PM_05_6.pdf

Subject: Personnel Security and Suitability Program

Directive Number: PM 05-6

Effective Date: 7/13/06 Originator: FASD

Chief Administrative Officer

1. PURPOSE:

This directive establishes the policy and procedures for the Corporation's Personnel Security and Suitability Program for Public Trust Positions.

2. CANCELLATION: This order replaces Directive PM 05-6 dated 1/29/92.

3. SCOPE:

The provisions of this directive apply to all PBGC Federal employees and contractors.

4. AUTHORITIES:

Statutes, regulations, executive order, and other authorities governing PBGC programs and functions

a. Executive Order 10577.

b. 5 CFR 731- 732

c. OMB Circular A-130

5. BACKGROUND:

This directive serves as the policy for investigating and adjudicating the suitability of applicants, employees, and contractors for employment or continued employment in the competitive and excepted services for the Pension Benefit Guaranty Corporation. PBGC will employ and/or retain only those persons whose suitability for employment is found to be clearly consistent with this directive. This directive applies to both Federal employees and positions held by contractor personnel.

Pension Benefit Guaranty Corporation

Order

6. DEFINITIONS:

a. Public Trust Positions are those which have the potential for action or inaction by their incumbents to affect the integrity, efficiency, and/or effectiveness of assigned Government activities. The potential for adverse effect includes action or inaction which could diminish public confidence in the integrity, efficiency, or abilities, whether or not actual damage occurs.

Such government activities include law enforcement, public safety and health, collection of revenue and regulation of business, industry, or finance. Others include positions having authority to commit Government funds through grants, loans, loan guarantees, or contracts. Finally, positions in any activity which are responsible for managing programs or operations require a high degree of public trust because of their ability to affect the accomplishment of the activity's mission to a significant degree.

b. Suitability refers to identifiable character traits and past conduct which are significant to determine whether an individual is likely or not likely to be able to carry out the duties of a Federal job with appropriate efficiency and effectiveness. Suitability is distinguishable from a person's ability to fulfill the qualifications requirements of a job, as measured by experience, education, knowledge, skills, and abilities.

Suitability is measured by risk factors that determine the investigative requirements, and on the basis of two different sets of procedures depending on the category of position sought or occupied by the subject of the investigation. Positions involving high degrees of public trust require a more thorough investigation than do positions determined to have a lower risk level. Lower risk levels require only the finding that an applicant or an incumbent has the requisite suitability of character to hold Federal employment.

c. Position Risk is a designation which is commensurate with the public trust responsibilities and attributes of the position as they relate to the efficiency of the service. The suitability risk levels are ranked according to the degree of adverse impact on the efficiency of the service that an unsuitable person could cause.

d. Personnel Investigation is an examination of personal traits and qualifications, including education, reputation, suitability, loyalty, qualifications, and other pertinent factors, conducted by personal contact, written inquiry, letter, or electronic linkage with the sources of information.

7. POLICY:

It is the policy of the Corporation to investigate and adjudicate the suitability of applicants and employees for employment or continued employment in the competitive and excepted services and retain only those persons whose suitability is found to be clearly consistent with this directive. This directive applies to both Federal employees and positions held by contractor personnel.

8. RESPONSIBILITIES:

a. Department Directors are responsible for participating in the administration of the Program to the degree necessary to promote the efficiency of service. In addition, the Department Directors will inform the Information Systems Security Officer (ISSO), Office of Information Technology, of contractors who have access to Federal computer systems.

b. The Information Systems Security Officer (ISSO), in partnership with the

Human Resources Department (HRD), will be responsible for identifying and recommending risk levels for all Computer/IT Public Trust positions in accordance with this Directive. Note: The Chief Technology Officer, Office of Information Technology, will be responsible for implementing OMB Circular A-130 regarding contractor personnel.

