HomeMy WebLinkAbout0490.093•
September 16'~ 1993
HONORABLE C!TY COUNcrL
Palo Alto, California
Attentton: FinanCt Committee
o
Information tequ •• t@--pmp1gyee Salaries and Benefits
Members of the Council:
Report in Brief
The purpose of t.his report
requests from the Finance
salaries and benefits. No
questions are:
is to address several information
Committee regarding City employee
Council action is required. The
1. DUring the past ten years, what was the rate of increase
of salaries and benefits per employee and how does this
compare with the private sector and rate of inflation?
2 ~ How do City employee benefits compare to thuse in the
private sector?
3. Should labor contracts be synchronized with the two-year
budget cycle: so that negotiations become a part of the
budget process?
4. What is ~he City's compensation policy?
Quescions 1 and 2 ar~ addressed by a comparison of City data with
data fro~ the U.S. Bureaa of Labor Statistics, the Consumer Price
Index t three large local private employers and San Francisco Bay
Area private sector employee benefits surveys. Responses to
questions 3 and 4 reflect current City policy.
QUBSTl:ON 1., DORDIG THE PAST TEN Y&AItC. Wl!AT WAS THE RAn: 01'
:oraBASlI OP SALARIlIS AND BlINlII'ITS PlIR. BHPLOrBlI AND BOW DOES THIS
CllKPAR¥ WIT!< TIll! PIUVATB SBCTOll AIID UTI! 01' DlPI.ATI0N1
The City has data which indicate salary adjustments for 'E'!ach
employee group for the past ten years+ These data include salary
increases applied to all classifications or control points, special
adjustments applied only to certain classes and the cost of benefit
improvements. The data are expressed as a percentage increase of
payroll costs. Table 1 summarizes this data and makes a comparison
with local Ccnsumer Price Index (CPI -UJ changes for the same
period.
CMR:490:93
I , Page Two
For purposes oi comparison with the privat~ sector, only salary
increaees applied to all classifications/control points were used.
The reason for this is that pi"ivate employer data excluded sp2cial
adjust.ments to individual classifications, benefit improvements,
bonuses/ and any additional cost of living adjustme4ts.
The private sector data were collected with the cooperatic.n of
three large pr':'vate companies ha-"ing opel.ations in palo Alto.
After unsuccessful attell'pts to get sl...l.ch data in previous years, we
are gratefully indebted to thel3e companies who sha=-ed data on the
condition of anonymity. Additional data were collected from the
Bureau of Labor Statistics as reported by private employers in the
s~~ Jose metropolitan area.
Table 2 compares ten-year salary changes for private employers and
City employee groups with annual CPI-U changes for the same period.
Private employer data are listed by exempt and non-exempt employee
groups. ~Exempt· is roughly comparable to the City "management"
employee group.
Cozu:l!l.u8ion.~ All private employer Cind City employee groups
received annual salary adjustments in excess of the rate of
inflation for the ten-year period. The rate of salary increase for
non-exempt private employer groupa was virtually the same as for
the City~ s SEIU group during the period. The City's police and
fire groups were slightly higher. On average~ the private employer
exempt groups were somewhat higher than the City management group.
Taken as a whole, the data were fairly comparable between City and
private employer groups.
QOBSUON 2: ROlf DO CXTY BMPLOnUI BEN1!FrTS COMPARE TO THOSE IN TIlE
PRXVATE SECTOR?
With the cooperation of local private employers. staff ..... as able to
obtain em:ployee benefit data for a large number of Bay Area
companies. These data are summarized in Table 3~ indicating the
percentage of: employers offering various benefits and whe't-her or
not City employees are offered each benefit. Table 3 is followed
by a narrative comparison of private employer and City employee
benefit provisions.
Ccccluaione:: fo"..any benefits offered by
those offered by local private employers.
benefit type as follows:
Health and Welfare Bene.fits
the City are similar to
Differences are noted by
Mec:lical Plans. The primary difference is in employer
premium contribut.ion rate. The City joins a sir.all
minority of private employers who pay 100 percent of the
cost for both employee and dependent. The City has the
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advantage of membership in the PERS health plans which
provide purchasing power control on :rates and offer a.
wide range of plan choice to employees.
Bmploye. Aaaiat&Zlce, Dent.al, Vision Care Programs and
Post Retirement Benef~t.~ These benefits are generally
comparable with the private employers. with the exception
that City contribution fer dependent dental is higher.
There are pluses and minuses in comparing post retirement
benefits. Some private employers offer benefits not
av-ailable to City retire.es such as dental and life
insurance. Medicare is not available to current City
retirees unless they qualify through other employment.
On the other hand, many str.all companies do not pro\7ide
any medical benefits for their retirees.
Other insured benefits are generally comparable. The
City does not offer-wellnesB programs, flexible spending
accounts or flexible benefit programs which are
frequently offered by private employers.
