TOTAL COMPENSATION FY 2019 Total Compensation Goals Pay, Benefits - - PowerPoint PPT Presentation

TOTAL COMPENSATION FY 2019

Total Compensation Goals

• Competitiveness
• Affordability
• Sustainability

Pay, Benefits and Retirement options that attract, retain, reward and motivate current and future employees. We want to maintain:

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

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
• f organizational structure, Updates to Admin Reg

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

7

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

Competitive Metrics

8

*Projected employees at max by end of FY18 is 17%

Total Comp Element FY2015 FY2016 FY2017 FY2018 to Date

Benchmark classes lagging at midpoint 16% 16% 3% (due to increasing ranges by 1.75%) 13% Employees hired over midpoint 35% all 91% MAPs 34% all 75% MAPs 24.2% all 80% MAPs 34.8% all 67% MAPs Turnover 9.9% 6.5% non- retirement 10.5% 7.4% non- retirement 9.3% 5.9% non- retirement 5.7% 4.0% non- retirement Employees at max 11% 13% 10% 14%*

Comparison of Proposed FY 2019 Comp Adjustments in the Region

Merit Increases Structure Change Average Increase Other Arlington 3.25% General 3.5% (PS and PFP) 1% 2.85% 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

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

FY19 Proposed Health Care Increases Across the Region

*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 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 $75,000.00 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

13

Alexandria Arlington Fairfax Prince William* Monthly Subsidy $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

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

15

Health Care February - July Leave/Other Benefits April - September Retirement July - December

Phase Two: Steering Committee Working Groups

2 – 5 Year Strategic Plan

Looking to The Future

• 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

Competitiveness

• Maintain affordable pay and benefits for County

and employees

• Evaluate pay policies for hiring and internal

movement

• Continue strategic review of benefit programs

Affordability & Sustainability

• Consider choice in benefits
• Encourage mobile work and flexibility

Flexibility

16