD, may be 

from no minimum to 150 percent of EX– 

I or no maximum. As discussed 

previously in II.B of this document, the 

competitiveness of compensation, 

especially salary, is a main factor 

contributing to DHS’s challenges 

recruiting and retaining cybersecurity 

talent. Therefore, the Department is 

using the highest maximum rates for the 

upper boundary for the new salary 

system 

DHS is setting the upper boundary for 

the salary system at the Vice President’s 

salary ($255,800 in 2021), with an 

additional upper boundary of 150 

percent of EX–I. As discussed 

previously in III.A.3 of this document, 

the rate range for one comparable 

position in DOD 138 does not provide a 

maximum rate and DHS could apply 

this to mean that there is no upper 

boundary for the CTMS salary system. 

Instead, to ensure some certainty in 

establishing the range for the salary 

system and assist in standardizing and 

controlling employee costs, DHS is 

applying a specific maximum rate as the 

upper boundary for the CTMS salary 

range. The highest maximum rate 

provided for a comparable position in 

DOD is 150 percent of EX–I; 139

however, to provide consistency across 

the CTMS compensation system, DHS is 

applying the maximum rate of the Vice 

President’s salary 140 as the standard 

boundary for the CTMS salary range. 

Applying the Vice President’s salary as 

the standard boundary provides one 

limit amount that applies across CTMS 

compensation: The Vice President’s 

salary is also the highest CTMS 

aggregate compensation limit, which 

restricts some types of additional 

compensation, as discussed 

subsequently. Additionally, because 

types of CTMS additional 

compensation, such as CTMS 

recognition payments, are subject to the 

aggregate compensation cap, any DHS– 

CS employee receiving a salary higher 

than the Vice President’s salary, could 

not receive such additional 

compensation. DHS uses the higher 

salary limit of 150 percent of EX–I or the 

extended range, but only for only 

limited circumstances. 

Because the CTMS salary range 

implements the boundaries for the 

CTMS salary system provided by rate 

ranges for comparable positions in DOD, 

if the rate ranges for comparable 

positions in DOD change, DHS adjusts 

the CTMS salary range as necessary. 

The standard range applies unless the 

Secretary or designee invokes the 

extended range for specific DHS–CS 

employees serving in renewable 

appointments. See § 158.613. The 

extended range encompasses all salary 

amounts above the standard range’s 

upper limit of the Vice President’s 

salary ($255,800 in 2021) and up to 150 

percent of EX–I ($332,100 in 2021). 

Because the extended range contains 

such high salary amounts, DHS is 

limiting its use to ensure DHS only 

relies on these salary amounts as 

necessary and in a way that incorporates 

a time-limit to ensure the need for such 

salaries is reassessed. Because a 

renewable appointment is a timelimited appointment to a qualified 

position that may be renewed, requiring 

that any DHS–CS employee receiving a 

salary in the extended range must be in 

a renewable appointment ensures that 

the use of the extended range is 

similarly time-limited, but also similarly 

renewable. 

To invoke the extended range for 

specific DHS–CS employees, the 

Secretary must determine based on the 

CTMS compensation strategy, that the 

employee’s qualifications, the 

employee’s mission impact, and 

mission-related requirements warrant 

adjusting the employee’s salary beyond 

the standard range. See § 158.613. Also, 

the Secretary or designee must approve 

a salary in the extended range for each 

such DHS–CS employee by name. To 

receive a salary in the extended range, 

the employee must either already be in 

a renewable appointment, or the 

employee must accept a renewable 

appointment. While any DHS–CS 

employee is receiving a salary in an 

amount in the extended range, DHS may 

not change that employee’s appointment 

to a continuing appointment. To invoke 

the extended range for new DHS–CS 

employees, the Secretary or designee 

must make a similar determination for 

that individual and approve the 

appointment of the individual by name. 

See § 158.513. That individual must be 

appointed to a renewable appointment 

only and while that individual is 

receiving a salary in an amount in the 

extended range, DHS may not change 

that individual’s appointment to a 

continuing appointment at any time. 

(b) CTMS Salary Structure 

DHS provides salaries to DHS–CS 

employees under a CTMS salary 

structure. DHS establishes and 

administers at least one CTMS salary 

structure based on the compensation 

strategy and the same information, 

principles and practices, and priorities 

on which the CTMS compensation 

system is based. See § 158.611. 

A salary structure is bounded by the 

CTMS salary range and includes 

subranges. See § 158.611. The subranges 

are associated with work levels, which 

are one of the work and career 

structures established by the work 

valuation system. Each subrange is 

associated with at least one work level. 

For example, one salary subrange might 

be associated with a work level for 

entry-level employees in the DHS–CS, 

but another subrange might be 

associated with a work level for certain 

senior expert employees and executive 

employees in the DHS–CS. 

A salary structure also incorporates 

CTMS salary limitations and may 

incorporate other salary and cost control 

strategies. See § 158.614. CTMS salary 

limitations set the maximum salary for 

the subranges. Other salary and cost 

control strategies, such as control 

points, assist with standardization and 

prediction of employee costs. 

The CTMS salary limitations 

implement the basic pay authority in 6 

U.S.C. 658(b)(2)(a) regarding limitations 

on maximum rates of pay. As discussed 

previously in III.A.3 of this document, 

DHS interprets this basic pay authority 

to mean that the CTMS salary system is 

subject to the same salary caps 

applicable to the eleven types of 

comparable positions in DOD. Also as 

discussed previously in III.A.3, the 

applicable salary caps are six caps 

ranging from GS–15, step 10 to 150 

percent of EX–I, and DHS has discretion 

for how to apply those six caps to the 

salary system. The highest salary cap, 

150 percent of EX–I, is also the upper 

boundary for the extended range, and as 

such is the cap for the entire CTMS 

salary system. DHS is applying the five 

remaining salary caps as CTMS salary 

limitations for the subranges. The CTMS 

salary limitations are: GS–15, step 10 

(excluding locality pay or any other 

additional pay), EX–IV, EX–II, EX–I, and 

the Vice President’s salary. See 

§ 158.614. DHS incorporates the CTMS 

salary limitations into a salary structure 

by assigning the limitations, in 

ascending order, to the subranges of the 

salary structure. The result is that each 

subrange receives a salary limitation 

that is greater than or equal to the salary 

maximum of that subrange. See 


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141 5 CFR 531.610. 

§ 158.611. If the salary caps for 

comparable positions in DOD change in 

the future, DHS will adjust the CTMS 

salary limitations as necessary. DHS 

may also establish other limitations on 

maximum rates of salary, in addition to 

these CTMS salary limitations. See 

§ 158.514. 

DHS may adjust a CTMS salary 

structure based on the compensation 

strategy and the same information, 

principles and practices, and priorities 

with which DHS establishes and 

administers the salary structure. See 

§ 158.611. The purpose of considering 

adjustments to a salary structure, 

including its subranges, is to determine 

whether the salaries provided under 

that salary structure remain sufficiently 

competitive in alignment with the 

compensation strategy and the goals of 

the salary system. DHS might find, for 

example, that one salary subrange is 

lagging behind the cybersecurity talent 

market based on a trend of rising 

salaries for specific qualifications, and 

therefore, DHS might make adjustments 

to that subrange, such as increasing the 

salary minimum for that subrange. DHS 

may review and adjust a CTMS salary 

structure annually, and may also do so 

sooner than annually as the Secretary or 

designee determines necessary. 

(c) CTMS Local Cybersecurity Talent 

Market Supplement 

As part of the CTMS salary system, 

DHS is establishing a process for 

providing a local cybersecurity talent 

market supplement (LCTMS). See 

§ 158.612. DHS may provide a LCTMS 

to a DHS–CS employee in a specific 

geographic location to ensure the 

employee receives a sufficiently 

competitive salary, which is the purpose 

of a LCTMS and a goal of the 

compensation strategy and salary 

system. Much like locality-based 

comparability payments under 5 U.S.C. 

5304, a LCTMS is intended to address 

geographic compensation disparities 

and a LCTMS does so through local 

cybersecurity talent market supplement 

percentages. 

A local cybersecurity talent market is 

the cybersecurity talent market in a 

geographic area that DHS defines based 

on analysis of the cybersecurity talent 

market, and that may incorporate the 

definitions of localities under 5 U.S.C. 

5304. See § 158.612. For defining such 

geographic areas, DHS may rely on 

localities established or modified under 

5 U.S.C. 5304 but may need to adjust the 

boundaries of such localities to match 

specific cybersecurity talent markets. 

DHS may also define geographic areas 

for local cybersecurity talent markets 

separate from the localities covered by 

5 U.S.C. 5304, especially if such 

localities do not align to the 

cybersecurity talent markets in which 

DHS competes for cybersecurity talent. 

A local cybersecurity talent market 

supplement percentage is a percentage 

DHS assigns to a local cybersecurity 

talent market to increase the amount of 

salaries for DHS–CS employees 

provided under a salary structure in that 

local cybersecurity talent market. See 

§ 158.612. This percentage increases the 

amount of a salary to account for the 

difference between the salary as 

determined under a CTMS salary 

structure and what DHS determines to 

be a sufficiently competitive salary for 

that local cybersecurity talent market. 

DHS determines whether a LCTMS is 

necessary in a local cybersecurity talent 

market based on the compensation 

strategy and the same information, 

principles and practices, and priorities 

on which the CTMS compensation 

system is based and that DHS uses to 

establish and adjust a CTMS salary 

structure. See § 158.612. Based on that 

strategy and same information, 

principles and practices, and priorities, 

DHS may establish and periodically 

adjust any local cybersecurity talent 

markets and local cybersecurity talent 

market supplement percentages. An 

adjustment to a local cybersecurity 

talent market supplement percentage 

may include termination when DHS 

determines it is no longer necessary for 

the purpose of a LCTMS. 

DHS determines eligibility for a 

LCTMS under § 158.612 and CTMS 

policy implementing that section. Under 

§ 158.612, a DHS–CS employee is 

eligible for a LCTMS if the employee’s 

official worksite 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. Thus, a 

DHS–CS employee’s official worksite 

location and the salary structure for the 

employee’s salary are both factors in 

eligibility for a LTCMS. DHS may have 

more than one salary structure, but a 

LCTMS may not be required for all 

salary structures to ensure sufficiently 

competitive salaries. Any LCTMS a 

DHS–CS employee receives terminates 

when the employee’s official worksite 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. 

A LCTMS is limited by applicable 

CTMS salary limitations. A DHS–CS 

employee may not receive any portion 

of a LCTMS that would cause that 

employee’s salary to exceed applicable 

CTMS salary limitations, but may 

receive the portion of the LCTMS up to 

the applicable limitations. A DHS–CS 

employee also cannot receive a LCTMS 

that would cause the employee’s salary 

to be in the CTMS extended range 

unless the Secretary invokes the 

extended range for that employee. 

Any LCTMS a DHS–CS employee 

receives is part of the employee’s salary 

and as such a LCTMS is basic pay for 

purposes under Title 5, such as civil 

service retirement. A LCTMS, however, 

is not basic pay for purposes of 

determining pay under Title 5 

provisions addressing a reduction in 

pay as an adverse action, and a 

reduction in salary for a DHS–CS 

employee because of a change in any 

LCTMS, including a change in amount 

or termination of a LCTMS, for that 

employee is not an adverse action under 

5 U.S.C. 7512. See §§ 158.612. Decisions 

regarding such supplements are based 

on geographic location and calculations 

for providing such a supplement. This 

is similar to changes in locality-based 

comparability payments under Title 5 

because under Title 5 a change in an 

employee’s official worksite to a 

different locality pay area may serve to 

reduce that employee’s basic pay, but is 

not a reduction in basic pay for the 

purposes of 5 U.S.C. 7512 because 

locality-based comparability payments 

are not considered basic pay for those 

purposes.141

(d) CTMS Salary Administration 

The CTMS salary system includes a 

framework for salary administration that 

addresses setting salaries and adjusting 

salaries under CTMS, and administering 

CTMS salaries under relevant 

provisions of other laws. See 

§§ 158.620–158.622. Although the 

CTMS salary system is exempt from 

other laws relating to compensation of 

employees, under the authority and 

exemptions in 6 U.S.C. 658, DHS is 

setting up a new compensation system 

and salary system, and the new systems 

must integrate with existing pay 

administration procedures and 

infrastructure, such as information 

technology support systems, used by 

Federal agencies to process and ensure 

employees receive their earned 

compensation. 

DHS sets the salary for an individual 

accepting an appointment to a qualified 

position within a subrange of a CTMS 

salary structure as part of selection and 

appointment of the individual. DHS sets 


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142Subpart A of 5 CFR part 550 addresses types 

of premium pay and administration of such pay, 

including a biweekly maximum earning limitation, 

known as a biweekly pay cap. Under § 158.622, and 

§ 158.605, Subpart A, including application of the 

biweekly pay cap, does not apply to CTMS. 

an individual’s initial salary based on: 

The individual’s CTMS qualifications; 

applicable work and career structures, 

including the individual’s initial work 

level; the individual’s anticipated 

mission impact; mission-related 

requirements; and strategic talent 

priorities set by CTMS leadership. See 

§ 158.620. 

As discussed previously, CTMS 

qualifications are the core of CTMS, and 

setting salary based on qualifications 

ensures a focus on the value of those 

qualifications to DHS. Work and career 

structures group and value 

qualifications, and work level is one 

such grouping for purposes of similar 

treatment in talent management and 

which addresses internal equity among 

DHS–CS employees’ salaries. DHS 

determines an individual’s CTMS 

qualifications under the CTMS 

assessment program and determines 

applicable work and career structures as 

part of selection and appointment of the 

individual. 

A goal of the DHS–CS is the most 

effective execution of the DHS 

cybersecurity mission, and therefore a 

DHS–CS employee’s mission impact is 

an important part of the employee’s 

value or worth to DHS. As such the 

employee’s anticipated mission impact 

is a factor in setting initial salary. DHS 

determines individuals’ anticipated 

mission impact using information from 

the application and assessment 

processes. 

Mission-related requirements are 

relevant for addressing emerging or 

urgent mission circumstances, and for 

setting salaries with information about 

mission-related requirements, such as a 

need for talent that understands a novel 

technology related to an urgent 

cybersecurity threat. Mission-related 

requirements, as defined in § 158.104, 

are characteristics of an individual’s 

expertise or characteristics of 

cybersecurity work, or both, including 

highly-specialized expertise and 

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. Strategic 

talent priorities are part of the design 

and administration of CTMS and the 

CTMS compensation system, and setting 

initial salaries based on such priorities 

ensures salaries also reflect DHS and 

CTMS leadership priorities and goals for 

the DHS–CS. 

DHS may set the salary for an 

incoming DHS–CS employee without 

regard to any prior salaries of the 

individual, including any basic pay 

while serving in a previous Federal 

appointment and any previous salary as 

a DHS–CS employee for a returning, 

former DHS–CS employee. See 

§ 158.620. This emphasizes that DHS 

uses the CTMS compensation system to 

set DHS–CS employee salaries based on 

individuals’ value or worth in 

relationship to the DHS cybersecurity 

mission. This also serves to reduce 

reliance on salary history information 

that may reflect systematic bias and 

historical salary discrimination. 

Under CTMS, DHS adjusts a DHS–CS 

employee’s salary by providing a 

LCTMS or a recognition adjustment, or 

both. See § 158.621. A recognition 

adjustment is an adjustment to a DHS– 

CS employee’s salary and is based 

primarily on the employee’s mission 

impact. See §§ 158.630 and 158.631. 

DHS determines the mission impact of 

a DHS–CS employee, individually or as 

part of group of DHS–CS employees or 

both, using mission impact reviews, 

which are part of the CTMS 

performance management program 

described in § 158.802 and discussed 

subsequently. In providing a recognition 

adjustment, DHS may also consider 

mission-related requirements and 

strategic talent priorities for the same 

reasons DHS considers them for setting 

salaries. A recognition adjustment does 

not alter any LCTMS for that employee. 

While a LCTMS is part of a receiving 

DHS–CS employee’s salary, a 

recognition adjustment does not alter 

the percentage of a LCTMS. 

A DHS–CS employee may not receive 

a recognition adjustment that would 

cause the employee’s salary to exceed 

the CTMS salary range or a CTMS salary 

limitation applicable to the subrange for 

that employee’s salary. See § 158.631. A 

DHS–CS employee may not receive a 

recognition adjustment that would 

cause the employee’s salary to be in the 

extended range, unless the Secretary or 

designee invokes the extended range for 

that employee, as discussed previously. 

DHS does not provide DHS–CS 

employees with any automatic salary 

increases or any salary increases based 

on length of service in the DHS–CS or 

service in any position outside the 

DHS–CS. CTMS is not a longevity-based 

approach to talent management, and 

career progression in the DHS–CS is not 

based on length of service in the DHS– 

CS or the Federal government. 

Providing a recognition adjustment or a 

LCTMS is the only means for adjusting 

a DHS–CS employee’s salary. 

If, however, DHS adjusts a salary 

structure that results in an increase to 

the salary minimum for one or more 

subranges of the salary structure, DHS 

adjusts the salary for any affected DHS– 

CS employee. See 158.621. For a 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 CTMS, a recognition 

adjustment is not a promotion for any 

purpose under Title 5. See § 158.631. 

Salary progression resulting from 

recognition adjustments is only one part 

of a DHS–CS employee’s career 

progression. Career progression in the 

DHS–CS is based on both enhancement 

of CTMS qualifications and salary 

progression. See § 158.803. 

Enhancement of CTMS qualifications is 

one component of career progression in 

the DHS–CS in alignment with the DHS 

core values of expertise, innovation, and 

adaptability and in alignment with the 

compensation strategy. DHS expects 

DHS–CS employees to strive to enhance 

individual expertise through continual 

learning and anticipate and adapt to 

emergent and future cybersecurity risks. 

Additionally, as part of the 

compensation strategy, DHS values, 

encourages, and recognizes exceptional 

qualifications and mission impact, and 

DHS adjusts DHS–CS employees’ 

salaries in recognition of their mission 

impact. 

In order to integrate CTMS salary 

administration with existing pay 

administration procedures and 

infrastructure used by Federal agencies, 

DHS administers salaries of DHS–CS 

employees in accordance with relevant 

provisions of other laws governing pay 

administration for Federal civil service 

employees. DHS administers salaries 

under CTMS in accordance with the 5 

CFR part 550 generally and U.S. Code 

sections enumerated in § 158.622. 

Because 5 CFR part 550 addresses 

administration of other types of 

compensation and not just salary 

administration, § 158.622 also lists the 

provisions of 5 CFR part 550 that do not 

apply to CTMS. Those provisions of 5 

CFR part 550 address types of premium 

pay 142 and compensatory time-off for 

travel, which as discussed previously, 

do not apply under CTMS. 

DHS also administers DHS–CS 

employee salaries based on 

consideration of each employee’s work 

schedule under the CTMS work 

scheduling system, described in 

§ 158.705 and discussed subsequently, 


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143Under 5 U.S.C. 4502, an agency may provide 

a cash award up to $10,000 or a cash award up to 

$25,000 with OPM approval for a suggestion, 

invention, superior accomplishment, or other 

meritorious effort. 

144Under 5 U.S.C. 4503, an agency may pay a 

cash award to an employee who provides a 

suggestion, invention, superior accomplishment, or 

other personal effort that contributes to the 

efficiency, economy, or other improvement of 

Government operations or achieves a significant 

reduction in paperwork, or performs a special act 

or service in the public interest in connection with 

or related to the employee’s official employment. 

145Under 5 U.S.C. 4505a, an employee whose 

most recent performance rating was at the fully 

successful level or higher may be paid a cash award 

up to 10 percent of the employee’s salary, or up to 

20 percent of the employee’s salary if the agency 

determines that exceptional performance by the 

employee justifies such an award. Under 5 U.S.C. 

5384, employees in SES positions may receive a 

performance award for at least fully successful 

performance during the employee’s most recent 

performance appraisal. Such performance awards 

are at least 5 percent, and up to 20 percent, of the 

recipient’s annual basic pay. 

146Under 5 U.S.C. 4507 and 4507a, employees in 

SES and SL/ST may receive presidential ranks of 

meritorious executive or distinguished executive or 

meritorious senior professional or distinguished 

senior professional, and the recipient is entitled to 

a cash award of 20 percent of the recipient’s annual 

basic pay for meritorious ranks and 35 percent of 

the recipient’s annual basic pay for distinguished 

ranks. 

147Under 5 U.S.C. 5753 an agency can provide a 

recruitment incentive when a position is likely to 

be difficult to fill in the absence of such a bonus. 

Under 5 U.S.C. 5753 an agency can provide a 

relocation incentive when an individual is a newly 

appointed employee or is a current employee and 

moves to a new position in the same geographic 

area or must relocate to accept a position in a 

different geographic area. Under 5 U.S.C. 5754, an 

agency can provide a retention incentive to an 

employee when the unusually high or unique 

qualifications of the employee or a special need of 

the agency for the employee’s services makes it 

essential to retain the employee and the agency 

determines that, in absence of a retention bonus, the 

employee would be likely to leave the Federal 

service; or for a different position in the Federal 

service. Recruitment, relocation, and retention 

incentives for an individual can be up to 25 percent 

Continued 

and may convert a DHS–CS employee’s 

salary into an hourly rate, biweekly rate, 

or other rate as necessary to ensure 

accurate operation of existing pay 

administration procedures and 

infrastructure. See § 158.622. In 

converting salaries to an hourly, 

biweekly, or other rate, DHS may need 

to consider the hours worked and any 

leave taken by an employee to ensure 

proper payment of salary. 

4. CTMS Recognition 

The CTMS compensation system 

comprises the CTMS salary system and 

CTMS additional compensation, and 

CTMS recognition is a main aspect of 

both. With CTMS recognition, DHS 

recognizes and rewards DHS–CS 

employees, in alignment with the CTMS 

compensation strategy and CTMS 

performance management program, 

based primarily on mission impact. 

CTMS recognition includes four types 

of recognition: Recognition adjustments, 

recognition payments, recognition timeoff, and honorary recognition. See 

§§ 158.631–158.634. As discussed 

previously, DHS adjusts DHS–CS 

employees’ salaries through recognition 

adjustments. The other three types of 

CTMS recognition—payments, time-off, 

and honorary—are additional 

compensation. 

Like recognition adjustments, DHS 

provides recognition payments, 

recognition time-off, and honorary 

recognition, based primarily on a DHS– 

CS employee’s mission impact. See 

§§ 158.630 and 158.632–158.634. DHS 

determines the mission impact of a 

DHS–CS employee, individually or as 

part of group of DHS–CS employees or 

both, using mission impact reviews, 

which are part of the CTMS 

performance management program 

described in § 158.802 and discussed 

subsequently. In providing recognition 

payments, recognition time-off, and 

honorary recognition, DHS may also 

consider mission-related requirements 

and strategic talent priorities for the 

same reasons DHS may consider these 

in providing a recognition adjustment 

and for setting initial salaries. 

DHS may also use CTMS recognition, 

in the form of recognition payments and 

recognition time-off, as part of recruiting 

new DHS–CS employees. DHS may 

need to offer a recognition payment as 

a signing bonus to ensure that an 

individual’s compensation package is 

sufficiently competitive and to 

incentivize the individual to serve in 

the DHS–CS. DHS provides recognition 

to an incoming DHS–CS employee 

based on the incoming employee’s 

CTMS qualifications, the incoming 

employee’s anticipated mission impact, 

mission-related requirements, and 

strategic talent priorities. See § 158.630. 

DHS bases recognition for an incoming 

DHS–CS employee on these for the same 

reasons DHS considers them for setting 

initial salaries. 

DHS determines eligibility for CTMS 

recognition under §§ 158.630–158.634 

and CTMS policy. As stated in 

§ 158.630, a DHS–CS employee is 

ineligible to receive CTMS recognition if 

DHS determines the employee’s 

performance is unacceptable, as defined 

in 5 U.S.C. 4301(3) or the employee 

receives an unacceptable rating of 

record under CTMS performance 

management, or DHS determines the 

employee has engaged in misconduct. A 

DHS–CS employee should only be 

recognized if the employee’s 

performance is acceptable. Similarly, a 

DHS–CS employee should not be 

recognized if engaging in misconduct. 

For these same reasons, DHS may defer 

providing recognition if DHS is in the 

process of determining whether a DHS– 

CS employee’s performance is 

unacceptable or whether the employee 

has engaged in misconduct. See 

§ 158.630. CTMS policy will address 

other eligibility criteria for CTMS 

recognition. 

In addition to eligibility criteria, 

CTMS policy will also address 

requirements for documenting the 

reason and basis for providing CTMS 

recognition, appropriate levels of review 

and approval, and any limitations on 

recognitions, among other matters 

necessary for administering CTMS 

recognition. 

CTMS recognition payments, 

recognition time-off, and honorary 

recognition are based on Title 5 

authorities. As discussed previously in 

III.A.3 of this document, under the § 658 

additional compensation authority DHS 

may combine and streamline provisions 

of Title 5 regarding types of additional 

compensation, as long as it is clear on 

which specific Title 5 provisions CTMS 

additional compensation is based. 

Sections 158.632 through 158.634 list 

the Title 5 authorities on which CTMS 

recognition payments, recognition timeoff, and honorary recognition are based. 

Each of these types of recognition is 

discussed subsequently. 

(a) CTMS Recognition Payments 

A CTMS recognition payment is a 

lump-sum payment, an installment 

payment, or recurring payments of up to 

a percentage of the receiving DHS–CS 

employee’s salary: Up to 20 percent, or 

up to 50 percent with approval of the 

Secretary or designee. See § 158.632. 

DHS may offer a recognition payment to 

an incoming DHS–CS employee as part 

of an offer for employment in the DHS– 

CS. A recognition payment for an 

incoming DHS–CS employee is up to 20 

percent of the incoming employee’s 

initial salary and is provided upon 

appointment. See § 158.632. 