Retirement Plans
Most private employers supplement Social Security
benefits by providing defined contribution pension plans.
The City does not participate in social Security and
provides a defined henefit plan through PERS. The City's
excellent PERS plan offers a high degree of security, but
is portable only within local government member agencies.
Private defined contribution plans are portable~ but
i.nvolve the risk attendant to contribution investments.
Compared to private employer defined benefit plans, the
PERS plan appears to be superior. Deferred profit
sharing plans used by some employers to supplement
retirement are not available to City employees. Deferred
compensation pla..'1s are available to private and City
employees. The private plans are superior in th~t most
include employer contributions.
Paid Time Off
CMR'490,93
City employeas have the edge with paid holidays and
floating holidays. Private employers offer slightly
better vacation programs. Sick pay is generally
comparable, but private employers offer SDl and short
term disability, while the City offers a shorter
elimination period under long ter1l1 disability. Leave of
absence and bereavement pay programs are corr.parable.
Some private em~loyers offer paid sabbaticals which are
not generally available to City employees.
Page Four
Other Benefits
Private employer8 excel with cash profit sharing. stock
plans, subsidized food services and recreational
facilities. which are not dvailable to City employees.
Educational assistance, paid professional memberships arH~
C:iutomobile policies are comparable for City and private
employers.
Q11BST:ION 3: SIIOULD LABOR CONTRACTS SS SYNCllRONIZED WITII TIIB TWO
CYCLB SO ntAT NBClO'rIATIONS B&:COKI! A PART OF TRI! BllDGrr TEAll Bt1I)GE'1'
P=SS?
During periods of uncertain and/or unpredictable revenue resources,
it is advisable for the economic prQvisiona of labor agreements to
be negotiated in conjunction with the budget cycle. This can be
accomplished by ar.ranging the term of contracts to coincide with
the budget cycle or by using economic reopeners coincident with
budget cycles. For instance~ a mUlti-yea: agreement which is off
budget cycle may provide for reopening negotiations for second or
third year economic provisions. while locking in all other te~q
and conditions,
QUESTXon ,,: WllAT IS TIIB CXTY'S COMPlDfSATION POLICY?
The City has no single compensation policy covering all employee
groups. However. a policy is established for Management and
Con.fidential employees in the Compensation Plan~ and a de facto
policy is established for police and fire department emr~loyees in
.~icle Vof the City Charter.
The Management Compensation Plan policy is as follows!
"The City~ s policy for management and confident-~ial
compensation is to establish and maintai!1_ a general structure
based on marketplace norms and internal job alignment with
broad compensation grades and ranges. Structures and ranges
will be reviewed annually and updated as necessary based on
marketplace survey data~ internal relationships and City
financial conditio~s.n
The Police and Fire Department employee arbitration Charter
provision states in part:
'I'IThe arbitration board shall decide each issue by majority
vote by selecting whichever last offer of settlement on that
issue it finds most nearly conforms with those factors
traditionally taken into consideration in the determinatio!1 of
wages. hours and other terms and condi't.ions of public and
private employment~ includin9~ but not limited to, changes in
the average consumer price index for goods and services. the
CMR:490:93
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Page Five
wages, hours~ and other ter.ns and conditions of employment of
other ery]pl.oy:::!es performing similar services. and the financial
co~dition of the city and itB ability to meet the cost of the
award .•
Finally, Council has approved budget guidelines: which address
p-mployee salaries and benefits:
"If revenues permit, salaries and b~nefits will be established
with the goal of keeping the City a competitive employer with
surrounding jurisdictions. However, this does not guarantee
that salaries will keep up with the Bay Area inflation rate.·
Much of the data for questions 1. a~d 2 in this report were prepared
by Kathy Lee~ Contract Administrator in the Purchasing Division r
while on an internal internship in the Human Resources Department~
Such internships are a part of the City's employee: development
program.
