CAL POLY POMONA FOUNDATION, INC. CALIFORNIA STATE POLYTECHNIC UNIVERSITY, POMONA PERSONNEL COMMITTEE

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1 CONSENSUS ACTION ITEMS CAL POLY POMONA FOUNDATION, INC. CALIFORNIA STATE POLYTECHNIC UNIVERSITY, POMONA PERSONNEL COMMITTEE Monday November 13, :30 pm 3:00 pm Building #55 Executive Conference Room AGENDA Consensus Action Items: Items in this section are considered to be routine and acted on by the committee in one motion. Each item of the Consent agenda approved by the committee shall be deemed to have been considered in full and adopted as recommended. Any committee member may request that a consent item be removed from the consent agenda to be considered as a separate action item. If no additional information is requested, the approval vote will be taken without discussion. 1. Minutes September 21, 2017 Meeting Danielle Manning 1 ACTION: Approval ACTION ITEMS 2. Historical Salary Scales for CalPERS Compliance Dennis Miller 2-9 ACTION: Approval PAGE 3. Unsuspending Merit Plan Dennis Miller ACTION: 4. Wage Adjustment for Dennis Miller 16 ACTION: Approval 5. Temporary Employment Engagement Dennis Miller 17 ACTION: Approval 6. Bereavement Policy Enhancement Dennis Miller 18 ACTION: Approval Annual Healthcare Renewal Dennis Miller ACTION: Approval 8. Eligibility of Post-Retirement Medical Insurance Dennis Miller ACTION: Approval DISCUSSION ITEMS 9. Paid Time Off Policy Update Dennis Miller 29 INFORMATION ITEMS

2 CAL POLY POMONA FOUNDATION, INC. PERSONNEL COMMITTEE MEETING MINUTES September 21, 20'17 Present Absent: Visltors: CALL ORDER Samir Anz, Lea Dopson, Deborah Goman, Danielle Manning, James Priest via WebEx, Sharon Reiter and Joy Tafarella l\4ei Lien Chang and Martha Rosario Anne Mcloughlin, Dennis Miller, Debra Poe, David Prenovost and Karen Sandoval Danielle Manning called the meeting to order at '1 1:OO a.m. and asked everyone to introduce themselves CONSENSUS N ITEMS Approval of Minutes ACTION ITEMS ADril '19, 2017 lvleetino lvlinutes The minutes for April 19, 2017 were approved by consent. 2. Merit-Based Compensation Plan Dennis Miller presented the merit-based compensation plan that was initiated in '1996. The purpose of the Foundation,s pay for performance compensation program is to enhance communications between supervisors and employees, to inform employees of progress in meeting performance slandards for their position, and to maintain records of each employees' performance which can be used as a supporting document for such things as merit salary increases, promotions, t;aining, and disciplinary action when appropriate. Since '1996, the merit scale has been based on a O% - 6% increase based on classification within a range. Due lo an economic recession, the merit plan was suspended during the FY 2009-'lO year and has remained so for the current Iiscal year Foundation management is recommending to reinstate the merit plan effective July 1, 2018, which is the beginning of the FY 20'18-19 budget year. The merit plan would replace the across the board salary ;djustment. For Fy20.l7-iB, Foundation employees received a 37o across lhe board salary adjustment. The Committee discussed reinstating the merit based compensation plan at length and no motion was made. The item was tabled for futher discussion. The committee recommended that the Foundation inslitute an annual employee performance evaluation process to provide ongoing communication between supervisors and employees. DISCUSSION ITEMS Labor Commissioner Unscheduled Visit Dennis lvliller explained the California Department of Labor came to lhe Foundation for an unscheduled audit of employee records due to a confldenlial complaint received from an unidentified employee. The Foundation complied with theii requests and provided the required documentation. The Department of Labor found all documenls to be in order, resulting in no findings or concerns. INFORMATION ITEMS None Presenled. l\4eeting adjourned at 12:05 p.m. Re lly submitted, aa*//rfut le Manning- Chair. Personnel Committee 1

3 Memorandum Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Subject: Dennis Miller, Chief Employment Officer Cal Poly Pomona Foundation, Inc. HISTORICAL SALARY SCALES FOR CALPERS COMPLIANCE As reported in the May 2016 Board of Director s meeting, Foundation received the results in February 2016 compliance audit conducted by CalPERS in the latter part of One of the findings involved several pay scales the Foundation used that did not have all of the required elements required by CalPERS regulations. As a result, Foundation corrected and submitted for review and approval to its Board of Directors pay scales to meet the applicable regulations. While the items noted by CalPERS auditors for these pay scales included two missing job titles, we submitted and received verbal approval by appropriate parties at CalPERS that would have allowed this audit finding to be cleared. However, due to turnover at CalPERS, one or more employees involved in our audit resolution process are no longer with CalPERS, and the new employees will not clear the audit findings until the issues are resolved based on their level of understanding and interpretation of the regulations. Therefore, we request a review and approval of two position listings with salary scale, one with an effective date of January 1, 2013, and the other with an effective date of July 1, PROPOSED ACTION: The following Resolution is recommended for approval: RESOLVED, that the Personnel Committee approves forwarding the two position listings with salary scales to its Board of Director for review and approval. BE IT FURTHER RESOLVED, that upon approval of this resolution by the Board of Directors at their next scheduled meeting, the Chief Employment Office of the Cal Poly Pomona Foundation is authorized and directed to take any and all action as may be necessary to effectuate this Resolution. PASSED AND ADOPTED THIS 13 th DAY OF NOVEMBER, Ms. Danielle Manning, Chair Personnel Committee 2

