Arlington County Government Total Compensation FY2020

1

Arlington County

Government

Total Compensation

FY2020

Total Compensation Goals

Pay, Benefits and Retirement options that attract,

retain, reward and motivate current and future

employees in labor market that is at full employment.

We want to maintain:

• Competitiveness

• Affordability

• Sustainability

Age Years of Service

3

Employee Demographics

4

Exit Interviews

Top 10 reasons people left Arlington County

* Employees ranked their top five reasons

5

Exit Interviews

Local Government 29%

Government (unspecified) 17%

Retail / Service Industry 14%

Federal Government 12%

Police (unspecified) 10%

Health Care 7%

Education / Non-Profit 5%

State Government 5%

IT 2%

What industry are you moving to?

6

Compensation Maintenance Plan

• Implementation over five years

Goals• Create accurate job descriptions

• Ensure competitive salary rangeso Establish future alignment with marketo Provide affordable salary improvement

• The process includes:

– Employee communications/ recorded kick-off meetings

– Updating of position descriptions:• Interviews, employee observations and/or questionnaires

• Employees and managers provide feedback on updated position descriptions

– Evaluate market competitiveness

• Based upon the County’s Total Compensation Philosophy

• Employees can provide additional employer comparators

– Implementation

• When classes found to be behind, salary ranges will be adjusted, and employees receive an increase

7

Job Family Study Process

8

FY20 Proposed Budget Items for General Employees

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

• 2% Increase to Each Grade- General Employees’ salary range will increase by 2.0%

Pay Structure Adjustments - Range Max Increase

Jurisdiction FY15 FY16 FY17 FY18 FY 19 Total %Avg Annual Range Max Increase

City of Alexandria 1.00% 1.00% 1.00% 2.30% 0.00% 5.30% 1.06%

Fairfax County 2.29% 1.10% 1.33% 1.65% 2.25% 8.62% 1.72%

Prince William County 1.00% 3.00% 1.00% 1.00% 0.00% 6.00% 1.20%

Arlington County 0.00% 0.00% 1.75% 0.00% 1.00% 2.75% 0.55%

9

FY20 Proposed Budget Items for Public Safety Employees

• Continued Open Range Pay Plan- 5.5% merit increase up to max of grade ranges

• 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 FTEs per year

10

Proposed Public Safety Entry Pay Increases

Dept

FY19

Leading

Entry Rate

Leading Entry

Rate

Jurisdiction

FY19 ACG

Entry Rate

FY19 ACG

Entry Rate

vs. Market

FY20 ACG

Proposed

Entry

Minimum

FY20 ACG

Proposed

Entry Rate

vs. Market

FIR $55,672 Fairfax $50,648 -9.9% $55,723 +0.1%

POL $55,919 MWAA $54,933 -1.8% $56,035 +0.2%

SRF $51,938 Arlington $51,938 +0.7% $51,938 +0.7%

Note: The FY20 salaries do not include any adjustments in other jurisdictions’ budget proposals.

Competitive Metrics

11

*Projected employees at max by end of FY19 is 19% for General and 21% for Public Safety.

Total Comp

Element

FY2016 FY2017 FY2018 FY2019

to Date

Benchmark

classes lagging at

maximum (General)

16% 18% 24% 29%

Employees hired

over midpoint

(General)

43% all

75% MAPs

24% all

80% MAPs

42% all

73% MAPs

39% all

75% MAPs

Turnover 10.5%

7.4% non-

retirement

9.3%

5.9% non-

retirement

11.5%

7.6% non-

retirement

5.5%

4.1% non-

retirement

Employees at max 11% (Gen.)

20% (PS)

10% (Gen.)

16% (PS)

16% (Gen.)

19% (PS)

11% (Gen.)

20% (PS)*

Comparison of Proposed FY 2020 Comp Adjustments in the Region

Merit Increases Structure Change (Range Increase)

AverageIncrease

Other

Arlington 3.25% General3.5% (PFP)5.5% (PS)

2% 3.46%

Fairfax 1.25% - 3.0% General5% Step (PS)

1.0% COLA (to range & to pay)

N/A Funding for specificjob classes

Alexandria 2.3% - 5% None - General/PS5% - 12% - Exec

2.84%

Prince William

3.0% General3.0% Public Safety

N/AN/A

N/A 1%-2% one-time bonus for EEs at

max

Loudoun 3.0% N/A N/A Comp Study

12

Health Care and Leave & Other Benefits Groups have completed their work

• Recommendations proposed for July 1 implementation are on the following slides

Retirement Work Group currently meeting

• Improved Financial Wellness and Retirement Readiness

• Sustainability

• Portability

13

Benefits Study Work Group Update

High Option Dental Plan

• Higher annual limit ($2,500 vs. $1,500)

• Covers adult orthodontia (separate limits)

• 50/50 premium cost sharing

Employee-paid Long-term Disability Insurance

• Coordinates with our existing County-paid Disability Income Program

• Replaces 60% of salary

• Employee pays 100% of premium

14

FY20 Proposed New Benefits

RETIREMENT

• Purchase Credit for Military Service

o Recruiting tool

o Former active-duty military may purchase up to 4 years of service credit in pension system

o Employee will pay full cost of purchase

15

FY20 Proposed Changes to Current Plans

HEALTH CARE

• Change to coinsurance for prescription drug coverage

o Pay a percentage of cost, up to a maximum amount.

o Generic drugs remain $10 or less

o Certain preventive generic drugs at no cost

16

FY20 Proposed Changes to Current Plans

• Proposed for July 2020

• Lower biweekly premiums, higher deductible

• Preventive care at no cost to the employee

• Out-of-Pocket expenses covered through Health Savings Account (HSA)

o HSA can only be used with Consumer Directed Health Plans (CDHP)

o County and employee contributions

o Build up savings for future health care expenses, including in retirement

17

Consumer Directed Health Plan with Health Savings Account

Alexandria Arlington FairfaxPrince

William

Major health plan 0% 0% 5% 1.6%

Cost SharingIndividual2-Party/Family

City/Employee

80/2080/20

County/Employee

80/2075/25

County/Employee

85/1575/25

County/Employee

95/575/25

FY20 Proposed Health Care Increases Across the Region

• 1.9% increase for Kaiser premiums

• 0% increase for current dental plan

18

19

• Paid Parental Leave

• Adoption Assistanceo Up to $5,000 reimbursement for expenses

• Dependent Care FSA Reimbursemento Up to $500 per year

Family Friendly Benefits

• CPHD conducted survey of County and APS employees

o ~ 1,900 responses

o 56% of respondents have no children under 18

20

Workforce Housing InitiativeSurvey Participant Profile

Household Gross Annual Income

“Missing Middle”

• 55% spend more than 30% of their income on housing costs

• 41% of renters say they would like to purchase a home in Arlington, but most don’t believe they can find something affordable

21

Workforce Housing InitiativeSurvey Key Takeaways

22

Live Where You Work Grants

Looking Ahead• Continue the compensation maintenance plan

for years 3-5

• Evaluate pay policies for hiring and internal movement

• Look for opportunities to simplify pay scales

Pay

• Communicate benefit plan additions/changes

• Educate employees on upcoming CDHP and HSA

• Develop Retiree Work Group RecommendationsBenefits

• Pilot application referral without names

• Continue Unconscious Bias training

• Barrier Analysis

Diversity & Inclusion

23

Looking Ahead