c. The Personnel Security Officer, located in the Facilities and Services

Department (FASD) and in partnership with the Director of the Facilities and Services Department and the Facility Services Manager, is responsible for the development, administration and implementation of the Personnel Security and Suitability Directive PM-05-6, excluding the suitability determination of risk levels for Federal employees; this responsibility is an OIT and HRD function. The Personnel Security Officer will provide guidance to PBGC Contracting Officer’s Technical Representatives (COTRs) in the determination and assignment of suitability risk levels for all Contracted personnel. The Personnel Security Officer is responsible for the review, initiation and adjudication of all background investigations, for all PBGC Federal and Contracted personnel. The adjudications of background investigations are made on a case-by-case basis under the standards set forth in 5 CFR Part 731.

d. The Director of the Facilities and Services Department (FASD) has responsibility for the administration of the Corporation's Personnel Security and Personnel Suitability Program, excluding the determination and assignment of suitability risk levels for all Federal positions within

PBGC.

e. The Facility Services Division Manager (FASD), serves as the Corporation’s Chief Personnel Security Officer and has responsibility for oversight of the day-to-day operations of the Personnel Security Program..

f. The Director of the Human Resources Department (HRD) has responsibility for determining and assigning an appropriate suitability risk level for all Federal positions, utilizing the Risk Designation System set forth by the Office of Personnel Management (OPM) in 5 Code of Federal Regulations (CFR) Part 731.

g. The Contracting Officer’s Technical Representative (COTR) has responsibility for determining and assigning an appropriate suitability risk level for contractor positions, utilizing the Risk Designation System set forth by the Office of Personnel Management (OPM) in 5 Code of Federal Regulations (CFR) Part 731.

9. SUITABILITY RISK LEVEL:

Public Trust positions at the PBGC are designated at three risk levels that are commensurate with the responsibilities and other attributes of the position as they relate to the integrity and efficiency of the service. The three suitability risk levels and types of positions covered under these levels are as follows:

Risk Levels Adverse Impact on the Efficiency of the Service

High Risk (HR)

Public Trust Position

Positions included are those that have the potential for exceptionally serious impact on the integrity and efficiency of the service. The duties involved are especially critical to the agency or a program mission with a broad scope of responsibility and authority.

Positions include the following:

- policy development, policy determination, and policy implementation;

- higher level management duties and assignments or major program responsibility;

- independent spokespersons or non-management positions with authority for independent action.

- investigative, law enforcement, or any position which requires carrying a gun.

- fiduciary, public contact, or other duties, demanding the highest degree of public trust.

Moderate Risk

(MR)

Public Trust Position

Positions included are those that have the potential for moderate to serious impact on the integrity and efficiency of the service. Duties involved are considerably important to the agency or program mission with significant program responsibility, or delivery of service.

Positions include the following:

- assistants to policy development and implementation;

- mid-level management duties and assignments;

- any position with responsibility for independent or semi-independent action;

- delivery of service positions that demand public confidence or trust.

Low Risk (LR) Positions included are those that involve duties and responsibilities of limited relation to the agency or program mission so the potential for impact of the integrity and efficiency of the service is limited.

10. SUITABILITY RISK LEVELS FOR COMPUTER/IT POSITIONS:

Public Trust Computer/IT positions must also be designated in terms of risk levels.

Under OMB Circular A-130, agency policies and procedures for the security of Federal automated information systems must conform to the Office of Personnel Management (OPM) guidance. The Computer/IT risk levels and criteria are as follows:

Risk Levels Adverse Impact on the Efficiency of the Service

High Risk (HR) Potential for exceptionally serious impact involving duties especially critical to the agency mission with broad scope and authority, and with major program responsibilities which affect a major Computer/IT system(s).

Moderate Risk

(MR)

Potential for moderate to serious impact involving duties of considerable importance to the agency mission with significant program responsibilities which affect large portions of a Computer/IT system(s).

Low Risk (LR) Potential for impact involving duties of limited relation to the agency mission through the use of Computer/IT system(s).

Risk Level Criteria.