Respectfully submitted,
Vt4y (!,~-r-L<2L
JAY fC. ROUNDS
1t~::::~~.~~~ Resources
~~~'~
City Manager
Attachments~ Tables 1. 2 and 3
CMR,490:93
TABLE 1
TEN YEAR SALARY AND BENEFIT ADJUSTMENTS
YEAR CPI·U UNIT SAI.ARY SPECIAL ADJUSTMENTS
.NCR .NCR AND BENEFITS
1983 0.8% SEIU 3.0% Benefits change 1.0%
Fire .0% PERS pick up 5.6%
Police .0% PERS pid: \Jp 5.6%
Msmt .0% PERS pid up 5.6%
1984 5.7% SEIU .0% PEftS pick up 5.6%
Fire 5.0% PERS pick up '.6%
P'Olice 5.0% PERS pick. uP. ben9fit$ 2.0%
Mgmt 5.0% Sped&! adj$, VMC 2.2%
198. 4.2% SEIU 6.0% Women\!;:' PE, spec adjs 2.6%
fire 6.0% BanefitS .4%
ponce 5.0%
Mgm1 6'<'% Women'S' PE. adjs, ber!et 2.3%
19B6 3.0% SEfl} 5.5% Womens' PE .6%
Firlt 5.0% Benef"l1s .8%
Police 7.0% Be.,efits .2%
Mgmt 5.5% Special aOJS. ben&ftts 1.4%
1987 3.4% SEIU 5.0% $petia* &djs .6%
Fire 5.0% BEnefits .8%
PoJice 5.0%
Mgmt 5.0"11-Womsns' PE .3%
1988 4.4% SBU 3.9%
fiie 5.0%
Potice 5.0%
Mgmt 3.8% specral &dJ. benefits .6%
1989 4.9% SEIU 5.0% Spec-jar adj .9%
Fire 6.0%
Pollee 6.0%
Mgml 6.0% Spedal ad,. benefits 1.8%
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YEAR CI'I-V UNIT SAlARY SPECIAL ADJUSTMENTS
INCR INCR AND BENEFITS
1990 4.6% SEIU 5.0%
Fire 7.0%
Police 5.0%
Mgmt 5.0% Speciat tJdj, VMC 2.0%
1991 4.4% SEIU 5.0% Special !tdj .5%
fire 5.0% EMT 2.0%
Portee 5.0% Special adj 2.0%
~19m1 5.0% Special idj, VMC .4%
1992 3.8% SEIU 60%
Fire 4.0%
Pofice 5.0%
Mgmt 3.0%
<.
YEAR
10 YEAR SALARY CHANGES FOR PRIVATE ~MPLOYERS AND THE CITY OF PALO ALTO
COMPARED WITH THE ANNUAL CPI·U CHANGE
1983·1993
TABLE 2
PRIVATE EMPLOYERS CITY
CP(.II NON· NON· NON-EjCeMPT EXEMPT EXEMPT SEIU MOMT FIRE POU(:E
SF·OAK-ExeMPT EXEMPT EXEMPT n SJ co .• , CO.'3 alB co ... , CO .• 2 co. #3
83·84 0.8 .. , 5.0 3.7 ...
84-85 6.7 3.5 4.5 4.3 7.0
85·86 •. , 4.0 '.0 5.0 1.6
8G-87 3.0 6.2 4.0 5.9 '.0
87·8" 3.4 6.0 3.0 6.8 6.2
88·89 ••• 5.5 ... 3.7 6.0
89·90 4.' 4.6 6.0 .. , 7.0
90-9' 4.5 4.3 4.0 4.5 4.8
91·92 4.4 3.3 4.0 '" 6.3
02·93 3.8 6.4 4.0 ... 6.5
Veil' whllr1'l 111. !"ERS pick-up WI. gl\f'flll in Heu of ulerv
$178 giwltn to [ StlP Fir. l'iOh1.,. Appe,.tlJll OpeIIlIOI, C.pllll", and lnftpeotorcl."ihcllflonR .
••• flQu< ... {lot I'liltliable
6.0 B.o 3.0 o· o· o·
5.3 7.0 o· 5.0 5.0 5.0
5.0 7.0 6.0 6.0 6.1· • 5.0
'.0 6.5 5.5 5.5 5.0 7.0
4.0 5.0 5.0 5.0 5.0 5.0
4.9 5.0 3.9 3.8 5.0 5.0 -
5.0 5.5 5.0 6.0 6.0 6.0
6.7 5.0 5.0 5.0 7.0 5.0
5.8 5.0 6.0 5.0 5.0 5.0
2.5 5.0 5.0 3.0 '.0 5.0
r .... ,,!lows tho 1I11illlY change. from f),oal YIII 19B3·BA 10 (1&<111' YWII' 1992·B3. Tnll figure. ,SPllIs'lntl"", ths City Wire derl\/Ild from the Il.ln aportl 10 Coune", Thill 1~Q\lfI'l .. lof tM CP\-U ••
jlOm lh., Bur.au oll.bor Stetilliu, COlllurne' Price Ind"A lind .,Q ,4IQreHn\etlw of \hft Sin fl.ncilllo,OIIlIIln(j-Sln J"IO "'euupolitlln al.'. Tha jJilUI.~ lor pllvlllI "'''pIOV.'' .,. flom infOfmellon
prnvj!1.d hy 10c191 comp.n;." and do 1'11)1 inoludfl COlAt, oln,If!CltIOl'l IdjullmenII, bcnulMls or promotlonl,
Noh.E • .".pt 8LIIII Thl. Jlltll i8 gllhllred from thl NltioNI Bulleu oll,hor St.titUca for !),IYI'. Il'\dut.ttv rull\·.JltI~t flmp\oJyval ',n thll SIll JOUI mlltrogoliUllil 11,.1.