CTMS recognition payments are based 

on Title 5 authorities providing seven 

types of cash awards and incentives: 5 

U.S.C. 4502 providing cash awards for 

a suggestion, invention, superior 

accomplishment or other meritorious 

effort,143 5 U.S.C. 4503 providing 

agency awards for special acts,144 5 

U.S.C. 4505a and 5384 providing 

performance-based cash awards,145 5 

U.S.C. 4507 and 4507a providing 

presidential rank awards,146 and 5 

U.S.C. 5753 and 5754 providing 

recruitment incentives, relocation 

incentives, and recruitment 

incentives.147 These Title 5 authorities 


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of the recipient’s annual basic pay, or up to 50 

percent of the recipient’s annual basic pay with 

OPM approval. 

148Under 5 U.S.C. 4503(e) and 5 CFR part 

451.104, an agency may grant employees time off 

from duty, without loss of pay or charge to leave, 

as an award in recognition of superior 

accomplishment or other personal effort that 

contributes to the quality, efficiency, or economy of 

Government operations. 

149See also Timekeeper Instructions on Time Off 

Awards, available at https://www.aphis.usda.gov/ 

mrpbs/hr/pay_leave_tod/downloads/award_faq.pdf 

(last visited May 25, 2021). 

provide cash awards and incentives in 

recognition of employee efforts and 

performance, and can help with 

employee recruitment and retention. 

CTMS recognition payments serve the 

same purposes, but under the overall 

approach to talent management and 

compensation under CTMS. DHS uses 

recognition payments to recognize and 

reward DHS–CS employees, especially 

for their mission impact. The Title 5 

authorities on which CTMS recognition 

is based provide some of the existing 

Federal compensation tools, which as 

discussed previously in III.B of this 

document, are cumbersome to use, 

ineffective for constructing marketsensitive compensation packages, and 

are not intended to form a cohesive 

toolset. CTMS recognition payments 

combines and streamlines these existing 

tools to align with the CTMS design and 

to allow for greater flexibility and agility 

in providing competitive total 

compensation packages. 

For recognition payments, DHS is 

establishing a maximum amount as a 

percentage of a DHS–CS employee’s 

salary because most of the Title 5 

authorities, on which recognition 

payments are based, provide a limit for 

cash payments as a percentage of annual 

basic pay. Performance-based cash 

awards range from a minimum of 5 

percent under 5 U.S.C. 5382 to a 

maximum of 20 percent under 5 U.S.C 

4505a and 5382. Presidential rank 

awards are either 20 percent or 35 

percent, and recruitment, relocation, 

and retention incentives have no 

minimum but have a maximum of 25 

percent without special approval. The 

maximum percentage amount for these 

Title 5 awards and incentives, ranges 

from 20 percent to 50 percent, so DHS 

is establishing the percentage amounts 

for recognition payments as up to 20 

percent without special approval, and 

up to 50 percent with approval from the 

Secretary or the Secretary’s designee. 

Also, because recognition payments 

have budget implications, requiring 

special approval for amounts exceeding 

20 percent of a DHS–CS employee’s 

salary helps to ensure proper oversight 

of such additional compensation. 

DHS requires a service agreement as 

part of providing a recognition payment 

for an incoming DHS–CS employee and 

may require a service agreement as part 

of providing a recognition payment to a 

current DHS–CS employee. See 

§ 158.632. Service agreements can help 

ensure DHS gets, for a minimum 

amount of time, the benefit of the 

reasons DHS is providing the 

recognition payment. 

Also, 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. See § 158.632. 

This mirrors the requirement in 5 U.S.C. 

4502(c) that acceptance of a Title 5 cash 

award constitutes an agreement that the 

use by the government of an idea, 

method, or device for which the award 

is made does not form the basis of a 

future claim of any nature against the 

government by the employee or the 

employee’s heirs or estate. As necessary, 

DHS may provide a recognition 

payment to a former DHS–CS employee 

or to the legal heirs or estate of a DHS– 

CS former employee in accordance with 

5 U.S.C. 4505, which provides for 

paying a Title 5 cash award to a former 

employee, or the former employee’s 

heirs or estate. 

A recognition payment is not salary 

under CTMS nor basic pay for purposes 

under Title 5, see § 158.632, even if paid 

in an amount that would have been 

salary but for an applicable salary 

limitation as incorporated in a salary 

structure. Under 6 U.S.C. 658, 

compensation is either salary or 

additional compensation, and CTMS 

recognition payments are additional 

compensation. In cases where a DHS– 

CS employee’s salary is limited because 

of a CTMS salary limitation, DHS may 

determine that the employee should 

instead receive a recognition payment as 

part of an effort to ensure the 

individual’s compensation is 

sufficiently competitive for the 

individual’s expertise and mission 

impact. Any such payment, made in 

part to address a truncated salary, 

would be a recognition payment, not 

salary, and therefore, not basic pay 

under Title 5. 

For DHS–CS employees, recognition 

payments are in lieu of the seven types 

of Title 5 cash awards and incentives on 

which recognition payments are based. 

See § 158.632. DHS–CS employees and 

incoming DHS–CS employees are 

ineligible for those seven types of cash 

awards and incentives because 

recognition payments replace those 

types of Title 5 awards and incentives 

for DHS–CS employees. 

(b) CTMS Recognition Time-Off 

CTMS recognition time-off is time-off 

from duty without charge to leave or 

loss of compensation for use by the 

recipient within a designated timeframe. 

See § 158.633. CTMS recognition timeoff is based on Title 5 authorities 

providing time-off awards,148 which 

provide paid time-off in recognition of 

employee efforts or accomplishments. 

CTMS recognition time-off serves a 

similar purpose, but under the overall 

approach to talent management and 

compensation under CTMS. DHS uses 

recognition time-off to recognize and 

reward DHS–CS employees, especially 

for their mission impact. CTMS 

recognition time-off is similar to Title 5 

time-off but is specific to CTMS and can 

be an important part of a total 

compensation package for both 

recruiting and retention. 

As part of providing a DHS–CS 

employee recognition time-off, DHS 

designates the timeframe for use of the 

time-off award. The designated 

timeframe for recognition time-off may 

not exceed the equivalent of 26 

biweekly pay periods, and all 

recognition time-off must also be 

recorded in a timekeeping system to 

ensure accurate operation of existing 

salary and leave administration 

procedures. See § 158.633. These 

requirements mirror procedures for use 

of Title 5 time-off awards under 5 U.S.C. 

4502(e).149 Twenty-six biweekly pay 

periods is one calendar year for pay and 

leave administration purposes for 

Federal employees. 

Also, as part of an offer for 

employment in the DHS–CS, DHS may 

offer an incoming DHS–CS employee up 

to 40 hours of recognition time-off for 

that new employee to use within the 

employee’s first year of employment in 

the DHS–CS. See § 158.633. As part of 

recruiting new DHS–CS employees, 

DHS may need to offer recognition timeoff to ensure that an individual’s 

compensation package is sufficiently 

competitive and to incentivize the 

individual to serve in the DHS–CS. DHS 

may require a service agreement as part 

of providing recognition time-off for an 

incoming DHS–CS employee. 

Recognition time-off may not be 

converted to a cash payment or any 

other type of time-off or leave with pay. 

See § 158.633. This requirement mirrors 

the same requirement for Title 5 timeoff awards in 5 CFR 451.104(f) because 

an important feature of a time-off award 

is that providing such awards does not 

require additional funding or cash 

disbursement similar to a cash award. 


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150Under 5 U.S.C. 4503, an agency may incur 

necessary expense for the honorary recognition of 

an employee who provides a suggestion, invention, 

superior accomplishment, or other personal effort 

that contributes to the efficiency, economy, or other 

improvement of Government operations or achieves 

a significant reduction in paperwork, or performs a 

special act or service in the public interest in 

connection with or related to the employee’s official 

employment. 

151Under 5 U.S.C. 3396, an agency head may 

grant a career SES employee a sabbatical not to 

exceed 11 months to permit that employee to 

engage in study or uncompensated work experience 

that will contribute to the employee’s development 

and effectiveness. 

152Under 5 U.S.C. 4107, an agency may select 

and assign an employee to academic degree training 

and pay or reimburse the costs of that training. 

153Under 5 U.S.C. 4109, an agency may pay an 

employee while the employee attends training and 

may pay or reimburse the employee for all or a part 

of the necessary expenses of training, including 

travel and per diem, moving expenses, tuition, 

books, and other fees. 

154Under 5 U.S.C. 4110, an agency may pay for 

the expenses of an employee attending certain 

meetings. 

155Under 5 U.S.C. 5757, an agency may pay the 

expenses of an employee to obtain professional 

credentials. 

A recognition time-off award is in lieu 

of time-off awards under Title 5 on 

which recognition time-off is based. See 

§ 158.633. DHS–CS employees and 

incoming DHS–CS employees are 

ineligible for those Title 5 time-off 

awards because CTMS recognition timeoff replaces Title 5 time-off awards for 

DHS–CS employees. 

(c) CTMS Honorary Recognition 

As part of CTMS recognition, DHS 

may establish one or more honorary 

recognition programs to provide 

honorary recognition to DHS–CS 

employees. See 158.634. CTMS 

honorary recognition is based on 

honorary recognition provided under 

the provisions of 5 U.S.C. 4503,150

which describes how the head of an 

agency may incur necessary expense for 

the honorary recognition of an employee 

for certain acts and contributions. CTMS 

honorary recognition serves a similar 

purpose for DHS–CS employees, but 

under the overall approach to talent 

management and compensation under 

CTMS. DHS uses CTMS honorary 

recognition to recognize and reward 

DHS–CS employees, especially for their 

mission impact. CTMS honorary 

recognition is similar to Title 5 honorary 

recognition but is specific to CTMS. 

Unlike other CTMS recognition, a 

DHS–CS employee may be eligible to 

receive both CTMS honorary 

recognition and any honorary 

recognition under 5 U.S.C. 4503 and 5 

CFR part 451. Some honorary 

recognition programs developed under 

Title 5 authority are designed to 

recognize employees hired and 

compensated using a variety of statutory 

authorities. Thus, all eligible DHS 

employees, including DHS–CS 

employees, covered by those Title 5 

honorary recognition programs may 

receive recognition under such 

programs. As with honorary recognition 

under 5 U.S.C. 4503, DHS may incur 

necessary expenses for CTMS honorary 

recognition. See § 158.634. 

5. Other Special Payments Under CTMS 

Under the CTMS compensation 

system, DHS provides other types of 

additional compensation in the form of 

professional development and training, 

student loan repayments, payments for 

special working conditions, and 

allowances in nonforeign areas. Offering 

allowances in nonforeign areas is 

mandated by 6 U.S.C. 658 as a type of 

additional compensation. Such 

allowances are not specific to CTMS 

and are provided to DHS–CS employees 

under 5 U.S.C. 5941. The other types of 

additional compensation are also not 

salary under CTMS nor basic pay for 

purposes under Title 5. Under 6 U.S.C. 

658, compensation is either salary or 

additional compensation, and CTMS 

professional development and training, 

CTMS student loan repayments, and 

CTMS special working conditions, as 

well as allowances in nonforeign areas, 

are all additional compensation. 

These types of CTMS additional 

compensation, except allowances in 

nonforeign areas, are specific to CTMS 

and are based on Title 5 authorities. As 

discussed previously in III.A.3 of this 

document, under the § 658 additional 

compensation authority DHS may 

combine and streamline provisions of 

Title 5 regarding types of additional 

compensation, as long as it is clear on 

which specific Title 5 provisions CTMS 

additional compensation is based. 

Sections 158.640–158.642 lists the Title 

5 authorities on which CTMS 

professional development and training, 

student loan repayments, and payments 

for special working conditions are 

based. Each of these other special 

payments under CTMS is discussed 

subsequently. 

(a) CTMS Professional Development and 

Training 

Under CTMS, DHS provides DHS–CS 

employees with opportunities, 

payments, and reimbursements for 

professional development and training. 

See § 158.640. CTMS professional 

development and training is based on 

Title 5 provisions providing training 

and professional development 

opportunities, payments, and 

reimbursements: 5 U.S.C. 3396 

providing sabbaticals,151 5 U.S.C. 4107 

providing academic degree training,152 5 

U.S.C. 4109 providing expenses of 

training,153 5 U.S.C. 4110 providing 

expenses of attendance at meetings,154

and 5 U.S.C. 5757 providing payment of 

expenses to obtain professional 

credentials.155 Like these provisions of 

Title 5, CTMS professional development 

and training provide professional 

development and training opportunities, 

payments, and reimbursements for 

DHS–CS employees, but under the 

overall approach to talent management 

and compensation under CTMS. CTMS 

professional development and training 

is similar to the training and 

professional development opportunities, 

payments, and reimbursements under 

Title 5, but is specific to CTMS and 

tailored to CTMS design. This type of 

compensation can be an important piece 

of a total compensation package, 

especially for cybersecurity talent 

looking to keep their expertise current 

and to acquire new skills. 

DHS provides CTMS professional 

development and training opportunities, 

payments, and reimbursements in 

alignment with the CTMS career 

development program described in 

§ 158.802 and discussed subsequently. 

With the career development program, 

DHS guides the career progression of 

DHS–CS employees, which includes 

enhancement of qualifications, and 

ensures development of the collective 

expertise of DHS–CS employees through 

continual learning. CTMS professional 

development and training is one means 

of enhancing qualifications and 

providing opportunities for continual 

learning. 

DHS also provides CTMS professional 

development and training in alignment 

with CTMS compensation strategy. 

CTMS professional development and 

training is considered part of a total 

compensation package for a DHS–CS 

employee, reflecting an understanding 

of the concepts of total compensation 

and total rewards in alignment with the 

CTMS compensation strategy. 

Professional development and training, 

even those opportunities not assigned a 

specific monetary value, can be a 

valuable part of an employment 

opportunity with the DHS–CS and a 

DHS–CS employee’s career progression. 

CTMS policy will address eligibility 

criteria and requirements for 

documenting the reason and basis for 

providing professional development and 

training opportunities, payments, and 

reimbursements, among other matters 

necessary for administering CTMS 

professional development and training. 


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156 5 U.S.C. 5379(b)(2). 

157Public Law 101–510, Sec. 1206(b)(1) (Nov. 

1990). 

158Public Law 108–123, Sec. 2 (Nov. 2003); see 

also, Public Law 108–136 Sec. 1123(a) (Nov. 2003) 

(providing a duplicative increase from $6,000 to 

$10,000 per year). 

159 $10,000 (Title 5 student loan repayment 

annual cap in 2003)¥$6,000 (Title 5 student loan 

repayment annual cap in 1990) = $4,000; $4,000 ÷ 

$6,0000 = 66.67%. 

160 $60,000 (Title 5 student loan repayment 

aggregate cap in 2003)¥$40,000 (Title 5 student 

loan repayment aggregate cap in 1990) = $20,000; 

$20,000 ÷ $40,000 = 50%. 

161S. Rep. 108–109, Report Together with 

Additional View of the Committee on Governmental 

Affairs United States Senate to accompany S. 926, 

‘‘To Amend Section 5379 of Title 5, United States 

Code, to Increase the Annual and Aggregate Limits 

on Student Loan Repayments by Federal Agencies,’’ 

(July 21, 2003), 1. 

162The student loan repayment authority in 5 

U.S.C. 5379 was last amended in 2008 to include 

parts of the legislative branch in the definition of 

‘‘agency,’’ but the cap was not addressed. Public 

Law 110–437, Sec. 502 (Oct. 2008). See also Public 

Law 106–398, Sec. 1122(a) (Oct. 2000) (updating 

definition of ‘‘student loan’’ in the first amendment 

to the student loan repayment authority since 

enactment). 

163Available at https://www.bls.gov/cpi/ 

factsheets/college-tuition.htm (last visited May 25, 

2021). 

164The index for January 1990, the first month of 

the year the student loan repayment authority was 

enacted, was 169.8, and for January 2003, when 

Congress increased the payment caps, was 388.6, 

for a total percent change of 129 percent 

(388.6¥169.8 = 218.8; 218.8 ÷ 169.8 = 128.9%). 

U.S. Bureau of Labor Statistics, ‘‘College tuition and 

fees in U.S. city average, all urban consumers, not 

seasonally adjusted’’ available at https://

data.bls.gov/timeseries/CUUR0000SEEB01?output_

view=data (last visited May 25, 2021). 

165The index for January. 2003, when Congress 

increased the payment caps for student loan 

repayments, was 388.6, and in January. 2020, was 

874.769, for a total percent change of 125 percent 

(874.769¥388.6 = 486.169; 486.169 ÷ 388.6 = 

125.1%). Id. 

166 If increasing the annual cap amount by 67%, 

the CTMS student loan repayment per employee 

annual cap would be $16,700 ($10,000 × 67% = 

$6,700; $10,000 + $6.700 = $16,700). Rounding 

$16,700 to the nearest 500 results in $16,500, which 

is a 65% increase ($16,500 (CTMS student loan 

repayment per employee annual cap)¥$10,000 

(Title 5 student loan repayment annual cap since 

2003) = $6,500; $6,500 ÷ $10,000 = 65%). 

167 $90,000 (CTMS student loan repayment per 

employee aggregate cap)¥$60,000 (Title 5 student 

loan repayment aggregate cap since 2003) = 

$30,000; $30,000 ÷ $60,000 = 50%. 

In addition to CTMS professional 

development and training, a DHS–CS 

employee may receive training and 

professional development under the 

provisions of Title 5 on which CTMS 

professional development and training 

is based, if the employee is eligible 

under those provisions. Many programs 

and courses developed under Title 5 

authority are intended for employees 

hired and compensated under several 

different statutory authorities. Thus, all 

eligible DHS employees, including 

DHS–CS employees, covered by such 

programs and courses may participate in 

them. 

(b) CTMS Student Loan Repayments 

Under CTMS and in alignment with 

the CTMS compensation strategy, DHS 

may provide a student loan repayment 

to a DHS–CS employee up to $16,500 

per employee per calendar year and a 

total of $90,000 per employee. See 

§ 158.641. CTMS student loan 

repayments are based on 5 U.S.C. 5379, 

which provides student loan 

repayments to certain Federal 

employees. CTMS student loan 

repayments serve the same purpose, but 

under the overall approach to talent 

management and compensation under 

CTMS. CTMS student loan repayments 

are similar to student loan repayments 

under Title 5, but are specific to CTMS 

and tailored to CTMS design. 

While DHS offers CTMS student loan 

repayments under the authority in 6 

U.S.C 658, DHS provides CTMS student 

loan repayments in accordance with 5 

U.S.C. 5379 and 5 CFR part 537, with 

some exceptions. DHS applies different 

maximum payment and cap amounts, 

different minimum service period 

lengths, and expanded eligibility criteria 

from those under 5 U.S.C. 5379 and 5 

CFR part 537. The Title 5 student loan 

repayment program is a useful tool in 

recruiting and retaining employees, but 

the program must align with the 

approach to talent management under 

CTMS and the CTMS compensation 

system, which aims to address factors in 

DHS’s challenges recruiting and 

retaining cybersecurity talent. As 

discussed previously in III.B of this 

document, the competitiveness of 

compensation, including total 

compensation packages, is a main factor 

in DHS’s challenges recruiting and 

retaining cybersecurity talent. 

Therefore, DHS is including student 

loan repayments under CTMS as a 

recruitment and retention tool and is 

increasing the payment amount and cap 

amounts for CTMS student loan 

repayments. 

For CTMS student loan repayments, 

DHS is setting the maximum payment 

amounts to reflect the increased costs of 

higher education since Congress last 

amended the maximum rates under 5 

U.S.C. 5379. Student loan repayments 

under 5 U.S.C. 5379 are capped at 

$10,000 per employee per year and 

$60,000 total per employee.156 This 

statutory authority was originally 

enacted in 1990 and was originally 

capped at $6,000 per employee per year 

and $40,000 total per employee.157 In 

2003, Congress increased the payment 

caps to $10,000 per employee per year 

and $60,000 total per employee in a 

stand-alone Act for the sole purpose of 

increasing the cap.158 In increasing the 

annual cap by 67 percent 159 and the 

aggregate cap by 50 percent 160 (effective 

January 2004), Congress stated that the 

purpose of the 2003 cap increase was to 

‘‘reflect[ ] an increase in annual college 

tuition costs since the enactment of the 

original statute in 1991.’’ 161 Congress 

has not updated the cap amount since 

2003,162 and Congress also did not 

provide specific data for the increase in 

annual college tuition costs in 2003. 

Under § 158.641, the annual cap for 

CTMS student loan repayments is 

$16,500 and the aggregate cap is 

$90,000, in alignment with Congress’ 

last cap increase in 2003. Based on the 

U.S. Bureau of Labor Statistics 

Consumer Price Indexes for Tuition and 

Fees,163 college tuition and fixed fees 

increased 129 percent from 1990, when 

the authority for student loan 

repayments was originally enacted, to 

2003, when Congress increased the 

payment caps.164 Therefore, Congress 

increased the annual payment cap 67 

percent and the aggregate payment cap 

50 percent when costs of higher 

education had increased 129 percent 

(from 1990 to 2003). From 2003 to 2020, 

college tuition and fixed fees increased 

125 percent.165 It follows that because 

such costs have increased another 120 

percent (from 2003 to 2020), the caps 

could similarly be increased again 

another 67 percent and 50 percent, 

respectively. As such, the CTMS student 

loan repayment amount per employee 

per year may be up to $16,500 (a 65 

percent increase to have a dollar amount 

rounded to the nearest 500 for the cap 

amount) 166 and the CTMS student loan 

repayment amount total per employee 

may be up to $90,000 (a 50 percent 

increase).167 See § 158.641. 

Each DHS–CS employee receiving a 

CTMS student loan repayment must 

have a service agreement with a 

minimum service period, but unlike 

under Title 5 there is no standard length 

of minimum service period. See 

§ 158.641. Instead the length of 

minimum service periods will be 

determined under CTMS policy and 

based on the amount of the repayment 

to provide flexibility to match the 

service period to the loan repayment 

amount. Currently, an employee 

receiving a student loan repayment 

under 5 U.S.C. 5379 must have a service 

agreement and that service agreement 

must be a minimum of three years, 

regardless of the amount of repayment. 

Because CTMS is a different approach 

to talent management and the CTMS 

compensation system is a wholly 

different approach to compensating 


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Federal Register / Vol. 86, No. 163 / Thursday, August 26, 2021 / Rules and Regulations 47877 

168Under 5 U.S.C. 5545, an employee is entitled 

to receive an additional 10 percent of the 

employee’s basic pay for regularly scheduled work 

between 6pm and 6am, an additional percentage up 

to 25 percent of the employee’s basic pay for 

regularly scheduled standby duty, and a differential 

up to 25 percent of the employee’s basic pay for 

certain duty involving unusual physical hardship or 

hazard. 

169Under 5 U.S.C. 5546, an employee is entitled 

to receive an additional 25 percent of the 

employee’s basic pay for regularly scheduled work 

on a Sunday and an additional 100 percent of the 

employee’s basic pay for certain work performed on 

a Federal holiday. 

170Under 5 U.S.C. 5757, an agency may pay an 

employee a payment of 25 percent of the 

employee’s basic pay or $15,000, whichever is 

greater, to retain that employee for a longer period 

in certain locations. 

171U.S. Office of Personnel Management 

websites: Pay & Leave: Pay Administration ‘‘Fact 

Sheet: Premium Pay (Title 5),’’ https://

www.opm.gov/policy-data-oversight/pay-leave/payadministration/fact-sheets/premium-pay-title-5/ 

(last visited May 25, 2021); Frequently Asked 

Questions: Pay & Leave ‘‘Hazardous Duty Pay,’’ 

https://www.opm.gov/FAQS/topic/payleave/ 

index.aspx?cid=c4c7e7ca-48be-4650-bbc8- 

6ec08e8fd479 (last visited May 25, 2021); Policy, 

Data, Oversight: Pay & Leave ‘‘Fact Sheet: Extended 

Assignment Incentives,’’ https://www.opm.gov/ 

policy-data-oversight/pay-leave/payadministration/fact-sheets/extended-assignmentincentives/ (last visited May 25, 2021). 

employees, DHS expects to use CTMS 

student loan repayments differently, 

and expects to need more flexibility 

regarding minimum service periods 

when considering the total 

compensation packages of individuals. 

This includes adjusting the minimum 

service period in relationship to the 

amount of student loan repayment 

provided. As such, under § 158.641, 

DHS may set minimum service periods 

for CTMS student loan repayments 

commensurate with the repayment 

amount. 

All DHS–CS employees, except those 

providing uncompensated service and 

DHS advisory appointees, may be 

eligible to receive a CTMS student loan 

repayment. See § 158.641. This includes 

DHS–CS employees serving in a 

renewable appointment, which as 

discussed previously is a time-limited 

appointment to a qualified position. 

Under 5 CFR 537.104(a), only some 

employees serving in time-limited 

appointments can be eligible for Title 5 

student loan repayments, and the 

duration of appointment is a factor. 

Because appointment under CTMS 

differ from appointments under Title 5 

in types, purposes, and durations, a 

CTMS student loan repayment is 

available to eligible DHS–CS employees 

in renewable appointments. Note, 

however, that DHS ensures that a 

service agreement minimum service 

period does not exceed a DHS–CS 

employee’s appointment duration. 

Other eligibility for a student loan 

repayment under § 158.641 aligns with 

eligibly criteria under 5 U.S.C. 5379 and 

5 CFR part 537. As such, a DHS–CS 

employee is ineligible to receive a 

CTMS student loan repayment if DHS 

determines the employee’s performance 

is unacceptable, as defined in 5 U.S.C. 

4301(3), or the employee receives an 

unacceptable rating of record, or DHS 

determines the employee has engaged in 

misconduct. See § 158.641. CTMS 

policy will address other eligibility 

criteria for CTMS loan repayments. 

CTMS policy will also address 

requirements for documenting the 

reason and basis for providing a CTMS 

student loan repayment, appropriate 

levels of review and approval, among 

other matters necessary for 

administering CTMS student loan 

repayments. 

(c) CTMS Special Working Conditions 

Payments 

Under CTMS, another type of 

additional compensation that is 

available to DHS–CS employees is a 

payment for special working conditions. 

