HomeMy WebLinkAboutAgenda - 06-10-2014 - 4SUBJECT:
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 10, 2014
and Benefits Presentation
DEPARTMENT: Human Resources
ATTACHMENT(S):
A. Pay and Benefits for Employees and
Retirees
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Action Agenda
Item No. 4
PUBLIC HEARING: (Y /N) No
INFORMATION CONTACT:
Brenda Bartholomew, Human Resources
Director, (919) 245 -2552
Diane Shepherd, Benefits Manager
(919) 245 -2558
PURPOSE: To receive information and provide feedback to staff on employee pay and
benefits for FY 2014 -15.
BACKGROUND: Staff has provided information relating to FY 2014 -15 employee pay and
benefits in Appendix A of the Manager's Recommended Budget. The information provided
includes background information on employee pay and benefits over recent years and
information on specific pay and benefits plan elements. Key components of the recommended
employee pay and benefits plan include:
Recommendation
Appendix A Pages
A Cost of Living Adjustment (COLA) of 1.5% for all permanent
444
employees hired on or before June 30, 2014
Increase the salary ranges by 1.5%
445
Continue the Employee Performance Award in the amount of $500
445
(Proficient Performance) or $1,000 (Exceptional Performance)
effective with WPPR review dates from July 1, 2014 through June 30,
2015
Continue the $27.50 per pay period County Contribution to non -law
445
enforcement officers and increase the County match to a maximum of
$62.50 semi - monthly, (previously $50.00), for a maximum annual
County contribution of $1,500 (previously $1,200 annually) for all non -
sworn law enforcement employees
Fund up to an 14.35% health insurance increase over current costs
446
effective January 1, 2015
Increase the living wage from a current rate of $10.97 per hour to
446
$11.21 hour, effective July 1, 2014
Extend the six -month hiring delay
446
Extend the voluntary furlough program
446
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FINANCIAL IMPACT: Appendix A of the Manager's Recommended Budget includes
information about the estimated costs of various pay and benefits options.
RECOMMENDATION(S): The Manager recommends that the Board discuss employee pay
and benefits for FY 2014 -15 and provide direction to staff.
Key Pay and Benefits Plan
Recommendations
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• A COLA of 1.5% for permanent employees effective July 1, 2014
• Maintain an Employee Performance Award of $500 or $1,000
• Funding for a health insurance increase of 14.35%
• Increase the living wage from a current rate of $10.97 per hour to $11.21
hour, effective July 1, 2014
• Continue the six -month hiring delay and the voluntary furlough program
• Increase the 401(k) County matching contribution to $62.50 per pay period
(previously $ 5 0.00), for a maximum annual County contribution of $1, 5 00
(previously $1,200 annually) for all non sworn law enforcement employees
and continue the $27.50 contribution
Continue the mandated Law Enforcement Officer 401(k) contribution of 5 %
of salary
Conduct a feasibility study of establishing a County health clinic for employees
Past Actions: FY 2013 -14 Pay and 17
Benefits Plan
• A COLA of 2.0% for permanent employees
• An Employee Performance Award of $ 500 or $1,000
• Funding for a health insurance increase of up to 8.0%
• Maintain the living wage at $10.97 per hour
• Extending the six -month hiring freeze and the voluntary
furlough program
• Continuing the $27.50 County contribution to non -law
enforcement employees' supplemental retirement accounts,
the mandated Law Enforcement Officer 401(k) contribution
of 5.0% of salary
• Implement a County supplemental retirement contribution
match of up to $1,200 annually for all employees
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Position Classification and Pay Plans
0 The County Manager recommends:
A Cost of Living Increase (COLA) of 1.5% for all permanent
employees hired on or before June 30, 2014, effective July 1,
2014
An increase to the salary ranges by 1.5 %
Continue with employee performance awards, $ 500 for
proficient performance and $1,000 for exceptional
performance, effective with permanent employees' annual
performance review dates from July 1, 2014 to June 30, 2015
• Individual positions and classifications are reviewed as needed
• County salary schedule is competitive with the market
• Recruitment, retention and staff development and training
County Contribution to Retirement 19
Benefits
• The County Manager recommends:
Continuing the 5.0% contribution employer contribution to the
Local Government Employees' Retirement System 401(k)
program for sworn law enforcement officers
The 401(k) funds continue the County match of employees'
contributions of up to $ 50.00 per pay period (for a maximum
annual County contribution of $1,200) for all general (no-
sworn law enforcement officer) employees, and provides an
additional $ 325,000 in FY 2014 -15 to increase the match to
$62.50 per pay period (for a maximum annual County
contribution of $1,500) for all general employees
Employee and Retiree Health 20
Insurance
A 14.35% premium increase, based on the recommendation
made by Mark III, effective January 1, 2015 with the same
level of coverage
Orange Wage
Increase the living wage from a current rate of $10.97 per hour
to $11.21 hour, effective July 1, 2014
Based on the Health and Human Services Poverty Guidelines for
the region of Orange County the cost of living (wage per hour)
The recommended budget increase of $10,140 covers the non-
permanent wages and FICA costs for affected general fund
departments
Six-Month
Recommend extending the six -month hiring delay that was
implemented in FY 2010 -11
Between July 1, 2013 and January 31, 2014, over $2.25
million was saved because of hiring delays
Total savings from the hiring delay is projected to be more
than $ 2.0 million.
ONE
Recommend extending the voluntary furlough program that
was initially implemented in FY 2009 -10
Anticipate cost savings of $ 30,000 in FY 2014 -15
The County Manager recommends funding $1.8 million for
general fund retiree health benefits
Retiree health care costs increase is due to the aging of the
retiree population and the increase in health care costs
Encourage all retirees, especially pre -65 retirees to
participate in preventative care, health assessments and health
screenings to reduce claims and to realize better health
among retirees