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TABLE 3
HEALTH AND WELFARE BENEFITS
MEDICAL
lOO~ company-paid emp~ee medical
Company-psid dependent mec:fic::al 85%-100%
Sep8f!lte prescription pill"
PPO (Pre1erred ProYkier Orgooizatior.l
HMO {Health Maintenance Organlzatio n t
SGct:ion 125 pl8n (pre-tax spending account including depeootmt care
pro'tisionsl
flexibJe benefit plan {cafeteria type plan)
WELLN£SS PROGRAM
EAP IEMPLOYEE ASSISTANCE PROGRAM)
OENTAL
100"," Preventiv8 care, immediate eligibihty
Varying percentage, 5chec(u/«l 8fllO\J n.ts.
Maxfmum benefit per year per person
OrthodontiC$ for adLHta and children
VISION
Exams, frames. ~nses. contacts
Deductible $10 -$ 25
POST -RETIREMENT BENERTS
Uf& end medical insuriilnl-:e
Company paid for ail Of part of coversge
fOf dependent coverage
EAP Program ptlrticipation
~eareonly
Me<ftUI only
CUmIbutiorl t.gir'III in 1993 'lind ill(nllM1: 5% J>81 'f6&
PRIVATE CITY
50% ye.
43% ye.
57% no
76% "Ie:;.
79% y.s
78% 00'
13% no
65% no
59% yes
75% no
6% yes
85% yes
86% yes
70% yos
86% ves
10% no··
82% ves
73% ...
41% no
HEALTH AND WELFARE BENEFITS IContinuedl
OTllER INSURED BENEfITS
Basic '8cciderotal death and dismemberment in'iIJraru:e
Suwklmental Life
Busir'less Travel Accidem
Flexible Spending Accounts
RETIREMENT PLANS
40'IK)
Other defined contribution plan
Pension/DflJ1ined Benefit
Deferred Profit Sh.lring
PAID TIME OFF
HOLIDAYS
Peid Iiofidays
FlCJ.llting holidays
VACAl10N POLICY
Cany over and cash converslO11
Use uner;;crt.ted 1f3C8tion hours
SH:It PAY PLAN
SOl
Cerry over 01 unused hou rs
Convert unused hour!> to cash only
Convert unused hoLlrs to cash/carry over
Us& for famiTjI illness
SAlARY CONTINUAT1ONISHORT TERM DISABIUTY
LONG TERM IlISABlUTY
PERSONAL LEAVES OF ABSENCE
BEREAVEMENT PAY; 3 days local,£) out of town
granred for death of e;.ctended bmily
PAID 50.880. nCALS
2
'""" PRIVATE CITY
90% ,,,
70% ver;
73% yes
7B% 00
13% no
97% no
25% yos
16% yM
,8% no
97% ves
B6% V·,
B4% yes
65% Ves
10% 00
34% no
B3% V.,
5B% no
38% y.,
B.S% no
22% no
9'% y ••
62% no
96% y ••
86% yo<
66% y ••
47% yes
14% no'
OTHER BENEFITS PRIVATE CITY
CASH PROFIT SHARING 33% 00
STOCK PlANS 63% 00
roucA TIONAL ASSIST ANeE 96% yes
RECREATIONAL FACILIlleS 100% V" --
Shower/loclc.er room 68% ye.
Baskerbal'f courts 36% 00
Eq,ripped Gym 29% ves
A$(obiC'$ or other Exercise classes 25% 00
Memhf.lrship 81 an off~s.le health hlCiUry 21% 00
MID MEMIlERSHIPS TO I'ROFESSIONAL ORGAN'ZA no~s 89% yes
LEGAL £ERVlCES 8% no·
FOOD S£R\fJCES, subsidized Of free beverages 80% 00
LLinehroom with refrigetlltorlcookillg 81% ve,
AUTOMOBILE POUCV . reimburssm8nt for mitea;e 98% Y"
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BEALm & WELFARE BENEFITS
MEDICAL PLANS -TyPe, Coverage and Paymml
Pri.ate: 100% of the cmnpanies have medical plans. 13% have • fl .. ible benefit or
cafeteria plan, 79% bave Hwth Maintenance Org''1iz.atiODS (HMOs), 78 % have
Preferred Provider Organizations (pPOs). A HeaI'.h Mainlenance Organization
is. pre-paid gwup medical plan with an emphasis on preventive bW!h ca.!'e. A
Preferred Provider Organization is composed of a group of doctors and hospitals
tlw contrac:t with employers, administered by a third party or insurance company
on a fee-for-service basis, to provide medica.! services for employees.
so % of cmnpanies with specific coverage coDlnbule 100% of the COS! for
employees' medical plan, 6% cover 100% of dependent coverage and 37% covel'
8.'i-90% of dependent plan costs.
City: The City provides multiple HMO and PPO type plans. Approximately 15 % of !he
City employees belong 10 • PPO plan and !he remainder belong 10 HMO,.