4 Position Grade Annual Minimum Annual Maximum Baker 2 19,303 25,023 Commercial Cook G2 2 19,303 25,023 Commercial Dishwasher G2 2 19,303 25,023 Farm Laborer 2 19,303 25,023 Kitchen Utility Worker 2 19,303 25,023 Salad Maker 2 19,303 25,023 Accounts Receivable Clerk 3 21,467 27,894 Commercial Cook G3 3 21,467 27,894 Facility Services Worker G3 3 21,467 27,894 Baker/Pastry Chef 4 23,074 30,057 Commercial Cook G4 4 23,074 30,057 Hotel Desk Clerk PM 4 23,074 30,057 Nursery Worker 4 23,074 30,057 Carls Shift Lead 5 23,523 33,764 General Maintenance Worker 5 23,523 33,764 Research Assistant 5 23,523 33,764 Shift Leader II 5 23,523 33,764 Subway Shift Lead 5 23,523 33,764 Accounts Specialist G6 6 24,809 39,420 Administrative Assistant G6 6 24,809 39,420 Commercial Cook G6 6 24,809 39,420 Course Requisitions Coordinator 6 24,809 39,420 Custom Publishing Coordinator 6 24,809 39,420 Facility Services Worker 6 24,809 39,420 Los Olivos Food & Beverage Support 6 24,809 39,420 Off Campus Cater Coordinator 6 24,809 39,420 Operations Floor Support Commercial 6 24,809 39,420 Operations Commercial Support G6 6 24,809 39,420 Operations Office Support II 6 24,809 39,420 Operations Floor Supervisor 6 24,809 39,420 Operations Office Support 6 24,809 39,420 Receiving & Distribution Clerk 6 24,809 39,420 Subway Operations Floor Supervisor 6 24,809 39,420 Vault Cashier 6 24,809 39,420 Accounts Specialist III 7 27,316 43,469 Accounts Specialist G7 7 27,316 43,469 Administrative Assistant_G7 7 27,316 43,469 Assignment Coordinator 7 27,316 43,469 Commercial Cook G7 7 27,316 43,469 Community Development Specialist 7 27,316 43,469 Floor Support 7 27,316 43,469 Graduate Complex Coordinator 7 27,316 43,469 Grants Specialist G7 7 27,316 43,469 Operations Support Qdoba 7 27,316 43,469 Project Coordinator G7 7 27,316 43,469 Social Media Coordinator 7 27,316 43,469 System Administration for Dining Services 7 27,316 43,469 Accounting Specialist 8 33,872 51,310 Assistant Manager CBA Pony Express 8 33,872 51,310 3

5 Position Grade Annual Minimum Annual Maximum CEU Program Development Manager 8 33,872 51,310 Farm Store Supervisor 8 33,872 51,310 General Maintenance Lead G8 8 33,872 51,310 Grants Specialist G8 8 33,872 51,310 Info Tech G8 8 33,872 51,310 International Training Coordinator 8 33,872 51,310 Marketing Assistant 8 33,872 51,310 Payroll Technician 8 33,872 51,310 Ship & Receiving Supervisor 8 33,872 51,310 Starbucks Manager 8 33,872 51,310 Student Affairs Coordinator 8 33,872 51,310 Technical Specialist Exempt 8 33,872 51,310 Academic Coordinator II 9 35,242 56,024 Administrative Assistant G9 9 35,242 56,024 Agriculture Laborer Lead 9 35,242 56,024 Asst Property Mgr 9 35,242 56,024 Dennys Assistant Manager 9 35,242 56,024 Franchise Manager G9 9 35,242 56,024 HR Generalist I 9 35,242 56,024 Kitchen Supervisor G9 9 35,242 56,024 Los Olivos Assistant Manager 9 35,242 56,024 Research Scientist I 9 35,242 56,024 Sr. Payroll Technician 9 35,242 56,024 Accounts Specialist G ,420 63,094 Admin Assistant G ,420 63,094 Book Operations Manager 10 39,420 63,094 Computer Store Manager 10 39,420 63,094 Conference Sales Manager 10 39,420 63,094 Financial Systems Accountant 10 39,420 63,094 Franchise Manager G ,420 63,094 General Merchandise Manager 10 39,420 63,094 HVAC Technician 10 39,420 63,094 Learning Specialist 10 39,420 63,094 Manager CBA Pony 10 39,420 63,094 Operations Manager 10 39,420 63,094 Reading Advisor II 10 39,420 63,094 Service Manager 10 39,420 63,094 Shipping & Receiving Manager 10 39,420 63,094 Upward Bound Program Coordinator 10 39,420 63,094 Asstistant Director for Residential Standards (UV) 10 39,420 63,094 Vending Manager 10 39,420 63,094 Academic Program Coordinator 11 43,182 72,522 Facilities Manager 11 43,182 72,522 Financial System Analyst 11 43,182 72,522 Hospitality Management & EIP 11 43,182 72,522 HR Generalist II 11 43,182 72,522 Program Administrator 11 43,182 72,522 Real Estate Manager 11 43,182 72,522 Associate Director of University Village 12 49,028 82,408 4

6 Position Grade Annual Minimum Annual Maximum Asst to Dir/Pub Relations 12 49,028 82,408 Dennys General Manager 12 49,028 82,408 Executive Chef 12 49,028 82,408 Farm Supervisor 12 49,028 82,408 General Business Manager 12 49,028 82,408 Information Systems Analyst 12 49,028 82,408 Project Manager 12 49,028 82,408 Research Scientist III 12 49,028 82,408 Sr Catering Manager 12 49,028 82,408 Sr. GM Board Operations 12 49,028 82,408 Webmaster 12 49,028 82,408 Associate Director, Dining Services 13 54,899 92,298 Contract & Grants Manager 13 54,899 92,298 Dir of CPELI 13 54,899 92,298 Director of Talent Search 13 54,899 92,298 Director CRSP 13 54,899 92,298 Director of Comm/Ext Relations 13 54,899 92,298 Director of Enterprise Accounting 13 54,899 92,298 Director of Marketing 13 54,899 92,298 Program Director 13 54,899 92,298 Project Coordinator G ,899 92,298 Sr. Associate Director Bookstore 13 54,899 92,298 Chief Employment Offcer 14 72, ,450 Director of Bookstore 14 72, ,450 Director Housing Services 14 72, ,450 Director of Dining Services 14 72, ,450 Director of Kellogg West Conference Center 14 72, ,450 MIS Director 14 72, ,450 Project Director 14 72, ,450 Chief Financial Officer 15 85, ,379 Real Estate Program Director 15 85, ,379 Executive Director , ,441 Note: All salaries are stated in "annualized" form, and presume 2080 hours per year. Last update July 1, 2008 Effective

