Agenda - 10-21-2002 - 4 - Laserfiche WebLink

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2 Benefits Contingency Fund of$145,400. As noted in Appendix A, it is recommended that this be used to help fund the employee health insurance increase for 2003. Employee Health Insurance for 2003 Appendix A is an agenda abstract covering Employee Health Insurance renewal options for 2003. Normally a work session item does not require decision However, the health insurance agenda item necessarily requires that the Board make a decision at the October 21 meeting in order to meet the plan enrollment deadlines. Because of the complexity of the health insurance item, the Board had felt that the work session would offer more time for the Board's discussion than a regular Board meeting. Classification and Pay Study In the June budget work session, the Manager had expressed to the Board his interest in assessing the County's fiscal situation later in the year and considering the possibility of recommending to the Board that the Board move forward to begin phasing in Classification and Pay Study implementation. Appendix B is background information on the Classification and Pay study, including a possible cost scenario for phasing in implementation. Other Pay and Benefits Matters for 2002-03 Cost of Living, In-Range Salary Increases and Meritorious Service Awards As noted, the budget for 2002-03 does not include funding for a Cost of Living Increase, In- Range Salary Increase for employees whose work performance is Proficient or higher or for Meritorious Service Awards in 2002-03. Appendix C is the information Personnel normally provides each year that shows the approved 2002-03 pay plans for area employers. The Board will note that the pay and benefit actions by other employers range from those with no action (such as Carrboro and Chapel Hill) to those with more significant pay action (such as Cary, Durham County, Raleigh) to the State of North Carolina which enacted a 1.84 percent salary increase for teachers, instructional support personnel, principals and assistant principals and an additional, one time 10 day Vacation Leave allocation for other State employees not receiving the pay increase. 401(K) Contribution The County presently contributes $20 each pay period to the 401(k) plan for each permanent employee not covered by the law enforcement 401(k) contribution. (As required by State law, the County contributes five percent of salary to the 401(k) plan for each sworn law enforcement officer.) While the Board has expressed interest in continuing to improve the County 401(k) contribution, the budget did not provide for any increase in the County 401(k) contribution, given the fiscal circumstances. For information, presently about 70 percent of non-law enforcement employees make a 401(k) contribution. This has declined from 80 percent immediately following the County's implementation of the 401(k) contribution in 1999 and probably reflects the economic downturn.