1 Module 1.3 Evaluate Salary and The Total Compensation Package CORE PFRP FOR TRANSITION Module 1.3 Core PFRP for Transition.

1Module 1.3 Evaluate Salary and The Total Compensation Package

CORE PFRP FOR TRANSITION

Module 1.3

Core PFRP for Transition


Cost of Living Analysis

When relocating, consider what could impact your financial plan

– Salary– Housing– Utilities– Taxes (including tax benefits for veterans)– Food– Child care– Commuting costs, clothing, entertainment,

school costs, climate, health insurance


Salary Comparison

www.bestplaces.netwww.bankrate.com

www.retirementliving.comwww.kiplingers.comwww.military.com

Lives in NC

$26,388

Moves to TX

$25,116

Home prices decrease

$243K down to $197KHealth Care Increases

$85 up to $93

Energy Bill Increases

$162 > $185

http://www.bestplaces.net/

http://www.bankrate.com/

http://www.retirementliving.com/

http://www.kiplingers.com/

http://www.military.com/


Military to Civilian Pay

Determine salary range based on current military pay, allowances, benefits and future

careerConsider a salary comparison calculator Realistically assess the worth of your skills and

experienceConsult Bureau of Labor Statistics (BLS) website

for national wage data

Research your job skill, career field, and job projectionsConsider implications on financesTrack salary information (use handout)O*Net Online can translate your military skills to

civilian language

www.salary.comwww.payscale.com

www.onetonline.org/crosswalk/MOCwww.bls.gov/bls/blswage.htm

www.onetonline.org/crosswalk/MOC/

http://www.salary.com/

http://www.payscale.com/

http://www.onetonline.org/crosswalk/MOC

http://www.bls.gov/bls/blswage.htm

http://www.onetonline.org/crosswalk/MOC


O*Net Online Salary & Projected Job Growth*

Bus/Truck Mechanic &

Diesel Engine Specialist

$19.64 hr ($40,850)

3-6% job growth

Automotive Specialty

Technician

$17.21 hr($35,790)

3-6% job growth

Office Clerk General

$12.79 hr ($26,610)

7–13% job growth

Aircraft Mechanics &

Service Technician

$25.68 hr ($53,420)

3–6% job growth

Information Security Analyst

$36.37 hr ($75,660)

20% job growth

Police Patrol Officer

$25.74 hr($53,540)

7–13% job growth

Bookkeeper, Accountant &

Auditor

$16.36 hr($34,030)

7–13% job growth

Electrician

$23.20 hr($48,250)

7-13% job growth

Network & Computer Systems

Administrator

$33.25 hr ($69,160)

20% + job growth

*Median wages (2010) & projected job growth 2008–2018


A Pay Comparison

Monthly Military Pay (Single E5 > 4 yrs)

Monthly Civilian Pay ($26/hr)

Base Pay $2487.60 Base Pay $4507.04

BAH $1671.00 Fed Tax $-751.14

BAS $348.44 CA Tax $-213.33

Fed Tax $-310.02 FICA $-254.65

CA Tax $-57.13 SDI $-45.07

FICA $-140.55 Medical $-183.00

Net Pay 3999.34 Net Pay 3059.85

A difference of $939!


Personal Statement of Military Compensation‘Total Military Compensation Package’

Calculate your Basic Compensation

BAH + BAS + Special/Incentive Pay +

Bonuses

OHA + COLA + FSA + CRA Medical Care + Dental + Life Insurance + SBP +

Long Term Care

Federal & State & Local Tax Advantages

Pension + TSP

Discounted ServicesCommissary ($137.80) vs. Supermarket ($200)

Gym $0 vs. $45

Education ProgramsTuition Assistance/ GI Bill

PFM ($250 + savings)Transition Assistance

($4,200 savings)

Legal Counseling SavingsConsultation: $200

Wills: $250Power of Attorneys $50


Compensation Comparison

• Use “Compensation Comparison” handout to compare compensation packages and track future job offers

• Include retirement plans, healthcare, insurance, and other benefits

• Consider what you will need for both replacement income and benefits


Benefit Package and Perks

Which is the better offer?

Company A$45,000

Company B$48,000

$200 a month parking voucher Free

gym

mem

-

bership

worth

$720

Health

ca

re

plan

worth

$7

00


Benefit Package and Perks

Which is the better offer?

Company A$48,820

Company B$48,000


Civilian Health Insurance

Individual vs. Group Health Insurance

Individual Health Insurance

Purchased from an insurance company

Generally very expensive

Group Health Insurance

Lower rates

Many employers provide it as a benefit

Easier to obtain


Methods of Covering Health Care Costs

INSURANCE

Health Maintenance Organization (HMO)

MUST get care from providers who work with the HMO

Preferred Provider Organization(PPO):

More flexible than a HMO; can get care from provider of your

choice/no referrals

Point of Service Plan (POS): More flexible than HMO but less

than PPOPrimary Care Physician must be within the participating provider

list

PAY/SAVE ON YOUR OWN

Three methods; each with their own rules:

Health Savings Account (HSA)Flexible Spending Account

(FSA)Health Reimbursement

Account (HRA)

Designed to reimburse employees for out-of-pocket costs

(deductibles, co-insurance payments, eye exams, etc.)

Check with your HR Department, or the IRS website (www.irs.gov)

for the more information


Continued Health Care Benefit Program (CHCBP)

• For Service-members separating from active duty (& families) – Must be under other than adverse conditions – Eligibility is for up to 18 months of CHCBP health

benefits after enrollment• Enrollment & Fees

– Must enroll w/in 60 days of loss of military health care benefits

– Coverage must be effective as of the date eligibility for military health care is terminated

– Quarterly premiums • $993 for one person• $1,996 for a family

– Enrollees responsible for paying cost shares and deductibles


Consider These Comps

Significant vacation/persona

l/sick leave

Promotion opportunities

Money for education and certifications

Relocation services

Paid job relocation

Company investment plan

Transportation reimbursement

Discounted/free gym membership

Co-share insurance costs

Free life insurance

Strong retirement package

Short term/long term disability

1 Module 1.3 Evaluate Salary and The Total Compensation Package CORE PFRP FOR TRANSITION Module 1.3 Core PFRP for Transition.

Documents

job growth bookkeeper

job growth electrician

job skill

total compensation package

job projections

salary range

hr base pay

salary comparison calculator