Currently the City coven 100% of the plan cost for both the employee and their
dependents .
WEU,NESS PROGRAM
A wellness progrnm is designed as a preventive medicine tcol by companies to e!lllance and
protDOIe the general wellness of their worI< fo""" by providing discourued or free facilities and
education regarding bealt.~ related issues.
47% oftbe companies have an informal well.!1ess or fitness program. 18% have
• formal program and 35 % have no program.
The estimaled percen:age of employees using these welliless programs are a high
of 80 % and an low of 1 % with 23 % being the average overall. The main reasons
for COOlpaJIie< offering health promotion programs was for employee relations
(58%) followed by COS! colllllinment (32%) and productivity (30%).
City: 1be City does no( have a fonnaI welloess or fitness program .in piace at this time,
although some individual classes and programs have been offered.
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EMPLOYEE ASSISTANCE PROGRAMS lEAP!
Privale:
City:
59% of the: companies have internal. external or both types of programs. The
basic services generaUy covered by the companies are: Chemical dependency,
Psychiatric: treatment. family. fmancial and legal counseling. Some companies
include child/elder care referral. The average percentage of employees utilizing
EAP is approximately 9 % with. high of 30 % to a low of ! % ,
The Ciry bas a benefit simil,,! to what is offered by private companies. This is
an external program open to employees and h-runediate family membe". An
regular employee is entitled ,0 three sessions per family unit each benefi[ period
at 00 cost. The levt:l of usage is approxirna.rety 12%.
DENIAl-PLANS
Private: 99% of the companies surveyed had • demal plan with 37% having. PPO plan.
63% of companies with specific covernge paid 100% of the employees' plan C<J"
aDd 47% paid 75-90% of dependen!s' cost of the plan.
83 % of the companies' employees are eiigible immediately or the firsl day of the
month foUowing hire, The rest range from 30 days to a year for eligibtlity.
ApproJtim!Ucly 85 % of the companies had • maJ<imum benefit per person per year rm dollar.;) ranging from $750-$1500 aDd 13 % had • maJ<imum range of $1600-
DO maximum, The average annual eI!lployee deductible was S25-$3! with the
annual family maximum of 5150-$200 for 57% of the companies aDd $50-$125
fO£ 43%,
66% of the companies pro'wided orthodontic coverage u,-ith the majority covering
both adults and children. Tbe majority of contparucs allowed a $1000 rnaxi.:num
lif~ orthodontic benef:.t per person.
63% of the companies pay for the =! cost of the coverage, 37% require the
employee to contnbute to the cost.
City: Tbc City has • self-funded indemnity dental plan with eliglbiJjty beginning on the
first of the month following 90 days from date of hire. Cost of the plan for
employee aDd dependents is paid by the City. The co-imurance percentage is an
incentive fonnula, 70-100%, far services uIXler preventive care+ fillings and
extractions~ 50% coverage for major proct1JUTes; a maximum benefit per year
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of 52000 and a lifetime benefit of $ J 500 for orthodontics for both adults and
children.
VISION CARE
Prime: Approximately 70~ of the COIl1parues have vision care under their medica[.
oerwort., or HMO plans. 43% of those with a ... isioc plan are non-:terwork type
plans.
36% of !be companies with vision coverage use network type plans. 89% have
a separate deductible for e><am' with 53% having. $10 deductible, 33% having
• deductible rnnging from SI5-$25, and 4% having. 55 deductible.
295& have a separate dccIuctible for materials with 52 % ranging from $1()"S20 and
!be rest from ;;25-$30.
The coverage frequency for eye exams is 12 months (94%), for lenses L. 24
months (56 %), for fuunes is 24 months (92 %).
87% allow conta<:t lenses in lieu of examlJe:nseslframes for medic.aJly necessary
contacts with amounts of 50% SII(H)vcr 5130 and 50% SIlO-under $100. For
contacts for cosmetic purposes the amounts covered is $2()()..$250 for 78 % of the
companies and S1I0-$13O for 22 %.
CIty: The City bas a netWork plan with , separate deductible of 520. The coverage
frequency is exams ODee every 12 months, cOnlactS or frames and lenses once
each 24 months with • maximum doliu amount of $102 only for medically
necessary eye m.ateri.tIs. Reimbursements for use of DOD-member doctors are
reviewed before payment.
POST RETIREMEl\IT BENEutS.
Private: 10% of the companies provide medic.aJ beoefits with 82% of the companies
paying all or part of the medical beoefit cost, 86% Lntegtating benefits with
Medicare by carve-out, coordination of beoefits, or supplement to Medicare
methods. Medical coverage is available for dfpendents and 73 % of the
~ pay for an or pan of this cost.
