Item No. 9a Supp
Meeting date: 10/23/18

2019 Salary and Benefits
Commission Briefing
October 23, 2018

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Topics to Cover
• Background of the Salary and Benefits Resolution
• Recommended Updates
- Pay Range Adjustment
- Reporting Relationship Change
- Clarification of a Definition
- Change to Leave Plans
- Changes to Healthcare Plans

• Administrative Updates
- Healthcare Plan Design
- Washington Paid Family & Medical Leave
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Background
• RCW 53.08.170 authorizes Commission to establish
salaries and benefits via resolution
• The Salary and Benefits Resolution covers non-represented
employees
• The Resolution includes delegation of authority not
included elsewhere
• The 2019 Salary and Benefits Resolution will incorporate
changes to Resolution No. 3739, the 2018 Salary and
Benefits Resolution
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Recommended Updates

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Pay Range Adjustment
• With the limited data currently available we are estimating
that the required adjustment will be between 3.0% and
3.5% to maintain market competitive pay ranges
• Data will continue to become available over the next few
weeks and we will incorporate new data into a specific
recommendation for the first reading of the Resolution
• Costs associated with the range adjustment are minimal
- Less than 40 employees affected
- Estimated cost is approximately $40,000
5

Reporting Relationship Change
• The reporting relationship of the Internal Audit Director
will be clarified to specify that performance reviews will be
prepared and conducted by the Executive Director
- Formerly prepared and conducted by the CFO

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Definition Change
• A slight change to the definition of the probationary period
that it is an extension of the hiring process

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Paid Leave Plans
• Prompted by feedback from the 2016 Employee Benefits
Survey and 2017 focus groups
• Researched local public employers and general industry
market data and found we lagged the market average in
this area Recommended Addition:
- One (1) Personal Day per year
- Administered similar to a holiday with no liability accruing to the Port, no
accrual or carry forward of the day to the following year
- Taken as a full day off and cannot be split up and taken as multiple partial days
off

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Healthcare Plan Changes
• Defining the Vision and Prescription Plans
• Eliminating Retiree Medical Plans
- Following years of declining enrollment and increasing costs we
will discontinue the retiree medical plans after the end of 2018
- As a result, sections IV.A. and IV.B., Medical Benefits for Retirees
and Medical Benefits for Dependents of Retirees, will be deleted
- Section V.B., Commissioner Retiree Medical Benefits, will also be
deleted

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Administrative Updates

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Vision and Dental Plan Changes
• Employees have expressed a desire for more choice in
health plan options - we listened!
• For both the Vision Plan and Dental Plan we are
implementing enhanced plans that employees may elect
- Enhanced Vision Plan will have increased benefits, including
choices of additional lens allowances, and employees will pay a
higher monthly premium
- Enhanced Dental Plan will have increased benefits, including a
higher annual maximum and adult orthodontia, and employees will
pay a higher monthly premium
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Additional Medical Plan Benefit
• For the 2019 plan year we are adding infertility benefits
that includes up to $10,000 lifetime maximum coverage for:
- Artificial Insemination and Ovulation Induction

• Overall, there are no cost increases for employees or the
Port for 2019 benefits comparable to 2018 benefits
- There are additional costs for employees who elect enhanced vision
and/or dental benefits
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Washington State Paid Family & Medical Leave
•

Mandated by state - benefits available 1/1/2020
- Provides partial pay (max $1,000/week) benefits for up to 12 weeks of medical (18 weeks
in some pregnancy situations)
- Funded by employee and employer premiums beginning 1/1/2019
- State rulemaking will not be completed until approximately 3Q 2019

•

The Port is pursuing the option to opt-out of the State plan with a voluntary plan
offering benefits that are at least as good as the State plan
- The State must approve employers' applications to opt out
- We anticipate that our plan will be approved this year and become effective in 2020

•

Details on participation in either the State program or the Port's plan will be
included in next year's briefing.
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Questions?

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