A payment for special working 

conditions is a payment of up to 25 

percent of the receiving DHS–CS 

employee’s salary as computed for a 

designated work period or series of 

work periods. See § 158.642. A CTMS 

payment for special working conditions 

is based on Title 5 authorities providing 

several types of payments: 5 U.S.C. 5545 

providing night, standby and hazardous 

duty differentials,168 5 U.S.C. 5546 

providing pay for Sunday and holiday 

work,169 and 5 U.S.C. 5757 providing 

extended assignment incentives.170 See 

§ 158.642. These Title 5 authorities 

compensate Federal employees for work 

performed at night, on Sundays and 

holidays, for standby duty requiring 

employees to remain at or within the 

confines of employees’ duty stations, for 

the performance of hazardous duty or 

duty involving physical hardship, and 

for extended assignments in atypical 

locations.171 These Title 5 authorities 

provide compensation for special or 

nonregular working conditions, and 

CTMS special working conditions 

payments serve that same purpose for 

the DHS–CS, but under the overall 

approach to talent management and 

compensation under CTMS. DHS uses 

special working conditions payments to 

address special working conditions that 

are specific to cybersecurity work. The 

Title 5 authorities on which CTMS 

recognition is based provide some of the 

existing Federal compensation tools, 

which as discussed previously in III.B of 

this document, are cumbersome to use, 

ineffective for constructing marketsensitive compensation packages, and 

are not intended to form a cohesive 

toolset. Additionally, these Title 5 

authorities do not effectively account for 

the unpredictable nature of 

cybersecurity work, including specific 

conditions DHS–CS employees may 

encounter. CTMS special working 

conditions payments combine and 

streamline these existing tools to align 

with the CTMS design, including the 

CTMS compensation and salary 

systems. CTMS special working 

conditions payments allow for greater 

flexibility and agility than the Title 5 

tools in providing competitive 

compensation, especially for conditions 

specific to cybersecurity work that are 

insufficiently accounted for in a DHS– 

CS employee’s salary. 

DHS provides any special working 

conditions payments under a special 

working conditions payment program. 

See § 158.642. A special working 

conditions program addresses special 

working conditions or circumstances 

that are otherwise unaccounted for or 

the Department determines are 

accounted for insufficiently in DHS–CS 

employees’ other types of additional 

compensation and salary. DHS aims to 

provide DHS–CS employees with 

sufficiently competitive compensation, 

and DHS anticipates that working 

conditions may emerge that DHS may 

not have sufficiently accounted for in 

DHS–CS employees’ compensation, 

especially their salaries. A special 

working conditions payments program 

enables DHS to adjust the additional 

compensation of DHS–CS employees to 

specifically address working conditions 

that DHS had not previously anticipated 

and accounted for, or DHS determines 

have been insufficiently accounted for, 

in DHS–CS employees’ salaries. 

Special working conditions under 

§ 158.642 include when a supervisor or 

other appropriate official requires a 

DHS–CS employee to perform 

cybersecurity work determined to 

involve unusual physical or mental 

hardship, or performing work at atypical 

locations, at unexpected times, or for an 

uncommon duration of time exceeding 

the expectation that all DHS–CS 

employees occasionally work unusual 

hours and extended hours, as needed, to 

execute DHS’s cybersecurity mission. 

See § 158.642. For example, several 

DHS–CS employees with expertise in 

cybersecurity incident response might 

be required to work a substantial 

amount of time, including at night and 

beyond their minimum hours of work, 

in response to a cybersecurity incident 

affecting critical infrastructure. DHS 

might establish a special working 

conditions payment program to cover 

such conditions and provide payments 


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47878 Federal Register / Vol. 86, No. 163 / Thursday, August 26, 2021 / Rules and Regulations 

172 5 U.S.C. 5545–5546. 

173See 5 CFR 534.408 (prohibiting members of 

the SES from receiving Title 5 premium pay, 

including overtime pay, and compensatory time in 

lieu of overtime may). 

to acknowledge the special conditions 

as well as the mission impact of 

employees required to perform work 

under such conditions. Special working 

conditions may also involve both 

unusual physical or mental hardship 

and performing work such that it 

exceeds the expectation of occasionally 

working unusual and extended hours. 

DHS establishes any special working 

conditions program in alignment with 

the CTMS compensation strategy and 

determines whether to establish, adjust, 

or cancel a special working conditions 

payment program based on information 

from the CTMS work scheduling system 

and strategic talent planning. See 

§ 158.642. Using information from the 

work scheduling system ensures that a 

determination about a special working 

conditions program is made with an 

understanding of hours worked by 

DHS–CS employees and potential 

divergence from expected schedules. 

The CTMS compensation strategy, 

together with the talent market analysis 

from strategic talent planning, ensures 

that a special working conditions 

payment program reflects information 

about current compensation practices of 

other cybersecurity employers. See 

§ 158.642. Given the ever-evolving 

nature of cybersecurity work, fierce 

competition for cybersecurity talent, 

and variety of compensation practices 

used by private sector cybersecurity 

employers, discussed previously in II.B 

of this document, DHS needs the 

flexibility to analyze the working 

conditions of DHS–CS employees as 

they arise, and if necessary, address 

them by providing additional 

compensation. 

For special working conditions 

payments, DHS is establishing a 

maximum amount as a percentage of a 

DHS–CS employee’s salary computed 

for a work period or series of work 

periods because the Title 5 authorities, 

on which special working conditions 

payments are based, all provide a limit 

for cash payments as a percentage of 

annual basic pay computed as an hourly 

rate. The percentage of basic pay under 

these Title 5 authorities is: 10 percent 

for nightwork; up to 25 percent for 

standby duty and for performance of 

hazardous duty or duty involving 

physical hardship; 25 percent for 

Sunday work; 25 percent for extended 

assignments; and 100 percent for 

holiday work.172 These percentages 

range from 10 percent to 100 percent, 

with most maximum percentages as 25 

percent or up to 25 percent, so DHS is 

establishing the percent amount for a 

special working conditions payment as 

up to 25 percent. Additionally, DHS 

applies the 25 percent maximum for a 

special working conditions payment 

based on computing the receiving DHS– 

CS employee’s salary for a work period, 

which as defined in § 158.705 is the 

equivalent of a biweekly pay period. 

DHS applies the payment maximum in 

this manner because administration of 

payments under the Title 5 authorities, 

on which special working conditions 

payments are based, involves 

computation of the receiving employees’ 

basic pay for a specific time-period, 

usually on an hourly basis. 

DHS determines eligibility for a 

payment for special working conditions 

under § 158.642 and CTMS policy. 

Under § 158.642, if a DHS–CS employee 

receives a payment for special working 

conditions, the employee is not 

automatically eligible or entitled to 

receive any additional such payments. 

Also, a DHS–CS employee receiving a 

salary equal to or greater than EX–IV is 

ineligible to receive a payment under 

this section. This ineligibility reflects 

that such additional payments are not 

necessary for DHS–CS employee 

receiving high salaries, and it also 

mirrors restrictions in Title 5 that make 

Federal employees receiving salaries 

under Title 5 greater than EX–IV 

ineligible for certain types of Title 5 

additional compensation.173 CTMS 

policy will address other eligibility 

criteria for CTMS special working 

conditions payment. 

In addition to eligibility criteria, 

CTMS policy implementing the special 

working conditions payment program 

will address requirements for 

documenting the reason and basis for 

providing a special working conditions 

payment, and appropriate approval 

authorities, among other matters 

necessary for establishing and operating 

the program. See § 158.642. 

A special working conditions 

payment is in lieu of the types of Title 

5 payments on which it is based. See 

§ 158.642. DHS–CS employees are 

ineligible for those types of Title 5 

payments because special working 

conditions payments replace those types 

of Title 5 payments for DHS–CS 

employees. Additionally, some of those 

types of Title 5 payments are considered 

premium pay and, as discussed 

previously, Title 5 premium pay 

generally does not apply under CTMS. 

(d) CTMS Allowances in Nonforeign 

Areas 

Another type of additional 

compensation available to DHS–CS 

employees is an allowance in 

nonforeign areas under 5 U.S.C. 5941. 

See § 158.643. Section 5941 provides a 

cost of living allowance for certain 

Federal employees stationed outside of 

the continental United States or in 

Alaska and such an allowance can be up 

to 25 percent of the receiving 

employee’s basic pay. As discussed 

previously in III.C.3 of this document, 6 

U.S.C. 658(b)(3)(B) mandates this type 

of additional compensation, and also 

mandates that employees in qualified 

positions are eligible for such 

allowances under 5 U.S.C. 5941 on the 

same basis and to the same extent as if 

the employees were covered under 

section 5941, including eligibility 

conditions, allowance rates, and all 

other terms and condition in law or 

regulation. CTMS does just that in 

§ 158.643, which states a DHS–CS 

employee is eligible for and may receive 

an allowance under 5 U.S.C. 5941 and 

implementing regulations in 5 CFR part 

591, subpart B on the same basis and to 

the same extent as if the employee is an 

employee covered by those authorities. 

6. Other Compensation Provided in 

Accordance With OPM Regulations 

Under the CTMS compensation 

system, DHS is providing DHS–CS 

employees other types of additional 

compensation, including leave and 

other benefits. While DHS offers these 

other types of additional compensation 

under the authority in 6 U.S.C 658, DHS 

provides them in accordance with 

relevant provisions of other laws that 

apply to most Federal civil service 

employees. Many of these other types of 

additional compensation were 

established for Federal civilian 

employees decades ago for purposes 

still relevant to the talent management 

approach under CTMS, and these other 

types of additional compensation are 

administered using well-established 

processes DHS does not need to adjust 

for CTMS. As such, in §§ 158.650, 

158.652, and 158.653, DHS provides 

DHS–CS employees holidays, 

compensatory time-off for religious 

purposes, and traditional Federal 

employee benefits, including retirement, 

health benefits, and insurance programs, 

as well as transportation subsidies, in 

accordance with relevant provisions in 

Title 5. 

In § 158.651, for leave under CTMS, 

DHS provides DHS–CS employees all 

the types of leave available to other 

Federal employees, including annual 


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174Under 5 U.S.C. 6304, other Federal employees 

stationed outside of the United States can 

accumulate 45 days of annual leave. 

175See e.g., 5 U.S.C. 5504 (providing computation 

of pay for biweekly pay periods); 5 CFR 630.206 

(establishing a minimum charge for leave as one 

hour); U.S. General Accounting Office, Maintaining 

Effective Control over Employee Time and 

Attendance Reporting, GAO–03–352G (Jan. 2003), 6 

(‘‘Most federal civilian employees are paid on an 

hourly basis (or fractions of an hour) and earn and 

charge leave on that basis . . . . To provide a basis 

for pay, leave, and benefits, the records [of the time 

an employee works] should include aggregate 

regular time, other time (e.g., overtime credit hours 

or compensatory time off), and leave’’). 

leave, sick leave, family and medical 

leave, and other paid leave, in 

accordance with 5 U.S.C. Chapter 63 

and 5 CFR part 630. Although DHS 

provides leave for DHS–CS employees 

in accordance with these provisions of 

law, DHS modifies application of those 

laws regarding annual leave 

accumulation to maintain the integrity 

of CTMS and consistency of the 

approach to talent management under 

this part. 

For annual leave accumulation under 

CTMS, DHS will determine DHS–CS 

employees accumulation amounts under 

5 U.S.C. 6304, which permits most 

Federal employees to accumulate 30 

days of annual leave in one year and 

certain Federal government senior 

employees, including employees in SL/ 

ST and SES positions, to accumulate 90 

days of annual leave in one year.174

Under this Title 5 annual leave 

accumulation structure, the 90-day 

annual leave accumulation amount is 

reserved for certain employees, 

including employees in SL/ST and SES 

positions, with salary rates that exceed 

120 percent of GS–15. 

Under CTMS, DHS may apply a 90- 

day accumulation amount to DHS–CS 

employees receiving a salary that 

exceeds 120 percent of GS–15. See 

§ 158.651. As discussed previously in 

III.A.3 of this document, a qualified 

position is comparable to SL/ST and 

SES positions, and as such DHS could 

apply a 90-day accumulation amount to 

all DHS–CS employees. DHS is not 

doing this, however, because a higher 

accumulation amount has potential 

implications for paying out leave when 

an employee separates from Federal 

service. Instead, DHS is mirroring the 

Title 5 accumulation structure by 

reserving the 90-day accumulation 

amount for DHS–CS employees 

receiving a salary at or above the 

minimum salary for SL/ST and SES 

positions. 

DHS administers leave under CTMS 

in accordance with relevant provisions 

of other laws referenced in §§ 158.651 

and 158.655 and in CTMS policy 

implementing leave for DHS–CS 

employees. As such, in accordance with 

5 U.S.C. 6308, annual leave and sick 

leave accrued to the credit of a current 

Federal employee who is appointed to 

a qualified position without a break in 

service of more than three calendar days 

will be transferred to the employee’s 

credit, and any leave balance for a DHS– 

CS employee departing the DHS–CS 

will be addressed in accordance with 5 

CFR 630.209 and 630.501. See 

§ 158.651. 

In § 158.654, DHS is providing DHS– 

CS employees other types of payments, 

including severance pay, lump-sum 

leave pay outs, voluntary separation 

incentive payments, reservist 

differentials, and other similar 

allowances, differentials, and 

incentives, in accordance with relevant 

provisions of other laws governing those 

types of payments. To ensure DHS can 

offer any other type of additional 

compensation that becomes available to 

Federal civil service employees in the 

future, § 158.654 states that DHS will 

also provide other payments similar to 

those listed in § 155.654 and described 

in CTMS policy as being authorized 

under this part and provided in 

accordance with relevant provisions of 

other laws. 

Although DHS provides the types of 

payments listed in § 158.654 in 

accordance with relevant provisions of 

other laws under the authority in 6 

U.S.C. 658, DHS may need to modify 

application of those relevant provisions 

of law to maintain the integrity of CTMS 

and consistency of the approach to 

talent management under this part. This 

is because some of the terms used in the 

relevant provisions of law are not used 

under CTMS, or a different term is used, 

and DHS may have to extrapolate 

between the terms in the relevant 

provision of law and CTMS concepts. 

For example, CTMS includes a ‘‘parttime schedule’’ and ‘‘contingent 

schedule,’’ but Title 5 does not use such 

terms. 

Section 158.655 lists several 

clarifications for how CTMS terms and 

concepts relate to relevant provisions of 

other laws. For example, § 158.655 

explains a ‘‘part-time schedule’’ and 

‘‘contingent schedule’’ are treated as 

‘‘part-time career employment’’ and 

‘‘intermittent employment,’’ 

respectively, as defined in Title 5. 

Section 158.655 also explains that for 

purposes of compensation 

administration authorized under 

§§ 158.650–158.654, DHS may convert 

the salary of a DHS–CS employee into 

an hourly rate, biweekly rate, or other 

rate and administer compensation based 

on consideration of the DHS–CS 

employee’s work schedule. To ensure 

accurate administration of 

compensation, including leave, for 

DHS–CS employees in accordance with 

relevant provisions of Title 5, DHS may 

need to account for and record leave 

and other compensation earned and 

charged on an hourly basis.175

Also, § 158.655 clarifies that if, in 

administering compensation under 

§§ 158.650–158.654, DHS determines it 

is necessary to clarify the relationship 

between those sections and the relevant 

provisions of law referenced in those 

sections and any other relevant 

provisions of other laws, DHS will 

address the issue in new or revised 

CTMS policy. Thus, if DHS needs to 

modify application of those relevant 

provisions of law relating to 

compensation for the DHS–CS to 

maintain the integrity of CTMS and 

consistency of the approach to talent 

management under this part, DHS will 

capture any such modified application 

in CTMS policy. 

7. CTMS Aggregate Compensation Limit 

The CTMS compensation system 

includes the CTMS aggregate 

compensation limit, which restricts 

certain additional compensation a DHS– 

CS employee may receive in a calendar 

year. See § 158.604. Under CTMS, a 

DHS–CS employee’s aggregate 

compensation is the employee’s salary 

plus certain types of CTMS additional 

compensation. The aggregate 

compensation limit prohibits a DHS–CS 

employee from receiving any portion of 

a payment for certain types of CTMS 

additional compensation if that portion 

would cause the employee’s aggregate 

compensation to exceed the limit. 

The CTMS aggregate compensation 

limit implements the additional 

compensation authority in 6 U.S.C. 

658(b)(3) regarding the level authorized 

for such compensation. As discussed 

previously in III.A.3 of this document, 

DHS interprets this additional 

compensation authority to mean that 

CTMS additional compensation is 

subject to the aggregate compensation 

cap in 5 U.S.C. 5307. As also discussed 

in III.A.3 of this document, this Title 5 

aggregate compensation cap has two cap 

amounts, and the Secretary has 

discretion for how to apply the two cap 

amounts to CTMS additional 

compensation. DHS is applying both 

cap amounts as the CTMS annual 

aggregate compensation limit. 

The CTMS aggregate compensation 

limit is one of the two amounts 

referenced in 5 U.S.C. 5307(d)(1): EX–I 

($221,400 in 2021) or the Vice 


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176See also 5 CFR 530.202, definition of aggregate 

compensation. 

177 5 CFR 530.202, definition of basic pay. 

178 5 CFR 530.202, definition of aggregate 

compensation paragraphs (4)–(5); and 5 CFR 

451.304(c). 

179 5 CFR 530.202, definition of aggregate 

compensation paragraph (3). 

180 5 CFR 530.202, definition of aggregate 

compensation. 

181 Id. 

182 Id. paragraph (14)(v). 

183 Id paragraph (14)(vi). 

184See 5 CFR 530.204. 

President’s salary amount ($255,800 in 

2021). See § 158.604. CTMS additional 

compensation when added to salary of 

a DHS–CS employee may not cause that 

employee’s aggregate compensation to 

exceed either EX–I or the Vice 

President’s salary, whichever is 

applicable to that employee. 

The applicable CTMS aggregate 

compensation limit amount for a DHS– 

CS employee depends on the salary 

subrange for that individual’s salary and 

the aggregate compensation amount 

assigned to that subrange. DHS will 

apply the CTMS aggregate 

compensation limit amounts in 

ascending order to the subranges in a 

CTMS salary structure. DHS will assign 

one of the two limit amounts to each 

subrange in a CTMS salary structure 

such that each subrange has an 

aggregate compensation limit that is 

greater than or equal to the salary 

maximum of that subrange. For 

example, a hypothetical subrange with a 

salary maximum of $225,000 is assigned 

the aggregate compensation limit of the 

Vice President’s salary ($255,800 in 

2021). A DHS–CS employee is not 

permitted to receive payment of certain 

types of additional compensation if that 

payment would cause the employee’s 

aggregate compensation to exceed the 

applicable limit amount for that 

employee. 

Application of the CTMS aggregate 

compensation limit to DHS–CS 

employee compensation is based on the 

Title 5 aggregate compensation cap in 5 

U.S.C. 5307 but is tailored to the CTMS 

compensation system. Under 5 U.S.C. 

5307, an employee’s aggregate 

compensation includes the employee’s 

salary, plus any locality-based 

comparability payments, and certain 

types of additional compensation under 

Title 5.176 A DHS–CS employee’s 

aggregate compensation is the 

employee’s salary, including any 

LCTMS, and certain types of additional 

compensation. See § 158.604. Like 

locality-based comparability payments 

under 5 U.S.C. 5304, which are subject 

to the Title 5 aggregate compensation 

cap,177 a LCTMS is considered part of 

a DHS–CS employee’s salary for 

purposes of applying the CTMS 

aggregate compensation limit. 

The types of CTMS additional 

compensation subject to the CTMS 

aggregate compensation limit are similar 

to or are the same types of 

compensation covered by the Title 5 

aggregate compensation cap. The types 

of CTMS additional compensation 

considered part of a DHS–CS 

employee’s aggregate compensation, and 

subject to the applicable aggregate 

compensation cap, are: Recognition 

payments, payments for special working 

conditions, payments for certain 

allowances and differentials under 

CTMS, and other similar payments 

described in CTMS policy. See 

§ 158.604. 

Recognition payments, which are 

based on awards and incentives under 

Title 5, are subject to the CTMS 

aggregate compensation limit, and this 

mirrors how Title 5 treats those awards 

and incentives under the Title 5 annual 

aggregate compensation cap.178 A 

recognition payment for a DHS–CS 

employee may be truncated if it would 

cause the employee’s aggregate 

compensation to exceed the CTMS 

aggregate compensation limit applicable 

to that employee. In such a scenario, the 

DHS–CS employee forfeits any portion 

of a payment causing the employee’s 

aggregate compensation to exceed that 

limit. See § 158.604. 

Special working conditions payments 

are also subject to and may be limited 

by the CTMS aggregate compensation 

limit. See § 158.542. As discussed 

previously, special working conditions 

payments are based on Title 5 

authorities providing several types of 

payments, which are subject to the Title 

5 aggregate compensation cap.179 Some 

of the types of payments listed in 

§ 158.654, which are provided in 

accordance with OPM regulations, are 

also subject to and may be limited by 

the CTMS aggregate compensation limit, 

which aligns with how these other 

payments are treated under the Title 5 

aggregate compensation cap.180

Aggregate compensation under CTMS 

excludes all other CTMS additional 

compensation, which mirrors 

application of the Title 5 aggregate 

compensation cap. CTMS professional 

development and training opportunities, 

payments, and reimbursements are 

excluded from the CTMS aggregate 

compensation limit, which mirrors how 

Title 5 training and professional 

development is treated under the Title 

5 aggregate compensation cap.181 CTMS 

student loan repayments are also 

excluded from the CTMS aggregate 

compensation limit because student 

loan repayments under Title 5 are not 

part of aggregate compensation under 

Title 5.182 Also, CTMS allowances in 

nonforeign areas, which will be 

provided on the same basis as the same 

allowance under Title 5, are not subject 

to the CTMS aggregate compensation 

limit because Title 5 allowances in 

nonforeign areas are excluded from the 

Title 5 aggregate compensation limit.183

The main difference between the 

CTMS aggregate compensation limit and 

the Title 5 aggregate compensation cap, 

other than the necessary differences to 

tailor it to the CTMS compensation 

system, is that the CTMS aggregate 

compensation limit is a true limit. Once 

a DHS–CS employee’s aggregate 

compensation reaches the applicable 

limit amount for that employee, any 

unpaid amounts of those types of 

additional compensation subject to the 

aggregate compensation limit do not roll 

over into the next calendar year. Under 

the Title 5 aggregate compensation cap, 

amounts of similar additional 

compensation under Title 5 that would 

cause the employee’s aggregate 

compensation to exceed the cap are 

unpayable in that calendar year but 

become payable in the next calendar 

year.184 Under the CTMS aggregate 

compensation cap, a DHS–CS employee 

may not receive any portion of a 

payment for additional compensation 

subject to the applicable aggregate 

compensation limit that would cause 

the employee’s aggregate compensation 

in any calendar year to exceed that limit 

amount, and the DHS–CS employee 

forfeits any such portion of a payment. 

See § 158.604. 

If DHS underestimates or 

overestimates a DHS–CS employee’s 

aggregate compensation in a calendar 

year, DHS may make a corrective action. 

See § 158.604. Such a corrective action 

would be necessary if an applicable 

limit amount changed, resulting in a 

DHS–CS employee receiving some 

additional compensation in excess of 

the applicable limit amount for that 

employee. A corrective action would 

also be necessary if DHS limited or 

prohibited 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. 

F. Deploying Talent: Subpart G 

Subpart G Deploying Talent, includes 

regulations addressing the CTMS 

deployment program. Under the 


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deployment program, DHS determines 

whether DHS needs to use CTMS to 

recruit and retain individuals 

possessing CTMS qualifications. See 

§ 158.701. The process of designating 

qualified positions involves determining 

both when DHS organizations need 

individuals with CTMS qualifications 

and when using CTMS would likely 

enhance recruiting and retaining those 

individuals. 

Under the deployment program, DHS 

also operationalizes aspects of other 

CTMS elements. See § 158.701. The 

deployment program operationalizes 

aspects of the work valuation system by 

documenting applicable work and 

career structures for qualified positions 

and assignments. 

The deployment program 

operationalizes aspects of the talent 

acquisition system by providing 

requirements for documenting qualified 

positions established under the talent 

acquisition system and for matching 

newly hired DHS–CS employees with 

initial assignments. Under the 

deployment program, DHS also 

determines operational aspects of a 

newly appointed DHS–CS employee’s 

appointment and assignment, such as 

the new employee’s work schedule and 

duration of the assignment. 

The deployment program 

operationalizes aspects of the 

compensation system by providing 

requirements for determining a DHS–CS 

employee’s official worksite and work 

schedule, both of which relate to and 

affect compensation for DHS–CS 

employees. Whether a DHS–CS 

employee is eligible for a local 

cybersecurity market supplement as part 

of the employee’s salary depends on the 

employee’s official worksite location, as 

does a DHS–CS employee’s eligibility 

for a CTMS allowance in nonforeign 

areas. Additionally, DHS considers a 

DHS–CS employee’s work schedule 

when reviewing work conditions or 

circumstances that may warrant 

providing a payment under the CTMS 

special working conditions payment 

program. Administration of a DHS–CS 

employee’s salary and leave is also 

connected to the employee’s work 

schedule and hours worked. 

Because the deployment program 

operationalizes aspects of the work 

valuation system, talent acquisition 

system, and compensation system, 

§ 158.709 states that the provisions of 

law relating to classification, 

appointment, and compensation listed 

in §§ 158.405, 158.502 and 158.605 do 

not apply under CTMS, to the DHS–CS, 

or to talent management under CTMS, 

including the CTMS deployment 

program. 

1. CTMS Deployment Program 

Under the CTMS deployment 

program, DHS sets out the procedures 

for collaboration across DHS 

organizations to designate qualified 

positions and designate and staff 

assignments, as well as procedures to 

determine and document DHS–CS 

employees’ official worksites, 

administer a work scheduling system, 

and perform necessary recordkeeping. 

See § 158.701. 

Under the deployment program, DHS: 

Establishes procedures for designating 

qualified positions in DHS 

organizations; designates and staffs 

assignments; determines and documents 

a DHS–CS employee’s official worksite; 

administers a work scheduling system; 

and performs necessary recordkeeping, 

including documenting qualified 

positions and assignments. See 

§ 158.701. Each of these aspects of the 

deployment program are discussed 

subsequently. 

