PM_05-06_-_Personnel_Security_and_Suitability_Program.pdf

Pension Benefit Guaranty Corporation Order

Subject: Personnel Security and Suitability Program

Directive Number: PM 05-6 Protecting

Effective Date: 02/22/11 Originator: FASD

Vincent K. Snowbarger Acting Chief Management Officer

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

2. C A N C E L L A T I O N : This Order updates Directive PM 05-6 dated The following are the changes to this directive:

a. "Authorities" have been updated to provide references that support the agency's

Personnel Security and Suitability Program.

b. "Definitions" have been added due to the agency's implementation Homeland

Security Presidential Directive - 12 and the implementation of the Office of Personnel Managements automatic investigation processing system, Electronic Questionnaire for Investigation Processing

c. "Responsibilities" have been updated to reflect updated roles and responsibilities related to the agency's implementation of the Office of Personnel Management's automatic investigation processing system, Electronic Questionnaire for Processing (eQIP), as well as, the transfer of the Position Designation Program to the Facilities and Services Department from the Human Resources Department.

3. S C O P E : The provisions of this directive apply to all PBGC Federal employees and contractors.

4. A U T H O R I T I E S :

a. Executive Order 10577.

b.

c. OMB Circular

U.S. Office of Personnel Management, Federal Investigative Services Division, Suitability Processing Handbook

e. U.S. Office of Personnel Management, Federal Investigative Services Division, Position Designation System Handbook

5. The authority to handle suitability case processing and adjudication is delegated to the Corporation by the Office of Personnel Management (OPM) in title 5 of the Code of Federal Regulations, part (5 CFR part 731). Additionally, the authority to establish position designation risk levels for each Federal position is delegated to the Corporation in title 5 CFR, part This Order serves as the Corporation's policy and procedural document of record and applies to both Federal employees and Contractor personnel.

6. DEFINITIONS:

a. Adjudication. Objective analysis of all available, relevant information, obtained during a background investigation, both favorable and unfavorable, to determine whether based on the criteria set forth in subpart B of 5 CFR part a suitability action would protect the integrity or promote the efficiency of Federal service.

b. Debarment. When OPM finds a person unsuitable for any reason listed in OPM, in its discretion, may deny that person examination for, and appointment to, a competitive service position for a period of not more than 3 years from the date of determination of unsuitability. Subject to the provisions of when an agency finds an applicant or appointee unsuitable for reasons listed in the agency may deny that person examination for, and appointment to, all, or specific,, positions within the agency for a period of not more than 1 year from the date of determination of

c. Electronic Questionnaire Investigation Processing (eQIP) System. A web-based background investigation submission system owned and maintained by the Office of Personnel Management. In an effort to comply with the e-Government Act of 2002, OPM has strongly encouraged PBGC to utilize as the agency's primary medium for the submission of all background investigations and their corresponding support documentation.

d. Investigation Scheduling Notice. PBGC's official notice from the U.S. Office of Personnel Management (OPM) that a background investigation request has been received, reviewed, accepted and initiated by OPM.

e. National Archives and Records Administration (NARA). The nation's record keeper of all documents and materials created in the course of business conducted by the United States Federal government, only l%-3% are so important for legal or historical reasons that they are kept by NARA forever.

f. Office of Personnel (OPM). The Office of Personnel Management (OPM) is the regulatory authority over the Federal suitability and position designation program within the Federal government. OPM established a suitability adjudication program in the Federal competitive and excepted service to reduce the potential for abuse of the public trust and to ensure Government-wide uniformity and fairness for applicants, appointees and employees, when determinations about their suitability for Federal employment are made.

g. Personnel Investigation. 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.

h. Personnel Security Team (PST). Located within the Facilities and Services Department, the Personnel Security Team is responsible for the day-to-day administration of the agency's Personnel and Physical Security Programs, as well as, the agency's Position Designation Program.

i . Position Designation. The term Position Designation applies to Federal positions only. The assignment of a risk level which is commensurate with the public trust responsibilities and attributes of the position as they relate to the efficiency of the service. The risk levels are ranked according to the degree of adverse impact on the efficiency and integrity of the service that an unsuitable person could cause.

j . Public Trust Positions. These positions have the potential for adverse impact on either the integrity and/or efficiency of the organization's mission. These positions have a moderate risk or high risk sensitivity level designation. High Risk positions have the potential for exceptionally serious impact on the integrity and/or efficiency of the organization's mission; and Moderate Risk positions have the potential for moderate to serious impact on the organization's mission. These positions do not require a security clearance, but they do require a background investigation to determine an employee's suitability to occupy the position. Public Trust positions require the completion of the Standard Form (SF) 85P, Questionnaire for Public Trust Positions.

k. Suitability. 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 or contractor position with appropriate efficiency, effectiveness, and integrity. 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.