High Risk - Includes any position at the highest level of risk to the Computer/IT system. Such positions may involve the following:

- Responsibility for the development, direction, implementation, and administration of agency computer security programs, including direction and control of risk analysis or threat assessment;

- Significant involvement in life-critical or mission critical systems;

- Responsibility for preparing or approving data for input into a system which does not necessarily involve personal access to the system, but which creates a high risk for effecting grave damage or realizing significant personal gain;

- Assignments associated with or directly involving the accounting, disbursement, or authorization for disbursement from systems of amounts of $10 million per year or greater, or lesser amounts if the activities of the individual are not subject to technical review by higher authority to ensure the integrity of the system;

- Major responsibility for the direction, planning, design, testing, maintenance, operation, monitoring, or management of systems hardware and software

- Access to a system during the operation or maintenance in such a way as to permit high risk for causing grave damage or realizing a significant personal gain;

- Other positions as designated by the agency head that involve high risk for effecting grave damage or realizing significant personal gain.

Moderate Risk - Includes positions in which the incumbent is responsible for the direction, planning, design, operation, or maintenance of a computer system, and whose work is technically reviewed by a higher authority at the High Risk (HR) level to insure the integrity of the system. Such positions may involve:

- Responsibility for systems design, operation, testing, maintenance, and/or monitoring which is carried out under technical review of higher authority at the High Risk (HR) level, to insure the integrity of the system. This level includes, but is not limited to:

- Access to and/or processing of proprietary data, Privacy Act of 1974, and Government-developed privileged information involving the award of contracts;

- Accounting, disbursement, or authorization for disbursement from systems of dollar amounts less than $10 million per year;

- Other positions as designated by the Executive Director that involve a degree of access to a system that creates a significant potential for damage or personal gain less than that in HR positions.

Low Risk - Includes all Computer positions not falling into one of the above risk levels.

11. INITIATING PERSONNEL INVESTIGATIONS:

a. Investigation Requirement.

All PBGC federal employees or appointees and contracted personnel are required to have a background investigation. The forms required for the background investigation must be completed and returned to the Facilities and Services Department (FASD) no more than 14 calendar days from the federal employee or appointee or contracted employee start date.

Temporary Federal or Contracted Employment (less than 30 days)

Please see Section 11D.

b. Forms Required for Investigations.

Low Risk Level Positions The Federal employee or appointee or Contracted personnel of a Low Risk Level position must undergo National Agency Check and Inquiries Investigation (see definition under Section 12) and periodic re-investigations (see definitions under Section 12) and is required to complete and submit the following to the Facilities and Services Department (FASD) for action:

SF-85P, "Questionnaire for Public Trust Positions"

OF306, “Declaration for Federal Employment”

Fair Credit Reporting Act form

SF-87, "Fingerprint Chart" or electronic submission of fingerprints through agency link to OPM and FBI via OPM approved LiveScan

Personal Resume or SF-171, "Application for Federal Employment"

I-9, Employment Eligibility Verification Form, as well as, submission of two (2) government issued forms of identification

Moderate or High Risk Level Positions The employee or appointee or Contracted personnel of a Moderate Risk or High Risk Level position must undergo a background investigation or minimum background investigation and periodic re-investigations (see definition under Section 12) and is required to complete and submit the following to the Facilities and Services Department (FASD) for action:

SF-85P, "Questionnaire for Public Trust Positions"

OF306, “Declaration for Federal Employment”

Fair Credit Reporting Act form

SF-87, "Fingerprint Chart" or electronic submission of fingerprints through agency link to OPM and FBI via OPM approved LiveScan

Personal Resume or SF-171, "Application for Federal Employment"

I-9, Employment Eligibility Verification Form, as well as, submission of two (2) government issued forms of identification

(c) Periodic Re-investigation (see definition under Section 12).

PBGC follows OPM guidelines on periodic re-investigations.

(d) Exceptions to Investigative Requirements.

Exceptions are made to certain Low or Moderate Risk Federal or Contracted positions provided the Corporation conducts such checks as it deems appropriate to ensure that the employment or retention of such a person is clearly consistent with the efficiency and integrity of the service.