7 Position Grade Annual Minimum Annual Maximum Baker 2 20,467 26,520 Commercial Cook G2 2 20,467 26,520 Farm Laborer 2 20,467 26,520 Kitchen Utility Worker 2 20,467 26,520 Salad Maker 2 20,467 26,520 Commercial Cook G2 2 20,467 26,520 Accounts Receivable Clerk 3 22,755 29,557 Commercial Cook G3 3 22,755 29,557 Facility Services Worker G3 3 22,755 29,557 IT Office Coordinator 3 22,755 29,557 Lead Dishwasher 3 22,755 29,557 Baker/Pastry Chef 4 24,461 31,866 Commercial Cook G4 4 24,461 31,866 Hotel Desk Clerk PM 4 24,461 31,866 Nursery Worker 4 24,461 31,866 BSC_Receiving-Disbursement Clerk 4 24,461 31,866 Carls Shift Lead 5 24,939 35,838 General Maintenance Worker 5 24,939 35,838 Research Assistant 5 24,939 35,838 Shift Leader II 5 24,939 35,838 Subway Shift Lead 5 24,939 35,838 Career_PT_UnclassII 5 24,939 35,838 Course Material Service Assistant 5 24,939 35,838 Farm Laborer 5 24,939 35,838 Residence Life Coordinator 5 24,939 35,838 Accounts Specialist G6 6 26,312 41,787 Administrative Assistant G6 6 26,312 41,787 Commercial Cook G6 6 26,312 41,787 Course Requisitions Coordinator 6 26,312 41,787 Custom Publishing Coordinator 6 26,312 41,787 Facility Services Worker 6 26,312 41,787 Los Olivos Food & Beverage Support 6 26,312 41,787 Off Campus Cater Coordinator 6 26,312 41,787 Operations Commercial Support G6 6 26,312 41,787 Operations Floor Supervisor 6 26,312 41,787 Operations Floor Support Commercial 6 26,312 41,787 Operations Office Support 6 26,312 41,787 Operations Office Support II 6 26,312 41,787 Receiving & Distribution Clerk 6 26,312 41,787 Subway Operations Floor Supervisor 6 26,312 41,787 Vault Cashier 6 26,312 41,787 Accounts Specialist 6 26,312 41,787 Commercial Cook G6 6 26,312 41,787 Accounts Specialist G7 7 28,954 46,072 Accounts Specialist III 7 28,954 46,072 Administrative Assistant_G7 7 28,954 46,072 Assignment Coordinator 7 28,954 46,072 Commercial Cook G7 7 28,954 46,072 Community Development Specialist 7 28,954 46,072 6

8 Position Grade Annual Minimum Annual Maximum Floor Support 7 28,954 46,072 Graduate Complex Coordinator 7 28,954 46,072 Grants Specialist G7 7 28,954 46,072 Operations Support Qdoba 7 28,954 46,072 Project Coordinator G7 7 28,954 46,072 Social Media Coordinator 7 28,954 46,072 System Administration for Dining Services 7 28,954 46,072 Biology_Technician 7 28,954 46,072 Buyer's Asst_Bronco Tech 7 28,954 46,072 Eng_Project Coordinator 7 28,954 46,072 Receiving Dock Supervisor G7 7 28,954 46,072 Research Assistant G7 7 28,954 46,072 Accounting Specialist 8 35,901 54,392 Assistant Manager CBA Pony Express 8 35,901 54,392 CEU Program Development Manager 8 35,901 54,392 Farm Store Supervisor 8 35,901 54,392 General Maintenance Lead G8 8 35,901 54,392 Grants Specialist G8 8 35,901 54,392 Info Tech G8 8 35,901 54,392 International Training Coordinator 8 35,901 54,392 Marketing Assistant 8 35,901 54,392 Payroll Technician 8 35,901 54,392 Ship & Receiving Supervisor 8 35,901 54,392 Starbucks Manager 8 35,901 54,392 Student Affairs Coordinator 8 35,901 54,392 Technical Specialist Exempt 8 35,901 54,392 Area Director 8 35,901 54,392 Community Development Specialist 8 35,901 54,392 Course Material Coordinator 8 35,901 54,392 Einsteins Supervisor 8 35,901 54,392 Gen Maint Wrkr Lead G8 8 35,901 54,392 Mgr Retail Ops, Food Truck 8 35,901 54,392 Residental Intl Hsing Conf Coordinator 8 35,901 54,392 Academic Coordinator II 9 37,357 59,426 Administrative Assistant G9 9 37,357 59,426 Agriculture Laborer Lead 9 37,357 59,426 Asst Property Mgr 9 37,357 59,426 Dennys Assistant Manager 9 37,357 59,426 Franchise Manager G9 9 37,357 59,426 HR Generalist I 9 37,357 59,426 Kitchen Supervisor G9 9 37,357 59,426 Los Olivos Assistant Manager 9 37,357 59,426 Research Scientist I 9 37,357 59,426 Sr. Payroll Technician 9 37,357 59,426 CPELI_ESL Teacher -Regular 9 37,357 59,426 General Retail Buyer 9 37,357 59,426 Marketing Coordinator 9 37,357 59,426 Mgr Franchise Ops 9 37,357 59,426 Mgr Retail Ops 9 37,357 59,426 7

