ITEM NO:

6b supp

DATE OF
MEETING: November 8, 2011_

Salary and Benefits Resolution - First Reading

Agenda
 What is the Salary and Benefits Resolution?
 Considerations for 2012 changes
 Proposed changes for 2012
 Minor wording changes
 Adjustments to non-represented salary ranges
 Minor updates to the Administration of Benefit Programs
section

Salary and Benefits Resolution -
What is it?
 Covers 56% of Port Employees
 Similar to collective bargaining agreements
 Holidays, PTO, health coverage, pay
 Some of the key components of the total rewards package
 Does NOT set actual pay rates

 Establishes Pay for Performance
 Merit
 Administered under HR-21
 Funding in the budget

Salary and Benefits Resolution -
What is it?
Changes informed by:
 New or changing laws

 Updates to POS pay or benefits policies
 Current market pay levels
 Known or estimated pay increases for the coming year
 All industry survey information
 Local public employers
 Private sector employers
 POS CBAs

Considerations for 2012
 Expected average market pay increases trending up
 CPI changes trending up

 Benefit plan changes will be implemented for the 4th

consecutive year
 2009 - 10% coinsurance added

 2010 - premium sharing added
 2011 - premium sharing percentage increased
 2012 - deductibles and copays increasing

Proposed Changes for 2012
 Minor wording changes
 Adjustment to non-represented salary ranges

 Minor updates to Administration of Benefit Programs

Section

2012 Wording Changes
 Updates throughout the document to clarify or simplify

language
 Some definitions in section I updated for consistency
throughout the resolution

Non-Represented Salary Ranges
 2% Increase Recommended
 Midpoint vs. market average
 Very slightly below market
 3.1% market increase
 2% appropriate, conservative adjustment


~ $10K for below minimum adjustments

 Remove CEO job from ranges
 Simplifies the resolution
 Consistent with section VI.B which grants Commission
discretion in setting CEO pay and/or salary range

Administration of Benefit Programs
 Port holidays updated to reflect the 2012 calendar
 PTO maximum balance reduced from 800 to 700 hours
 Change is consistent with plan implemented in 1999 when
PTO was introduced
 Reference to Long Term Sick Leave Account deleted
 1 employee had a very small balance which was rolled into
their Extended Illness accounts

Conclusion
 Changes will be minimal and consistent with prior years
 Salary range change reflects a conservative approach