Employment of a person that will not exceed a term greater than 30 days does not require the completion of a background investigation. However, the temporary employee must have a Special Agreement Check (SAC). A SAC is a limited investigation (or a series of checks) conducted on a subject, done only through a special agreement between OPM and PBGC.

12. BACKGROUND INVESTIGATIONS CONDUCTED BY OPM.

Background Investigations conducted on PBGC employees and contractors are performed by OPM investigators. OPM conducts a range of background investigations that are appropriate for the positions described in this directive.

Each type of background investigation includes a National Agency Check (NAC).

Descriptions of the various investigations are as follows:

a. National Agency Check (NAC). The NAC is part of all other background investigations and consists of searches of the OPM Security/Suitability Investigation Index (SII); the Defense Clearance and Investigations Index (DCII); FBI Identification Division, fingerprint name file and fingerprint chart; and FBI Records Management Division files.

b. National Agency Check and Inquiries (NACI). The National Agency

Check and Inquiries consists of a NAC, written inquiries, and record searches covering specific areas of a subject's background during the past 5 years.

c. Advance National Agency Check. The advance on the National Agency

Check (NAC) consists of an itemized list of the NAC results and search status. This is a notification of item results only, no hardcopy is furnished.

The Advance NAC Report is sent to the Facilities and Services Department (FASD) and is available for all case types.

d. Credit Check. Credit reports are obtained in connection with an investigation to determine (1) fitness for Federal employment, (2) clearance to perform contractual service for the Federal Government, and/or (3) security clearance or access.

e. Special Agreement Check (SAC). The Special Agreement Check is a limited investigation (or a series of checks) conducted on a subject, done only through a special agreement between OPM and PBGC. This limited investigation consists of searches and the corresponding results of the OPM Security/Suitability Investigation Index (SII); FBI Identification Division, fingerprint name file and fingerprint chart; and FBI Records Management Division files. Also, a one repository infile credit report is requested and the results reviewed.

f. Minimum Background Investigation (MBI). The Minimum Background

Investigation consists of a NAC, credit search, written inquiries, and record searches covering specific areas of a subject's background in the past 5 years. Telephone inquiries are made on selected employments, and whenever initial inquiries are not returned and information is needed to resolve an issue(s).

g. Limited Background Investigation (LBI). The Limited Background

Investigation consists of a NAC, credit search, personal interviews of subject and sources, written inquiries of selected sources covering specific areas of the subject's background during the most recent 3 years, and record searches for a total of 5 years coverage.

h. Background Investigation (BI). The Background Investigation consists of a NAC, credit search, personal interviews of subject and sources, written inquiries, and record searches covering specific areas of the subject's background during the most recent 5 years, and additional record searches for a total of 7 years coverage.

i. Special Background Investigation (SBI). The Special Background

Investigation consists of a NAC, credit search, personal interviews of subject and sources, written inquiries, and record searches, which cover specific areas of subject's background during the past 15 years.

j. Reimbursable Suitability/Security Investigation (RSI). The Reimbursable

Suitability/Security Investigation consists of a concentrated investigation to provide additional information to resolve a suitability issue(s) from an SF-85 or SF-85P investigation or from issue(s) developed on an employee.

k. Periodic Reinvestigation (PRI). The Periodic Reinvestigation consists of a

NAC, credit search, personal interview of the subject, and selected record searches.

l. Upgrade Investigation. The Upgrade Investigation consists of a NAC, credit search, personal interview of the subject and selected sources, and record searches covering specific areas of the subject's background since the last background investigation. This investigation is for movement upward in sensitivity from 13 to 60 months after the previous investigation's closing date.

13. EXPANDED COVERAGE:

Notwithstanding the investigative requirements set forth above and based upon recommendations from OPM, HRD, the Director of FASD, the Chief Personnel Security Officer, or the Executive Director can direct the expansion of background investigations in both scope and coverage at any time on any person when he/she considers such action appropriate and in the best interest of the Corporation.

