Agenda - 05-30-2013 - 2 - Laserfiche WebLink

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Employee Pay and Benefits Background For the last six years, employee pay and benefits recommendations have been heavily influenced by the downturn in the economy and focused on maintaining our permanent workforce without increasing property taxes. Substantial increases in health insurance costs, particularly the liability for retiree health, and the desire to provide added compensation for current employees drive the Manager's recommendations for funding employee pay and benefits in FY 2013 -14. During the FY 2009 -10 Budget process, no Employee cost of living or in -range salary increases were funded and the employer contribution to the 401(k) for general (non -law enforcement) County employees was suspended. A Voluntary Furlough Program was adopted and vacant positions were reviewed for elimination. Departments worked more closely with Human Resources to reorganize their operations to continue meeting service demands with reduced staffing levels. In FY 2010 -11, although no salary increases were budgeted, and the living wage stayed at $10.12 per hour, employees received a $500 performance bonus that was prorated for part -time or partial -year employment. A six -month hiring freeze was implemented. The budget included funding to implement recommendations of the County's FY 2009- 10 internal Classification and Pay Study and funding to address an employee health insurance increase up to 7.0 %, effective January 1, 2011, as well as an increase in the County's contribution to the Local Governmental Employees' Retirement System for all permanent employees. Both the voluntary furlough program and the suspension of the County contribution to non -law enforcement employees' 401(k) accounts were extended as cost saving measures. Effective January 1, 2011, the Board reinstated the County contribution to non -law enforcement employees' supplemental retirement accounts. While these efforts were successful in maintaining the County workforce and preventing the layoff of existing permanent employees, the FY 2011 -12 Budget again required employees to forgo an increase in salary. It maintained the County contribution to non - law enforcement employees' supplemental retirement accounts at $27.50 per pay period and increased the living wage to $10.81 per hour. The budget included funding to implement recommendations of the County's FY 2010 -11 internal Classification and Pay Study and funding to address an employee health insurance increase up to 15.0 %, effective January 1, 2012, as well as another increase in the County's contribution to the Local Governmental Employees' Retirement System for all permanent employees. Both the voluntary furlough program and the six -month hiring freeze were extended as cost saving measures. During the FY 2012 -13 budget process, the Board approved a 2.0% Cost of Living Adjustment (COLA) for all permanent employees, increased the living wage to $10.97, and provided a one -time bonus of $500 or $1,000 based on an employee's performance rating and WPPR review date. The salary ranges were also adjusted 2.0% and recommendations for the internal Classification and Pay Study were implemented. A summary of the FY 2012 -13 Pay and Benefits Plan is listed below. f &-]