Retirees eligible for the following: programs after normal retirement: EAP
(41 %), PPO (55%), and Wellness Program (32%). Liie insurance is provided
by 12% of the companies. 59% of the companies offer dependent life insurance
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with 27% of those companies paying 100% ofthepremturru for spouses and 26%
paying 100% fO£ children.
City: The Ci<y pays !he single-party cost of health insurance for retirees. Beginning
in 1993, the City pays a 5 % contribution for depeildeoc coverage. This
contribution increa..~ by 5% each year. Poo-retirerm:llt life and employee
assistance programs are not available.
OTHER INSURED BENEFITS
Prt..te: RpsIr AD&D
90% of the companies provide basic Accidental Death and Dismemberment
insurance immediately or within tile fint day of tile montb following hire. The
majority offer a set multiple of base salary coverage.
Snpplmu:ntal Ute Insnranq & Supplemental AD&D
70% of !he companies in the survey offer supplcrnentallife i=; 41 % offer
supplememal AD&D.
Business Travel AIXiden!
73 % offer business travel accident insurance with i.rnme<!iate eligibility. The
types of coverage offered are set flat amount, vary jog flat amounts and a set
multiple of base salary. The majority of companies offe"! • ""t flat amount
ranging from $1 OO,CJOO.25i) ,000.
&phle mewfing AmIunts (Employees' use of pre-tax dollars to pay benefit
costs)
78% offer .a flexible speeding acCQunt offering premium conversion, health care
reimbuisemenl and dependent ~ reimbursement with the largest percentage of
employee popuJation utilizing tm: premium conversion account (83 %)_
flexIble BenefIt Programs
13% of !he companies have flexible benefit programs "ith the majority having
• full flexible benefits program, cafeteria type plan.
City: The City offers basic and supplemental life and AD&D insurance. The City has
a business travel insurance with a set flat amount of $250,000. The Ci<y does not
have fleXIble .spending accourus or benefit program acc:ou.nlS .
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Private:
RETIREMENT
100% have, Pension/Defmed Comributioo type plan. 99% have a 401(k), 18%
have deferred profit sharing plans, and 7% have money-purcha.se plan/defmed
contribution -non 401(k), FMP and other type' of plans for their employee,.
DEFINED CONTRIBUTION PIA.'IIS
Private: 72% of the companies make a contribution, 60% malCh the employees'
contribIItion.
The rate at which companies matcb employee CODtnJutiOO is 50-100% far 46%
of !be companies and 'Pi'roximalCly 21 % of the componies have • maximum
dolLar amount contributed by the comp&l!y.
City: The City bas two deferred compensation plan< with contributions made onl)' by
the employee.
DEFINED BENEFTf PLANS
l'riv1!ott>: 16% have • pensionJdefmed benefit type plan. 83 % of these plans have the final
pay caJcuIated on 3-5 years. Eligibility ranges from hire dale (22%), after 6
mOOlhs or 1000 hours (14%), after 1 year (53%) and other eligibility
requirements (8%).
94% of !be companies contncute 100% to the plan.
Normal retirement age (fuil retirement benefits with no reduction) is 58%-65
years, 6%-62 years, 3 % -55 years. The rest of the companies use either years of
service only (30 years)-6%, age plus years af service-19%.
CIty: The Cily participates in PERS (PIlblic Employee Retirement System) • stale
administered defmed benefit retirement plan. Final pay is calculated on the
bigbest single year. 100% of contn1Jutions are City-paid. Normal retirement age
is 63 for non-safety and 55 far safety employees.
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nEFERRED PRom SHARING PLANS
Privat<: 18% of the companies offer a plan where contributioI'l..s are based on a formula
related to profits. Eligibility ranges from hire da~e to 1 year of service.
78 % of the companies do not require me employee to contribute to the plan and
tile company pays lOO9! of tile cost of !be plan. The basis for allocation of
employer connibutioDS is based on compensation (90%).
City: The City does not bave • deferred Profit Sharing DI.n.
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HQUDAYS
Private:
City:
VACATION
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PAID TIME OFF
97% ofprivare companies offer an average of 10 paid holidays. 86% offer;m
average 1-3 floating holidays, taken as determined by truUUlgement.
12 holiday, with 5 floaters ""term ined by management.
16% of the companies surveyed ba'·e raid time off blanket plans which cover vocations, and
84 % bave a separate vocation policy.
Yens of
Service
IT.vate
City
1'rivute:
1 3 5 10 15 2tl 2.5 25 +
83 93 12tl 149 163 170 173 174
80 80 12tl 160 160 160 160 160
The mnnber of hours for ncation is based OD years of sen'ice. The figures
repr=J the average nwnber of llow> for exempt and non-cxemp< employees.
52 % of the companies that have policies regarding the number of months a new
hire mUSl be employod to take any vacation, reported that they can use their
"acation hours immediately. Other companies require 3-6 months of
employment.
65 % of tb< companies allow = over from one year to the next. Only 10% of
the companies allowed both carry over and cash conversion.