The Chief Personnel Security Officer can request the expansion of an investigation in process on any PBGC Contracted personnel.

14. INVESTIGATION REQUIREMENT AFTER A BREAK IN SERVICE:

Federal Employees or Appointees Upon reappointment in the federal service after a break in Federal Service of more than a year, appointees must be reinvestigated. New forms must be completed, signed and dated and submitted to the Facilities and Services Department.

Upon reappointment after a break in Federal service of less than a year, no reinvestigation is required if an investigation was completed during the previous employment, and the required investigation was conducted no more than 36 months before the date of the new appointment. If there is no evidence that investigation was completed, then the appropriate investigation must be initiated.

Contracted Personnel Upon Contractual employment with the Corporation, the Personnel Security Officer will ascertain if the contractor has had a favorably adjudicated background investigation at the appropriate risk level, in the last 36 months. Regardless of employment status at the time of the favorable background investigation’s completion, the Personnel Security Officer will request a release of the background investigation from OPM to the Corporation for review and adjudication. If the background investigation is greater than 36 months old, the contractor will be required to complete and submit all forms stated in Section 11B to the Facilities and Services Department for review and submission to OPM.

15. ADJUDICATION OF CASES:

The Personnel Security Officers in FASD shall adjudicate all investigative reports received from OPM on a case-by-case basis under the standards set forth in 5 CFR

731. All adjudicative actions must be transmitted to OPM within 90 days of the case closing transmittal date.

FASD must consider all the information of record, both favorable and unfavorable, and assess it in terms of its relevance and seriousness, as well as whether the information is current. FASD will determine suitability in a manner that will promote the integrity and efficiency of the service while assuring fair, impartial, and equitable treatment of the individual. FASD will consult with the Corporations’ Office of the General Counsel before making an unfavorable determination of any Federal Employee. FASD may also consult with the Office of the General Counsel in Contractor personnel unfavorable determinations prior to rendering its final decision.

Federal Employees and Appointees If FASD cannot make a favorable determination for a Federal employee, the Human Resources Department is notified so that appropriate action is taken (defined under “Adverse Suitability Action” in Section 16).

Contracted Personnel If a favorable determination cannot be made on a contractor background investigation, the Personnel Security Officer will directly contact the Contract Company’s Human Resources Department and request the immediate removal of the contractor from PBGC’s contract.

16. ADVERSE SUITABILITY ACTION:

When OPM proposes to take or to instruct an agency to take a final suitability ineligibility action on a FTE, including removal against an applicant, eligible appointee or employee, the person against whom the action is proposed shall be given notice of the proposed action, afforded the opportunity to review the materials upon which the determination was made, given an opportunity to answer, provided notice of the final decision on the action, and provided notice of rights of appeal, if any, in accordance with applicable law, rule or regulation.

OPM has no jurisdiction over contract personnel.

17. SAFEGUARDING AND DISPOSITION OF INVESTIGATIVE CASES:

Investigative cases received from OPM will be maintained in a locked cabinet to ensure privacy while in the possession of PBGC officials. Access to investigative cases will be limited to those persons determined by the Director of FASD, the Chief Personnel Security Officer or the Executive Director to have an official "need to know" and written record of such access shall be maintained. The Personnel Security Officer will maintain a record of each disclosure of OPM investigative material within PBGC including at a minimum (1) the name and title of the person to whom disclosure was made; (2) the type of background investigation conducted on the person to whom the material was disclosed; (3) the date(s) of disclosure; (4) the reason for the disclosure; and (5) who authorized the disclosure.

After suitability determinations are made, these investigative files are destroyed in accordance with appropriate security procedures. The Case Closed Transmittal Form, INV Form 79A, Report of Adjudicative Action on OPM Personnel Investigations, Certification of Investigation (COI), and the signed Fair Credit Reporting Act form, however, must be retained for 7 years from the date of the final action as a record of adjudicative action.