1. Suitability Action. An action described in 5 CFR (cancellation of eligibility, removal, cancellation of reinstatement eligibility, debarment) that may be taken by OPM or PBGC with delegated authority under 5 C.F.R.

7. P O L I C Y : It is the policy of PBGC to establish the position designation risk level and adjudicate the suitability of applicants (i.e. applicants for employment or continued employment in the competitive and excepted services or contractors). Retaining only those persons whose suitability is found to be clearly consistent with this directive.

8. R E S P O N S I B I L I T I E S :

a. Facilities and Services Department.

(1) Director, Facilities and Services Department (FASD). Directs and administers the Corporation's Personnel Security, Suitability and Position Designation Programs.

(2) Manager, Facility Services Division (FSD/FASD). Serves as the Corporation's Chief Personnel Security Officer and has responsibility for the oversight of the day-to-day operations of the Personnel Security, Suitability and Position Designation Programs.

(3) Lead Support Services Specialist.

(a) Develops, administers, and implements PM-05-6, Personnel Security and Suitability Directive, to include oversight of the day-to-day review, initiation and adjudication of all background investigations for Federal employees and contractors.

(b) Provides guidance to PBGC Contracting Officer's Technical Representatives (COTR's) in the determination and assignment of suitability risk levels for all contracted employees.

(c) Oversees the Position Designation Program for all Federal employees including the utilization of OPM's Automated Position Designation System and based upon the standards set forth in OPM's Position Designation Handbook, dated September 2008.

(d) Maintains a record of each disclosure of OPM investigative material within PBGC. A record (log) of an employee or contractor investigative disclosure shall include: (1) Name and employment status (Federal or Contractor) of the person investigated; (2) Name and title of the person to whom the disclosure is made; (2) the type of background investigation conducted on the person investigated; (3) the date(s) of disclosure; (4) the reason for the disclosure; and (5) who authorized the disclosure.

(4) Personnel Security Team

(a) Review all entrance-on duty, background investigation and separation clearance forms for all Federal employees and Contractors.

(b) Review all Federal position descriptions and establishes corresponding position designations utilizing OPM's Position Designation Handbook and its Automated Position Designation System.

(c) Submit background investigation forms to OPM for processing and adjudicates all completed background investigations on a case-by-case basis and according to the criteria set forth in 5 C.F.R.

(d) Maintains security files in accordance with NARA and OPM records management regulations.

b. Office of Information Technology.

(1) Chief Information Officer. Responsible for implementing OMB Circular A-

130.

(2) Senior Agency Information Systems Officer Review all information security documents related to the administration of agency's Personnel Security and Suitability to ensure compliance with applicable information security regulations.

(3) Hiring Manager. Assist the PST with identifying and recommending position designation risk levels for all Public Trust positions.

c. Human Resources Department.

(1) Provide FASD with all PBGC Federal Position Descriptions for review and

Position Designation Risk Level assignment.

(2) Document each Federal Position Designation on the appropriate government forms SF-52 & within the FPPS).

(3) Process actions taken by PBGC on negative suitability determinations.

d. Contracting Officer's Technical Representative.

(1) Determine and assign an appropriate suitability risk level for any Contract employee working on PBGC Contracts, Delivery Orders, Purchase Orders orOOO GSA Tasks assigned to them.

(2) Ensure contractor compliance to any PBGC entrance-on duty, background investigation or separation clearance procedure. (See Entrance on Duty and Separation Procedures for Federal Employee and Contractors, for more details)

e. Department Directors. Participate in the administration of the Program to the degree necessary to promote the efficiency of Federal service.

P O S I T I O N D E S I G N A T I O N R I S K L E V E L S :

a. For Standard Public Trust Positions. (Federal Employees and Contractors)

(1) Federal Employees. FASD wil l review all PBGC Federal Position

Descriptions and utilize OPM's Automated Position Designation System to ensure that the appropriate position designation risk level is established according to OPM Position Designation System standards.

Public Trust positions at the PBGC are designated at two risk levels

(Moderate and High) commensurate with the responsibilities and other attributes of the position as they relate to the integrity and efficiency of service.

(2) Contractors. PBGC COTRs wil l assign the risk level for each of their contractors. FASD wil l provide guidance to COTRs to ensure the proper risk level is assigned for a contractor position. Contractor risk level wil l be commensurate with the responsibilities and other attributes of the position as they relate to the integrity and efficiency of Federal service.

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. The Low risk level is not Public Trust, but is designated as Non-Sensitive.

b. For Positions.