34% of the companjes allow lhcir employees to -borrow" or usc umccrued
vacation.
City: The number of hours for vacation is based on years of s.:rvice. 1be figures
represent the actual number of hours for boch exempr and non-exempt employees.
The City requires an employee to be employed six months before any accrued
vacation hours can be used.
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SICK PAY
Private:
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The Ci~ allows employees to carry over a maximum of 3 times (heir al 10werj
vacation houn each year. Tbe only cash conversion of vacation hours is upon
sepal1ltiOD from employment.
The City does not allow use of unaccrued hOlliS by employees
83% of the companies surveyed provide a sick pay plan, 58% provide SOl and
62% provide salary cootinuationf<hon IeIID disability plans,
For companies baving their skk leave plans ba.~ upon years of servic~. the
range W3S 35-96 hours after one year 10 • maximum of 80-160 hours.
The companies having paid sick leave, 38 % allowed cart}' over of ;nused houn
from one year to the nexl only, 8.5% convened unused hours 10 cash only (other
than at letmination), 22% allowed both carry over and conversion of unused
hours to cash and 14% did not allow either carry over or conversion of unused
hours.
91 % of companies ailowed sick pay 10 be used for family ill,..",.
City: The Clty provides each employee with paid sick leave, earned on a monthly basis
and computed at the rate of 96 00u'S per year. There are limits on the amount
of howl; !hat may be accumulaled (1,000 hours) for employees hired after 7/11&3.
For those hired before 7/1183 there are 00 limits on accumulated hours.
Employees who have 15 or more years of continuous service receive
compe<lSition for UIlllSOd boors upon separation.
A new employee may use up to 48 hours of sick: I~ .... e at any time during the frrst
six moltths of employment.
Up to 5 days sick leave per year may be used for illness in the immediate fanuly
and 20 boon per year may be used for pen;onai bu,iness.
SALARY CONTINUATION/SHORT TERM DlSABILlD'
Private: Approximately 62 % of the companies have £his plan for exempt employees and
49% provide litis for non-exc:mpt employees with eligibility ranging from
immediately to three monlhs.
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Approximately 33% of the companies have 00 ehmination period for c~cmpt
cmpJoyees, 33% have an eli.;.ninarion period of 5-7 days and approximately 20%
bave 8-10 days
for exempt and non-eltempt employees.
The majority of companies bad a set percentage of saiary ranging from 300% 10
60 % wilh 00 maximum benefit dollars per week.
The average maximum number of weeks that benefits are payable range from 12
10 26 weeks (~I82 days) wilh 100 petU:Dt of !he <cst paid by tbe C<lmpany
coordinated with Stare Disability.
96% are self-insured and !he remain<ler are insured by tbeir insuran.."<O carrier.
CUy: The City provides 00 salary coDlinuation/sbort term disability excep! as required
for workers' compe:1Sation.
LONG TERM DISABILITY
Private: 96 % of tbe companies bave a lo,,!! tcon disability plan. 87 % of !he companies'
eligibility requirements for exempt and 81 % of !he companies' eli!<;J)mty
r.quirements for non-exempt are inunediately 10 90 days.
82% of !be companies bave an elimination period of 90 10 182 days.
81 % of !he ccmpanics provide 1 coverage amount range of 60--70% of ntonthIy
base salary, 84% of !he companies do not require !he employee to pay !he
premium.
City: The City provides • locg term disability plan for non-safety employees that ""S
two coverage options from which employees may choose. The City participates
in premium contributions for some employee groups. The elimination period is
60 days. Coverage arnOU!lt is 66.7% of base pay.
PERSONAL LEAVE OF ABSENCE
86% of !he surveyed companies bave a fonnal policy for employees requesting
a non-medical unpaid leave of absence, 7 % bave an informal policy and 7% has
no establisbed policy.
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77~ gram leaves of absence for any reason, subject to manager approval
followed b} illness of family member. be ... ..avement. extreme personal hardship.
m.uemi~ (after disability period). adoption of a child and extended \'acations.
Eligibility requirements range from 3 months to immediately for 54 % of <be
compani:s with <be policy.
City: The City provides personal loaves of absence on • ca..<e-by<ase basis for a period
oot to .. cee<! 12 month..<. There is no policy for job guarantee.
BEREAyEMEN'! PAy
P..m.t.:
City:
99 % of <be companies grant time off for a death in <be _iate family. 83 %
have a separate policy for bereavement pay and the rest include it in another paid
time off policy. The majority (66%) allow 3 days maximum paid days off aod
!4% gave 4-5 days maximum. Tho,", offering 3 days «tended it III 5 days
maximum paid days if out of town. 41% allowed time off foc e"ended family
with <be same maximums as for inunediate family.
