NSPS replaced the General Schedule (GS) grade and step system for the DoD with a pay band system intended to provide more flexibility in establishing pay levels. NSPS had differing policies concerning tenure, hiring, reassignment, promotion, collective bargaining, pay, performance measurement and recognition, etc.rom Wikipedia, the free encyclopedia. The National Security Personnel System (NSPS) was a pay for performance pay system created in 2004-5 under authorization by Congress for the United States Department of Defense (DoD) and implemented in mid-2006.