2. Designating Qualified Positions 

Under the CTMS deployment 

program, DHS designates qualified 

positions when one or more DHS 

organizations requires individuals with 

CTMS qualifications to ensure the most 

effective execution of the DHS 

cybersecurity mission and the 

recruitment and retention of such 

individuals would be enhanced through 

use of CTMS. See § 158.702. DHS 

organizations have a range of existing 

talent management practices they can 

use to hire, compensate, and develop 

talent under other statutory authorities 

and Federal personnel systems. CTMS is 

specifically designed to recruit and 

retain talent with CTMS qualifications, 

so determining that such qualifications 

are needed by a DHS organization is one 

factor indicating that using CTMS might 

benefit the organization. In addition, 

CTMS features new talent management 

practices specifically designed to 

address DHS’s challenges recruiting and 

retaining cybersecurity talent. For 

circumstances in which a DHS 

organization is effectively recruiting and 

retaining certain cybersecurity talent 

without CTMS, a shift to CTMS’s new 

talent management practices may not be 

necessary or efficient. 

The process of designating qualified 

positions involves DHS organizations 

requesting use of CTMS, following 

requirements for using CTMS, and 

ensuring availability of information 

necessary to designate qualified 

positions. See § 158.702. DHS 

organizations considering using CTMS 

must ensure they understand the 

specialized design of CTMS, including 

differences from existing talent 

management practices; identify how 

they anticipate using CTMS to address 

their unique recruitment and retention 

challenges or goals; and consider their 

organizational readiness to use CTMS to 

hire, compensate, and develop DHS–CS 

employees. When first using CTMS, 

DHS organizations have to address a 

variety of operational requirements, 

including determining key officials for 

approval of talent management actions. 

CTMS policy will address procedures 

for requesting use of CTMS, 

requirements for DHS organizations 

using CTMS, and the necessary 

information for designating qualified 

positions. 

Designating qualified positions may 

result in establishing one or more new 

qualified positions or identifying and 

staffing one or more assignments, or 

both. See § 158.702. As part of 

designating qualified positions, DHS 

considers the collective expertise of 

DHS–CS employees and the possibility 

of hiring new talent under the talent 

acquisition system. DHS might identify 

one or more existing DHS–CS 

employees with the CTMS 

qualifications needed for a new 

assignment or assignments and who are 

available to match to the assignment or 

assignments. Alternatively, DHS might 

decide to hire new talent with the 

needed CTMS qualifications. In the 

process of hiring new talent, DHS 

determines the number of new DHS–CS 

employees and the corresponding work 

levels or combination of work levels 

necessary to satisfy the talent need. For 

example, DHS might decide a particular 

talent need could be addressed only by 

a new DHS–CS employee at the expert 

level. DHS might determine that another 

talent need could be addressed either by 

one new DHS–CS employee at the 

expert level or several new DHS–CS 

employees at the entry level. 

Because designating qualified 

positions may result in establishing a 

new qualified position, designating 

qualified positions also involves budget 

and fiscal considerations. See § 158.702. 

3. Designating and Staffing Assignments 

The CTMS deployment program also 

establishes procedures for designating 

and staffing DHS–CS assignments. See 

§ 158.703. DHS designates assignments 

by defining combinations of DHS–CS 

cybersecurity work and CTMS 

qualifications that can be associated 

with one or more qualified positions. 

See § 158.703. Designating assignments 

may result from designating qualified 

positions, as discussed previously in 

this document. CTMS policy will 


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185 5 CFR 317.901 (providing 60-days notice for 

reassignments outside of an employee’s current 

commuting area). DHS has extended the timeframe 

in recognition that CTMS will be used to manage 

all DHS–CS employees, including individuals just 

beginning a career in cybersecurity. 

address procedures for DHS 

organizations to designate assignments. 

DHS staffs DHS–CS assignments by 

matching DHS–CS employees with 

assignments, either as an initial 

assignment for an incoming DHS–CS 

employee or a subsequent assignment 

for a current DHS–CS employee. See 

§ 158.703. DHS matches a DHS–CS 

employee with an assignment based on 

alignment of the employee’s CTMS 

qualifications with the specific subset of 

CTMS qualifications of an assignment. 

See § 158.703. 

For initial assignments, DHS matches 

an individual with an assignment upon 

appointment to a qualified position 

based on such alignment. When 

matching an individual with an initial 

assignment, DHS may also consider 

input from the individual, input from 

DHS organizations, mission-related 

requirements determined by DHS 

officials with appropriate decisionmaking authority, and strategic talent 

priorities set by CTMS leadership. 

Considering this other input and 

information, in addition to CTMS 

qualifications, ensures the match 

reflects the best fit for the individual 

and ensure DHS strategically staffs 

assignments in alignment with priorities 

and goals for the DHS–CS. 

When matching a DHS–CS employee 

with a subsequent assignment, DHS may 

also consider input from the employee; 

input from DHS organizations, 

especially the primary DHS organization 

of the employee’s current assignment; 

information about the employee from 

the CTMS performance management 

program and the CTMS career 

development program; mission-related 

requirements; and strategic talent 

priorities. See § 158.703. Considering 

this other information and input in 

matching DHS–CS employees with 

subsequent assignments ensures the 

match reflects the best fit for the DHS– 

CS employee and the best use of the 

DHS–CS employee’s expertise to 

support the DHS cybersecurity mission. 

DHS develops and continually 

updates strategies for communicating 

with DHS–CS employees about 

subsequent assignment opportunities, in 

alignment with the career development 

program and based on information from 

development reviews. See § 158.601. 

These strategies ensure that DHS–CS 

employees have opportunities to 

express interest in different 

cybersecurity work and DHS–CS 

assignments, including those that may 

assist them in enhancing their 

qualifications, and helps to foster a 

culture of continual learning within 

DHS–CS. 

A DHS–CS employee may have 

multiple assignments throughout the 

employee’s service in a qualified 

position but only has one assignment at 

a time. Under CTMS, DHS–CS 

employees may continue assignments 

for years or shift assignments 

periodically to gain exposure to new 

work or apply their qualifications in 

different mission areas. The number and 

variety of assignments an employee has 

while in the DHS–CS will vary based on 

that employee’s interests, strategic talent 

priorities, and how the employee’s 

qualifications change over time. 

A DHS–CS employee’s subsequent 

assignments may have a different 

primary DHS organization and worksite 

than the employee’s initial assignment. 

For example, a DHS–CS employee may 

have an initial assignment in DHS 

OCIO, but later have a subsequent 

assignment in CISA. While that DHS–CS 

employee’s assignment and primary 

DHS organization changes, the 

employee is still part of the DHS–CS 

and still has the same qualified position. 

Occasionally, if necessary, DHS may 

direct a subsequent assignment for a 

DHS–CS employee. See § 158.708. 

Certain directed subsequent 

assignments expected to last six months 

or more require appropriate notice and 

consultation with the affected DHS–CS 

employee. Directed subsequent 

assignments expected to last less than 

six months is considered temporary, 

and as such do not require the same 

formal notice procedures. 

For directed subsequent assignments 

expected to last six months or more 

with an official worksite in the DHS–CS 

employee’s current commuting area, 

DHS provides the employee at least 30 

calendar days written notice. See 

§ 158.708. This timeframe is intended to 

provide the DHS–CS employee with 

sufficient notice of the anticipated 

change to consider and plan for 

associated adjustments to the 

employee’s commute and other workrelated routines. 

For directed subsequent assignments 

expected to last six months or more 

with an official worksite outside of the 

DHS–CS employee’s current commuting 

area, DHS consults with that employee 

on the reasons for the assignment and 

the employee’s preferences regarding 

the proposed change in assignment. See 

§ 158.708. DHS also provides that 

employee written notice at least 90 

calendar days before the effective date 

of the directed subsequent assignment. 

This timeframe, modeled after similar 

reassignments in the SES,185 is intended 

to provide the DHS–CS employee with 

sufficient notice of the anticipated 

change to consider and plan for 

significant associated adjustments, 

including potential changes of residence 

and development of a new commute 

and other work-related routines. The 

written notice requirements for directed 

subsequent assignments can only be 

waived by the DHS–CS employee 

matched to the assignment. For directed 

subsequent assignments, DHS also pays 

or reimburses appropriate expenses 

under and in accordance the Federal 

Travel Regulations at 41 CFR Chapter 

301–302. 

4. Official Worksite 

The CTMS deployment program 

includes the procedures for determining 

and documenting official worksites for 

DHS–CS employees. See § 158.704. 

Those procedures are modeled after 5 

CFR 531.605, which governs 

determining the official worksite for GS 

employees in geographic areas defined 

for purposes of GS locality payments. 

Because 5 CFR 531.605 does not apply 

to DHS–CS employees, DHS is creating 

the procedures in § 158.704 through 

which DHS determines a DHS–CS 

employee’s official worksite for 

purposes of administering 

compensation. A DHS–CS employee’s 

official worksite is especially important 

for determining eligibility for CTMS 

local cybersecurity talent market 

supplements and CTMS allowances in 

nonforeign areas. 

Under CTMS, a DHS–CS employee’s 

official worksite is the geographic 

location where the employee regularly 

performs cybersecurity work or where 

the employee’s cybersecurity work is 

based. In determining a DHS–CS 

employee’s official worksite, DHS 

considers telework, variation in location 

where the employee performs 

cybersecurity work, or other temporary 

situations affecting the location where 

the employee performs cybersecurity 

work. Given the variety of work 

arrangements possible for DHS–CS 

employees as they perform the work of 

their assignments, there may be 

situations in which the location where 

a DHS–CS employee performs work 

varies or is not consistent. In such cases, 

DHS may need to review a DHS–CS 

employee’s specific work arrangement 

to determine the employee’s official 

worksite. 

DHS documents a DHS–CS 

employee’s official worksite as part of 


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documenting the employee’s 

appointment and updates that 

documentation to reflect changes in the 

employee’s official worksite, as 

necessary. DHS documents changes in a 

DHS–CS employee’s official worksite 

only when such changes are expected to 

last, or do last, for six months or more. 

Such changes expected to last less than 

six months are considered temporary in 

alignment with the Federal Travel 

Regulations at 41 CFR chapter 301. DHS 

addresses temporary changes, as 

necessary, using the Federal Travel 

Regulations. 

5. Work Scheduling 

Under the CTMS deployment 

program, DHS is establishing and 

administering a work scheduling system 

for DHS–CS employees. The CTMS 

work scheduling system accounts for 

the unpredictable nature of 

cybersecurity work. The work 

scheduling system also allows DHS to 

ensure that the performance of 

cybersecurity work is not constrained or 

impeded by rigid scheduling rules and 

structures designed for more predictable 

types of work or for administration of 

types of compensation, such as Title 5 

premium pay and overtime pay under 

the FLSA, that are not part of the CTMS 

compensation system. 

The work scheduling system ensures 

agility for DHS in scheduling 

cybersecurity work and the availability 

of DHS–CS employees to perform the 

cybersecurity work associated with their 

assignments. See § 158.705. The work 

scheduling system, including associated 

work schedule types and requirements, 

enables scheduling the work of DHS–CS 

employees with enough flexibility to 

address a variety of mission 

circumstances, while also ensuring that 

DHS–CS employees are available to 

perform work at required times. The 

work scheduling system also ensures 

clear expectations for DHS–CS 

employees about when they are 

expected to perform work and flexibility 

for DHS–CS employees in scheduling 

and performing such work. See 

§ 158.705. Such flexibility for DHS–CS 

employees allows DHS to offer a variety 

of work arrangements that may appeal 

to cybersecurity talent. The work 

scheduling system provides DHS 

organizations, DHS–CS employees, and 

their supervisors with options for 

scheduling and performing work 

throughout a work period. These 

options includes different types of 

schedules, procedures for determining 

and updating a DHS–CS employee’s 

work schedule, and requirements for 

communicating about anticipated work 

hours to ensure DHS–CS employees and 

their supervisors maintain a shared 

understanding of work schedules and 

how employees’ intend to meet work 

schedule requirements. Additionally, 

the work scheduling system ensures 

accurate recording of, accounting for, 

and monitoring of hours worked by 

DHS–CS employees as required by 

applicable Federal personnel and 

payroll recordkeeping standards. See 

§ 158.705. 

CTMS includes new definitions 

specific to the CTMS work scheduling 

system. For example, ‘‘work period’’ 

means a two-week period of 14 

consecutive days that begins on a 

Sunday and ends on a Saturday, and is 

the equivalent of a biweekly pay period. 

See § 158.705. Increasingly, existing 

Federal civilian compensation 

administration has become linked to the 

biweekly pay periods and the CTMS 

work scheduling system acknowledges 

this linkage between how DHS–CS 

employees perform work and how they 

are compensated. Another example of a 

new definition specific to the CTMS 

work scheduling system is ‘‘minimum 

hours of work,’’ which means the 

minimum number of hours that a DHS– 

CS employee is required to work, or 

account for with time-off, during a work 

period, and is the equivalent to the term 

‘‘basic work requirement’’ defined in 5 

U.S.C. 6121. See § 158.705. A DHS–CS 

employee’s minimum hours of work 

determines the employee’s biweekly 

salary payment for the applicable work 

period. A DHS–CS employee’s 

minimum hours of work depends on the 

employee’s schedule. 

The CTMS work scheduling system 

features three main types of schedules: 

Full-time, part-time, and contingent. See 

§ 158.705. A full-time schedule, which 

is 80 hours per work period, is most 

similar to a full-time schedule under 

Title 5. A part-time schedule, which is 

a specified number of hours less than 80 

hours per work period, is most similar 

to part-time career employment under 

Title 5. A contingent schedule is an 

irregular number of hours up to 80 

hours per work period and is intended 

for cases when cybersecurity work is 

sporadic and cannot be regularly 

scheduled in advance. A DHS–CS 

employee on a contingent schedule does 

not have a minimum hours of work 

requirement, but has a maximum 

number of 80 hours per work period and 

a maximum number of total hours 

throughout the employee’s appointment 

that is determined at the time of 

appointment. A contingent schedule is 

most similar to an intermittent schedule 

under Title 5. For DHS–CS employees 

with both part-time and contingent 

schedules, DHS closely monitors hours 

worked over time and considers, with 

input from the employee and the 

employee’s supervisor, whether changes 

to another schedule type are necessary 

and appropriate. 

A DHS–CS employee’s work 

schedule, and any minimum hours of 

work, is determined at the time of 

appointment and recorded as part of 

documenting the employee’s qualified 

position. See § 158.705. A DHS–CS 

employee’s work schedule and 

minimum hours of work may change 

during the employee’s service in the 

DHS–CS and DHS records any such 

updates in the documentation 

associated with the employee’s qualified 

position. 

All DHS–CS employees are expected 

to perform DHS–CS cybersecurity work 

associated with their assignments, 

especially in response to exigent 

circumstances and emergencies, 

including cybersecurity incidents. See 

§ 158.705. This may require 

cybersecurity work to be performed at 

unexpected times or for more hours 

than the minimum number of hours 

associated with the employees’ 

schedules. Hours worked by a DHS–CS 

employee that exceed that employee’s 

minimum hours of work do not affect 

the employee’s salary nor result in any 

automatic eligibility for or entitlement 

to compensation, including any type of 

additional compensation. See § 158.705. 

DHS monitors the hours worked and 

reported by DHS–CS employees for 

purposes of managing the DHS–CS, 

including considering any changes to 

DHS–CS employees’ schedules, and 

administering compensation, including 

assisting in consideration of any 

payment under a CTMS special working 

conditions program. See § 158.705. As 

mentioned previously, DHS considers a 

DHS–CS employee’s work schedule 

when reviewing work conditions or 

circumstances that may warrant 

providing a payment under a special 

working conditions payment program. 

DHS–CS employees with full-time 

and part-time schedules are expected to 

work at least their minimum hours of 

work. See § 158.705. If the hours 

actually worked by the employee are 

less than the employee’s minimum 

hours of work, the employee must use 

time-off or must be placed in an 

appropriate non-pay status to account 

for the difference between hours 

actually worked by the employee and 

the employee’s minimum hours of work. 

A DHS–CS employee’s hours worked 

directly impacts the employee’s 

compensation. A DHS–CS employee’s 

hours worked is important for salary 

administration generally and is a factor 

in providing CTMS special working 


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186See e.g. 5 CFR 210.102(b)(11) (defining 

‘‘promotion’’ generally under Title 5 to mean a 

change to a higher grade when both the old and the 

new positions are under the GS or under the same 

type graded wage schedule); 5 CFR 531.203 

(defining ‘‘promotion’’ for purposes under the GS 

to mean a GS employee’s movement from one GS 

grade to a higher GS grade). 

187U.S. Office of Personnel Management, Guide 

to Processing Personnel Action (Mar. 2017), page 

14–4. 

conditions payments, holidays, leave, 

and compensatory time-off for religious 

purposes. See § 158.705. In alignment 

with the CTMS compensation strategy, 

the CTMS work scheduling system 

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. The 

work scheduling system also reflects an 

understanding of the cybersecurity 

talent market, especially current work 

expectations and arrangements used by 

other employers. Through the CTMS 

work scheduling system, DHS is able to 

accurately administer DHS–CS 

employees’ salaries, including based on 

DHS–CS employees’ hours worked, to 

ensure that DHS employees receive 

sufficiently competitive compensation 

designed for their recruitment and 

retention. 

DHS will implement the work 

scheduling system in CTMS policy and 

may establish other work scheduling 

requirements for DHS–CS employees, 

including designated days, hours, core 

hours, or limits on the number of work 

hours per day. The flexibility to 

establish other work scheduling 

requirements allows DHS to adjust to 

and effectively manage changes linked 

to the unpredictable nature of 

cybersecurity work, and respond to 

work arrangements used by other 

cybersecurity employers. 

6. DHS–CS Recordkeeping 

Under the CTMS deployment 

program, DHS creates records of a DHS– 

CS employee’s employment in the DHS– 

CS. See § 158.706. DHS documents 

qualified positions and assignments, as 

well as other necessary recordkeeping, 

and updates those documents and 

records as necessary. 

DHS documents a qualified position 

by documenting an individual’s 

appointment to a qualified position. See 

§ 158.076. Documentation of an 

individual’s qualified position includes 

a description of the individual’s CTMS 

qualifications and DHS–CS 

cybersecurity work that can be 

performed through application of those 

qualifications. Such documentation also 

includes applicable work and career 

structures, such as the individual’s work 

level. Documentation of an individual’s 

qualified positions also includes the 

individual’s salary, current assignment, 

official worksite, and work schedule. 

As discussed previously and stated in 

§ 158.522, a DHS–CS employee serves in 

the same qualified position for the 

duration of employment in the DHS–CS, 

regardless of any changes to the 

employee’s assignments, including 

primary DHS organizations or official 

worksite. DHS updates the 

documentation associated with a DHS– 

CS employee’s qualified position to 

reflect changes affecting the employee’s 

qualified position, such as 

enhancements to CTMS qualifications, 

any subsequent assignment, changes to 

applicable work and career structures, 

and changes to official worksite or work 

schedule. Such a change in 

documentation does not change the 

DHS–CS employee’s qualified position 

or indicate that DHS has appointed the 

employee to a different qualified 

position. 

Recordkeeping under CTMS also 

includes documenting assignments. 

Documentation of an assignment 

includes specific assignment 

information that describes the DHS–CS 

cybersecurity work activities of the 

assignment. See § 158.706. DHS also 

documents the timeframe of the 

assignment, the DHS organization to 

which the DHS–CS employee is 

assigned for the duration of the 

assignment, personnel security 

requirements for the assignment, 

location of the assignment, requirements 

and information related to work 

schedule, and information related to the 

performance management program (e.g., 

information relevant for appraisal 

reviews, mission impact reviews, and 

development reviews such as goals and 

standards for evaluating performance). 

CTMS assignment information is similar 

to information contained in a series of 

artifacts commonly produced under 

Title 5, including a position description, 

performance plan, and individual 

development plan. 

Updates to the documentation 

associated with a DHS–CS employee’s 

qualified position also are not a 

promotion, transfer, or reassignment for 

any other purpose under 5 U.S.C. or 5 

CFR, except as necessary for 

recordkeeping purposes only. See 

§ 158.706. CTMS does not contain 

promotions, transfers, or reassignments 

as defined in Title 5 because they are 

actions defined based on talent 

management concepts that are 

inapplicable and not compatible with 

CTMS.186

While CTMS does not include certain 

Title 5 concepts, DHS may need to use 

certain Title 5 terms for recordkeeping 

purposes to ensure talent management 

actions for DHS–CS employees are 

administered and documented properly. 

DHS uses existing Federal personnel 

recordkeeping processes, standards, 

requirements, and systems of record, 

which use Title 5 terms, for personnel 

records related to employees in the 

DHS–CS. To accommodate the new 

approach to talent management under 

CTMS, DHS may need to use those 

Federal personnel recordkeeping 

processes, standards, requirements, and 

systems of record differently from how 

DHS uses them to support other existing 

personnel systems. For example, 

although a change in a DHS–CS 

assignment does not constitute a 

reassignment for purposes of Title 5, 

DHS may process a change in 

assignment for a DHS–CS employee as 

a ‘‘reassignment’’ and generate 

associated records, even though existing 

Federal personnel recordkeeping 

guidance defines ‘‘reassignment’’ as a 

change from one position to another 

position.187 CTMS policy will address 

the integration of CTMS talent 

management actions with existing 

Federal personnel recordkeeping 

process, standards, requirements, and 

systems of record. See § 158.706 

7. Details and Opportunities Outside of 

the DHS–CS 

DHS may detail DHS–CS employees 

outside of DHS. See § 158.707. Detailing 

a DHS–CS employee outside of DHS 

under the CTMS deployment system 

may result in enhanced qualifications of 

the employee upon return to DHS. 

Additionally, detailing a DHS–CS 

employee may contribute to executing 

the DHS cybersecurity mission. For 

example, DHS is responsible for the 

security of the .gov domain and 

detailing a DHS–CS employee to 

another agency to support that agency 

with its .gov security would contribute 

to carrying out DHS’s responsibilities. 

DHS may approve a variety of details 

and external opportunities for DHS–CS 

employees under existing provisions of 

Title 5 and other laws governing details 

outside of DHS. See § 158.707. When 

detailing a DHS–CS employee under 

those other laws, DHS will abide by all 

terms and conditions of those laws. As 

such, only DHS–CS employees in 

continuing appointments may be 

assigned under the Intergovernmental 

Personnel Act because such 


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188See 5 CFR part 334; U.S. Office of Personnel 

Management website Policy, Data Oversight: Hiring 

Information, https://www.opm.gov/policy-dataoversight/hiring-information/intergovernmentpersonnel-act/#url=Provisions (last visited May 25, 

2021). 189 5 CFR 430.102. 

appointments are analogous to the types 

of appointments eligible for assignment 

under that Act.188 Given the unique 

CTMS work valuation system and talent 

acquisition system, individuals in other 

Federal personnel systems or from 

outside of the Federal government may 

not be detailed to a qualified position in 

the DHS–CS. See § 158.707. 

G. Developing Talent: Subpart H 

Subpart H, Developing Talent, 

includes regulations addressing 

performance management and 

development of DHS–CS employees and 

establishes two elements of CTMS: The 

performance management program and 

the career development program. DHS 

uses the CTMS performance 

management program to: Establish and 

maintain individual accountability 

among DHS–CS employees; manage, 

recognize, and develop performance of 

DHS–CS employees; and improve 

effectiveness in executing the DHS 

cybersecurity mission. See § 158.802. 

DHS uses the CTMS career development 

program to guide career progression of 

DHS–CS employees, ensure 

development of the collective expertise 

of DHS–CS employees, and ensure 

continued alignment between DHS–CS 

employee qualifications and the set of 

CTMS qualifications. See § 158.803. The 

authority in 6 U.S.C 658 does not 

impact existing laws regarding 

performance management and career 

development, and DHS is establishing 

the CTMS performance management 

program under 5 U.S.C. Chapter 43 and 

5 CFR part 430. DHS is establishing the 

CTMS career development program 

under 5 U.S.C. Chapter 41 and 5 CFR 

410 and 430. 

DHS is establishing the CTMS 

performance management program and 

the CTMS career development program 

in alignment with the DHS–CS’s core 

values and the goals of the CTMS 

compensation strategy. This alignment 

reinforces the core values of expertise, 

innovation, and adaptability, and 

underscores the expectation of 

continual learning for DHS–CS 

employee performance and 

development. DHS–CS employees must 

ensure that their CTMS qualifications 

remain fresh as technology and threats 

as well as cybersecurity techniques and 

tactics change. 

Alignment with the goals of the CTMS 

compensation strategy ensures that DHS 

manages DHS–CS employee 

performance with a focus on those goals 

of exceptional CTMS qualifications and 

mission impact, excellence and 

innovation in the performance of DHS– 

CS cybersecurity work, and continual 

learning. This focus aligns with 

opportunities for additional 

compensation, such as CTMS 

recognition, which is based primarily on 

mission impact, as discussed 

previously. 

Alignment with the CTMS 

compensation strategy goal of continual 

learning is particularly important for 

performance management and career 

development. Such alignment reinforces 

that DHS–CS employees are expected to 

enhance their CTMS qualifications, 

which ultimately contributes to mission 

impact as DHS–CS employees apply 

those enhanced qualifications to 

perform DHS–CS cybersecurity work. 

The goal of continual learning also 

supports career progression, which is 

based on enhancements to CTMS 

qualifications and salary progression as 

discussed subsequently. 

1. CTMS Performance Management 

Program 

Performance management under 5 

U.S.C. Chapter 43 and 5 CFR part 430 

is the systematic process by which an 

agency involves its employees, as 

individuals and members of a group, in 

improving organizational effectiveness 

in the accomplishment of agency 

mission and goals.189 Under 5 CFR 

430.102, improving organizational 

effectiveness in the accomplishment of 

an agency’s missions and goals should 

be integrated with other agency 

processes including individual 

accountability, recognition and 

development. To emphasize the linkage 

between individual accountability, 

recognition, and development in 

improving organizational effectiveness, 

the CTMS performance management 

program implements the systematic 

process of performance management for 

DHS–CS employees with three ongoing 

reviews: Appraisal reviews, 

development reviews, and mission 

impact reviews. See §§ 158.802, 

158.804–158.806. 

