Salary & Benefits Overview Deborah Sparks, Director of Benefits and Retirement Services John Wallingford, Director of Financial Services Keith Johnson, Associate Superintendent for Human Resources David Cline, Associate Superintendent for Finance and Support Services
Salary & Costs The focus of the salary comparison is with our competitors in Northern Virginia (Virginia Planning District Eight) Planning District Eight receives additional state funding for salaries, aka Cost of Competing (COC), due to the competitive market for employees of all types in Northern Virginia Recruiting and retention have identified these districts as our primary competition 2
PWCS People Driven Expenditures Distribution of Employees 82.09% 60.5% 35.5% 5.84% Salaries and Benefits Supplies Reserves 1.98% 5.46% 4.63% Services & Utilities Capital Projects 4.0% Teachers Classified Administrative 3
7.00% PWCS Salary Increases FY 2007 to 2016 Pay Raise History 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 BONUS 0.00% 0.00% 0.00% 0.00% 1.20% 0.00% 0.00% 0.00% 0.00% 0.00% VRS 1.00% 1.00% 1.00% 1.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% PPA 0.00% 2.00% 2.00% 0.00% 1.75% 0.00% 2.90% 1.80% 3.00% 3.00% STEP 2.80% 0.00% 0.00% 2.85% 0.00% 0.00% 0.00% 3.00% 2.90% 3.00% BONUS: FY 2012-0.60% Bonus was paid equally on October 31 and January 15. VRS: Virginia Retirement System required raises to offset employee benefit cost increase PPA: Pay Plan Adjustment pay raises applied as equal percentage across pay scale STEP: Pay increase due to advancement in step on scale 4
Calendar Regional Comparison School Division # Instructional Days Length of Instructional Day* Length of Teacher Day # Teacher Contract Days PWCS 181 ES/MS/HS 355 min ES 370 min MS/HS 7 ½ hours 195 Arlington 181 ES/MS/HS 355 min ES 365 min MS 370 min - HS 7 ½ hours 194 Fairfax 180 ES/MS/HS 360 min ES 375 min MS/HS 7 ½ hours 194 Loudoun 180 ES/MS/HS 360 min ES 378 min MS/HS 7 hours 194 Manassas City 180 ES/MS/HS 385 min ES 390 min MS 390 min HS 7 ½ hours 200 Stafford 180 ES/MS/HS 355 min ES 360 min MS 365 min HS 7 ½ hours 200 Note: Updated December 2015 *Sample schedules some variances exist
Teacher Salary Comparison Step 1 - Bachelors 51,000 49,000 47,000 45,000 43,000 41,000 39,000 37,000 35,000 6
Teacher Salary Comparison Beginning 10 th Year + Masters Degree 85,000 80,000 75,000 70,000 65,000 60,000 55,000 50,000 45,000 40,000 7
Teacher Salary Comparison Maximum Salary 120,000 110,000 100,000 90,000 80,000 70,000 60,000 8
Teacher Salary Comparison Salary and Benefits for a $65,000 Employee 102,000 100,000 98,000 96,000 94,000 92,000 90,000 88,000 86,000 9
11.5% Teacher Salary Trends 2011-2016 - Five Year Average Annual Increase 9.5% 7.5% 5.5% 3.5% 1.5% -0.5% 2.06% 1.89% 1.35% 2.45% 2.43% 1.59% 0.00% 0.70% 1.62% -2.5% Step 1 Bachelor Degree Average Salary 10
FY 2016 Cost per Pupil 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 11
Cost per Pupil Change Over Time (Not adjusted for inflation) 11,000 10,776 10,724 10,500 10,378 10,429 10,383 10,163 10,365 10,000 9,852 10,158 9,500 9,374 9,577 9,000 8,939 8,500 12
Students per Classroom Teacher 35.0 30.0 25.0 20.0 15.0 10.0 5.0 0.0 Elementary Middle High 13
Salary & Cost Summary Beginning salaries for first-year teachers remains lower than all except Manassas Park, Manassas, and Prince George s County in the WABE group. Maximum salary remains 2 nd only to Arlington Highest number of students per classroom teacher in the region Cost per pupil still lowest in the WABE survey Lowest ratio in the state for teachers per 1,000 students 14
Employer Benefit Cost Comparison 60% 50% 40% 30% 20% 10% 0% Percentage of Total Benefits 52.2% 48.5% 47.7% 47.2% 44.5% 44.1% 42.5% 41.9% 15
Health Insurance Comparison of Employer Percentage of Cost Employee Only 95.0% 90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% 90.0% 85.0% 82.5% 77.0% 72.0% 72.0% 72.0% 71.0% 16
Health Insurance Comparison of Employer Percentage for Employee and Family 80.0% 77.5% 75.0% 75.0% 75.0% 70.0% 68.0% 66.0% 65.0% 60.0% 62.0% 61.0% 59.0% 55.0% 50.0% 17
Benefits Comparison of benefits is in two groups: Standard benefits are comparable for all school divisions in Virginia. These benefits are calculated as a function of salary and include: FICA (7.65%) Virginia Retirement System (VRS) (14.06%) New Employees pay 5% Employee Contribution Employees Hired Prior to 07/01/2012 pay 4% toward Employee Contributions Group Life Insurance (1.19%) Health Insurance 18
Benefits PWCS continues to provide an employer match to the 403(b) Plan of 2% Enrollment remains the same at 48% Average deferral rate is 8.8% Recently renewed our Third Party Administrator contract. Vendor is Lincoln Financial. 19
Benefits PWCS employees health insurance premiums continue to remain high for family coverage in comparison to most competitors For FY2015 PWCS increased premiums by an overall 5% National average of premiums increases continues in the 9 to 11% range 20
Benefits Impact of Health Care Reform to PWCS July 1, 2015: PWCS offer health coverage to all employees who work at least 30 hours a week (includes all part-time, Subs, Temps, and possibly ROP employees who take a Temp assignment.) Tax Year 2015: Distribute a 1095C tax form to all employees who participated in PWCS Health plan. These must be mailed out no later than January 31, 2016. 21
Benefits VRS Hybrid Plan - Effective January 1, 2014 Current enrollment is 1560 employees Of an Employee 5% contribution 4% is provided to Defined Benefit 1% is provided to Defined Contribution (457(b)) Out of employer cost 1% is provided as match in the Defined Contribution Employee has opportunity to voluntarily contribute additional 4%, which will be matched out of employer contributions (maximum match is 2.5%) Currently 157 employees are participating in the Voluntary contributions 22
VRS Hybrid Benefits Employees are not allowed to receive a PWCS supplemental retirement plan (403(b)) match until the hybrid is maxed out VRS 457(b) Vendor is ICMA-RC. An educational meeting is set for March 10, 2016 for new employees to attend to learn more about the Hybrid plan and their investment options 23
Benefits VRS Hybrid Plan Does not offer any disability retirement option Virginia Code Sections 51.1-1150 through 51.1-1171 require that VRS covered employer implement Short-Term and Long-Term Disability Plans Code identifies level of coverage for employee PWCS contracted with The Standard as the Alternative Vendor. This plan meets all required code levels 24
Salary & Benefits Overview Deborah Sparks, Director of Benefits and Retirement Services John Wallingford, Director of Financial Services Keith Johnson, Associate Superintendent for Human Resources David Cline, Associate Superintendent for Finance and Support Services