TOTAL COMPENSATION FY 2019
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
Employee Demographics Age Years of Service 3
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
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
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
FY19 Proposed Budget Items for General Employees • Continued Open Range Pay Plan - 3.25% 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
Competitive Metrics Total FY2015 FY2016 FY2017 FY2018 to Comp Date Element Benchmark 16% 16% 3% 13% classes (due to lagging at increasing midpoint ranges by 1.75%) Employees 35% all 34% all 24.2% all 34.8% all hired over 91% MAPs 75% MAPs 80% MAPs 67% MAPs midpoint Turnover 9.9% 10.5% 9.3% 5.7% 6.5% non- 7.4% non- 5.9% non- 4.0% non- retirement retirement retirement retirement Employees 11% 13% 10% 14%* at max *Projected employees at max by end of FY18 is 17% 8
Comparison of Proposed FY 2019 Comp Adjustments in the Region Merit Increases Structure Average Other Change Increase Arlington 3.25% General 1% 2.85% 3.5% (PS and PFP) Fairfax 1.25% - 3.0% General 2.25% COLA or 4.25% General Funding for 2.25% Public Safety partially funded 4.5% Public specific job at 1.26% COLA Safety classes Alexandria 2.3% -5.0% None N/A $1.5M public safety Prince 3.0% None N/A 1%-2% one-time William bonus for EEs at max Loudoun 3.5% 3.0% N/A Arlington 5% (Teachers) None 2.8% Public 4% - (Other Schools employees) 9
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
FY19 Proposed Health Care Increases Across the Region Alexandria Arlington Fairfax Prince William* Major health 2.2% 5.0% 5.5% 5.3% plan City/Employee County/Employee County/Employee County/Employee Cost Sharing Individual 80/20 80/20 85/15 95/5 2-Party/Family 80/20 75/25 75/25 75/25 * Prince William does not cover retirees on their health plans • Clinic use avoided over $600K for ER/Urgent Care 11
5% Premium Increase Means: Cigna In-Network Coinsurance Plan Additional Cost Employee + Employee + Individual Family Per Pay Period Spouse Child(ren) 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 $75,000.00 Average Salary Increase: 3.25% $2,438.00 Cigna Coinsurance Increase (Family) $292.24 Gross Salary Increase after Health $2,145.76 Note: All premiums are deducted pre-tax 12
Retiree Medical Alexandria Arlington Fairfax Prince William* Monthly $260 $600 (hired before 7/1/08) $230 $210 Subsidy $300 (hired on or after 7/1/08) *Prince William – Health insurance “credit” - $165 from County and $45 from VRS for 30 yr career - No post-Medicare benefits 13
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
Looking to the Future • Comprehensive Benefits Study -Phase One: Completed Survey, Focus Groups, Benchmarking Phase Two: Steering Committee Health Care Working Groups February - July 2 – 5 Year Leave/Other Benefits April - September Strategic Plan Retirement July - December 15
Looking to The Future • Continue the classification maintenance plan for years 2-5 • Re-evaluate total compensation principles Competitiveness including competitors beyond current 3 neighbors and market position of average midpoint • Maintain affordable pay and benefits for County and employees Affordability & • Evaluate pay policies for hiring and internal Sustainability movement • Continue strategic review of benefit programs • Consider choice in benefits Flexibility • Encourage mobile work and flexibility 16
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