Collectively, the three ongoing 

reviews are designed to foster and 

encourage the improvement of 

organizational effectiveness in the 

accomplishment of agency mission and 

goals through individual accountability, 

contributions to the mission, and 

employee development, all of which are 

fundamental to performance 

management under 5 CFR part 430. 

CTMS appraisal reviews target 

individual accountability. CTMS 

development reviews focus on continual 

learning, and mission impact reviews 

serve as a critical intersection point for 

the other two reviews. As part of CTMS 

mission impact reviews, DHS analyzes 

and describes a DHS–CS employee’s 

influence on the execution of the DHS 

cybersecurity mission through the 

application of the DHS–CS employee’s 

CTMS qualifications to perform DHS– 

CS cybersecurity work. In turn, DHS 

uses the results of mission impact 

reviews to support decisions relating to 

the type and amount of CTMS 

recognition a DHS–CS employee may 

receive. 

To complete the three reviews under 

the CTMS performance management 

program, DHS may collect information 

and input on a periodic or ongoing basis 

from the DHS–CS employee being 

reviewed, other DHS–CS employees, the 

employee’s supervisor, and other 

appropriate officials. See § 158.802. 

Periodic or ongoing gathering of 

information and input from such 

individuals ensures that DHS has 

sufficient information from individuals 

familiar with a DHS–CS employee’s 

CTMS qualifications and performance of 

DHS–CS work through one or more 

assignments. Such information and 

input enable DHS to make informed 

determinations and take appropriate 

talent management actions related to all 

three types of reviews under the CTMS 

performance management program. 

DHS conducts CTMS appraisal 

reviews using a performance appraisal 

program, established specifically for 

DHS–CS employees, that fulfills the 

specific requirements for appraisal 

reviews under 5 CFR 430. DHS uses the 

CTMS appraisal program to review and 

evaluate the performance of DHS–CS 

employees, and to ensure DHS–CS 

employees’ individual accountability. 

See § 158.804. The appraisal program 

for DHS–CS employees includes one or 

more progress reviews, as defined in 5 

CFR 430.203, and an appraisal that 

results in a rating of record, as defined 

in 5 CFR 430.203. DHS addresses 

unacceptable performance, as defined in 

5 U.S.C. 4301(3), under the provisions 

of 5 CFR part 432 or part 752. 

As mentioned previously, a DHS–CS 

employee is ineligible to receive CTMS 

recognition if DHS determines a DHS– 

CS employee’s performance is 

unacceptable or the employee receives 

an unacceptable rating of record. See 

§§ 158.630 and 158.804. For the same 

reasons, a DHS–CS employee may also 

be excluded from mission impact 

reviews. See 158.804. Mission impact 

reviews serve as a basis for decisions 

about CTMS recognition, and a DHS–CS 


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employee should not be recognized if 

the employee’s performance is 

unacceptable. 

CTMS mission impact reviews are 

used to evaluate a DHS–CS employee’s 

mission impact throughout the 

employee’s service in a qualified 

position and to generate a mission 

impact summary at least annually. See 

§ 158.805. Mission impact reviews 

capture DHS–CS employee mission 

impact on an ongoing basis. 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. In 

reviewing a DHS–CS employee’s 

mission impact, individually or as part 

of a group or both, DHS considers a 

variety of factors such as: Superior 

application of qualifications to perform 

DHS–CS cybersecurity work; significant 

enhancements to qualifications; special 

contributions to cybersecurity 

technologies, techniques, tactics, or 

procedures; and notable improvements 

to execution of the DHS cybersecurity 

mission. 

Mission impact reviews are closely 

connected to CTMS compensation. 

Capturing, encouraging, and recognizing 

DHS–CS employee mission impact is 

part of how DHS manages the DHS–CS 

based on the DHS–CS’s core values and 

in alignment with the goals of the 

compensation strategy as previously 

discussed. As a result of mission impact 

reviews, DHS makes distinctions among 

DHS–CS employees to support 

decisions related to CTMS recognition. 

CTMS development reviews are used 

to review a DHS–CS employee’s career 

progression throughout the employee’s 

service in the DHS–CS. See § 158.806. 

As described under § 158.803, career 

progression in the DHS–CS is based on 

enhancement of CTMS qualifications 

and salary progression resulting from 

recognition. DHS uses development 

reviews to generate a development 

summary at least annually for each 

DHS–CS employee, and development 

summaries may include plans for the 

learning and career progression of a 

DHS–CS employee or group of DHS–CS 

employees. DHS may conduct 

development reviews concurrently with 

mission impact reviews. 

As part of development reviews, DHS 

may compare, categorize, and rank 

DHS–CS employees to support 

decisions related to professional 

development and training, as well as 

subsequent assignments. See § 158.806. 

Information from development reviews 

can help DHS determine which types of 

trainings would benefit DHS–CS 

employees the most. Such information 

is also useful in tailoring professional 

development offerings for DHS–CS 

employees. DHS may also use 

information from development reviews 

in matching DHS–CS employees to 

subsequent assignments. Certain 

subsequent assignments may assist 

DHS–CS employees in maintaining and 

enhancing their CTMS qualifications, 

including through exposure to specific 

types of cybersecurity work. As 

mentioned previously, under the 

deployment program, DHS 

communicates with DHS–CS employees 

about such subsequent assignment 

opportunities. 

Development reviews connect the 

CTMS performance management 

program and the CTMS career 

development program. Development 

reviews are the primary means by which 

DHS determines the extent to which 

DHS–CS employees have enhanced 

their CTMS qualifications and thus 

assist DHS in guiding career progression 

for DHS–CS employees under the career 

development program. 

2. CTMS Career Development Program 

DHS is establishing and administering 

the CTMS career development program 

to guide DHS–CS employee career 

progression, ensure development of the 

collective expertise of DHS–CS 

employees through continual learning, 

and ensure the continued alignment 

between the qualifications of DHS–CS 

employees and the set of CTMS 

qualifications. See § 158.803. The career 

development program is closely linked 

to the CTMS performance management 

program and DHS will use development 

reviews from the performance 

management program as part of the 

career development program. 

Career progression in the DHS–CS is 

based on enhancement of CTMS 

qualifications and salary progression 

resulting from recognition adjustments. 

See § 158.803. Enhancement of CTMS 

qualifications is one component of 

career progression in the DHS–CS. DHS 

needs the collective expertise of the 

DHS–CS to keep pace with the 

continual evolution of cybersecurity 

work. Salary progression is another 

component of career progression in the 

DHS–CS. As DHS–CS employees 

progress through their careers, DHS 

recognizes DHS–CS employees’ 

advances through recognition 

adjustments. As mentioned previously, 

CTMS is not a longevity-based 

personnel system, and career 

progression in the DHS–CS is not based 

on length of service in the DHS–CS or 

the Federal government. 

Under the CTMS career development 

program, DHS guides career progression 

of DHS–CS employees using 

development strategies based on 

information from development reviews, 

mission-related requirements, and 

strategic talent priorities. See § 158.803. 

DHS aims to guide the career 

progression of DHS–CS employees to 

ensure that DHS–CS employees are 

prepared to execute the DHS 

cybersecurity mission, including into 

the future. 

Reviewing and encouraging DHS–CS 

employee career progression is part of 

how DHS manages the DHS–CS based 

on the DHS–CS’s core values and in 

alignment with the goals of the 

compensation strategy as previously 

discussed. Reviewing and encouraging 

excellence, innovation, and continual 

learning through professional 

development and training opportunities 

and certain subsequent assignments 

ensures DHS–CS employees are 

recognized for such progression. DHS 

needs the collective expertise of the 

DHS–CS to keep pace with the everevolving nature of cybersecurity work, 

cybersecurity risks, and cybersecurity 

threats, and development reviews help 

foster and encourage a DHS–CS with 

similarly evolving expertise. 

The career development program 

emphasizes continual learning. DHS 

needs the collective expertise of the 

DHS–CS to keep pace with the 

evolution of cybersecurity work and the 

dynamic DHS cybersecurity mission. 

DHS also needs to ensure the DHS–CS 

collective expertise reflects the set of 

CTMS qualifications. The career 

development program, and its emphasis 

on continual learning, assists DHS in 

accomplishing this. 

DHS establishes, maintains, and 

communicates criteria for continual 

learning for DHS–CS employees. Such 

criteria include recommended and 

required learning activities, such as: 

Completion of a specific course of 

study; completion of mission-related 

training defined in 5 CFR 410.101; 

performance of certain cybersecurity 

work as part of DHS–CS assignments; 

and participation in opportunities for 

CTMS professional development and 

training. See § 158.803. DHS aims to 

utilize all available opportunities for 

DHS–CS employee development, 

including opportunities under CTMS 

and under Title 5. Such opportunities 

may include subsequent assignments, 

details outside of DHS, and training and 

professional development under Title 5, 

such as academic degree training under 

5 U.S.C. 4107. 

DHS verifies a DHS–CS employee’s 

enhancement of CTMS qualifications, 

which may include review by the CTMB 

or assessment using standardized 


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instruments and procedures designed to 

measure the extent to which a DHS–CS 

employee has enhanced the employee’s 

qualifications. DHS–CS employees may 

also participate in a formal assessment 

process for DHS to verify enhancement 

of CTMS qualifications. 

H. Federal Employee Rights and 

Requirements & Advisory 

Appointments: Subparts I & J 

Subpart I contain regulations 

addressing Federal civil service 

employee rights and requirements that 

apply under CTMS and in the DHS–CS. 

Subpart J addresses CTMS political 

appointments, known as advisory 

appointments. These subparts clarify 

application to DHS–CS employees of 

certain protections and requirements for 

Federal employees and describe 

employment in the DHS–CS for DHS– 

CS advisory appointees. 

1. Subpart I—Employee Rights, 

Requirements, and Input 

Subpart I, Employee Rights, 

Requirements, and Input, contains 

regulations establishing a program for 

addressing DHS–CS employee input 

specific to the DHS–CS and a DHS–CS 

employee’s employment. Subpart I also 

clarifies that certain requirements and 

protections for Federal employees apply 

for DHS–CS employees. 

DHS–CS employees retain rights and 

access to processes that may be relevant 

to employment in the DHS–CS. The 

provisions of 5 U.S.C. Chapter 75 and 5 

U.S.C. 4303 regarding adverse actions 

and 5 U.S.C. Chapter 35, Subchapter I 

regarding reductions in force apply to 

talent management actions under 

CTMS. See § 158.901. Also, DHS–CS 

employees retain rights, as provided by 

law, to seek review of employmentrelated actions before third parties, such 

as the Equal Employment Opportunity 

Commission, Merit Systems Protection 

Board, Office of Special Counsel and 

Department of Labor. See § 158.901. 

Additionally, back pay remains 

available under 5 U.S.C. 5596 for 

unjustified or unwarranted talent 

management actions, and such actions 

have the same meaning as personnel 

actions in 5 U.S.C. 2302(a)(2). See 

§ 158.901. 

Like other Federal officers and 

employees, DHS–CS employees are 

employees covered by the Ethics in 

Government Act section 101(f)(3), and 

are subject to the criminal conflict of 

interest rules as well as government 

ethics requirements. See § 158.902. 

These include: criminal conflict of 

interest provisions in 18 U.S.C. 201– 

209; Ethics in Government Act, as 

amended, and implementing regulations 

in 5 CFR, Chapter XVI, Subchapter B; 

Supplemental Standards of Conduct for 

Employees of the Department of 

Homeland Security in 5 CFR part 4601; 

and DHS policy. See § 158.902. Under 

these ethics requirements, DHS–CS 

employees must seek approval for 

certain outside activities, comply with 

ethics program requirements, and other 

applicable laws, including postgovernment employment restrictions. 

See § 158.902. 

In addition to the rights and access to 

processes outside of CTMS, DHS–CS 

employees also have access to an 

employee input program under CTMS. 

DHS is establishing a program for DHS– 

CS employees to express employmentrelated concerns and recommendations 

for enhancing CTMS administration and 

DHS–CS management. See § 158.903. 

The CTMS employee input program 

provides a process for DHS–CS 

employees to request review of certain 

talent management actions. DHS will 

implement this program in CTMS 

policy, and that policy will address the 

talent management actions covered by 

the program and the process for 

expressing input. 

One purpose of the employee input 

program is to establish opportunities for 

DHS–CS employees to raise, and have 

addressed, employment-related 

concerns without formal litigation. The 

program, however, does not replace 

opportunities for redress with relevant 

third parties, mentioned previously. 

CTMS policy implementing the 

employee input program will describe 

how the program interacts with these 

other third-party redress avenues. 

Another purpose of the employee 

input program is to provide a process 

for DHS–CS employees to provide 

feedback on CTMS and the DHS–CS. 

This feedback will help the CTMB 

evaluate whether the CTMS is fulfilling 

the purpose of its design to recruit and 

retain individuals with the 

qualifications necessary to execute the 

DHS cybersecurity mission. As 

discussed previously, CTMS has several 

interrelated elements that function 

together. Feedback from DHS–CS 

employees is critical, and the employee 

input program provides an opportunity 

for DHS–CS employees to be heard and 

share their thoughts about the operation 

of CTMS, including hiring, 

compensation, and development 

practices that could be improved. The 

CTMB may use information from the 

employee input program for its periodic 

review of CTMS administration and 

operation. 

2. Subpart J—Advisory Appointments 

Subpart J, Advisory Appointments, 

addresses political appointees under 

CTMS who serve in advisory 

appointments. An advisory appointment 

is an appointment to a qualified 

position that: The Secretary determines 

is of a policy-determining, policymaking, or policy advocating character 

or involves a close or confidential 

working relationship with the Secretary 

or other key appointed officials; does 

not have a salary set by statute; and is 

not required to be filled by an 

appointment by the President. See 

§ 158.1001. DHS–CS advisory 

appointees are treated similar to other 

political appointees except regarding 

appointment and compensation. See 

§§ 158.1001–158.1003. DHS–CS 

advisory appointees are appointed to a 

qualified position through an advisory 

appointment, instead of a Schedule C 

position or non-career SES position. 

Compensation for DHS–CS advisory 

appointees are set under the CTMS 

compensation system, instead of under 

the GS, the SES, or other Federal pay 

system. 

An advisory appointment may not be 

used for an appointment for which 

salary is set by statute; DHS sets salaries 

for all advisory appointees under the 

CTMS compensation system. DHS 

leadership positions that are established 

in statute and have a salary in the 

Executive Schedule set by statute are 

not covered by advisory appointments. 

DHS positions required to be filled by 

appointment by the President also are 

not covered by advisory appointments. 

To treat advisory appointees like 

other political appointees for talent 

management purposes other than 

appointment and compensation, an 

advisory appointment is treated as an 

appointment to a Schedule C position 

under 5 CFR 213.3301. See § 158.1001. 

The provisions of OPM regulations 

governing talent management for 

Schedule C positions apply to advisory 

appointments, except appointment and 

compensation is governed by subpart J. 

DHS also tracks and coordinates 

advisory appointments with the 

Executive Office of the President and 

OPM, as is done with other political 

appointments. Employment restrictions 

that apply to other political appointees 

also apply to advisory appointees as if 

the advisory appointee was in a 

Schedule C position. For example, 

Executive Order 13989 requiring an 

ethics pledge from political appointees 

will apply to advisory appointees. 

Appointment to an advisory 

appointment includes the individual 

participating in the CTMS assessment 


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190Committee on Homeland Security and 

Government Affairs, U.S. Senate (114th Congress, 

2d Session), Policy and Supporting Positions (Dec. 

1, 2016), Appendices 2 and 4, available at https:// 

www.govinfo.gov/content/pkg/GPO-PLUMBOOK2016/pdf/GPO-PLUMBOOK-2016.pdf (last visited 

May 25, 2021). 

191See e.g., U.S. Office of Personnel Management, 

CPM 2010–14, ‘‘Guidance on Freeze on 

Discretionary Awards, Bonuses, and Similar 

Payment for Federal Employees Serving under 

Political Appointments’’ (Aug. 2010), available at 

https://chcoc.gov/content/guidance-freezediscretionary-awards-bonuses-and-similarpayments-federal-employees-serving (last visited 

May 25, 2021); U.S. Office of Personnel 

Management, C–19–24, ‘‘Guidance on Awards for 

Employees and Agency Workforce Fund Plan’’ (July 

2019) available at https://chcoc.gov/content/ 

guidance-awards-employees-and-agency-workforcefund-plan (last visited May 25, 2021). 

192See 5 CFR 575.104. 

193See 5 CFR 537.104(b). 

program. See § 158.1002. As discussed 

previously in this document, DHS 

determines individuals’ qualifications 

under the CTMS assessment program, 

and CTMS qualifications are organized 

into broad categories defined primarily 

in terms of capabilities, such as general 

professional capabilities, cybersecurity 

technical capabilities, and leadership 

capabilities. DHS anticipates that the 

assessment processes for advisory 

appointments address all such 

categories, with a focus on both the 

technical and policy advisory roles of 

advisory appointees. 

The Secretary or designee must 

approve the appointment of an 

individual to an advisory appointment 

by name, and all advisory appointees 

serve at the will of the Secretary. See 

§ 158.1002. Like other political 

appointments, an advisory appointment 

terminates no later than the end of the 

term of the U.S. President under which 

the advisory appointee was appointed, 

and a DHS–CS advisory appointee may 

be removed at any time. The provisions 

of 5 U.S.C. Chapter 75 regarding adverse 

actions do not apply to talent 

management actions taken under this 

part for a DHS–CS advisory appointee 

because of the confidential, policydetermining, policy-making, or policyadvocating character of an advisory 

appointment. 

Advisory appointments to qualified 

positions are limited and capped at a 

total number established by the 

Secretary or the Secretary’s designee 

under § 158.1002. This cap reflects that 

noncareer appointments to SES 

positions are generally limited to 25 

percent of the agency’s number of total 

SES positions, and Schedule C positions 

are limited in total number under OPM 

direction.190 Like Schedule C positions 

under 5 CFR 213.3301, DHS may not 

use an advisory appointment solely or 

primarily for the purpose of detailing 

any individual to the White House. See 

§ 158.1002. 

Once appointed, an advisory 

appointee in the DHS–CS is treated like 

other political appointees for all talent 

management purposes, except 

compensation. Like other DHS–CS 

employees, an advisory appointee 

receives a salary under the CTMS salary 

system, unless the appointee is 

providing uncompensated service. See 

§ 158.1003. An advisory appointee may 

receive a salary in the standard range 

only because, as discussed previously, 

DHS uses the extended range for limited 

circumstances only. Like other political 

appointees, compensation for an 

advisory appointee is subject to 

guidance from the Administration on 

compensation for political appointees. 

Like political appointees in Schedule 

C positions who may receive a 

promotion and GS grade increase, and 

political appointees in non-career SES 

positions who may receive a 

performance-based pay adjustment, an 

advisory appointee may receive salary 

adjustments in the form of recognition 

adjustments. Like a political appointee 

in a Schedule C position who may 

receive locality pay under the GS, an 

advisory appointee may receive a local 

cybersecurity talent market supplement. 

Like other DHS–CS employees, DHS 

administers salary and other 

compensation, including leave, for an 

advisory appointee based on 

consideration of the advisory 

appointee’s work schedule under the 

CTMS work scheduling system. DHS 

also may convert an advisory 

appointee’s salary into an hourly, 

biweekly, or other rate as necessary to 

ensure accurate operation of existing 

pay administration procedures and 

infrastructure, as mentioned previously. 

An advisory appointee, unless 

providing uncompensated service, may 

also receive CTMS additional 

compensation, but only as provided in 

subpart J. Like other DHS–CS 

employees, additional compensation for 

advisory appointees is subject to and 

may be limited by the CTMS aggregate 

compensation cap. Additional 

compensation for advisory appointees is 

also subject to and may be limited by 

prohibitions, guidance, and other 

provision of law governing awards to 

political appointees, including 5 U.S.C. 

4508 prohibiting awards to political 

appointees during a Presidential 

election period, and other restrictions 

and requirements in CTMS policy. 

Restrictions on additional compensation 

for advisory appointees aligns with 

general restrictions on certain types of 

compensation for political appointees 

across the Federal government, such as 

OPM guidance to agencies restricting 

discretionary awards, bonuses, and 

similar payments for Federal employees 

serving under political appointments.191

Like other types of political 

appointees who may receive monetary 

and other awards, advisory appointees 

may receive CTMS recognition 

payments, CTMS recognition time-off, 

and CTMS honorary recognition, subject 

to prohibitions, guidance, and other 

provision of law governing 

compensation for political appointees. 

An individual being appointed to an 

advisory appointment, however, may 

not receive any recognition as part of an 

offer of employment because other 

political appointees are prohibited from 

receiving recruitment incentives.192

An advisory appointee may receive 

CTMS professional development and 

training; however, unlike other DHS–CS 

employees, an advisory appointee may 

not receive any payment or 

reimbursement for costs of academic 

degree training or expenses to obtain 

professional credentials, including 

examinations to obtain such credentials. 

As discussed previously, CTMS 

professional development and training 

is based, in part, on payment of 

expenses to obtain professional 

credentials under 5 U.S.C. 5757, which 

prohibits such payments for any 

employee occupying or seeking to 

qualify for appointment to any position 

that is excepted from the competitive 

service because of the confidential, 

policy-determining, policy-making, or 

policy-advocating character of the 

position. Similarly, an advisory 

appointee is ineligible for CTMS student 

loan repayments, which as discussed 

previously are based on student loan 

repayment provisions of Title 5, and 

political appointees are ineligible to 

receive Title 5 student loan 

repayments.193

Like other political appointees in noncareer SES positions and Schedule C 

positions, advisory appointees may 

receive types of compensation, 

including leave and benefits, authorized 

under CTMS and provided in 

accordance with provisions of Title 5. 

An advisory appointee, however, may 

not receive a CTMS special working 

conditions payment under a special 

working conditions payment program 

because of the nature of an advisory 

appointment: A political appointment, 

especially one with a close and 

confidential working relationship with 

the Secretary or other key appointed 

officials, involves different expectations 

about working conditions than the 


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appointment of other DHS–CS 

employees. 

An advisory appointee may receive 

CTMS allowances in nonforeign areas 

under 5 U.S.C. 5941 like other DHS–CS 

employees because under 6 U.S.C. 

658(b)(3)(B) mandates that all 

employees in qualified positions ‘‘shall 

be eligible’’ for such allowances on the 

same basis and to the same extent as if 

the employee in the qualified positions 

was covered by 5 U.S.C. 5941. A CTMS 

allowance in nonforeign areas for an 

advisory appointee, however, is subject 

to prohibitions, guidance, and other 

provision of law governing 

compensation for political appointees. 

V. Appendix: Reference Materials 

The following are the most relevant 

reference materials reviewed by a 

specialized DHS team as part of 

designing CTMS to solve DHS’s 

historical and ongoing challenges 

recruiting and retaining cybersecurity 

talent: 

• William Crumpler & James A. Lewis, The 

Cybersecurity Workforce Gap, Center for 

Strategic & International Studies, (Jan. 

2019) available at https://www.csis.org/ 

analysis/cybersecurity-workforce-gap 

(last visited May 25, 2021). 

• Peter F. Drucker, Knowledge Worker 

Productivity: The Biggest Challenge, 41 

California Management Review 79 

(Winter 1999). 

• Robert L. Heneman, Ph.D., Work 

Evaluation: Strategic Issues and 

Alternative Methods, prepared for the 

U.S. Office of Personnel Management, 

FR–00–20 (July 2000, Revised Feb. 

2002). 

• Homeland Security Advisory Council, U.S. 

Department of Homeland Security, 

CyberSkills Task Force Report (Fall 

2012). 

• Joseph W. Howe, History of the General 

Schedule Classification System, 

prepared for the U.S. Office of Personnel 

Management, FR–02–25 (Mar. 2002). 

• (ISC)2, 

Æ Hiring and Retaining Top Cybersecurity 

Talent: What Employers Need to Know 

About Cybersecurity Jobseekers (2018), 

available at https://www.isc2.org/ 

Research/Hiring-Top-CybersecurityTalent (last visited May 25, 2021). 

Æ Strategies for Building and Growing Strong 

Cybersecurity Teams, (ISC)2

Cybersecurity Workforce Study (2019), 

available at https://www.isc2.org/ 

Research/2019-Cybersecurity-WorkforceStudy (last visited May 25, 2021). 

• Martin C. Libicki et al, H4CKER5 

WANTED: An Examination of the 

Cybersecurity Labor Market, National 

Security Research Division, RAND 

Corporation (2014) available at https://

www.rand.org/content/dam/rand/pubs/ 

research_reports/RR400/RR430/RAND_

RR430.pdf (last visited May 25, 2021). 

• Bernard Marr, The Future of Work: 5 

Important Ways Jobs Will Change the 4th 

Industrial Revolution, Forbes, July 15, 

2019, available at https://

www.forbes.com/sites/bernardmarr/ 

2019/07/15/the-future-of-work-5- 

important-ways-jobs-will-change-in-the4th-industrial-revolution/#3ffd62b754c7 

(last visited May 25, 2021). 

• Susan Milligan, HR 2025: 7 Critical 

Strategies to Prepare for the Future of 

HR, HR Magazine, Oct. 29, 2018 

available at https://www.shrm.org/hrtoday/news/hr-magazine/1118/Pages/7- 

critical-strategies-to-prepare-for-thefuture-of-hr.aspx (last visited May 25, 

2021). 

• National Academy of Public 

Administration, 

Æ Revitalizing Federal Management: 

Managers and Their Overburdened 

Systems (Nov. 1983). 

Æ Modernizing Federal Classification: An 

Opportunity for Excellence (July 1991). 

Æ The Transforming Power of Information 

Technology: Making the Federal 

Government an Employer of Choice for 

IT Employees, Summary Report (Aug. 

2001). 

Æ Recommending Performance-Based 

Federal Pay. A Report by the Human 

Resources Management Panel (May 

2004). 

Æ Transforming the Public Service: Progress 

Made and the Work Ahead (Dec. 2004). 

Æ Building a 21st Century Senior Executive 

Service (Mar. 2017). 

Æ No Time to Wait: Building a Public Service 

for the 21st Century (July 2017). 

Æ No Time to Wait, Part 2: Building a Public 

Service for the 21st Century (Sep. 2018). 

• National Commission on Military, 

National, and Public Service, Inspired to 

Serve, (Mar. 2020). 

