Human Resources REVISEDHUMAN RESOURCES
Susan Danhauser
Human Resources Director
Fiscal Year Budget – 2012/2013
August 2012
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Pay Increases – COLA and Merit
Reclassified Positions 2006
Adjusted Pay Table 2008
# of Participants
Police General
22 84
2004 27 86
26 82
24 81
28 82
26 83
27 87
27 84
26 83
Pension Payroll Fluctuation Factors
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HUMAN RESOURCES
MAJOR BUDGET ISSUES:
UNION NEGOTIATIONS
HEALTH INSURANCE
GENERAL INSURANCE
EMPLOYEE COMPENSATION
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UNION NEGOITATIONS
Implement Defined Contribution Plan for General Employees to include all non vested employees hired on/after 09/01/2008 and all new employees.
Increase contribution for Police and General
Employees in current Defined Benefit Plan.
Eliminate Personal Leave Sell back program
Decrease Personal Leave Accrual
Implement maximum leave accrual amount to 480 hrs.
Implement Personal
Leave payout at voluntary termination, layoff and retirement to 50% of accrued balance, not to exceed maximum allowed amt.
Eliminate Longevity Add Pay
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HEALTH INSURANCE
Premium rates and out of pocket costs
continue to increase.
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TOTAL COST PER FISCAL YEAR
Total Increase of 26.6%
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CITY’S ANNUAL COST PER POLICY TYPE
64.1%
58.9%
55.7%
43.6%
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EMPLOYEE’S ANNUAL COST PER POLICY TYPE
This graph illustrates premium cost only, no out-of-pocket expenses.
3.2%
3.3%
3.1%
3.3%
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OUT-OF-POCKET EXPENSES
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OUT-OF-POCKET-EXPENSES
Employee’s Costs in addition to premiums
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GENERAL INSURANCE
Property & Liability
Includes Property, General Liability/Law Enforcement, Automobile, Crime, Public Officials & Employment Practices, Fiduciary, Police Statutory Death/AD&D and Environmental
coverage
Workers Compensation
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GENERAL INSURANCE
Several factors driving up property rates:
New version of the Catastrophic Probable Loss Model causing insurers to increase rate and/or reduce insured values
Global catastrophic losses
doubled in 2011
Average municipal coastal property rate increases of 10% - 15%
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WORKERS COMPENSATION
2012 Mod Factor = 1.00
2011 Mod Factor = .90
2012 State rates have risen by an average of 8.9%
Renewal Estimate 21.7% increase
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GENERAL INSURANCE
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COMPENSATION
Pay Adjustments
Pay Compression
Inflation
Social Security Tax
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PAY ADJUSTMENTS
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PAY COMPRESSION
“Compression is the ugliest issue compensation professionals face.”
Compression is when you have little or no differences in pay regardless of seniority, skills, level, and experience.
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PAY COMPRESSION
Example:
$17.89/hr. Current Pay for Police Officer A in 2012 with 4 yrs. of experience with COAB
$17.89/hr. Starting Pay for Police
Officer B in 2012, no experience
Occurred because of no pay increases to base pay since Officer A was hired in 2009.
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CONSUMER PRICE INDEX
IMPACTS ALL EMPLOYEES
June 2012 229.478
2011 Annual Avg. 224.939
2010 Annual Avg. 218.056
2009 Annual Avg. 214.537
% Change 7.0%
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INFLATION
An employee earning $29,120 in 2009 would have to make $31,148 in June, 2012 to keep up with inflation - 7.0%.
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SOCIAL SECURITY TAX
The Social Security tax cut for all employees is scheduled to expire at the end of 2012. (election may impact decision)
Employees currently pay 4.2% of their income to Social
Security. If this tax cut expires, all employees will have to pay 6.2% of their income to Social Security – lowering their take home pay.
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RECAP
ALL EMPLOYEES
No pay increase for 4 years
with an
- Increase cost for medical insurance premiums of ~ 3.0% with increased out-of-pocket expenses (co-pays, deductibles)
- Inflation factor of 7%
- Possible Social Security tax increase of 2%
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COMMENTS OR QUESTIONS?
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