9 Position Grade Annual Minimum Annual Maximum Research Scientist G9 9 37,357 59,426 Student Affairs Coord. Gr ,357 59,426 Accounts Specialist G ,787 66,914 Admin Assistant G ,787 66,914 Asstistant Director for Residential Standards (UV) 10 41,787 66,914 Book Operations Manager 10 41,787 66,914 Computer Store Manager 10 41,787 66,914 Conference Sales Manager 10 41,787 66,914 Financial Systems Accountant 10 41,787 66,914 Franchise Manager G ,787 66,914 General Merchandise Manager 10 41,787 66,914 HVAC Technician 10 41,787 66,914 Learning Specialist 10 41,787 66,914 Manager CBA Pony 10 41,787 66,914 Operations Manager 10 41,787 66,914 Reading Advisor II 10 41,787 66,914 Service Manager 10 41,787 66,914 Shipping & Receiving Manager 10 41,787 66,914 Upward Bound Program Coordinator 10 41,787 66,914 Vending Manager 10 41,787 66,914 CEMast Project Coordinator 10 41,787 66,914 IBW Retail Manager Operations 10 41,787 66,914 Manager CBA Pony 10 41,787 66,914 Reading Advisor II 10 41,787 66,914 Rise Program Administrator 10 41,787 66,914 SC_ProjectCoordinator 10 41,787 66,914 Academic Program Coordinator 11 44,909 75,423 Facilities Manager 11 44,909 75,423 Financial System Analyst 11 44,909 75,423 Hospitality Management & EIP 11 44,909 75,423 HR Generalist II 11 44,909 75,423 Program Administrator 11 44,909 75,423 Real Estate Manager 11 44,909 75,423 AGRIscapes Outreach Ccoordiantor 11 44,909 75,423 Communication and External Relations Spe 11 44,909 75,423 General Business Mgr_ ,909 75,423 Hospitality Mngmt. Educ. Initiative Prog 11 44,909 75,423 Associate Director of University Village 12 50,989 85,704 Asst to Dir/Pub Relations 12 50,989 85,704 Dennys General Manager 12 50,989 85,704 Executive Chef 12 50,989 85,704 Farm Supervisor 12 50,989 85,704 General Business Manager 12 50,989 85,704 Information Systems Analyst 12 50,989 85,704 Project Manager 12 50,989 85,704 Research Scientist III 12 50,989 85,704 Sr Catering Manager 12 50,989 85,704 8

10 Position Grade Annual Minimum Annual Maximum Sr. GM Board Operations 12 50,989 85,704 Webmaster 12 50,989 85,704 Assistant Director GM 12 50,989 85,704 Eng_Program Director 12 50,989 85,704 Equine Ops Program Manager 12 50,989 85,704 Marketing and Communication Officer 12 50,989 85,704 Payroll Manager 12 50,989 85,704 Associate Director, Dining Services 13 57,095 95,990 Contract & Grants Manager 13 57,095 95,990 Dir of CPELI 13 57,095 95,990 Director CRSP 13 57,095 95,990 Director of Comm/Ext Relations 13 57,095 95,990 Director of Enterprise Accounting 13 57,095 95,990 Director of Marketing 13 57,095 95,990 Director of Talent Search 13 57,095 95,990 Program Director 13 57,095 95,990 Project Coordinator G ,095 95,990 Sr. Associate Director Bookstore 13 57,095 95,990 Associate Director, Dining Services 13 57,095 95,990 Associate Director_CPELI 13 57,095 95,990 Chief Employment Offcer 14 74, ,188 Director Housing Services 14 74, ,188 Director of Bookstore 14 74, ,188 Director of Dining Services 14 74, ,188 Director of Kellogg West Conference Center 14 74, ,188 MIS Director 14 74, ,188 Project Director 14 74, ,188 Marketing_Dir 14 74, ,188 Chief Financial Officer 15 88, ,360 Real Estate Program Director 15 88, ,360 Executive Director , ,441 9

11 Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Dennis Miller Chief Employment Officer Subject: Compensation Budget For Merit Increases Attachments: (a) Foundation Policy 219 (b) Recent Benefits Matrix (c) Turnover Statistics and Trend Chart Summary This proposal was tabled from the previous Personnel Committee held on September 18, 2017, and therefore is presented for additional consideration. The Foundation has a performance-based compensation system, which was implemented in July 1996, as shown in per our Compensation Plan, Policy # 219 Attachment (a) which outlines the compensation framework for Foundation employees. The purpose of the Foundation s pay for performance compensation program is to enhance communications between supervisors and employees, to inform employees of progress in meeting performance standards for their position, and to maintain records of each employees performance which can be used as a supporting document for such things as merit salary increases, promotions, training, and disciplinary action when appropriate. All Foundation employees are eligible for annual wage or salary reviews based on their performance within the range for their respective job classifications. The employee s immediate supervisor prepares a performance evaluation to support any merit salary adjustment. Such adjustments are granted only if the employee is satisfactorily meeting or exceeding the performance standards for their position. A Foundation employee is eligible for a merit salary adjustment as lump sum incentive award after they reach the top of the range of pay for their position. Since 1996, the merit scale has been based on a 0% - 6% increase based on classification within a range. Due to the Great Recession, the merit scale was suspended during the FY year and has remained so for the current fiscal year. In order to plan for the reinstatement of the merit scale, communicate effectively to all Foundation employees of the decision to reinstate, and take action steps to reinstate the merit scale, it is necessary to provide significant advance notice to all Foundation employees on the planned reinstatement date. An advance notice of 8 12 months would allow for those events to transpire and for actions to take place to implement the merit scale. 10

12 Attachment (b) shows the recent comparison of benefits between Foundation and the CSU, and Attachment (c) shows turnover statistics and trend over the last 10 years. The information in these two Attachments is intended to help fill in the gaps related to the impacts of the long term trend from our compensation practices, and helps support the need to take action by reinstating the merit scale. Foundation management is recommending to reinstate the merit scale effective July 1, 2018, which is the beginning of the FY 2018 Budget year. Once reinstated, all eligible employees will receive a compensation increase based on a merit scale of 0% - 6% depending on performance rating and classification within a range. Maximum Merit Increase 6% General Description of Performance Relative to Expectations Rating 0 6 Possible Merit Increase Added to Base If At Range Maximum, One-Time Bonus Not Added to Base Below the Expectation, Not Satisfactory % 0.0% Meets the Min. Expectation, Satisfactory % 0.0% Exceeds the Expectation in a Few Areas % 1.0% Exceeds the Expectation in Many Areas % 2.0% Exceeds the Expectation in Most Areas % 3.0% Overall Performance Deemed Exceptional % 4.0% A recommendation will be made to the Board of Directors in May during its normal budgeting process regarding the expected increase in wages. The following resolution is recommended for approval: RESOLVED, that the Personnel Committee of the Cal Poly Pomona Foundation, Inc. recommends to the Board of Directors approval to reinstate the merit scale with an effective date of July 1, 2018, and; All Foundation employees will be eligible for a performance evaluation to support a salary compensation increase based on a merit scale of 0% - 6% as part of the 2018 Annual Budget. PASSED AND ADOPTED THIS 13th DAY OF NOVEMBER By: Ms. Danielle Manning, Chair Personnel Committee 11

