Staff Meeting

Compensation Plan Adopted during the November 11, 2010

Board of Supervisor’s Meeting

Staff Meeting

The Administration with the support of the Board of Supervisors desires to recognize the employees of Carroll County for their dedicated service and exceptional work.

This presentation contains steps that are significant and have never before been taken in Carroll County.

As you review this material, we want you to understand that these steps are being taken in an effort to recognize each employee for their valuable contributions and to assist the County with administration of pay policies and procedures in order to have fair and equitable compensation for employees.

What is the Plan?

Adoption of Compensation Plan for County General and PSA as Presented by Springsted, Inc.

Move to a Bi-Weekly Pay Period

Change in Employer-Portion of Anthem Insurance

Constitutional Employee Compensation

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Adoption of Compensation Plan for

County General and PSA as Presented by Springsted, Inc.

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Adoption of Compensation PlanStaff Meeting

Background Information

There has never been a sustainable structured classification and compensation system for County General employees.

The Administration and the Board of Supervisors recognizes the need for a compensation system to provide consistent administration of pay policies and procedures and also fair and equitable compensation to the employees.

Earlier this year, Carroll County contracted with Springsted, Incorporated for the purpose of a completing a Compensation Study and development of a Compensation System for County General and PSA Employees.

Background Information

Springsted conducted a wage and benefits survey in the region to compare the salary and benefits of Carroll County employees to those of other local governments.

They developed Pay Grades that contain Steps (or rates) from Minimum Pay to Maximum Pay.

Each position in the County General and PSA was classified and assigned to one of the Pay Grades by Springsted. They used information from Position Analysis Questionnaires (PAQ’s) completed by employees and reviewed by supervisors in the Spring, along with job audits, to determine into what pay grade a position should be placed.

The result of the wage survey and placement of jobs into pay grades was that some positions were in line with the market and others were not.

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Adoption of Compensation Plan

Background The Administration and the Board of Supervisors reviewed the wage increase history for

County employees and found that:

For County General Employees, a wage increase has not been received since July 1, 2007.

For PSA Employees, the last wage increase was July 1, 2008.

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We are aware that increases in health insurance premiums coupled with the lack of an annual wage increase has led to decreased take home pay for employees.

Adoption of Compensation Plan

Implementation Therefore, the Board of Supervisors has voted to provide County General and PSA

employees the following:

All County General Employees will receive at least a 3% pay increase effective December 1, 2010.

The PSA has agreed to implement the Compensation Study with at least a 3% pay increase to those employees effective December 1, 2010.

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Adoption of Compensation Plan

Implementation

Going forward, the County and the PSA will utilize the Pay Grades & Steps in the Compensation System to determine employee compensation. Annual reviews will be conducted to provide each employee with feedback on job performance, and subsequent pay increases will be aligned with performance results.

We will meet with each individual employee to discuss the change in their compensation, the pay grade for their job and the step they are on within the grade.

We will also review with each employee the job description for their job. These have been updated by Springsted using the Position Analysis Questionnaires (PAQ’s).

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Adoption of Compensation Plan

Constitutional Employee Compensation

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Background The Administration and the Board of Supervisors also reviewed the wage increase history

for Constitutional employees and Social Services and found that:

For Constitutional Officers and their employees, a wage increase has not been received since December 1, 2007.

The Commonwealth of Virginia is not providing a pay increase this year to its employees but is planning to provide a 3% bonus. This bonus includes employees of the Health Department and Court Services, but does not include our Constitutional Officers and their employees or employees of the Department of Social Services.

Staff MeetingConstitutional Employee Compensation

Staff MeetingConstitutional Employee Compensation

Implementation Therefore, the Board of Supervisors has voted to provide Constitutional Officers

and their employees and the Department of Social Services with the following:

All Constitutional Officers and their employees will receive a 3% bonus funded by the County to match the bonus given other State employees.

The Department of Social Services employees will receive a 3% bonus partially funded by the County to match the bonus given other State employees.

Move to a Bi-Weekly Pay

Period

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Move to a Bi-Weekly Pay Period

Background Carroll County administers the payroll function for all County General Employees,

Constitutional Officers and their employees, the Public Service Authority, Solid Waste Authority and the Small Business Development Center on a semi-monthly basis.

The semi-monthly pay period presents challenges because:

It does not coincide with our current pay week, making the calculation of overtime and compensatory time extremely complicated when the workweek overlaps the pay cycle.

