TOTAL COMPENSATION FY 2019

Transcription

1 TOTAL COMPENSATION FY 2019

2 Total Compensation Goals Pay, Benefits and Retirement options that attract, retain, reward and motivate current and future employees. We want to maintain: Competitiveness Affordability Sustainability

3 Employee Demographics Age Years of Service 3

4 Recent Enhancements Fiscal Year Pay Enhancements FY 2018 Merit increases included Increased Transit Subsidy by $50 per month Implemented a Dependent Care Flexible Spending Account (FSA) employer match of $500 per employee FY 2017 Merit increases included 1.75% increase to the maximum of each grade/range and implemented open pay ranges Lowest base pay rate increased to $14.50/hour from $13.13/hour for all permanent employees Implemented a Commercial Driver s License (CDL) bonus program Increased New Parent Leave from 2 weeks to 4 weeks

5 Path Forward towards Compensation Goals Implementation of Classification Maintenance Plan - Focus on pay competitiveness for all classes and pay programs - Implementation over five years - External benchmark of salary range, Internal review of organizational structure, Updates to Admin Reg 5

6 FY19 Proposed Budget Items for Public Safety Employees Year 1 of Classification Maintenance Plan - Emphasis on Police, Sheriff and Fire ($2.9M) - Subsequent years average $0.65M, annually Implementation of Kelly Day for Fire Department - Provides an extra day off per 28-day cycle - Reduces the workweek to a level closer to other jurisdictions - Reduces burn-out and some overtime costs - Adds 36 uniformed employees over four years; adding nine new FTE s per year 6

7 FY19 Proposed Budget Items for General Employees Continued Open Range Pay Plan % increase up to max of grade ranges 1% Increase to Each Grade - General Employees salary range will increase by 1.0% Base Rate Increasing to $15.00/hr (from $14.50/hr) for permanent and most temporary employees 7

8 Competitive Metrics Total Comp Element Benchmark classes lagging at midpoint Employees hired over midpoint FY2015 FY2016 FY2017 FY2018 to Date 16% 16% 3% (due to increasing ranges by 1.75%) 35% all 91% MAPs Turnover 9.9% 6.5% nonretirement 34% all 75% MAPs 10.5% 7.4% nonretirement 24.2% all 80% MAPs 9.3% 5.9% nonretirement 13% 34.8% all 67% MAPs 5.7% 4.0% nonretirement Employees at max 11% 13% 10% 14%* *Projected employees at max by end of FY18 is 17% 8

9 Arlington Comparison of Proposed FY 2019 Comp Adjustments in the Region Merit Increases 3.25% General 3.5% (PS and PFP) Structure Change Average Increase 1% 2.85% Other Fairfax 1.25% - 3.0% General 2.25% Public Safety 2.25% COLA or partially funded at 1.26% COLA 4.25% General 4.5% Public Safety Funding for specific job classes Alexandria 2.3% -5.0% None N/A $1.5M public safety Prince William 3.0% None N/A 1%-2% one-time bonus for EEs at max Loudoun 3.5% 3.0% N/A Arlington Public Schools 5% (Teachers) 4% - (Other employees) None 2.8% 9

10 FY19 Proposed Budget Items Other Benefits New Adoption Assistance - Financial assistance of $5,000 per child adopted Increased Volunteer Leave - Volunteer hours increased from 4 hours to 8 hours Health Insurance Coverage - 5% increase to the overall budget - Premium increases may vary based on plan and tier - Smallest increase since FY14 10

11 FY19 Proposed Health Care Increases Across the Region Alexandria Arlington Fairfax Prince William* Major health plan 2.2% 5.0% 5.5% 5.3% Cost Sharing Individual 2-Party/Family City/Employee 80/20 80/20 County/Employee 80/20 75/25 County/Employee 85/15 75/25 County/Employee 95/5 75/25 *Prince William does not cover retirees on their health plans Clinic use avoided over $600K for ER/Urgent Care 11

12 5% Premium Increase Means: Cigna In-Network Coinsurance Plan Additional Cost Per Pay Period Individual Employee + Spouse Employee + Child(ren) Family Employee $3.00 $7.67 $6.56 $11.24 County $12.00 $23.02 $19.65 $33.70 THE BOTTOM LINE: An Employee s Pay Slip Average Annual Salary $75, Average Salary Increase: 3.25% $2, Cigna Coinsurance Increase (Family) $ Gross Salary Increase after Health $2, Note: All premiums are deducted pre-tax 12

13 Retiree Medical Monthly Subsidy Alexandria Arlington Fairfax Prince William* $260 $600 (hired before 7/1/08) $300 (hired on or after 7/1/08) $230 $210 *Prince William Health insurance credit - $165 from County and $45 from VRS for 30 yr career - No post-medicare benefits 13

14 Recent Enhancements Dependent Care FSA Reimbursement: increased enrollment by 30% Increased Transit Subsidy: maintained ridership in sub-optimal service environment Tuition Reimbursement: Used by approximately 150 employees each year Funds slots in COG-Certified Public Manager, GMU-Masters in Public Administration, and Leadership Center for Excellent (Leadership Arlington) programs Live Where You Work: projected to be fully utilized 14

15 Working Groups Looking to the Future Comprehensive Benefits Study -Phase One: Completed Survey, Focus Groups, Benchmarking Phase Two: Steering Committee Health Care February - July Leave/Other Benefits April - September 2 5 Year Strategic Plan Retirement July - December 15

16 Looking to The Future Competitiveness Affordability & Sustainability Continue the classification maintenance plan for years 2-5 Re-evaluate total compensation principles including competitors beyond current 3 neighbors and market position of average midpoint Maintain affordable pay and benefits for County and employees Evaluate pay policies for hiring and internal movement Continue strategic review of benefit programs Flexibility Consider choice in benefits Encourage mobile work and flexibility 16