13 CAL POLY POMONA FOUNDATION, INC. POLICIES AND PROCEDURES Subject: Compensation Plan Policy No.: 219 Old No.: Reference: 298-II-D, 343 III-J Date: 06/13/00 Revision: 05/25/10 PURPOSE To provide a policy framework for a compensation plan for Foundation employees in compliance with Title 5, California Code of Regulations Section BACKGROUND AND PURPOSE This policy establishes the framework for a compensation plan covering all positions. OBJECTIVES 1. To establish wages and salaries for positions that are competitive with the salaries and benefits being paid to comparable jobs in other educational institutions in the area or in commercial operations of like nature, as required by Education Code section To provide a wage and salary structure that is internally equitable and which ensures that positions with equal skill, effort, responsibility and working conditions receive equal pay. 3. To recruit and retain well-qualified employees for positions within the Foundation. 4. To maintain salary and benefit costs within budgetary limits established by the Board of Directors, consistent with Education Code section EQUITABLE 1. Externally Equitable: The Foundation Employment Services Director shall conduct salary surveys to assist in establishing and/or adjusting the wage and salary ranges for positions. The survey includes other commercial organizations and non-profit corporations within the California/Los Angeles area and/or auxiliary organizations within the California State University and University of California systems which have positions that perform services that are comparable to the Foundation s positions. 2. Internally Equitable: The Foundation will evaluate its internal wage and salary structure to ensure that positions with equal skill, effort, responsibility and working conditions receive equal pay. A position classification plan is used to assist in the job evaluation. 12

14 Policy No.: 219 Subject: Compensation Plan Page 2 MERIT SALARY ADJUSTMENTS 1. Management and non-management salary plan positions are eligible for annual wage or salary adjustments based on merit within the range for their respective job classifications. The employee s immediate supervisor prepares performance evaluation to support any merit salary adjustment. Such adjustments are granted only if the employee is satisfactorily meeting or exceeding the performance standards for his/her position. Merit salary increases must be approved by the department head (or Executive Director in situations where he/she is the next higher level of supervisor) and the Employment Services Director. An employee is eligible for merit salary adjustment or lump sum merit awards after he/she reaches the maximum rate of the range for his/her job classification in conjunction with the performance evaluation program. SALARY GRADE ADJUSTMENTS 1. Changes in an employee s level of responsibility can result in his/her position being assigned to a different salary range. If a position is assigned a higher salary range, the incumbent will normally have his/her wage adjusted to the minimum of the range or receive a pre-approved percentage increase, whichever is greater. When a position is assigned to a lower salary range, his/her salary may be reduced to the top of the lower salary range or retained at the existing level for a specified period of time dependent upon the circumstances. IMPLEMENTATION 1. The Board of Directors must approve any changes to this policy. The Foundation s Executive Director and Employment Services Director shall develop and implement guidelines to facilitate this program. The Executive Director and executive staff are responsible for ensuring that this policy is executed in a fair and equitable manner. 13

15 Benefits Comparability Analysis Overview CPP Foundation Notes Notes CPP University Description of Benefit Description of Benefit Jury Duty Health Insurance Health Insurance Maximum Maximum Anthem HMO Select Healthcare Healthcare Anthem HMO Traditional Fdn Contribution CSU Contribution Blue Shield Access Health Net SmartCare Kaiser Permanente Traditional $462 $725 Kaiser Permanente Kaiser Permanente with Deductible $876 $1,377 Kaiser Permanente with Deductible $1,118 $1,766 United Healthcare HMO EPO PERS Care (PPO) PERS Choice (PPO) PERS Select (PPO) Retiree Medical Programs Kaiser $462 $725 Cal PERS Medicare Programs United Healthcare MAPD $876 $1,377 Cal PERS Medicare Programs United Healthcare Sr. Supplement $1,118 $1,766 Cal PERS Medicare Programs Part B Reimbursement Medicare Part B Reimbursement Not Available $0 $134 Medicare Part B Premium Reimbursement $0 $268 Jury Duty 20 paid days per 2 year period Unlimited number of paid days Bereavement One day with optional 4 sick days Paid Parental Leave 30 days paid at 55% Parking All pay same level as CSU MPP $51/month Pension Plan and Deferred Compensation Plan 457(b) Voluntary Contributions with Sick/Vacation Conversion Longevity Pay Plan via 457(b) (Hire date after March 2009) N/A N/A N/A Retiree Health Insurance Hire Date Prior to March 2009 (Yes) Hire Date Post March 2009 Not Available Other Programs Computer Purchase Program Flex Dollars (replaced Opt-Out Program) Legal Plan N/A N/A N/A N/A Opt-Out Provision for Health Insurance Funeral Leave 5 days Paid Parental Leave 30 days paid at 100% Parking $16/month / MPP $51 month Pension Plan and Deferred Compensation Plan 457(b) Voluntary Contributions Only N/A State Savings Plus 401k Thrift Plan CalPERS Supplemental Contribution Program Pre-retirement Death benefit with CalPERS Retiree Health Insurance Pre March 2009 (Yes) Post March 2009 (Yes) Other Programs PST Program for Part time and seasonal EE's N/A Legal Plan Home and Automobile Insurance Medix Travel Assist Program Life Services Toolkit Organ Donar Leave (30 days paid time off) Opt-Out Provision for Health Insurance Sunsetted policy with grandfather provisions CPP Foundation Dental PPO Network / HMO (CIGNA) Vision Plan Group Life Insurance/AD&D Short Term Disability Long Term Disability Flex Spending Paid Holidays Vacation Sick Leave Rideshare Incentives Identity Theft / Fraud Protection Education Reimbursement Retiree Dental Insurance Defined Benefit Plan - CalPERS 403(b) TSA (Individual plans) Same or Similar Benefits 14 Yes CPP University Dental (Delta Dental) Vision Plan Group Life Insurance/AD&D Short Term Disability Long Term Disability Flex Spending Paid Holidays Vacation Sick Leave Rideshare Incentives Identity Theft / Fraud Protection Education Reimbursement Retiree Dental Insurance Defined Benefit Plan - CalPERS CSU 403(b) TSA