We have two departments (Sheriff’s Department and Carroll Fire & Rescue) on a 28-day pay cycle that does not coincide with our pay period, thus further complicating the calculation of overtime and compensatory time.

Implementation

Because of the problems noted, the Board of Supervisors has agreed to adopt a Bi- Weekly Pay Period.

Currently, we are paid 24 times per year. The move to bi-weekly means we will be paid 26 times per year

During two months, (July and December of 2011), we will receive three checks instead of two.

In order to have the least amount of impact to employees, the Board of Supervisors has approved to pay full-time employees three times in December, 2010, providing those employees with extra pay above what is earned as part of the bi-weekly implementation.

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Move to a Bi-Weekly Pay Period

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Implementation Insurance deductions will be calculated based on and deducted from 24 checks

each year. This means there will be no insurance deductions from the third check received in the months where we are paid three times.

Annual Leave and Sick Leave will be accrued per pay period, rather than per month. Employees will accrue bi-weekly one-half (1/2) of the regular monthly amount. For example, employees who currently earn 8 hours of sick time each month will earn 4 hours of sick time each bi-weekly period.

EXCEPTION: During the months when three (3) checks are received, employees will only accrue leave time for two pay-periods. This will prevent employees from earning more leave annually than the current amounts dictated by personnel policy.

New time sheets for Full-Time and Part-Time have been developed and will be implemented with this change.

Move to a Bi-Weekly Pay Period

Change is effective November 16, 2010. First bi-weekly check will be paid on December 3, 2010.

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Implementation

Move to a Bi-Weekly Pay Period

Pay Date Paid for Hours Worked Notes

November 30th November 1st – November 15th Last Semi-Monthly Check

December 3rd November 16th – November 19th For Full-Time Employees, the Board approved this to be a FULL TWO-WEEK CHECK for only 4 days of work.

December 17th November 20th – December 3rd Full Two-Week Check

December 29th (early pay date because of Holidays)

December 4th – December 17th Full Two-Week CheckThird Pay Check in December – NO INSURANCE DEDUCTIONS (Anthem, American Heritage, AFLAC, etc.)

Change in Employer-Portion of Anthem

Insurance

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Implementation

As a way to further assist employees with the change to bi-weekly, and as a way of saying thank you for your hard work and dedication, the Board of Supervisors has generously agreed to assume a greater percentage of the cost of insurance premiums.

This will lower what employees are paying each month for Anthem insurance.

This change will be effective December 1, 2010 and will be reflected on the check received December 3, 2010.

Employees who wish to consider a change in their coverage selections must see Michelle Dalton before January 1, 2011.

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Change in Employer-Portion of Anthem Insurance Premiums

Coverage Type

Total Cost of Current Monthly Premium

from Anthem

TLC

Employee Funded Portion

County Funded Portion

Employee Funded Portion

County Funded Portion

Monthly Cost

% of Total

Monthly Cost

Monthly Cost

% of Total

Monthly Cost

Monthly Cost

% of Total

Monthly Cost

Monthly Cost

% of Total

Monthly Cost

Single $550 $55.00 10% $495.00 90% $27.50 5% $522.50 95%

Dual $1018 $382.33 37.6% $635.67 62.4% $254.50 25% $763.50 75%

Family $1485 $709.64 47.8% $775.36 52.2% $519.75 35% $965.25 65%

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Change in Employer-Portion of Anthem Insurance Premiums

Current After Change

5%

20%

24%

50%

33%

27%

• At the current rates Anthem TLC charges the county, EMPLOYEE premiums are as follows:

Coverage Type

Current Monthly EmployeeCost

New MonthlyEmployeeCost

Current Yearly Employee Cost

NewYearly Employee Cost

Single Coverage

$55.00 $27.50 $660.00 $330.00

Dual Coverage

$382.33 $254.50 $4587.96 $3054.00

Family Coverage

$709.64 $519.75 $8515.68 $6237.00

$27.50 per

Month

$127.83 per

Month

$189.89 per

Month

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Change in Employer-Portion of Anthem Insurance Premiums

Implementation

$330.00 per Year

$1533.96per Year

$2278.68 perYear

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In Conclusion

The Administration with the support of the Board of Supervisors desires to recognize the employees of Carroll County for their dedicated service and exceptional work and hopes each employee will understand that these actions are taken with that spirit in mind.

Implementation of the Compensation Plan will provide the County with necessary tools to manage employee compensation, allowing for consistent administration of pay policies and procedures and fair and equitable compensation for employees.

Thank you for your time and attention today and many thanks to our Board of Supervisors for their considerate actions.