The City grants bereavement pay for immediate and some .""oded fawily with
a maximum of three days fo[ local and five days for out of town_ Requests for
leaves in e..~ of those stated must be subject to the written approval from the
City Managei' based on a case-by-case management decision.
PAID SABBATICALS
City:
14'Ji\ of the companies surveyed granted paid sabbaticals for exempt aod non
exempt employees with 2-5 years of continuous services. The average length of
a paid sabbatical was 4-{) weeks. Exempt aod non-<:xempt employees are allowed
more than one.
The City does not allow sabbaticals. exoept for a limited program for managers
and confidentia1s which provides professional development leaves for up to two
employees at 000 time.
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OTHER BENEFITS
~H PRom SIlARlNG
Private:
City:
Private:
33% of !be companies have a cash profit sharing plan with 90% baving :til
eligibility period from six moDlhs '0 immedialely"
The City doe< not have a cash profit sharing plan for its employees.
63 % of !be companies offered a Slock plan (usually • company wide stock
purcbase plan -67 %)" Those eligible to participale are primarily managemeru
pon;onncl. 37% of !be companies with sto::k plans offered them company-wide.
84 % of!be companies allowed individuals I< purchase stock at 85 % of the marl<et
ValL'" with an eligibility time period ranging from six moDlhs to imJne4iately.
The maUm1Dll of base salary an employee can apply toward:; the purcbase of
stock were. 73 % allowed !be maximum of 10%. 12 % allowed a m.uimom of
15%-25% and 5% bad DO maximum_
City: The City doe< not have a stock plan for its employees_
EDUCATIONAL ASSISTANCE
Private: 96% of the companies provide an education assi.'i"..ance program for their
employees with tile majority (86%) requiring !be cv"""' to be job rei_ted. 64 %
career re"'tro. 49% required for a degree and 5% bad no restrictions placed on
the courses.
60% of !be companies paid • l1a. dollar amowu per year with 54 % paying from
52000-$3000.20% paying $3300-$SOOJ and 2 % paying $6000-$7000 maxinrums.
4 % of tile companies offered a separate ma<irnum fo< graduate work.
The list of o!ber costs oompaoies reimbursed employees for are as follows: 81 %
-lab fees. 80% -books. 56% -required fees (other than tuition) and the rest
covering patting, and other educatIon materia1s or supplies.
40% of the companies allowed time off during normal working hours .0 a!lend
clliss. 7% withoul pay. 23% of the companies provided I1exible scheduling for
employees to attend clliss. i3 % made up time.
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I City: The City will reimburse [0 a lIl>J<imum of S500 -$1000 per year depending on
employee group. In ordtr Co receive the reimbursement the courses must be job
or cueer related.
1be list of other costs allowed 10 be reimbursed are lab fees, books, olher
required fees other than tuitinn, and some educatioo materials or supplies.
Clao;;ses are takeu during the employees' own lime, with some possibility for
f1eXlble scheduling,
RECREATIONAL FACn.!TIES
68% have showerllocker room facilities for their employ,,"s, 36% basketball
courts. 29% -equipped gym. 25% aerobics or other exercise cla.sses, 2.5%
volleyball. 20% ping pong. 14% j<lgging par course. witb tenni., swimming pool,
saunaijacuzzi, baseball diamond etc, provided at approaimately 5% of the
companies.
21 % of the companies provided memberudp at an off-site health or recreational
club that can be used by employees below lhe executive level.
City: The City provides a sbowerlloder and weigh! room with some gyt:l equipment.
PlWFESSIONAL ORGANIZATIONS
Prinde:
City:
89 % of !be companies pay for mem!>orship dues for job related professional
organizations company-wide 0< limited [0 e.empt personnel, 94% pay 100%,
14% have no limit on the number of organizatioru for which membership dues
"ill be paid,
The City pays for membership dues for job--n:lared prof~ssionaJ organizations as
approved by l1IJlrulgement,
!mAL SERVICES
Private:
City:
S % provide legal service~ through eitheT an industry associatio[] or legaJ group.
The legal services plan may be employee paid. employe<: panially paid or
company paid.
No plan. 1be City provides limited relephone Ct)nsultation through the employee
assistanee plan.
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FOOD SERVICES
Prtrate:
City:
80~ of me companies provide free coffee, tea, or cocoa for their employees,
89%-bave vending machine:s available, 47% subsidizes the cafeteria and 81 %
provide a lunchroom with refrigerator and/or cooking facilities.
The City provides ulL51lbsidized lunchroom service at the civic center and use of
microwave, refrigerator and vending machines at some work locations.
AUTQMQBR.E POLICIFS
City:
98 % of companies provide reimhursement for business use of pn'late veb!cJes.
The aVl:l1lge cents per mile rare of reimbursement is 26.3 ""n~'. 46% gel $.28
and over, 33% get $.25-.27, and 21 % get $.20-24.5.
The City reimburses employees for use of pe=nal cars on City business ., 28
<:ems per mile.
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