16 Year Balance Hire Term Ratio 6/30/ % % % % % % % % % % 6.88% General Statistics 1. Retirees over 10 year period = Avg Annual Retirees over this period = Retirees represent about 29% of total Term's 4. Avg Age at Date of Hire = Avg Age at Dater of Retirement = Avg Length of Service at Separation for all Full Time EE's = Avg Turnover over 10 year period = 8.8% 9.73% 10 YEAR TURNOVER THROUGH % 3.65% 7.69% 12.02% 8.76% 7.17% 10.33% 14.63% 15

17 Memorandum Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Dennis Miller Chief Employment Officer Subject: Request Wage Adjustment for Budget Year During the upcoming budget year there will be several expenses associated with the overall cost of labor. One of those expenses needs to be considered early in the budget process to help ensure all those with budget authority know what to expect during the budget process, which commences in December 2017 for the budget year. Therefore, Foundation management is recommending a 3% across the board wage increase for all eligible employees. For the budget year, eligible employees include those who are classified as full time, were hired prior to July 1, 2017, have not been reclassified or promoted within the current budget year, and receive funding that is not from a grant or Foundation program. Full time employees who were hired, reclassified, or promoted on or between July 1, 2017, and December 31, 2017, will be eligible to receive an increase based on a monthly pro-rated amount starting from the date of the event to June 30, The forecasted expense associated with this wage adjustment is approximately $195,000. Proposed Action: WHEREAS, the Foundation management is requesting the Personnel Committee s action to approve the 3% wage adjustment to be effective on or about July 1, 2018, and forward to the Board of Director s for final approval. NOW, THEREFORE, BE IT RESOLVED, the Personnel Committee has reviewed the above request and recommends approval to the Board of Directors. PASSED AND ADOPTED THIS DAY 13 th OF NOVEMBER 2017 By: Ms. Danielle Manning, Chair Personnel Committee 16

18 Memorandum Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Subject: Dennis Miller, Chief Employment Officer Cal Poly Pomona Foundation, Inc. Temporary Employment Engagement for Anne McLoughlin Anne McLoughlin, the current Executive Administrative Assistant to the Executive Director, has announced her retirement date of January 17, In her role she has demonstrated specialized skills and extensive knowledge related to Foundation Administration, and she will be difficult to replace. As such, we have asked Anne - and she has agreed, to be available to Foundation, intermittently, until June 30, 2018, for the purpose of assisting with the training of a new employee in that role. However, CalPERS regulations require retirees to wait at least 180 days after retirement before they can work for the CalPERS Agency from which they retired. The exception to that regulation is when the agency s governing body waives the 180 day requirement. Therefore, Foundation management is requesting approval to enter into a temporary work engagement with retiree Anne McLoughlin up until June 30, 2018, and thereby waive the 180 day requirement. PROPOSED ACTION: The following resolution is recommended for approval: RESOLVED, that the Personnel Committee of the Board of Directors approves entering into a temporary work engagement with Anne McLoughlin after her retirement date, and present this request to the full Board of Directors for approval. BE IT FURTHER RESOLVED that upon approval of this resolution by the Board of Directors at their next scheduled meeting, the Chief Employment Officer of the Cal Poly Pomona Foundation is authorized and directed to take any and all action as may be necessary to effectuate this Resolution. PASSED AND ADOPTED THIS 13 th DAY OF NOVEMBER Ms. Danielle Manning, Chair Personnel Committee 17

19 Memorandum Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Subject: Dennis Miller, Chief Employment Officer Cal Poly Pomona Foundation, Inc. BEREAVEMENT POLICY ENHANCEMENT Foundation s existing policy for paying wages to employees who experience a death in the family is limited to one paid day by Foundation per event. Paid sick leave, when available, may be used to cover an additional 4 days of paid time off when these unfortunate life events occur. Foundation management has examined this policy and believes it is too restrictive when compared to industry standards. Therefore, an enhancement to the current policy is recommended, whereby Foundation will cover up to 5 days of paid time off for qualified bereavement events. PROPOSED ACTION: The following Resolution is recommended for approval: RESOLVED, that the Personnel Committee of the Board of Directors approves the proposal to enhance the benefits under the Foundation s Bereavement Policy, effective January 1, BE IT FURTHER RESOLVED, that upon approval of this resolution by the Board of Directors at their next scheduled meeting, the Chief Employment Office of the Cal Poly Pomona Foundation is authorized and directed to take any and all action as may be necessary to effectuate this Resolution. PASSED AND ADOPTED THIS 13th DAY OF NOVEMBER, Ms. Danielle Manning, Chair Personnel Committee 18

20 Memorandum Date: November 13, 2017 To: From: Personnel Committee Cal Poly Pomona Foundation, Inc. Dennis Miller, Chief Employment Officer Subject: 2018 ANNUAL EMPLOYEE BENEFITS RENEWAL Foundation management recommends its monthly contribution toward the 2018 health plan premiums for each employee or annuitant based on the below table. These contributions are based on the 5% annual increase cap previously approved by the Board of Directors. Employee (or Annuitant) $462 Employee (or Annuitant) + 1 $876 Employee (or Annuitant) + 2 or more Dependents $1,118 PROPOSED ACTION: The following resolution is recommended for approval: RESOLVED, that the Personnel Committee of the Board of Directors approves the Foundation s monthly contribution to the 2018 health plan premiums up to $462 for employee or annuitant, up to $876 for an employee or annuitant with one dependent, and up to $1,118 for an employee or annuitant enrolled for self and 2 or more dependents. BE IT FURTHER RESOLVED, that upon approval of this resolution by the Board of Directors at their next scheduled meeting, the Chief Employment Officer of the Cal Poly Pomona Foundation is authorized and directed to take any and all action as may be necessary to effectuate this Resolution. PASSED AND ADOPTED THIS 13 th DAY OF NOVEMBER Danielle Manning, Chair Personnel Committee 19