• National Research Council, 

Professionalizing the Nation’s 

Cybersecurity Workforce?: Criteria for 

Decision-Making, The National 

Academies Press (2013) available at 

https://doi.org/10.17226/18446 (last 

visited May 25, 2021). 

• Partnership for Public Service, 

Æ Cyber In-Security: Strengthening the 

Federal Cybersecurity Workforce (July 

2009). 

Æ Cyber In-Security II: Closing the Federal 

Talent Gap (Apr. 2015). 

• Emil Sayegh, As the End of 2020 

Approaches, The Cybersecurity Talent 

Drought Gets Worse, Forbes, Sep. 22, 

2020, available at https://

www.forbes.com/sites/emilsayegh/2020/ 

09/22/as-the-end-of-2020-approachesthe-cybersecurity-talent-drought-getsworse/?sh=104825545f86 (last visited 

May 25, 2021). 

• Society for Human Resource Management, 

The New Talent Landscape: Recruiting 

Difficulty and Skills Shortages (June 

2016), available at https://www.shrm.org/ 

hr-today/trends-and-forecasting/ 

research-and-surveys/Pages/TalentLandscape.aspx (last visited May 25, 

2021). 

• Harry J. Thie et al, Future Career 

Management Systems for U.S. Military 

Officers, Santa Monica, CA: RAND 

Corporation, MR–470–OSD, prepared for 

the Office of the Secretary of Defense 

(1994) available at https://www.rand.org/ 

pubs/monograph_reports/MR470.html 

(last visited May 25, 2021). 

• U.S. Cyberspace Solarium Commission, 

Æ U.S. Cyberspace Solarium Commission 

Report (Mar. 2020). 

Æ Growing a Stronger Federal Cyber 

Workforce, CSC White Paper #3 (Sep. 

2020). 

• U.S. Department of Homeland Security, 

DHS Cybersecurity Workforce Strategy: 

Fiscal Years 2019–2023. 

• U.S. Government Accountability Office, 

Æ Description of Selected Systems for 

Classifying Federal Civilian Positions 

and Personnel, GGD–84–90 (July 1984). 

Æ Human Capital: Opportunities to Improve 

Executive Agencies’ Hiring Process, 

GAO–03–450 (May 2003). 

Æ Human Capital: Implementing Pay for 

Performance at Selected Personnel 

Demonstration Projects, GAO–04–83, 

(Jan. 2004). 

Æ Human Capital: Federal Workforce 

Challenges in the 21st Century, GAO– 

07–556T (Mar. 2007). 

Æ Human Capital: OPM Needs to Improve 

the Design, Management, and Oversight 

of the Federal Classification System, 

GAO–14–677 (July 2014). 

Æ Federal Workforce: Sustained Attention to 

Human Capital Leading Practices Can 

Help Improve Agency Performance, 

GAO–17–627T, (May 2017). 

Æ Federal Workforce: Key Talent 

Management Strategies for Agencies to 

Better Meet Their Missions, GAO–19–181 

(Mar. 2019). 

Æ Priority Open Recommendations: Office of 

Personnel Management, GAO–19–322SP 

(April 2019). 

Æ Federal Workforce: Talent Management 

Strategies to Help Agencies Better 

Compete in a Tight Labor Market, GAO– 

19–723T (Sep. 2019). 

• U.S. Office of Personnel Management, 

Æ A Fresh Start for Federal Pay: The Case for 

Modernization, (April 2002). 

Æ Alternative Personnel Systems in the 

Federal Government: A Status Report on 

Demonstration Projects and Other 

Performance-Based Pay Systems, (Dec. 

2007). 

Æ Introduction to the Position Classification 

Standards (2009). 

• U.S. Merit Systems Protection Board, 

Æ Attracting the Next Generation: A Look at 

Federal Entry-Level New Hires (Jan. 

2008). 

Æ In Search of Highly Skilled Workers: A 

Study on the Hiring of Upper Level 

Employees From Outside the Federal 

Government (Feb. 2008). 

Æ Job Simulations: Trying Out for a Federal 

Job (Sep. 2009). 

• Sheldon Whitehouse et al, From 

Awareness to Action: A Cybersecurity 

Agenda for the 45th President, Report of 

the CSIS Cyber Policy Task Force, Center 

for Strategic & International Studies (Jan. 

2017), available at https://www.csis.org/ 

analysis/awareness-action (last visited 

May 25, 2021). 


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194E.O. 12866, sec. 3(d) (excluding from the 

definition of ‘‘regulation’’ or ‘‘rule’’ subject to the 

E.O. requirements, ‘‘regulations or rules that are 

limited to agency organization, management, or 

personnel matters’’). 

VI. Public Participation and Request for 

Comments 

Interested persons are invited to 

participate in this rulemaking by 

submitting written comments on 

this interim final rule. Comments 

that will provide the most 

assistance to DHS will reference a 

specific portion of the interim final 

rule, explain the reason for any 

suggestion or recommended change, 

and include data, information, or 

authority that supports such 

suggestion or recommended change. 

DHS will review all comments 

received on this interim final rule, 

but may choose not to post offtopic, inappropriate, or duplicative 

comments. To submit a comment: 

• Go to http://www.regulations.gov and 

follow the instructions for 

submitting comments for docket 

number DHS–2020–0042. If your 

material cannot be submitted using 

http://www.regulations.gov, contact 

the persons listed in the FOR

FURTHER INFORMATION CONTACT

section of this document for 

alternative instructions. 

• All submissions received must 

include the agency name and 

docket number for this rulemaking. 

• Comments posted to http://

www.regulations.gov are posted 

without change and will include 

any personal information provided. 

For more information about privacy 

and submissions in response to this 

document, see DHS’s eRulemaking 

System of Records notice (85 FR 

14226, March 11, 2020). 

VII. Statutory and Regulatory 

Requirements 

DHS developed this rule after 

considering numerous statutes and 

Executive Orders (E.O.s) related to 

rulemaking. Below is a summary of the 

analysis based on these statutes or E.O.s. 

A. Executive Orders 12866 (Regulatory 

Planning and Review) and 13563 

(Improving Regulation and Regulatory 

Review) 

Executive Orders (E.O.s) 12866 and 

13563 direct agencies to assess the costs 

and benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule is 

one of agency management and 

personnel. While such rules are not 

considered rules subject to review by 

OMB under E.O. 12866,194 OMB has 

reviewed it consistent with the 

principles of that Order. This rule does 

not impose costs or burdens on the 

private sector. The additional 

government expense to operate and 

maintain CTMS in the future is 

projected to be $12 to $17 million, 

annually. 

An assessment of potential costs and 

benefits follows. 

1. Background and Purpose 

CTMS is a new mission-driven, 

person-focused, and market-sensitive 

approach to talent management 

featuring several interrelated elements. 

Each of the CTMS elements (strategic 

talent planning process, talent 

acquisition system, compensation 

system, deployment program, 

performance management program, and 

career development program) represent 

a shift from the talent management 

methods and practices Federal agencies 

traditionally use to manage Federal civil 

service talent. CTMS is designed to 

recruit and retain individuals with the 

skills, called qualifications, necessary to 

execute the DHS cybersecurity mission. 

CTMS is also designed to adapt to 

changes in cybersecurity work, the 

cybersecurity talent market, and the 

DHS cybersecurity mission over time. 

With CTMS, DHS is creating a new type 

of Federal civilian position, called a 

qualified position, and the cadre of 

those positions and the individuals 

appointed to them is called the DHS– 

CS. DHS organizations will use CTMS 

when they need to recruit and retain 

talent with CTMS qualifications and 

DHS determines the recruitment and 

retention of such talent would be 

enhanced by specialized CTMS 

practices for hiring, compensation, and 

development. 

The DHS organizations using CTMS 

will provide for the compensation of 

new DHS–CS employees they hire, and 

OCHCO, which contains the specialized 

team responsible for designing CTMS, 

will assist those DHS organizations as 

they hire, compensate, and develop 

those new DHS–CS employees. The 

Cybersecurity and Infrastructure 

Security Agency (CISA) and the DHS 

Office of the Chief Information Officer 

(DHS OCIO) will be the first to use 

CTMS and hire new DHS–CS 

employees. In early FY 2022, CISA and 

DHS OCIO plan to use CTMS for 

approximately 150 priority hires. 

2. CTMS Costs: Designing, Establishing, 

and Administering CTMS 

To design CTMS and prepare for its 

establishment and administration, 

OCHCO needed the talent management 

infrastructure necessary to conceive of 

and plan for DHS to use a new approach 

to Federal civilian talent management. 

Most importantly, OCHCO needed 

individuals with a variety of highly 

specialized talent management expertise 

in areas ranging from industrial and 

organizational (I/O) psychology and 

compensation design to Federal talent 

management policy and employment 

law. Such expertise was necessary to 

design each of the interrelated elements 

of CTMS as well as prepare for their 

respective administration. All CTMS 

elements, especially those reflecting the 

greatest shifts from existing Federal 

talent management methods and 

practices, required effort to envision, 

including a variety of research and 

planning activities to translate ideas 

into specialized hiring, compensation, 

and development practices DHS could 

begin to use. This preparation required 

DHS to review existing talent 

management business processes in use 

across DHS organizations and formulate 

adjustments to ensure the effective 

administration of CTMS and its 

elements. Notable adjustments involved 

reviewing approval and recordkeeping 

procedures for talent management 

actions as well as operation of existing 

information technology support 

systems, such as the DHS personnel and 

payroll system. 

In fiscal year (FY) 2016, Congress 

began providing OCHCO with funding 

to design and establish CTMS. The table 

below summarizes the funding Congress 

provided OCHCO for CTMS from FY 

2016 through FY 2021; it also outlines 

how OCHCO used the funding to design 

and prepare to administer each CTMS 

element. 


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TABLE 3—FUNDING OCHCO RECEIVED FOR CTMS FROM FY 2016–FY 2021 

[$ millions] 

Strategic talent planning process 

Talent 

acquisition 

system 

Compensation 

system 

Deployment 

program 

Performance 

management program 

Career 

development 

program 

Total 

by FY 

% 

Total 

by FY 

Identification of 

work and 

qualifications 

Talent 

market 

analysis 

Work 

valuation 

system 

FY 2016 ..................... 0.85 0.16 0.26 0.37 0.3 0.2 0.23 0.2 2.57 5 

FY 2017 ..................... 0.99 0.2 0.31 0.47 0.36 0.26 0.37 0.37 3.34 7 

FY 2018 ..................... 1.58 0.76 0.91 6.21 0.9 0.68 0.91 0.55 12.5 25 

FY 2019 ..................... 0.99 0.43 0.87 1.37 0.79 0.53 0.62 0.46 6.07 12 

FY 2020 ..................... 0.98 0.31 0.55 5.5 0.76 1.41 1.25 0.81 11.58 23 

FY 2021 ..................... 0.91 0.72 0.41 4.59 1.97 1.86 1.91 1.13 13.49 27 

Total by Element 6.31 2.59 3.31 18.51 5.08 4.94 5.29 3.52 49.55 100 

% Total by Element ................ 13 5 7 37 10 10 11 7 100 ............

As shown in Table 3, OCHCO used 

approximately 37 percent of the funding 

received from FY 2016 through FY 2021 

for the talent acquisition system, which 

required extensive industrial and 

organizational (I/O) psychology research 

to develop, validate, and test assessment 

processes, including simulations of 

DHS–CS cybersecurity work intended to 

test CTMS qualifications. OCHCO also 

used a total of approximately 25 percent 

of the FY 2016 through FY 2021 funding 

on parts of the strategic talent planning 

process, each of which are critical to the 

administration of several CTMS 

elements. Each of the remaining 

elements was associated with less than 

11 percent of the funding received from 

FY 2016 through FY 2021. 

For FY 2022, DHS has requested a 

budget increase of approximately $2.3 

million above FY 2021 funding to cover 

expected enhancements to the talent 

acquisition and compensation systems. 

Additional spending, to be split evenly 

between these two elements, is intended 

to ensure that DHS can effectively use 

CTMS to source and assess more 

applicants, hire more DHS–CS 

employees, and monitor and adjust the 

compensation of those employees. 

Currently, DHS is planning with DHS 

organizations for a second phase of 

hiring to begin in FY 2022 and to 

include at least 350 new DHS–CS 

employees. 

Notably, OCHCO used 74 percent and 

26 percent of the FY 2016 through FY 

2021 funding on contract support and 

OCHCO Federal team salaries and 

benefits, respectively. Much of the 

design of CTMS and its elements 

required temporary, start-up expertise, 

which was most efficiently secured via 

contract. In FY 2022, DHS anticipates 

initial start-up investments required to 

establish CTMS will be complete. DHS 

anticipates annual costs of operating 

CTMS in future years to range from 

approximately $12 million to $17 

million, depending on the number of 

DHS organizations using CTMS, the 

growth of the population of DHS–CS 

employees, and the magnitude of 

adjustments to CTMS required as a 

result of changes in the cybersecurity 

talent market and the DHS cybersecurity 

mission. Simultaneously, DHS expects a 

larger proportion of annual CTMS 

administration costs to be dedicated to 

the salaries and benefits of Federal 

employees responsible for administering 

CTMS and supporting both DHS 

organizations using CTMS and the 

DHS–CS employees hired by them. 

3. CTMS & DHS–CS Costs: 

Compensating and Retaining DHS–CS 

Employees 

The costs of compensating DHS–CS 

employees with salaries and additional 

compensation are not accounted for in 

the funding OCHCO has received for 

CTMS. DHS organizations will cover the 

costs of compensating DHS–CS 

employees and any related expenses 

incurred after the selection of those 

employees. Costs for compensating 

DHS–CS employees will be constrained 

by the amount budgeted for DHS’s 

compensation expenditures, as is the 

case for existing Federal civilian 

employees in positions established and 

managed under other existing Federal 

personnel systems. 

OCHCO will work closely with DHS 

organizations to establish qualified 

positions in the DHS–CS and support 

the hiring, compensation, and 

development their DHS–CS employees. 

In addition, DHS organizations will 

commit to funding new qualified 

positions and DHS–CS employees prior 

to hiring. Such funding commitments 

will be based on hiring plans, including 

cost estimates, established by DHS 

organizations with assistance from 

OCHCO. In planning for the cost of 

qualified positions and DHS–CS 

employees, DHS will use a consistent 

cost estimating methodology, much like 

DHS uses to describe and estimate 

employee costs under other existing 

Federal personnel systems. In alignment 

with the new CTMS compensation 

system, the new cost estimating 

methodology will account for four new 

cost factors: Salary, salary adjustments 

(called recognition adjustments), cash 

bonuses (called recognition payments), 

and training. 

Under CTMS, DHS sets salaries based 

on assessment of an individual’s CTMS 

qualifications. Salaries for DHS–CS 

employees may include a local 

cybersecurity talent market supplement, 

intended to account for differences in 

the cost of talent in specific local 

cybersecurity talent markets, which are 

geographic areas defined by DHS. Salary 

adjustments under CTMS are based 

primarily on a DHS–CS employee’s 

mission impact, and DHS makes such 

adjustments based on an understanding 

of current compensation practices in the 

broader cybersecurity talent market, 

including the salary rates of other 

employers. 

CTMS additional compensation 

includes recognition payments based 

primarily on DHS–CS employees’ 

mission impact, and DHS also provides 

such payments based on an 

understanding of current compensation 

practices in the broader cybersecurity 

talent market. Under CTMS, continuous 

learning is a critical aspect of DHS–CS 

employees’ career progression, so the 

new cost estimating methodology 

includes training costs to ensure DHS 

organizations have requisite funding 

allocated to invest in the development 

of their DHS–CS employees. Remaining 

position costs, such as benefits, General 

Services Administration rent, and 

equipment, have been incorporated into 

the cost estimating methodology based 

on established rates DHS uses to 

estimate employee costs under other 

existing Federal personnel systems. 


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This rulemaking may have future 

distributional effects on the DHS budget 

regarding funding for positions and 

employees. At the launch of CTMS, a 

DHS organization establishing a new 

qualified position in the DHS–CS will 

cover the cost of that qualified position 

using existing funding. DHS 

organizations will need to review 

available funding and position 

vacancies when creating qualified 

positions in the DHS–CS to account for 

cost differences between qualified 

positions and positions previously 

defined using other Federal personnel 

systems. Because CTMS reflects shifts 

from existing talent management 

practices and methods, including those 

for compensation, DHS anticipates that 

the costs of qualified positions will vary 

from the costs a DHS organization 

previously projected for vacant 

positions based on the talent 

management practices of other existing 

personnel systems. These cost 

differences may require DHS 

organizations to adjust strategies for 

filling vacancies. In some cases, certain 

vacancies may need to remain unfilled 

to ensure sufficient funding for one or 

more DHS–CS qualified positions 

reflecting higher total costs than 

previously estimated. In other cases, a 

DHS organization may realize cost 

savings as it is able to hire highlyskilled DHS–CS employees with lower 

compensation and total costs than the 

organization previously projected using 

other existing Federal personnel 

systems. For example, a DHS 

organization might have planned to hire 

an experienced cybersecurity expert 

given previous recruiting challenges, 

but with CTMS, the organization may be 

able to hire, competitively compensate, 

and quickly develop a DHS–CS 

employee just beginning a career in 

cybersecurity. 

4. CTMS & DHS–CS Benefits: Enhancing 

the Cybersecurity of the Nation 

Cybersecurity is a matter of homeland 

security and one of the core missions of 

DHS. For more than a decade, DHS has 

encountered challenges recruiting and 

retaining mission-critical cybersecurity 

talent. During that time, as cybersecurity 

threats facing the Nation have grown in 

volume and sophistication, DHS has 

experienced spikes in attrition and 

longstanding vacancies in some 

cybersecurity positions. To address the 

DHS’s ongoing challenges recruiting and 

retaining cybersecurity talent, DHS is 

establishing CTMS under the authority 

in 6 U.S.C. 658. 

The main benefit of this rulemaking is 

enhancing the Nation’s cybersecurity by 

enhancing DHS’s capacity to recruit and 

retain top cybersecurity talent to 

execute the DHS cybersecurity mission. 

The DHS–CS employees hired, 

compensated, and developed using 

CTMS are expected to impact execution 

of the DHS cybersecurity mission, 

including by applying their CTMS 

qualifications to successfully and 

proficiently perform DHS–CS 

cybersecurity work. Given the everevolving nature of cybersecurity threats 

and risks, future costs of CTMS and the 

DHS–CS cannot be projected with 

certainty, and similarly, the benefits of 

CTMS and the DHS–CS cannot be 

estimated with certainty. While difficult 

for DHS to quantify in advance, the 

cybersecurity work performed by DHS– 

CS employees is anticipated to result in 

efficiencies in DHS cybersecurity 

mission execution. In the course of 

DHS–CS employees performing their 

work, DHS also anticipates that they 

will make contributions to cybersecurity 

technologies, techniques, tactics, or 

procedures, which will benefit both 

DHS and the Nation more broadly. 

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act (5 

U.S.C. 601 et. seq.), as amended by the 

Small Business Regulatory Enforcement 

and Fairness Act of 1996, requires an 

agency to prepare and make available to 

the public a regulatory flexibility 

analysis that describes the effect of a 

proposed rule on small entities (i.e., 

small businesses, small organizations, 

and small governmental jurisdictions) 

when the agency is required to publish 

a general notice of proposed rulemaking 

for a rule. Since a general notice of 

proposed rulemaking is not necessary 

for this rule, DHS is not required to 

prepare a regulatory flexibility analysis 

for this rule. 

C. Congressional Review Act 

This rule is not covered by the 

Congressional Review Act (CRA), 

codified at 5 U.S.C. 801–808, because it 

is excluded from the definition of a 

‘‘rule’’ under that Act. Under the CRA, 

certain rules are subject to requirements 

concerning congressional review of 

those rules. A ‘‘rule’’ for purposes of the 

CRA, however, does not include ‘‘any 

rule relating to agency management or 

personnel.’’ 5 U.S.C. 804(3)(B). As 

discussed in II. Basis and Purpose, this 

rule implementing a new talent 

management system for a subset of 

DHS’s cybersecurity workforce is a 

matter relating to agency management or 

personnel. As such, this rule is 

excluded from the definition of ‘‘rule’’ 

under the CRA and is thus not subject 

to the CRA’s requirements. 

D. Unfunded Mandates Reform Act 

The Unfunded Mandates Reform Act 

of 1995, 2 U.S.C. 1531–1538, requires 

each Federal agency to prepare a written 

statement assessing the effects of any 

Federal mandate in a proposed or final 

agency rule that may result in a $100 

million or more expenditure (adjusted 

annually for inflation) in any one year 

by State, local, and Tribal governments, 

in the aggregate, or by the private sector. 

Because this rule does not impose any 

Federal mandates on State, local, or 

Tribal governments, in the aggregate, or 

the private sector, and because this rule 

is exempt from written statement 

requirements under 2 U.S.C. 1532(a), 

this rule does not contain such a written 

statement. 

E. E.O. 13132 (Federalism) 

A rule has implications for federalism 

under E.O. 13132 if it has a substantial 

direct effect on States, on the 

relationship between the national 

government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. Because this rule 

implements a new talent management 

system and only addresses DHS 

personnel matters, DHS determined in 

accordance with E.O. 13132 that this 

rule does not have federalism 

implications warranting the preparation 

of a federalism summary impact 

statement. 

F. E.O. 12988 (Civil Justice Reform) 

This rule meets applicable standards 

in sections 3(a) and 3(b)(2) of E.O. 12988 

to minimize litigation, eliminate 

ambiguity, and reduce burden. 

G. E.O. 13175 (Consultation and 

Coordination With Indian Tribal 

Governments) 

This rule does not have tribal 

implications under E.O. 13175, because 

it would not have a substantial direct 

effect on one or more Indian tribes, on 

the relationship between the Federal 

Government and Indian tribes, or on the 

distribution of power and 

responsibilities between the Federal 

Government and Indian tribes. 

H. National Environmental Policy Act 

DHS analyzed this rule under 

Department of Homeland Security 

Management Directive 023–01 Rev. 01 

and Instruction Manual 023–01–001–01 

Rev. 01 (Instruction Manual), which 

establishes the procedures DHS uses to 

comply with the National 

Environmental Policy Act of 1969 

(NEPA), 42 U.S.C. 4321 et seq., and the 

Council on Environmental Quality 

(CEQ) regulations implementing NEPA 


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codified at 40 CFR parts 1500–1508. The 

CEQ regulations allow Federal agencies 

to establish categories of actions 

(‘‘categorical exclusions’’) which 

experience has shown do not 

individually or cumulatively have a 

significant effect on the human 

environment and, therefore, do not 

require an Environmental Assessment or 

Environmental Impact Statement. 40 

CFR 1507.3(e)(2)(ii), 1501.4. Categorical 

exclusions established by DHS are set 

forth in Appendix A of the Instruction 

Manual. For an action to be 

categorically excluded, it must satisfy 

each of the following three conditions: 

(1) The entire action clearly fits within 

one or more of the categorical 

exclusions; (2) the action is not a piece 

of a larger action; and (3) no 

extraordinary circumstances exist that 

create the potential for a significant 

environmental effect. Instruction 

Manual section V.B(2)(a)–(c). 

Instruction Manual section V.B(2)(a)– 

(c). 

This rule implements a new talent 

management system with specialized 

practices for hiring, compensating, and 

developing cybersecurity talent to 

support the Department’s cybersecurity 

mission. Because this rule is limited to 

agency management and personnel 

matters, it clearly falls within the scope 

of DHS categorical exclusions A1 

(Personnel, fiscal, management, and 

administrative activities, such as 

recruiting, processing, paying, 

recordkeeping, resource management, 

budgeting, personnel actions, and 

travel) and A3(a) (Promulgation of rules 

of a strictly administrative or procedural 

nature), set forth in Appendix A of the 

Instruction Manual. This rule also is not 

part of a larger action and presents no 

extraordinary circumstances creating 

the potential for significant 

environmental effects. Therefore, this 

action is categorically excluded and no 

further NEPA analysis is required. 

I. National Technology Transfer and 

Advance Act 

The National Technology Transfer 

and Advancement Act, codified at 15 

U.S.C. 272 note, directs agencies to use 

voluntary consensus standards in their 

regulatory activities unless the agency 

provides Congress, through OMB, with 

an explanation of why using these 

standards would be inconsistent with 

applicable law or otherwise impractical. 

Voluntary consensus standards are 

technical standards (e.g., specifications 

of materials, performance, design, or 

operation; test methods; sampling 

procedures; and related management 

systems practices) that are developed or 

adopted by voluntary consensus 

standards bodies. This rule does not use 

technical standards. Therefore, DHS did 

not consider the use of voluntary 

consensus standards. 

J. E.O. 12630 (Governmental Actions 

and Interference With Constitutionally 

Protected Property Rights) 

This rule will not cause a taking of 

private property or otherwise have 

taking implications under E.O. 12630. 

K. E.O. 13045 (Protection of Children 

From Environmental Health Risks and 

Safety Risks) 

Executive Order 13045 requires 

agencies to consider the impacts of 

environmental health risk or safety risk 

that may disproportionately affect 

children. DHS has analyzed this rule 

under E.O. 13045 and determined it is 

not a covered regulatory action. This 

rule is not an economically significant 

rule and would not create an 

environmental risk to health or risk to 

safety that might disproportionately 

affect children. 

L. E.O. 13211 (Actions Concerning 

Regulations That Significantly Affect 

Energy Supply, Distribution, or Use) 

DHS has analyzed this rule under E.O. 

13211 and has determined that it is not 

a ‘‘significant energy action’’ under that 

order because although it is a 

‘‘significant regulatory action’’ under 

E.O. 12866, it is not likely to have a 

significant adverse effect on the supply, 

distribution, or use of energy, and the 

Administrator of OMB’s Office of 

Information and Regulatory Affairs has 

not designated it as a significant energy 

action. 

M. Paperwork Reduction Act 

This rule would call for no new 

collection of information under the 

Paperwork Reduction Act of 1995, 44 

U.S.C. 3501–3520. Any collection of 

information under this rule will be 

under existing collections of 

information concerning Federal hiring 

and Federal employment. 