Under OMB Circular 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 position receives an additional level of review to assess the risks associated with access to corporation computer systems. The PBGC Hiring Manager shall collaborate with the PST to ensure the accuracy of the risk level being assigned to the Federal position. The COTR shall seek guidance from the PST, as needed, to ensure the accuracy of the risk level being assigned to the contractor position. The 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) and 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.

Low Risk (LR) Potential for impact involving duties of limited relation to the agency mission through the use of Computer/IT system(s). Includes all Computer positions not falling into one of the above risk levels.

Risk Level Criteria.

High Risk level 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 million per year greater, or lesser amounts i f 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; or Other positions as designated by the agency head that involve high risk for effecting grave damage or realizing significant personal gain.

Moderate Risk level 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 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; or

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.

10. I N I T I A T I N G P E R S O N N E L I N V E S T I G A T I O N S :

a. Investigation Requirement. Al l PBGC Federal employees or appointees and Contractors are required to have a background investigation. Additionally, current Federal employees and Contractors must submit to a background investigation i f a departmental transfer, promotion or Contractor transfer results in an increase in their position's risk level. Unless a special circumstance exists, all federal employees, appointees, and contractors w i l l complete and submit the required SF-85P, Questionnaire for Public Positions form the OPM automated system.

(1) Electronic Submission:

PBGC utilizes OPM's Electronic Questionnaire Investigation Processing (eQIP) system the submission of all Federal employee and Contractor background investigations. Federal and Contract employees are provided calendar days, from their entrance on duty date, to complete this submission via eQIP. The User ID and password for eQIP wil l be provided within 24 hours of their security processing appointment.

(2) Hard Copy Submission In special circumstances, a PBGC Federal employee or Contractor may request to submit their completed SF-85P to the Personnel Security Team in hard copy format. A special circumstance may be a reasonable accommodation for a blind individual or for an individual with some type of physical or mental disability that would preclude them from submitting their SF85-P electronically. Federal employees are provided 7 calendar days, from their entrance on duty date, to complete the SF-85P and return it to the Industrial Security Specialist located in FASD.

(3) Temporary Federal or Contracted Employment (less than 30 days) Please see Section 1

b. Forms Required for Investigations.

The following forms shall be used for all Federal and Contractor positions in the processing of a background investigation designated at the Low, Moderate or High risk level:

- SF-85, Questionnaire for Non-Sensitive Positions (Low Risk)

- SF Questionnaire for Public Positions (Moderate or High)

- Declaration for Federal Employment

- eQIP Welcome Letter

- Fair Credit Reporting Act of as amended (authorization to access credit history via credit agencies such as Equifax, Experion or Tranunion)

- Employment Eligibility Verification

- Personal Resume

- Two (2) forms of valid, government-issued identification.

(1) Low Risk Level Positions The Federal employee or appointee or Contractor of a Low Risk Level position must undergo National Agency Check with Inquiries Investigation (see definition under Section and periodic re-investigations (see definitions under Section and is required to complete forms as indicated in the table in Section

(2) Moderate or High Risk Level Positions The employee or appointee or Contractor of a Moderate Risk or High Risk Level position must undergo a background investigation or background investigation and periodic re-investigations (see definition under Section and is required to complete forms as indicated in Section

c. Periodic Re-investigation (see definition under Section PBGC follows OPM guidelines on periodic re-investigations.

d. Exceptions to Investigative Requirements.

Exceptions are made to certain positions held by Federal or Contract 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. For example, employment of a Federal employee or Contractor that wi l l not exceed a term greater than 30 days does not require the completion of a full background investigation. However, the temporary Federal employee or Contractor 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.

11 B A C K G R O U N D I N V E S T I G A T I O N S C O N D U C T E D B Y OPM:

Background Investigations for PBGC employees and contractors are conducted by OPM investigators. OPM conducts a full range of background investigations that are appropriate for the positions described in this Order. 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 the Defense Clearance and Investigations Index FBI Identification Division, fingerprint name and fingerprint chart; and FBI Records Management Division files.

b. National Agency Check with Inquiries The National Agency Check and Inquiries consists of 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 report on the National Agency Check (NAC) consists of an itemized list of the NAC results and search status. This is a expedited notification of NAC results. The Advance NAC Report is sent to the Facilities and Services Department (FASD) and can be requested for all levels of investigation. PBGC receives the results within business days of receipt of OPM's Investigation Scheduling Notice.