21 Cal Poly Pomona Foundation, Inc. HEALTH PREMIUM RATES January 1, December 31, 2017 HEALTH PREMIUM RATES January 1, December 31, 2018 Medical Plans Coverage Code Monthly Premium Foundation's Contribution Employee's Cost Medical Plans Coverage Code Monthly Premium Foundation's Contribution Employee's Cost CalPERS (PERS Choice) State Wide State Contribution Employee's Cost Foundation EPO (1) $ $ $ Foundation EPO (1) $ $ $ $ $ $0.00 (1) 71% 29% 69% 31% 100% 0% (2) $1, $ $ (2) $1, $ $ $1, $1, $71.32 (2) 67% 33% 65% 35% 95% 5% (3) $1, $1, $ (3) $1, $1, $ $1, $1, $ (3) 62% 38% 61% 39% 94% 6% CalPERS Kaiser Kaiser - HMO (1) $ $ $48.37 Kaiser - HMO (1) $ $ $62.65 $ $ $7.62 (1) 90% 10% 88% 12% 101% -1% (2) $ $ $ (2) $1, $ $ $1, $1, $57.76 (2) 85% 15% 83% 17% 96% 4% (3) $1, $1, $ (3) $1, $1, $ $1, $1, $99.19 (3) 77% 23% 75% 25% 95% 5% Kaiser - Deductible (1) $ $ $4.39 Kaiser - Deductible (1) $ $ $15.42 (1) 99% 1% 97% 3% 6125 (2) $ $ $ (2) $ $ $78.84 (2) 94% 6% 92% 8% (3) $1, $1, $ (3) $1, $1, $ (3) 85% 15% 83% 17% Dental Plans Dental Plans Foundation PPO (1) $60.00 $60.00 Foundation PPO (1) $62.00 $62.00 (2) $ $ (2) $ $ (3) $ $ (3) $ $ Cigna DMHO (1) $22.20 $22.20 Cigna DMHO (1) $23.42 $23.42 (2) $36.04 $36.04 (2) $38.02 $38.02 (3) $49.97 $49.97 (3) $52.71 $52.71 Vision Vision (1) $11.00 $11.00 (1) $12.00 $12.00 (2) $19.00 $19.00 (2) $21.00 $21.00 (3) $30.00 $30.00 (3) $32.00 $

22 FDN EPO Premiums EPO Health Premiums Employee Contributions Single Employee + 1 Family Page 1 21

23 Kaiser Health Premiums Employee Contributions Single Employee + 1 Family 22

24 OPEB Expense Actuarial OPEB Expenses 900, , , , , , , , , ,000 Jun 2011 Jun 2013 Jun 2015 Jun 2017 Jun 2018 Jun 2019 OPEB Expenses Page 1 23

25 OPEB Asst&Liab Actuarial OPEB Liabilities & VEBA Trust Assets 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Jun 2011 Jun 2013 Jun 2015 Jun 2017 Jun 2018 Actuarial OPEB Liability VEBA Trust Assets Page 1 24

26 Cal Poly Pomona Foundation, Inc. Estimates of Total OPEB Liability at Alternative COLAs November 1, 2017 We present below the impact from changing the employer cap on benefits provided to retirees in the Cal Poly Pomona Foundation, Inc. Retiree Medical Plan. The employer is considering these options for changing the cap: Baseline: Current cap COLA increase is 5.0% per year Alternative Scenario 1: Cap increase of 10.0% in first year, 5.0% per year thereafter Alternative Scenario 2: Cap increase of 8.0% per year To simplify our work, we assumed in our calculations that these alternative scenarios would take effect as of 7/1/17. Below we present the imact of these changes on the GASB 75 liabilities as of 7/1/17: Total OPEB Liability Cap Subsidy Total $ Change % Change Baseline $12,605,970 $1,255,976 $13,861,946 $0 0.0% Alternative Scenario 1 $12,799,200 $1,255,976 $14,055,176 $193, % Alternative Scenario 2 $13,088,901 $1,255,976 $14,344,877 $482, % Normal Cost Cap Subsidy Total $ Change % change Baseline $129,241 $13,036 $142,277 $0 0.0% Alternative Scenario 1 $132,442 $13,036 $145,478 $3, % Alternative Scenario 2 $138,795 $13,036 $151,831 $9, % Present Value of Future Benefits Cap Subsidy Total $ Change % change Baseline $13,502,102 $1,354,565 $14,856,667 $0 0.0% Alternative Scenario 1 $13,720,524 $1,354,565 $15,075,089 $218, % Alternative Scenario 2 $14,074,531 $1,354,565 $15,429,096 $572, % Based on 7/1/2017 census data, plan provisions, and assumptions, including: > 5.0% COLA on the employer cap > 6.50% discount rate > Initial Trend Rates of 7.0% pre 65 and 5.5% post 65 > Ultimate Trend Rate of 5.0% > Market Value of Assets at 7/1/2017 of $7,332,228 25

27 2018 CalPERS Monthly Basic Plan Rates, CSU Contribution Rates, and Employee Costs HEALTH PLAN ANTHEM BLUE CROSS SELECT HMO CALIFORNIA 181 ANTHEM BLUE CROSS TRADITIONAL HMO CALIF 180 BLUE SHIELD ACCESS+ CALIF 141 HEALTH NET SALUD Y MAS 184 HEALTH NET SMARTCARE 185 KAISER PERMANENTE 056 UNITEDHEALTHCARE ALLIANCE HMO 187 PERSCARE (PPO) 278 PERS CHOICE (PPO) 222 PERS SELECT CALIFORNIA (PPO) 045 * PEACE OFFICERS RESEARCH ASSOCIATION OF CALIFORNIA (PORAC)* 207 Enrolled Employee & Eligible 2018 Total Monthly Premium All Employee Groups (except Unit 6) Amount Paid Amount Paid by CSU by Employee Amount Paid by CSU Unit 6 Amount Paid by Employee Dependents Employee Only $ $ $71.73 $ $66.73 Employee + 1 $1, $1, $ $1, $ Employee + 2 $2, $1, $ $1, $ Employee Only $ $ $ $ $ Employee + 1 $1, $1, $ $1, $ Employee + 2 $2, $1, $ $1, $ Employee Only $ $ $27.32 $ $22.32 Employee + 1 $1, $1, $ $1, $ Employee + 2 $1, $1, $ $1, $ Employee Only $ $ $0.00 $ $0.00 Employee + 1 $ $ $0.00 $ $0.00 Employee + 2 $1, $1, $0.00 $1, $0.00 Employee Only $ $ $65.73 $ $60.73 Employee + 1 $1, $1, $ $1, $ Employee + 2 $2, $1, $ $1, $ Employee Only $ $ $0.00 $ $0.00 Employee + 1 $1, $1, $57.76 $1, $47.76 Employee + 2 $1, $1, $99.19 $1, $79.19 Employee Only $ $ $0.00 $ $0.00 Employee + 1 $1, $1, $32.18 $1, $22.18 Employee + 2 $1, $1, $65.93 $1, $45.93 Employee Only $ $ $51.19 $ $46.19 Employee + 1 $1, $1, $ $1, $ Employee + 2 $2, $1, $ $1, $ Employee Only $ $ $0.00 $ $0.00 Employee + 1 $1, $1, $71.32 $1, $61.32 Employee + 2 $1, $1, $ $1, $96.82 Employee Only $ $ $0.00 $ $0.00 Employee + 1 $1, $1, $0.00 $1, $0.00 Employee + 2 $1, $1, $0.00 $1, $0.00 Employee Only $ $ $9.00 N/A Employee + 1 $1, $1, $ N/A N/A Employee + 2 $1, $1, $ N/A N/A *This plan is restricted to employees in Unit 8, State University Police Association (SUPA) and requires membership. Aug