List of Subjects in 6 CFR Part 158 

Administrative practice and 

procedure, Employment, Government 

employees, Reporting and 

recordkeeping requirements, and Wages. 

■ For the reasons discussed in the 

preamble, DHS adds 6 CFR part 158 as 

follows: 

PART 158—CYBERSECURITY TALENT 

MANAGEMENT SYSTEM (CTMS) 

Subpart A—General Provisions 

Sec. 

158.101 Purpose. 

158.102 Scope of authority. 

158.103 Coverage. 

158.104 Definitions. 

Subpart B—DHS Cybersecurity Service 

158.201 Cybersecurity mission. 

158.202 DHS Cybersecurity Service (DHS– 

CS). 

158.203 Positions in the DHS–CS. 

158.204 Employees in the DHS–CS. 

158.205 Assignments in the DHS–CS. 

Subpart C—Leadership 

158.301 Administering CTMS and 

Managing the DHS–CS. 

158.302 Cybersecurity Talent Management 

Board (CTMB). 

158.303 Talent management principles. 

158.304 Strategic talent priorities. 

158.305 DHS–CS core values. 

Subpart D—Strategic Talent Planning 

158.401 Strategic talent planning process. 

158.402 DHS–CS cybersecurity work and 

CTMS qualifications identification. 

158.403 Talent market analysis. 

158.404 Work valuation system. 

158.405 Exemption from General Schedule 

position classification. 

Subpart E—Acquiring Talent 

Talent Acquisition System 

158.501 Talent acquisition system. 

158.502 Exemption from other laws 

regarding appointment. 

Sourcing and Recruiting 

158.510 Strategic recruitment. 

158.511 Outreach and sourcing. 

158.512 Interview expenses. 

Assessment and Hiring 

158.520 Assessment. 

158.521 Employment eligibility 

requirements and employment-related 

criteria. 

158.522 Selection and appointment. 

158.523 Appointment types and 

circumstances. 

158.524 Initial service period. 

158.525 Hiring of former DHS–CS 

employees. 

Subpart F—Compensating Talent 

Compensation System 

158.601 Compensation strategy. 

158.602 Compensation system. 

158.603 Employee compensation. 

158.604 Aggregate compensation limit. 

158.605 Exemption from other laws 

regarding compensation. 

Salaries 

158.610 Salary system. 

158.611 Salary structure. 

158.612 Local cybersecurity talent market 

supplement. 

158.613 Salary range. 

158.614 Salary limitations. 

Salary Administration 

158.620 Setting salaries. 

158.621 Adjusting salaries. 

158.622 Administering salary in accordance 

with relevant provisions of other laws. 


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Recognition 

158.630 Employee recognition. 

158.631 Recognition adjustments. 

158.632 Recognition payments. 

158.633 Recognition time-off. 

158.634 Honorary recognition. 

Other Special Payments 

158.640 Professional development and 

training. 

158.641 Student loan repayments. 

158.642 Special working conditions 

payment program. 

158.643 Allowance in nonforeign areas. 

Other Compensation Provided in Accordance 

With Relevant Provisions of Other Laws 

158.650 Holidays. 

158.651 Leave. 

158.652 Compensatory time-off for religious 

observance. 

158.653 Other benefits. 

158.654 Other payments. 

158.655 Administering compensation in 

accordance with relevant provisions of 

other laws. 

Subpart G—Deploying Talent 

158.701 Deployment program. 

158.702 Designating qualified positions. 

158.703 Designating and staffing 

assignments. 

158.704 Official worksite. 

158.705 Work scheduling. 

158.706 Recordkeeping. 

158.707 Details and opportunities outside 

DHS. 

185.708 Directed assignments. 

158.709 Exemption from other laws 

regarding deployment. 

Subpart H—Developing Talent 

158.801 Definitions. 

158.802 Performance management program. 

158.803 Career development program. 

158.804 Appraisal reviews. 

158.805 Mission impact reviews. 

158.806 Development reviews. 

Subpart I—Employee Right, Requirements, 

and Input 

158.901 Federal employee rights and 

processes. 

158.902 Ethics requirements. 

158.903 Employee input program. 

Subpart J—Advisory Appointments 

158.1001 Advisory appointments and 

advisory appointees. 

158.1002 Appointment to advisory 

appointees. 

158.1003 Compensation for advisory 

appointees. 

Authority : 6 U.S.C. 658. 

Subpart H also issued under 5 U.S.C. 

Chapters 41 and 43; 5 CFR parts 410 and 430. 

Subpart A—General Provisions 

§ 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. 


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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. 

Subpart B—DHS Cybersecurity Service 

§ 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 DHS 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 


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§ 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). 

Subpart C—Leadership 

§ 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. 

Subpart D—Strategic Talent Planning 

§ 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; 


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(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 personfocused 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. 

Subpart E—Acquiring Talent 

Talent Acquisition System 

§ 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. 

Sourcing and Recruiting 

§ 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 


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section, in accordance with 5 U.S.C. 

5706b and the Federal Travel 

Regulations at 41 CFR chapters 301 

through 304. 

Assessment and Hiring 

§ 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 employmentrelated 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. 


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(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. 

Subpart F—Compensating Talent 

Compensation System 

§ 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 


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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 


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(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). 

Salaries 

§ 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 


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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. 

Salary Administration 

§ 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 


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§ 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. 

Recognition 

§ 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 


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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. 

Other Special Payments 

§ 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 


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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 timelimited 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. 

§ 158.642 Special working conditions 

payment program. 

(a) In alignment with the 

compensation strategy described in 

§ 158.601, the Department may establish 

a program to provide payments to DHS– 

CS employees to address special 

working conditions that are otherwise 

unaccounted for or the Department 

determines are accounted for 

insufficiently in DHS–CS employees’ 

other types of additional compensation 

and salary. 

(b) Special working conditions 

include circumstances in which a 

supervisor or other appropriate official 

requires a DHS–CS employee to perform 

DHS–CS cybersecurity work that 

involves, as determined by the 

Department: 

(1) Unusual physical or mental 

hardship; 

(2) Performing work at atypical 

locations, at unexpected times, or for an 

uncommon duration of time exceeding 

the expectation described in 

§ 158.601(c) about working unusual 

hours and extended hours; or 

(3) A combination of the conditions 

described in paragraphs (b)(1) and (2) of 

this section. 

(c) A payment for special working 

conditions is a payment of up to 25 

percent of the receiving DHS–CS 

employee’s salary as computed for a 

work period, defined in § 158.705(b), or 

a series of work periods. 

(d) The Department determines 

whether to establish, adjust, or cancel a 

program under this section based on 

information from: 

(1) The work scheduling system 

described in § 158.705; and 

(2) Strategic talent planning described 

in § 158.401(c), including information 

about current compensation practices of 

other cybersecurity employers analyzed 

under the talent market analysis 

described in § 158.403. 

(e) The Department determines 

eligibility for a payment for special 

working conditions under this section 

and CTMS policy implementing this 

section. 

(1) A DHS–CS employee who receives 

a payment for special working 

conditions under a program established 

under this section is not automatically 

eligible or entitled to receive any 

additional such payments. 

(2) A DHS–CS employee receiving a 

salary equal to or greater than EX–IV is 

ineligible to receive a payment under 

this section. 

(3) A DHS–CS advisory appointee is 

ineligible to receive a payment for 

special working conditions under this 

section. 

(f) CTMS policy implementing this 

section addresses: 

(1) Eligibility criteria; 

(2) Requirements for documenting the 

reason and basis for payments for 


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special working conditions provided to 

a DHS–CS employee; 

(3) Appropriate levels of review and 

approval for providing payments for 

special working conditions; 

(4) Any limitations on payments for 

special working conditions; 

(5) Requirements for determining 

whether a payment for special working 

conditions is a lump sum payment, paid 

in installments, or a recurring payment; 

and 

(6) Processes for evaluating the 

effectiveness of any special working 

conditions payment program 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. 

(g) Any payment under this section is 

subject to and may be limited by the 

aggregate compensation limit described 

in § 158.604. 

(h) Any payment under this section is 

not salary under this part and is not 

basic pay for any purpose under Title 5 

U.S.C. or 5 CFR. 

(i) A payment for special working 

conditions under this section is based 

on the following types of payments 

provided under 5 U.S.C.: 

(1) Night, standby and hazardous duty 

differential under 5 U.S.C. 5545; 

(2) Pay for Sunday and holiday work 

under 5 U.S.C. 5546; and 

(3) Extended assignment incentives 

under 5 U.S.C. 5757. 

(j) A payment for special working 

conditions under this section is in lieu 

of the types of payment provided under 

5 U.S.C. listed in paragraph (g) of this 

section, and a DHS–CS employee is 

ineligible to receive any such payments 

under 5 U.S.C. 

§ 158.643 Allowance in nonforeign areas. 

(a) A DHS–CS employee is eligible for 

and may receive an allowance under 5 

U.S.C. 5941 and implementing 

regulations in 5 CFR part 591, subpart 

B, on the same basis and to the same 

extent as if the employee is an employee 

covered by those authorities. 

(b) The Department provides an 

allowance described in paragraph (a) of 

this section to any DHS–CS employee 

who is eligible, as described in 

paragraph (a), for such allowance. 

(c) Any allowance provided under 

this section is excluded from the 

aggregate compensation limit described 

in § 158.604. 

(d) Any allowance 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. 

(e) Any allowance under this section 

for a DHS–CS advisory appointee is 

subject to additional requirements and 

restrictions in subpart J of this part. 

Other Compensation Provided in 

Accordance With Relevant Provisions 

of Other Laws 

§ 158.650 Holidays. 

In alignment with salary 

administration under § 158.622 and 

work scheduling under § 158.705, the 

Department provides holidays to a 

DHS–CS employee under this section 

and in accordance with 5 U.S.C. 6103– 

6104 and 5 CFR part 610, subpart B. 

§ 158.651 Leave. 

(a) Leave. In alignment with salary 

administration under § 158.622 and 

work scheduling under § 158.705, the 

Department provides leave to a DHS–CS 

employee under this section and in 

accordance with 5 U.S.C. Chapter 63 

and 5 CFR part 630, including: 

(1) Annual leave, as described in 5 

U.S.C. Chapter 63, Subchapter I; 

(2) Sick leave, as described in 5 U.S.C. 

Chapter 63, Subchapter I; 

(3) Other paid leave, as described in 

5 U.S.C. Chapter 63, Subchapter II; 

(4) Voluntary transfers of leave, as 

described in 5 U.S.C. Chapter 63, 

Subchapter III; 

(5) Voluntary leave bank programs, as 

described in 5 U.S.C. Chapter 63, 

Subchapter IV; 

(6) Family and medical leave, as 

described in 5 U.S.C. Chapter 63, 

Subchapter V; and 

(7) Leave transfer in disasters and 

emergencies, as described in 5 U.S.C. 

Chapter 63, Subchapter VI. 

(b) Annual leave accrual. A DHS–CS 

employee’s annual leave accrual amount 

is determined under 5 U.S.C. 6303. 

(c) Annual leave accumulation. A 

DHS–CS employee’s annual leave 

accumulation amount is determined 

under 5 U.S.C. 6304, except that the 

Department may apply 5 U.S.C. 

6304(f)(2)(A) to DHS–CS employees 

receiving a salary under this part that 

exceeds 120 percent of the minimum 

annual rate of basic pay for GS–15 

under the General Schedule. 

(d) Leave credits. The annual leave 

and sick leave accrued to the credit of 

a current Federal employee who is 

appointed to a qualified position under 

this part without a break in service of 

more than three calendar days is 

transferred to the employee’s credit in 

accordance with 5 U.S.C. 6308. 

(e) Annual leave balance upon 

leaving the DHS–CS. When a DHS–CS 

employee moves to a position outside of 

the DHS–CS, any leave balance for the 

employee is addressed in accordance 

with 5 CFR 630.209 and 630.501. 

(f) Leave administration. The 

Department administers leave under 

this section as described in this section 

and in § 158.655, and in accordance 

with the relevant provisions of other 

laws referenced in this section and 

CTMS policy. 

§ 158.652 Compensatory time-off for 

religious observance. 

In alignment with salary 

administration under § 158.622 of this 

part and work scheduling under 

§ 158.705, the Department provides 

compensatory time-off for religious 

observance to a DHS–CS employee 

under this section and in accordance 

with 5 U.S.C. 5550a and 5 CFR 550, 

subpart J. 

§ 158.653 Other benefits. 

(a) In alignment with salary 

administration under § 158.622, leave 

administration under § 158.651, and 

work scheduling under § 158.705, the 

Department provides benefits, including 

retirement, health benefits, and 

insurance programs, to a DHS–CS 

employee under this section and in 

accordance with 5 U.S.C. Chapters 81– 

90 and 5 CFR parts 831 and 838–894. 

(b) The Department administers the 

benefits of an annuitant appointed to a 

qualified position in accordance with 5 

U.S.C. 8344, 5 U.S.C. 8468, 5 CFR 

553.203, or 5 CFR part 837, as 

applicable. 

(c) The Department provides a 

transportation subsidy to a DHS–CS 

employee under this section and in 

accordance with 5 U.S.C. 7905. 

§ 158.654 Other payments. 

(a) The Department provides the 

following other types of payments to a 

DHS–CS employee under this section 

and in accordance with the relevant 

provisions of law referenced in this 

section: 

(1) Severance pay under this section, 

and the Department provides any 

severance pay in accordance with 5 

U.S.C. 5595 and 5 CFR part 550, subpart 

G, except that separation from the DHS– 

CS because of a lapse or nonrenewal of 

a DHS–CS employee’s appointment 

under this part or because of a DHS–CS 

employee’s refusal to accepted a 

directed subsequent assignment, 

described in § 158.708, is not an 

involuntary separation, and the former 

DHS–CS employee is not entitled to 

severance pay. 

(2) Lump-sum leave payouts under 

this section, and the Department 

provides any lump-sum leave payouts 

in accordance with 5 U.S.C. 5551 and 

5552 and 5 CFR part 550, subpart L. 

(3) Voluntary separation incentive 

payments under this section, and the 


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Department provides any such 

payments in accordance with 5 U.S.C. 

3521–3525 and 5 CFR part 576. 

(4) Reservist differential under this 

section, and the Department provides 

any such differential in accordance with 

5 U.S.C. 5538. 

(5) Quarters allowances under this 

section, and the Department provides 

any such allowances in accordance with 

5 U.S.C. Chapter 59, Subchapter II, the 

Department of State Standardized 

Regulations and any implementing 

supplements issued by the Department 

of State, and 5 CFR part 591, subpart C. 

(6) Overseas differentials and 

allowances under this section, and the 

Department provides any such 

differentials and allowances in 

accordance with 5 U.S.C. Chapter 59, 

Subchapter III, the Department of State 

Standardized Regulations and any 

implementing supplements issued by 

the Department of State, and 5 CFR part 

591, subpart C. 

(7) Remote worksite allowances, 

foreign currency allowances, and hostile 

fire pay under this section, and the 

Department provides any such 

allowances and pay in accordance with 

5 U.S.C. Chapter 59, Subchapter IV. 

(8) Other similar payments described 

in CTMS policy as being authorized 

under this part and provided in 

accordance with relevant provisions of 

other laws. 

(b) A payment for any quarter 

allowances, overseas differentials and 

allowances, and remote worksite 

allowances, foreign currency 

allowances, and hostile fire pay under 

paragraphs (a)(5) through (7) of this 

section is subject to and may be limited 

by the aggregate compensation limit 

described in § 158.604. A payment for 

any severance pay, lump-sum leave 

payout, voluntary separation inventive 

payment, and reservist differential 

under paragraphs (a)(1) through (4) of 

this section is not subject to the 

aggregate compensation limit described 

in § 158.604. A payment under 

paragraph (a)(8) of this section may be 

subject to and limited by the aggregate 

compensation limit described in 

§ 158.604, as described in CTMS policy. 

(c) Any payment under this section is 

not salary under this part and is not 

basic pay for any purpose under Title 5 

U.S.C. or 5 CFR. 

§ 158.655 Administering compensation in 

accordance with relevant provisions of 

other laws. 

(a) For purposes of administering 

compensation authorized under 

§§ 158.650 through 158.654 in 

accordance with relevant provisions of 

other laws: 

(1) The Department may convert a 

DHS–CS employee’s salary into an 

hourly rate, biweekly rate, or other rate, 

and administer compensation based on 

consideration of the DHS–CS 

employee’s work schedule under the 

work scheduling system described in 

§ 158.705; 

(2) A DHS–CS employee’s hours of 

work and related computations are 

determined under the relevant 

provisions of law referenced in 

§§ 158.650 through 158.654 and CTMS 

policy implementing this section; 

(3) A DHS–CS employee on a parttime schedule described in § 158.705 is 

treated as if the employee is serving 

‘‘part-time career employment’’ defined 

in 5 CFR 340.101; and 

(4) A DHS–CS employee on a 

contingent schedule described in 

§ 158.705 is treated as if the employee 

is serving ‘‘intermittent employment’’ 

defined in 5 CFR 340.401. 

(b) If, in administering compensation 

under §§ 158.650 through 158.654, the 

Department determines it is necessary to 

clarify the relationship between those 

sections and the relevant provisions of 

law referenced in those sections and any 

other relevant provisions of other laws, 

the Department will address the issue in 

new or revised CTMS policy. 

Subpart G—Deploying Talent 

§ 158.701 Deployment program. 

(a) Deployment program. The 

Secretary or designee establishes and 

administers a deployment program to: 

(1) Guide when the Department uses 

CTMS to recruit and retain individuals 

possessing CTMS qualifications; and 

(2) Operationalize aspects of the work 

valuation system, the talent acquisition 

system and the compensation system, 

described in §§ 158.404, 158.501, and 

158.602 respectively. 

(b) Under the deployment program, 

the Department: 

(1) Designates qualified positions as 

described in § 158.702; 

(2) Designates and staffs assignments 

as described in § 158.703; 

(3) Determines and documents a 

DHS–CS employee’s official worksite as 

described in § 158.704; 

(4) Administers a work scheduling 

system as described in § 158.705; and 

(5) Performs necessary recordkeeping 

as described in § 158.706. 

§ 158.702 Designating qualified positions. 

(a) When a DHS organization requires 

individuals possessing CTMS 

qualifications to ensure the most 

effective execution of the DHS 

cybersecurity mission and the 

recruitment and retention of such 

individuals would likely be enhanced 

by using CTMS, the Secretary or 

designee designates qualified positions. 

(b) CTMS policy implementing this 

section addresses: 

(1) Procedures for DHS organizations 

to request using CTMS; 

(2) Requirements for DHS 

organization using CTMS; and 

(3) Information necessary to designate 

qualified positions. 

(c) Designating qualified positions 

may result in: 

(1) Establishing one or more qualified 

positions under the talent acquisition 

system, described in § 158.501; or 

(2) Designating and staffing one or 

more assignments as described in 

§ 158.703; or 

(3) Both results described in 

paragraphs (c)(1) and (2) of this section. 

(d) Designating qualified positions 

involves budget and fiscal 

considerations related to establishing 

one or more qualified positions under 

the talent acquisition system, described 

in § 158.501. 

§ 158.703 Designating and staffing 

assignments. 

(a) Designating assignments. The 

Department designates assignments by 

defining combinations of CTMS 

qualifications and DHS–CS 

cybersecurity work associable with 

qualified positions. CTMS policy 

implementing this section addresses 

procedures for DHS organizations to 

designate assignments, including as a 

result of designating qualified positions 

as described in § 158.702. 

(b) Staffing assignments. The 

Department staffs assignments by: 

(1) Matching assignments with DHS– 

CS employees as described in paragraph 

(d) of this section; 

(2) Matching assignments with newly 

appointed individuals as described in 

paragraph (c) of this section; or 

(3) Seeking to recruit individuals and 

establish new qualified positions under 

the talent acquisition system described 

in § 158.501 and then matching 

assignments with newly appointed 

individuals as described in paragraph 

(c) of this section. 

(c) Initial assignment. Upon 

appointment of an individual to a 

qualified position, the Department 

matches the individual with an 

assignment based on the alignment of 

the individual’s CTMS qualifications, 

determined under the assessment 

program described in § 158.520, to the 

CTMS qualifications of an assignment. 

In matching an individual with an 

initial assignment, the Department may 

also consider: 

(1) Input from the individual; 


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(2) Input from DHS organizations; 

(3) Mission-related requirements; and 

(4) Strategic talent priorities. 

(d) Subsequent assignments. The 

Department matches DHS–CS 

employees with assignments subsequent 

to employees’ initial assignments, as 

necessary. 

(1) The Department matches a DHS– 

CS employee with a subsequent 

assignment based on the alignment of 

the employee’s CTMS qualifications 

with the CTMS qualifications of an 

assignment. In matching a DHS–CS 

employee with a subsequent 

assignment, the Department may also 

consider: 

(i) Input from the employee; 

(ii) Input from DHS organizations, 

especially the primary DHS organization 

of the employee’s current assignment; 

(iii) Information about the employee 

from the performance management 

program described in § 158.802 and the 

career development program described 

in § 158.803; 

(iv) Mission-related requirements; and 

(v) Strategic talent priorities. 

(2) A DHS–CS employee may have 

multiple assignments throughout the 

employee’s service in a qualified 

position, but may only have one 

assignment at a time. A DHS–CS 

employee’s subsequent assignments 

may have assignment information, 

described in § 158.706(e), that is 

different than the assignment 

information of the employee’s initial 

assignment, including primary DHS 

organization. 

(3) In alignment with the career 

development program described in 

§ 158.803 and based on information 

from development reviews described in 

§ 158.806 the Department communicates 

with DHS–CS employees on an ongoing 

basis about subsequent assignment 

opportunities; 

§ 158.704 Official worksite. 

(a) Definition. A DHS–CS employee’s 

official worksite is the geographic 

location where the employee regularly 

performs DHS–CS cybersecurity work or 

where the employee’s DHS–CS 

cybersecurity work is based, as 

determined and documented by the 

Department under this section. 

(b) Determination. The Department 

determines a DHS–CS employee’s 

official work site for purposes of 

administering compensation under this 

part, especially eligibility for any 

compensation described in §§ 158.612 

and 158.643. The Department’s 

determination of a DHS–CS employee’s 

official worksite includes consideration 

of any of the following for the employee: 

Telework, variation in location where 

the employee performs DHS–CS 

cybersecurity work, and temporary 

situations affecting the location where 

the employee performs DHS–CS 

cybersecurity work. 

(c) Documentation. Upon 

appointment of an individual to a 

qualified position, the Department 

documents the individual’s official 

worksite as part of documenting the 

employee’s appointment to a qualified 

position and the employee’s assignment, 

as described in § 158.706. The 

Department updates documentation of a 

DHS–CS employee’s official worksite, if 

the geographic location where the DHS– 

CS employee regularly performs DHS– 

CS cybersecurity work changes and 

such change impacts the determination 

of the DHS–CS employee’s official 

worksite under paragraph (a) of this 

section and such change is expected to 

last, or does last, for six months or more. 

§ 158.705 Work scheduling. 

(a) Work scheduling system. The 

Secretary or designee establishes and 

administers a work scheduling system 

for DHS–CS employees to ensure: 

(1) Agility for the Department in 

scheduling DHS–CS cybersecurity work 

to execute the DHS cybersecurity 

mission; 

(2) Availability of DHS–CS employees 

to perform the DHS–CS cybersecurity 

work of their assignments; 

(3) Clear expectations for DHS–CS 

employees about when they are 

expected to perform DHS–CS 

cybersecurity work associated with their 

assignments; 

(4) Flexibility for DHS–CS employees 

in scheduling and performing DHS–CS 

cybersecurity work associated with their 

assignments; and 

(5) Recording of, accounting for, and 

monitoring of hours worked by DHS–CS 

employees. 

(b) Definitions. For purposes of this 

section— 

(1) Work period means a two-week 

period of 14 consecutive days that 

begins on a Sunday and ends on a 

Saturday, and is the equivalent of a 

biweekly pay period defined in 5 U.S.C. 

5504 and 5 CFR part 550, subpart F. 

(2) Minimum hours of work means the 

minimum number of hours that a DHS– 

CS employee is required to work, or 

account for with time-off, during a work 

period, and is the equivalent to the term 

basic work requirement defined in 5 

U.S.C. 6121. 

(3) Time-off means leave under 

§ 158.651, time-off under § 158.652, and 

recognition time-off under § 158.633, or 

other time-off of duty available for 

DHS–CS employees. 

(4) Full-time schedule means 80 hours 

per work period. 

(5) Part-time schedule means a 

specified number of hours less than 80 

hours per work period. When DHS–CS 

cybersecurity work associated with a 

DHS–CS employee’s assignment 

regularly requires the DHS–CS 

employee to exceed that employee’s 

specified number of hours per work 

period, the Department considers, with 

input from the employee and the 

employee’s supervisor, whether to 

change the employee’s work schedule 

from part-time to full-time to ensure 

appropriate compensation under this 

part, including accrual of leave under 

§ 158.651 and the DHS–CS employee’s 

share of health benefits premiums 

provided under § 158.653. 

(6) Contingent schedule means an 

irregular number of hours up to 80 

hours per work period. A contingent 

schedule is appropriate only when the 

DHS–CS cybersecurity work associated 

with a DHS–CS employee’s assignment 

is sporadic and cannot be regularly 

scheduled in advance. When DHS–CS 

cybersecurity work associated with a 

DHS–CS employee’s assignment is able 

to be scheduled in advance on a regular 

basis, the Department changes the 

employee’s work schedule from 

contingent to part-time or full-time, as 

appropriate, to ensure appropriate 

compensation under this part, including 

accrual of leave under § 158.651 and the 

DHS–CS employee’s share of health 

benefits premiums provided under 

§ 158.653. 

(c) Employee work schedules. (1) A 

DHS–CS employee’s work schedule, and 

any minimum hours of work associated 

with the employee’s schedule, is 

determined at the time of appointment 

and recorded as part of documenting the 

employee’s appointment to a qualified 

position under § 158.706. A DHS–CS 

employee on a contingent schedule does 

not have a minimum number of hours 

of work but has a maximum number of 

total hours for the employee’s 

appointment that is determined at the 

time of appointment and recorded as 

part of documenting the employee’s 

appointment to a qualified position 

under § 158.706. 

