TOTAL COMPENSATION FY 2019

Total Compensation Goals

• Competitiveness

• Affordability

• Sustainability

Pay, Benefits and Retirement options that attract, retain, reward and motivate current and future employees.

We want to maintain:

Employee Demographics

Age Years of Service

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Recent Enhancements

Fiscal Year Pay Enhancements

FY 2018 • Merit increases included• Increased Transit Subsidy by $50 per month• Implemented a Dependent Care Flexible Spending Account (FSA)

employer match of $500 per employee

FY 2017 • Merit increases included• 1.75% increase to the maximum of each grade/range and

implemented open pay ranges• Lowest base pay rate increased to $14.50/hour from $13.13/hour

for all permanent employees• Implemented a Commercial Driver’s License (CDL) bonus program• Increased New Parent Leave from 2 weeks to 4 weeks

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Path Forward towardsCompensation Goals

Implementation of Classification Maintenance Plan

- Focus on pay competitiveness for all classes and pay programs

- Implementation over five years

- External benchmark of salary range, Internal review of organizational structure, Updates to Admin Reg

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FY19 Proposed Budget Items for Public Safety Employees

• Year 1 of Classification Maintenance Plan- Emphasis on Police, Sheriff and Fire ($2.9M)- Subsequent years average $0.65M, annually

• Implementation of Kelly Day for Fire Department- Provides an extra day off per 28-day cycle- Reduces the workweek to a level closer to other

jurisdictions- Reduces burn-out and some overtime costs- Adds 36 uniformed employees over four

years; adding nine new FTE’s per year

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FY19 Proposed Budget Items for General Employees

• Continued Open Range Pay Plan- 3.25% increase up to max of grade ranges

• 1% Increase to Each Grade- General Employees’ salary range will increase by 1.0%

• Base Rate Increasing to $15.00/hr (from $14.50/hr) for permanent and most temporary employees

Competitive Metrics

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*Projected employees at max by end of FY18 is 17%

Total

Comp

Element

FY2015 FY2016 FY2017 FY2018 to

Date

Benchmark

classes

lagging at

midpoint

16% 16% 3%

(due to

increasing

ranges by

1.75%)

13%

Employees

hired over

midpoint

35% all

91% MAPs

34% all

75% MAPs

24.2% all

80% MAPs

34.8% all

67% MAPs

Turnover 9.9%

6.5% non-

retirement

10.5%

7.4% non-

retirement

9.3%

5.9% non-

retirement

5.7%

4.0% non-

retirement

Employees

at max

11% 13% 10% 14%*

Comparison of Proposed FY 2019 Comp Adjustments in the Region

Merit Increases Structure Change

AverageIncrease

Other

Arlington 3.25% General3.5% (PS and PFP)

1% 2.85%

Fairfax 1.25% - 3.0% General2.25% Public Safety

2.25% COLA or partially funded at 1.26% COLA

4.25% General4.5% Public

Safety

Funding for specific job

classes

Alexandria 2.3% -5.0% None N/A $1.5M public safety

Prince William

3.0% None N/A 1%-2% one-time bonus for EEs at

max

Loudoun 3.5% 3.0% N/A

ArlingtonPublic Schools

5% (Teachers)4% - (Other employees)

None 2.8%

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FY19 Proposed Budget Items Other Benefits

• New Adoption Assistance- Financial assistance of $5,000 per child adopted

• Increased Volunteer Leave- Volunteer hours increased from 4 hours to 8 hours

• Health Insurance Coverage - 5% increase to the overall budget- Premium increases may vary based on plan and tier- Smallest increase since FY14

Alexandria Arlington Fairfax Prince William*

Major health plan

2.2% 5.0% 5.5% 5.3%

Cost SharingIndividual2-Party/Family

City/Employee

80/2080/20

County/Employee

80/2075/25

County/Employee

85/1575/25

County/Employee

95/575/25

FY19 Proposed Health Care Increases Across the Region

*Prince William does not cover retirees on their health plans

• Clinic use avoided over $600K for ER/Urgent Care

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5% Premium Increase Means: Cigna In-Network Coinsurance Plan

Additional CostPer Pay Period

IndividualEmployee +

SpouseEmployee + Child(ren)

Family

Employee $3.00 $7.67 $6.56 $11.24

County $12.00 $23.02 $19.65 $33.70

THE BOTTOM LINE: An Employee’s Pay Slip

Average Annual Salary $75,000.00

Average Salary Increase: 3.25% $2,438.00

Cigna Coinsurance Increase (Family) $292.24

Gross Salary Increase after Health $2,145.76

Note: All premiums are deducted pre-tax

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Retiree Medical

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Alexandria Arlington Fairfax Prince William*

Monthly Subsidy

$260 $600 (hired before 7/1/08)$300 (hired on or after 7/1/08)

$230 $210

*Prince William – Health insurance “credit” - $165 from County and $45 from VRS for 30 yr career- No post-Medicare benefits

Recent Enhancements

• Dependent Care FSA Reimbursement: increased enrollment by 30%

• Increased Transit Subsidy: maintained ridership in sub-optimal service environment

• Tuition Reimbursement:

– Used by approximately 150 employees each year

– Funds slots in COG-Certified Public Manager, GMU-Masters in Public Administration, and Leadership Center for Excellent (Leadership Arlington) programs

• Live Where You Work: projected to be fully utilized

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Looking to the Future• Comprehensive Benefits Study

-Phase One: Completed Survey, Focus Groups, Benchmarking

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Health CareFebruary - July

Leave/Other BenefitsApril - September

RetirementJuly - December

Phase Two: Steering Committee

Wo

rkin

g G

rou

ps

2 – 5 Year

Strategic Plan

Looking to The Future• Continue the classification maintenance plan

for years 2-5

• Re-evaluate total compensation principles including competitors beyond current 3 neighbors and market position of average midpoint

Competitiveness

• Maintain affordable pay and benefits for County and employees

• Evaluate pay policies for hiring and internal movement

• Continue strategic review of benefit programs

Affordability & Sustainability

• Consider choice in benefits

• Encourage mobile work and flexibilityFlexibility

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