28 Memorandum Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Subject: Dennis Miller, Chief Employment Officer Cal Poly Pomona Foundation, Inc. ELIGIBILITY FOR POST-RETIREMENT MEDICAL INSURANCE In 2004, Foundation cancelled its medical insurance contract with CalPERS and initiated a program administered through Alliant Insurance Services for its healthcare needs for active employees and retirees. The contact with CalPERS had certain provisions related to continued eligibility of post-retirement medical insurance. One such provision of the CalPERS contract is retirees are able to move into and out of the health insurance benefits, annually, if they meet certain criteria. When Foundation cancelled its medical insurance contract with CalPERS, Foundation eliminated this provision as it applied to retirees. Currently, once a retiree leaves Foundation s benefit program the decision is permanent and a retiree is no longer eligible for post-retirement health insurance sponsored by Foundation. Due to the History of Key Events during the past 13 years, as outlined below, Foundation management is recommending to change its Plan and allow retirees to move into and out of the health insurance benefits if they meet certain criteria. HISTORY of KEY EVENTS In 2009 Foundation discontinued offering post-retirement health insurance to employees who were hired on or after March 1, In 2009 and 2010, Foundation management (David Prenovost) led the initiative to create a multiple-employer Voluntary Employee Beneficiary Association (VEBA) for the purpose of creating a trust in which all CSU auxiliaries in good standing could invest and administer funds related primarily to post-retirement medical benefits (i.e. OPEB obligation ). The VEBA was established in August 2010 and in that same year Foundation began to contribute $1,000,000 annually to the VEBA which, over time, would help ensure funds would be available to pay for the post-retirement medical benefits Foundation management has promised to its eligible employees / retirees. 27

29 During the past 7 years Foundation has contributed $1,000,000 annually to the VEBA toward funding its OPEB obligation. Currently, the actuary from Nicolay Consulting is forecasting the VEBA will reach 100% funding within the next 5 7 years. A key assumption the actuary applies to modeling the OPEB obligation is that 100% of all eligible employees will enroll in post-retirement health insurance benefits when they retire, and that they will remain enrolled until death. Our history shows we have 4-5% of retirees who do not enroll, or do not continue enrollment over time. As a result of Foundation funding the VEBA, and due to the fact Foundation eliminated this benefit to new employees starting in March 2009, there is no longer any purpose to limit a retiree from moving into or out of the health insurance benefits. In addition, there is no financial impact to this Plan change because there is no change in the OPEB obligation whether a retiree is enrolled or not enrolled in the health insurance benefits, since the assumption used by the actuary to calculate the OPEB obligation already assumes 100% enrollment (at all times) by retirees. Therefore, Foundation management is recommending to change its Plan and permit all current and future retirees who enroll in Foundation s post-retirement benefits program the option to move into and out of its benefits program on an annual basis. The key exception to this Plan would be when a retiree fails to pay its premiums to Foundation for the applicable health insurance, and in those cases the retiree would lose eligibility to Foundation s post-retirement health insurance benefits which is the current Plan. PROPOSED ACTION: The following Resolution is recommended for approval: RESOLVED, that the Personnel Committee of the Board of Directors approves the Plan change for post-retirement health insurance whereby retirees may move into and out of health insurance benefits, unless the retiree was dis-enrolled in health insurance benefits due to a lack of payment to Foundation for their health insurance premium. BE IT FURTHER RESOLVED, that upon approval of this resolution by the Board of Directors at their next scheduled meeting, the Chief Employment Office of the Cal Poly Pomona Foundation is authorized and directed to take any and all action as may be necessary to effectuate this Resolution. PASSED AND ADOPTED THIS 13 th DAY OF NOVEMBER, Ms. Danielle Manning, Chair Personnel Committee 28

30 Memorandum Date: November 13, 2017 To: Personnel Committee Cal Poly Pomona Foundation, Inc. From: Subject: Dennis Miller, Chief Employment Officer Cal Poly Pomona Foundation, Inc. PAID TIME OFF POLICY UPDATE Foundation currently has a benefit for Paid Family Leave (PFL) administered through the State of California s Employment Development Division. Generally, PFL provides allows an employee to receive partial pay while off work to care for a seriously ill family member, or to bond with a new child entering their life either by birth, adoption, or foster care placement. While the PFL program is an integral part of the broader program administered through the State Disability Insurance program, it is funded only by employee contributions at a rate of 1% of employee wages. The benefits offered through the PFL program allow for an eligible employee to be paid about 55% of their pay for up to 6 weeks (i.e.: 30 work days), after a 7 calendar day waiting period. The 7 day waiting period and the 45% of pay that is not covered through the PFL program is covered 100% by the employee in the form of earned sick time, accrued vacation time, or without pay. Historically, 3 or 4 Foundation employees each year have benefited from this program. Ideally, Foundation management would have a company paid program to cover the first 7 days of unpaid absence, and the 45% of pay that is not covered through the PFL program. 29