(2) A DHS–CS employee’s work 

schedule, and any minimum hours of 

work, may change during the 

employee’s service in a qualified 

position and the Department records 

any such changes in the documentation 

associated with the employee’s qualified 

position under § 158.706. 

(d) Work schedule requirements. (1) 

DHS–CS employees are expected to 

perform DHS–CS cybersecurity work 

associated with their assignments to 


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execute the DHS cybersecurity mission, 

especially in response to exigent 

circumstances and emergencies, 

including cybersecurity incidents 

defined in 6 U.S.C. 659, without 

entitlement to more compensation than 

the employee’s salary described in 

§ 158.603. Hours worked by a DHS–CS 

employee that exceed the employee’s 

minimum hours of work do not affect 

the employee’s salary or result in any 

automatic compensation, including a 

type of additional compensation. 

(2) A DHS–CS employee on a fulltime schedule is expected to work at 

least 80 hours per work period. 

(3) A DHS–CS employee on a parttime schedule is expected to work at 

least the employee’s specified number 

of hours of work per work period. 

(4) A DHS–CS employee on a 

contingent schedule is expected to work 

as necessary to perform the DHS–CS 

cybersecurity work associated with the 

employee’s assignment, not to exceed 

the maximum number of total hours for 

the employee’s appointment. 

(5) DHS–CS employees must report 

hours worked by the employee. The 

Department monitors such hours for 

purposes of managing the DHS–CS, 

including considering any changes to 

DHS–CS employees’ schedules, and 

administering compensation, including 

assisting in consideration of any 

additional compensation for DHS–CS 

employees under § 158.642. 

(6) A DHS–CS employee on a fulltime schedule or a part-time schedule 

must account for minimum hours of 

work by the conclusion of the last day 

of the work period. If the hours worked 

by the employee are less than the 

employee’s minimum hours of work, the 

employee must use time-off approved 

by the employee’s supervisor, or must 

be placed in an appropriate non-pay 

status for the purposes described in 

paragraphs (a)(1) and (2) of this section, 

to account for the difference between 

hours actually worked by the employee 

and the employee’s minimum hours of 

work. 

(7) A DHS–CS employee on a fulltime schedule or a part-time schedule, 

in coordination with the employee’s 

supervisor, may adjust when work 

hours are completed in a given work 

period, to ensure time-off for religious 

observance, while also completing 

minimum hours of work. A DHS–CS 

employee on a contingent schedule, in 

coordination with the employee’s 

supervisor, may adjust when work 

hours are completed to ensure time-off 

for religious observance. 

(e) Hours worked and compensation. 

The Department uses the work 

scheduling system described in this 

section in administering compensation 

under this part, especially salary 

administration described in § 158.622 

and the compensation described in 

§§ 158.642, 158.650, 158.651, and 

158.652. In alignment with the 

compensation strategy, described in 

§ 158.601, the work scheduling system: 

(1) Acknowledges the unpredictable 

nature of cybersecurity work and the 

expectation described in § 158.601(c) 

about working unusual hours and 

extended hours as needed; and 

(2) Reflects an understanding of the 

cybersecurity talent market, especially 

current work expectations and 

arrangements. 

(f) Policy. CTMS policy implementing 

this section addresses: 

(1) Procedures for determining, 

recording, and updating as necessary, 

DHS–CS employees’ work schedules; 

(2) Procedures for selecting and 

communicating anticipated work hours 

in advance and communicating 

variances from those work hours; 

(3) Requirements regarding reporting 

and monitoring hours worked; 

(4) Procedures for accounting for 

minimum hours of work; and 

(5) Other work scheduling 

requirements for DHS–CS employees, 

including DHS–CS employees 

supporting specific DHS organizations. 

Such requirements may include 

designated days, hours, core hours, or 

limits on the number of work hours per 

day; 

§ 158.706 Recordkeeping. 

(a) Generally. The Department 

documents an individual’s appointment 

to a qualified position and creates 

records of a DHS–CS employee’s 

employment in the DHS–CS in 

compliance with 5 U.S.C. 2951 and 5 

CFR subchapter A, part 9, and 

subchapter B, parts 293 and 297. 

(b) Documenting a qualified position. 

The Department documents a qualified 

position established under this part by 

documenting an individual’s 

appointment to a qualified position. 

Such documentation includes a 

description of the individual’s: 

(1) CTMS qualifications and the DHS– 

CS cybersecurity work that can be 

performed through application of those 

qualifications; 

(2) Applicable work and career 

structures established under the work 

valuation system described in § 158.404; 

(3) Salary under the compensation 

system described in § 158.602; 

(3) Assignment information described 

in paragraph (e) of this section; 

(4) Official worksite described in 

§ 158.704; and 

(5) Work schedule described in 

§ 158.705. 

(c) Updating qualified position 

documentation. The Department 

updates the documentation associated 

with a DHS–CS employee’s qualified 

position, described in paragraph (a) of 

this section, to reflect changes affecting 

the employee’s qualified position, 

including any changes to the 

description of information listed in 

paragraph (a), such as enhancements to 

the employee’s CTMS qualifications. 

Except as necessary for purposes of 

recordkeeping under this section, any 

update to the documentation associated 

with a DHS–CS employee’s qualified 

position is not a promotion, transfer, or 

reassignment for any other purpose 

under 5 U.S.C. or 5 CFR. 

(d) Documenting an assignment. The 

Department documents a DHS–CS 

employee’s initial assignment as part of 

documenting the employee’s qualified 

position under this section. The 

Department updates the documentation 

associated with a DHS–CS employee’s 

qualified position for each of the 

employee’s subsequent assignments 

described in § 158.703. 

(e) Assignment information. 

Documentation of each assignment 

under this section includes the 

following operational information: 

(1) Statement of cybersecurity work 

activities; 

(2) Timeframe, such as anticipated 

duration; 

(3) Primary DHS organization; 

(4) Personnel security requirements; 

(5) Location, such as official worksite 

determined under § 158.704; 

(6) Information related to work 

scheduling under § 158.705; and 

(7) Information related to the 

performance management program, 

including information relevant to 

appraisal reviews, mission impact 

reviews, and development reviews, 

described in subpart H of this part. 

(f) Integrating with existing processes. 

For purposes of recordkeeping for DHS– 

CS employees, including documenting 

positions and assignments under this 

section, the Department uses existing 

Federal personnel recordkeeping 

processes, standards, requirements, and 

systems of record. CTMS policy 

implementing this section addresses 

integration of the approach to talent 

management under this part, including 

definitions used in this part, with 

existing Federal personnel 

recordkeeping processes, standards, 

requirements, and systems of record, as 

necessary. 


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§ 158.707 Details and opportunities 

outside DHS. 

(a) DHS–CS employees serving in 

renewable appointments or continuing 

appointments may be detailed to: 

(1) A position in the excepted service 

in another agency under 31 U.S.C. 1535; 

(2) A position in the SES in another 

agency under 5 CFR 317.903; 

(3) A position in the competitive 

service in another agency under 31 

U.S.C. 1535 and 5 CFR 300.301, if 

approved by the Director of the Office 

of Personnel Management; 

(4) Certain offices of the White House 

under 3 U.S.C.112; 

(5) The Congress under 2 U.S.C. 

4301(f); 

(6) An international organization 

under 5 U.S.C. 3343; or 

(7) Another detail opportunity under 

other provisions of applicable law. 

(b) Individuals from outside the DHS– 

CS may not be detailed to a qualified 

position. 

(c) DHS–CS employees serving in 

continuing appointments may be 

assigned to eligible non-Federal 

organizations under the 

Intergovernmental Personnel Act in 

accordance with 5 U.S.C. 3371–3375 

and 5 CFR part 334. 

§ 158.708 Directed assignments. 

(a) Occasionally, the Department may 

direct a subsequent assignment of a 

DHS–CS employee, and such a directed 

subsequent assignment may require a 

change in the employee’s official 

worksite, determined under § 158.704. 

For such directed subsequent 

assignments of a DHS–CS employee, the 

Department pays or reimburses 

expenses or allowances under and in 

accordance with the Federal Travel 

Regulations at 41 CFR chapters 301 and 

302, and for such directed assignments 

that are not temporary, DHS provides 

notice to and consultation with the 

employee as described in this 

paragraph. 

(b) Directed subsequent assignments 

expected to last less than six months are 

considered temporary, and for purposes 

under the Federal Travel Regulations at 

41 CFR chapters 301 and 302, are 

temporary duty. 

(c) For such directed subsequent 

assignments expected to last six months 

or more and with an official worksite in 

a DHS–CS employee’s current 

commuting area, defined in 5 CFR 

550.703, the Department provides the 

employee written notice at least 30 

calendar days before the effective date 

of the subsequent assignment. This 

notice requirement may be waived only 

when the employee consents in writing. 

(d) For such directed subsequent 

assignments expected to last six months 

or more and with an official worksite 

outside of a DHS–CS employee’s current 

commuting area, defined in 5 CFR 

550.703, DHS consults with the 

employee on the reasons for, and the 

employee’s preferences regarding, the 

proposed change in assignment. 

Following such consultation, the 

Department provides the employee 

written notice at least 90 calendar days 

before the effective date of the 

assignment. This notice requirement 

may be waived only when the employee 

consents in writing. 

§ 158.709 Exemption from other laws 

regarding deployment. 

The provisions of laws, among other 

similar laws, listed in §§ 158.405, 

158.502, and 158.605 do not apply 

under CTMS, to the DHS–CS, or to 

talent management involving the 

individuals described in § 158.103. 

Subpart H—Developing Talent 

Authority: 5 U.S.C. Chapters 41 and 43; 

5 CFR parts 410 and 430. 

§ 158.801 Definitions. 

As used in this subpart: 

Appraisal has the same meaning as 

that term in 5 CFR 430.203. 

Appraisal period has the same 

meaning as that term in 5 CFR 430.203. 

Appraisal program has the same 

meaning as that term in 5 CFR 430.203. 

Appraisal system and performance 

appraisal system have the same 

meanings as those terms in 5 CFR 

430.203. 

Mission impact has the same meaning 

as defined in § 158.104. 

Performance has the same meaning as 

that term in 5 CFR 430.203. 

Performance rating has the same 

meaning as that term in 5 CFR 430.203. 

Progress review has the same meaning 

as that term in 5 CFR 430.203. 

Rating of record has the same 

meaning as that term in 5 CFR 430.203. 

§ 158.802 Performance management 

program. 

(a) In alignment with the DHS–CS’s 

core values described in § 158.305 and 

the compensation strategy described in 

§ 158.601, the Secretary or designee 

establishes and administers a systematic 

performance management program to: 

(1) Establish and maintain individual 

accountability among DHS–CS 

employees; 

(2) Manage, recognize, and develop 

the performance of each DHS–CS 

employee; and 

(3) Improve effectiveness of DHS–CS 

employees in executing the DHS 

cybersecurity mission. 

(b) The performance management 

program comprises the following 

ongoing reviews: 

(1) Appraisal reviews described in 

§ 158.804; 

(2) Mission impact reviews described 

in § 158.805; and 

(3) Development reviews described in 

§ 158.806. 

(c) To complete appraisal reviews, 

mission impact reviews, and 

development reviews for a DHS–CS 

employee, the Department may collect, 

on a periodic or ongoing basis, 

information and input from: 

(1) The DHS–CS employee; 

(2) Other DHS–CS employees; 

(3) The employee’s supervisor; and 

(4) Other appropriate officials. 

§ 158.803 Career development program. 

(a) Career development program. In 

alignment with the DHS–CS’s core 

values described in § 158.305 and the 

compensation strategy described in 

§ 158.601, the Secretary or designee 

establishes and administers a career 

development program to: 

(1) Guide the career progression of 

each DHS–CS employee; 

(2) Ensure development of the 

collective expertise of DHS–CS 

employees through continual learning; 

and 

(3) Ensure continued alignment 

between the qualifications of DHS–CS 

employees and CTMS qualifications. 

(b) Career progression. Career 

progression in the DHS–CS is based on 

enhancement of CTMS qualifications 

and salary progression resulting from 

recognition adjustments under 

§ 158.631. Career progression in the 

DHS–CS is not based on length of 

service in the DHS–CS or the Federal 

Government. The Department guides the 

career progression of DHS–CS 

employees using development strategies 

based on: 

(1) Information from development 

reviews, described in § 158.806; 

(2) Mission-related requirements; and 

(3) Strategic talent priorities. 

(c) Commitment to continual learning. 

The Department establishes, maintains, 

and communicates criteria for continual 

learning. Such criteria include 

recommended and required learning 

activities, including completion of 

specific courses of study, completion of 

mission-related training defined in 5 

CFR 410.101, performance of certain 

DHS–CS cybersecurity work as part of 

assignments, and participation in 

opportunities for professional 

development and training described in 

§ 158.640. The Department aims to 

utilize all available opportunities for 

DHS–CS employee development, 


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including opportunities under this part 

and under or based on authorities in 5 

U.S.C. and 5 CFR relating to continual 

learning, professional development, and 

training, as appropriate. 

(d) Verification of qualifications 

enhancements. The Department verifies 

DHS–CS employees’ enhancement of 

CTMS qualifications, which may 

include review by the CTMB or 

assessment using standardized 

instruments and procedures designed to 

measure the extent to which a DHS–CS 

employee has enhanced the employee’s 

qualifications. Verification of 

enhancement to CTMS qualifications 

may require updating the 

documentation associated with the 

employee’s qualified position, as 

described in § 158.706. 

§ 158.804 Appraisal reviews. 

(a) Under 5 U.S.C. Chapter 43 and 5 

CFR part 430, the Department 

establishes an appraisal program to 

review and evaluate the performance of 

DHS–CS employees to ensure DHS–CS 

employees’ individual accountability. 

(b) The appraisal program for DHS–CS 

employees includes one or more 

progress reviews, as defined in 5 CFR 

430.203, and an appraisal of an 

employee’s performance that results in 

a rating of record, as defined in 5 CFR 

430.203. 

(c) The Department addresses 

unacceptable performance, as defined in 

5 U.S.C. 4301(3), under the provisions 

of 5 CFR part 432 or part 752. The 

CTMB may assist with any decision, or 

action, or both, made under the 

authority in this section and 5 CFR part 

430 and 5 CFR part 432 or 752. 

(d) If the Department determines a 

DHS–CS employee’s performance is 

unacceptable or the employee receives 

an unacceptable rating of record, the 

employee is ineligible to receive 

recognition under §§ 158.630 through 

158.634 and the employee may be 

excluded from mission impact reviews 

under § 158.805. 

§ 158.805 Mission impact reviews. 

(a) The Department reviews a DHS– 

CS employee’s mission impact 

throughout the employee’s service in 

the DHS–CS and generates a mission 

impact summary at least annually. The 

Department may conduct mission 

impact reviews concurrently with 

development reviews. 

(b) In reviewing a DHS–CS 

employee’s mission impact, 

individually or as part of a group of 

DHS–CS employees, or both, the 

Department considers factors such as: 

(1) Superior application of CTMS 

qualifications to perform DHS–CS 

cybersecurity work; 

(2) Significant enhancements to 

CTMS qualifications; 

(3) Special contributions to 

cybersecurity technologies, techniques, 

tactics, or procedures; and 

(4) Notable improvements to 

execution of the DHS cybersecurity 

mission. 

(c) The Department uses mission 

impact summary information to make 

distinctions among DHS–CS employees, 

such as comparing, categorizing, and 

ranking DHS–CS employees on the basis 

of mission impact to support decisions 

related to recognition for DHS–CS 

employees under §§ 158.630 through 

158.634. 

§ 158.806 Development reviews. 

(a) The Department reviews a DHS– 

CS employee’s career progression, as 

described in § 158.803(b) throughout the 

employee’s service in the DHS–CS. The 

Department generates a development 

summary, at least annually, which may 

include plans for a DHS–CS employee’s 

continual learning in alignment with the 

criteria for continual learning under the 

career development program described 

in § 158.803. 

(b) As part of development reviews, 

the Department may compare, 

categorize, and rank DHS–CS employees 

to support decisions related to 

professional development and training 

under § 158.640. The Department may 

also use information from development 

reviews in matching subsequent 

assignments under § 158.703. The 

Department may conduct development 

reviews concurrently with mission 

impact reviews. 

Subpart I—Employee Rights, 

Requirements, and Input 

§ 158.901 Federal employee rights and 

processes. 

(a) Adverse actions: Nothing in this 

part affects the rights of CS employees 

under 5 U.S.C. Chapter 75, 5 U.S.C. 

4303, and 5 CFR parts 432 and 752. 

(b) Reductions in force. The 

provisions of 5 U.S.C. Chapter 35, 

Subchapter I and 5 CFR part 351 

regarding reductions in force apply to 

talent management actions taken under 

this part. 

(c) Redress with third parties. Nothing 

in this part affects the rights, as 

provided by law, of a DHS–CS employee 

to seek review before a third party of a 

talent management action taken under 

this part involving that employee, 

including seeking review before the: 

(1) Equal Employment Opportunity 

Commission, regarding discrimination 

under Federal anti-discrimination laws; 

(2) Merit Systems Protection Board, 

regarding matters such as adverse 

actions under 5 U.S.C. Chapter 75 or 

Chapter 43 and individual rights of 

action under 5 U.S.C. Chapter 12; 

(3) Office of Special Counsel, 

regarding matters such as whistleblower 

retaliation and other prohibited 

personnel practices under 5 U.S.C. 2302 

and the Hatch Act (5 U.S.C. 7321 et 

seq.); and 

(4) Department of Labor, regarding 

matters covered by the Uniformed 

Services Employment and 

Reemployment Rights Act (38 U.S.C. 

4301 et seq.). 

(d) Back pay. Back pay remains 

available under 5 U.S.C. 5596 and 5 CFR 

part 550, subpart H, for unjustified or 

unwarranted talent management 

actions. 

§ 158.902 Ethics requirements. 

(a) DHS–CS employees, including 

such employees providing 

uncompensated service and DHS–CS 

advisory appointees, are employees 

covered by the Ethics in Government 

Act section 101(f)(3), and are subject to 

the criminal conflict of interest rules as 

well as government ethics requirements 

applicable to Federal employees, 

including: 

(1) Criminal conflict of interest 

provisions in 18 U.S.C. 201–209; 

(2) Ethics in Government Act, as 

amended, and implementing regulations 

in 5 CFR, Chapter XVI, Subchapter B, 

including financial disclosure reporting 

in 5 CFR part 2634 and the Standards 

of Ethical Conduct for Employees of the 

Executive Branch in 5 CFR part 2635; 

(3) Supplemental Standards of Ethical 

Conduct for Employees of the 

Department of Homeland Security in 5 

CFR part 4601; and 

(4) Department policy. 

(b) Under the ethics requirements 

described in paragraph (a) of this 

section, DHS–CS employees must seek 

approval for certain outside activities, 

comply with ethics program 

requirements, and other applicable 

laws, including post-government 

employment restrictions. 

§ 158.903 Employee input program. 

(a) Program. The Department 

establishes and administers a program 

for DHS–CS employees to express 

employment-related concerns and 

recommendations for enhancing CTMS 

administration and DHS–CS 

management. Under such a program, a 

DHS–CS employee may request review 

of certain talent management actions 


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related to the employee’s employment 

in the DHS–CS or related to the 

processes, systems, and programs 

established under this part, or both. The 

Cybersecurity Talent Management 

Board may use information from this 

program for the periodic evaluation of 

CTMS described in § 158.302. 

(b) Policy. CTMS policy implementing 

this section addresses: 

(1) Talent management actions 

covered by the employee input program; 

(2) The process for DHS–CS 

employees to express input; and 

(3) The interaction of the employee 

input program with relevant processes 

for redress with third parties of 

employment-related actions, including 

those described in § 158.901. 

Subpart J—Advisory Appointments 

§ 158.1001 Advisory appointments and 

advisory appointees. 

(a) An advisory appointment is an 

appointment to a qualified position that: 

(1) The Secretary determines is of a 

policy-determining, policy-making, or 

policy-advocating character or involves 

a close and confidential working 

relationship with the Secretary or other 

key appointed officials; 

(2) Does not have a salary set by 

statute; and 

(3) Is not required to be filled by an 

appointment by the President. 

(b) An advisory appointment to a 

qualified position is treated as a 

Schedule C position under 5 CFR 

213.3301 except regarding appointment 

and compensation. Talent management 

for a DHS–CS advisory appointee is in 

accordance with the provisions of 5 CFR 

applicable to Schedule C appointees, 

except that appointment and 

compensation for a DHS–CS advisory 

appointee is governed by this part. 

(c) Employment restrictions such as 

those concerning the criminal conflict of 

interest statutes, standards of ethical 

conduct, partisan political activity, and 

contained in laws such as Executive 

Orders, government-wide ethics 

regulations and the Hatch Act (5 U.S.C. 

7321 et seq.), apply to a DHS–CS 

advisory appointee as if the employee 

were a Schedule C appointee. 

(d) The Department tracks and 

coordinates advisory appointments with 

the Executive Office of the President 

and the Office of Personnel Management 

(OPM), as appropriate. 

§ 158.1002 Appointment of advisory 

appointees. 

(a) Appointment of an individual, 

including a former DHS–CS employee, 

to an advisory appointment is governed 

by this subpart J and subpart E of this 

part. 

(b) An individual for appointment to 

an advisory appointment must 

participate in the assessment program 

described in § 158.520. The Secretary or 

designee must approve the appointment 

of an individual to an advisory 

appointment by name, and an 

individual appointed to an advisory 

appointment serves at the will of the 

Secretary. 

(c) A DHS–CS advisory appointee 

may be removed at any time. In 

accordance with 5 U.S.C. 7511(b), the 

provisions of 5 U.S.C. Chapter 75, 

subchapter II do not apply to talent 

management actions taken under this 

part for a DHS advisory appointee. 

(d) An advisory appointment 

terminates no later than the end of the 

term of the U.S. President under which 

the advisory appointee was appointed. 

(e) The Secretary or designee 

establishes a limit on the number of 

advisory appointments under this 

subpart J, and the total number of 

advisory appointments under this 

subpart may not exceed that limit at any 

time. 

(f) The Department may not change an 

advisory appointment to a renewable 

appointment or continuing 

appointment. 

(g) The Department may not use an 

advisory appointment solely or 

primarily for the purpose of detailing 

any individual to the White House. 

§ 158.1003 Compensation for advisory 

appointees. 

(a) General. Compensation for a DHS– 

CS advisory appointee is governed by 

this subpart J and subpart F of this part. 

A DHS–CS advisory appointee may 

provide uncompensated service and any 

such service is gratuitous service. 

(b) Compensation. As compensation 

for service in the DHS–CS, a DHS–CS 

advisory appointee receives a salary as 

described in paragraph (c) this section, 

unless the appointee is providing 

uncompensated service. A DHS–CS 

advisory appointee, except such an 

employee providing uncompensated 

service, may also receive additional 

compensation as described in paragraph 

(d) of this paragraph. 

(c) Salary. A DHS–CS advisory 

appointee receives a salary under the 

salary system described in § 158.610. 

(1) Setting salary. The Department 

determines the salary for an individual 

accepting an advisory appointment to a 

qualified position under § 158.620. 

(2) Adjusting salary. The Department 

determines any adjustments to salary of 

a DHS–CS advisory appointee under 

§ 158.621. 

(3) Extended range. A DHS–CS 

advisory appointee is ineligible for a 

salary in the extended range. 

(4) Local cybersecurity talent market 

supplement. The Department may 

provide a DHS–CS advisory appointee a 

local cybersecurity talent market 

supplement under § 158.612. 

(d) Additional compensation. In 

alignment with the compensation 

strategy in § 158.601, the Department 

may provide the following types of 

additional compensation to a DHS–CS 

advisory appointee for the purposes of 

each such type as described under this 

part and subject to the requirements of 

this section. An individual appointed to 

an advisory appointment is ineligible to 

receive any type of additional 

compensation under this part as part of 

an offer of employment in the DHS–CS. 

(1) Types. Additional compensation 

under CTMS for a DHS–CS advisory 

appointee is: 

(i) Recognition adjustments under 

§ 158.631, except the Secretary or 

designee must approve any such 

recognition for a DHS–CS advisory 

appointee; 

(ii) Recognition payments under 

§ 158.632, except the Secretary or 

designee must approve any such 

recognition for a DHS–CS advisory 

appointee; 

(iii) Recognition time-off under 

§ 158.633, except the Secretary or 

designee must approve any such 

recognition for a DHS–CS advisory 

appointee; 

(iv) Honorary recognition under 

§ 158.634; 

(v) Professional development and 

training under § 158.640, so long as a 

professional development and training 

program described in § 158.640 

explicitly covers DHS–CS advisory 

appointee and prohibits such employees 

from receiving any payment or 

reimbursement for costs of academic 

degree training or expenses to obtain 

professional credentials, including 

examinations to obtain such credentials; 

(vi) Allowances in nonforeign areas 

under § 158.643; and 

(vii) Other types of compensation, 

including leave and benefits, authorized 

under §§ 158.650 through 158.655 and 

provided in accordance with relevant 

provisions of other laws. 

(2) Combining types. 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 

subpart F of this part and the 

requirements and restrictions of this 

section. 


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(3) Restrictions. Additional 

compensation described in paragraph 

(d)(1) of this section is subject to, and 

may be limited by: 

(i) The aggregate compensation limit 

described in § 158.604; 

(ii) Prohibitions in 5 U.S.C. 4508, 

guidance from the Office of 

Management and Budget and Office of 

Personnel Management, and any other 

provisions of law governing 

compensation for political appointees; 

and 

(iii) Other requirements and 

restrictions in CTMS policy. 

(e) Compensation administration. For 

purposes of administering 

compensation under this part for a 

DHS–CS advisory appointee, the 

Department administers salary and 

other compensation, including leave, 

based on consideration of the 

employee’s work schedule under the 

work scheduling system described in 

§ 158.705, and may convert the 

appointee’s salary into an hourly rate, 

biweekly rate, or other rate. 

Alejandro N. Mayorkas, 

Secretary, U.S. Department of Homeland 

Security. 

[FR Doc. 2021–17824 Filed 8–25–21; 8:45 am] 

BILLING CODE 9112–FC–P 


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