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 and fingerprint chart;

and FBI Records Management Division files. Also, a credit report is requested and the results reviewed.

f. Minimum Background Investigation The Minimum Background Investigation consists of 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 The Limited Background 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 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 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 years.

j . Reimbursable Suitability/Security Investigation (RSI). a background or criminal investigation. are focused investigations to obtain information to resolve issues developed about an individual. An agency may request an RSI when it needs additional investigation to resolve issues that might fall outside the normal scope of another investigation (such as alcohol or drug rehabilitation or credit); to establish a history or pattern of behavior; or to obtain other information related to suitability or security which is not necessarily connected to a current background investigation.

k. Periodic Reinvestigation The Periodic Reinvestigation consists of a NAC, credit search, personal interview of the subject, and selected record searches.

1. 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. An upgrade investigation is conducted when an upward change in position designation is made within to 60 months after the previous investigation's closing date.

12. E X P A N D E D C O V E R A G E :

The agency Director or the Director of Human Resources and/or Facilities and Services Department has the authority to 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.

13. I N V E S T I G A T I O N R E Q U I R E M E N T A F T E R A B R E A K IN S E R V I C E :

a. 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 i f an investigation was completed at the correct risk level and was conducted no more than 36 months before the date of the new appointment.

I f there is no evidence that investigation was completed, then the appropriate investigation must be initiated.

b. Contractors Upon assignment to a Contractual position with the Corporation, the Lead Support Services Specialist wi l l ascertain i f the contractor has had a favorably adjudicated background investigation at the appropriate risk level, in the last 36 months. The Lead Support Services Specialist wi l l :

(1) Perform an investigative search of the Contractor's investigative record utilizing OPM's Central Verification System (CVS) and/or Personnel Investigative Processing System (PIPS) and wil l retain a copy of the applicable favorable investigative record in their security or

(2) Request a release of the background investigation from OPM to the Corporation for review and I f the background investigation is greater than 24 months old, the contractor wi l l be required to complete and submit all forms stated in Section 1 Ob to the Personnel Security Team (PST) for review and submission to OPM.

14. A D J U D I C A T I O N O F C A S E S :

The FASD Personnel Security Team shall adjudicate all investigative reports received from OPM on a case-by-case basis and under the standards set forth in 5 CFR A l l 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 currency, relevance and seriousness. FASD will determine suitability in a manner that wil l promote the integrity and efficiency of Federal service while assuring fair, impartial, and equitable treatment of the individual. FASD wil l consult with the PBGC's Office of the General Counsel before making an unfavorable determination of any Federal Appointee or Employee. FASD may also consult with the Office of the General Counsel in Contractor personnel unfavorable determinations prior to rendering its final decision.

a. 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 15).

b. Contractors I f a favorable determination cannot be made on a contractor background investigation, the Lead Support Services Specialist wi l l directly contact the Contract

Company's Human Resources Department and request the immediate removal of the contractor from PBGC's contract.

15. A D V E R S E S U I T A B I L I T Y A C T I O N :

a. Federal Employees, Appointees and Applicants Action based on a determination that an employee, appointee, or applicant is not suitable for Federal employment may be taken by OPM or PBGC in accordance with applicable laws and regulations (5 CFR For issues other than suitability, PBGC may pursue administrative action or disciplinary/adverse action against Federal employees and appointees for misconduct in accordance with applicable laws, regulations, directives, policies and collective bargaining agreement.

b. Contractors OPM has no jurisdiction over contractors. Actions taken by the FASD Personnel Security Team are final.

16. S A F E G U A R D I N G AND DISPOSITION O F I N V E S T I G A T I V E C A S E S :

Investigative case files received from OPM wil l be maintained in a locked cabinet to ensure privacy while in the possession of PBGC officials. Access to investigative cases w i l l be limited to those persons determined by the Director of FASD, the Chief Personnel Security Officer or the PBGC Director to have an official "need to know." A written record of such access shall be maintained by the PST. The Lead Support Services Specialist will maintain a record of each disclosure of OPM investigative material within PBGC, which shall include:

a. Name and title of the person to whom disclosure was made;

b. Type of background investigation conducted on the person to whom the material was disclosed;

c. Date(s) of disclosure;

d. Reason for the disclosure; and

e. Who authorized the disclosure.

For disclosure requests from entities beyond those listed above (i.e. by subject investigation), a written request for release of a specific investigative case may be sent to OPM directly at:

PO 618

Boyers, PA

(724) 794-5612

After suitability determinations are made, the investigative files are destroyed in accordance with NARA and OPM records management regulations. The Case Closed

Transmittal Form, INV Form Report of Adjudicative Action on OPM Personnel Investigations, Certification of Investigation (COI), and the signed Fair Credit Reporting Act form wi l l be retained for 7 years from the date of the final action as a record of adjudicative action.