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ACSS and CalHR Discuss Pay Equity and Other Issues that Affect Excluded Employees

Posted: 10/10/2019 Tags: benefits legislation policy representation salary Tags Views: 1669

On October 8, 2019, ACSS met with CalHR Director Eraina Ortega to continue discussions regarding the Newsom Administration’s approach to salary and benefits improvement for the State’s excluded employees. Director Ortega and her Labor Relations staff, led by Deputy Director and Chief of Labor Relations Paul Starkey, met with ACSS President Todd D’Braunstein, ACSS Executive Director Rocco Paternoster and key staff, along with ACSS Legislative Advocate Ted Toppin.

President D’Braunstein thanked CalHR for recently implementing Family Care Leave and new Emergency Pay rules for excluded employees – two long standing ACSS priorities. He also thanked Director Ortega for the new process allowing ACSS to submit excluded employee salary and benefit proposals related to bargaining units at the same time CalHR is negotiating with those bargaining units.

In our continued efforts to aggressively advocate for solutions to solve compaction, ACSS noted progress made in addressing salary compaction, but many excluded employee classifications remain within 5 percent of subordinate classes. Director Ortega confirmed salary setting for excluded employees will be more flexible in the future and CalHR will not be as constrained by a practice of limiting salary differentials to 5 percent.

ACSS reiterated previously submitted proposals for pay and benefit equity with rank-and-file units and proposals to correct salary inequities. ACSS discussed the need to restore vertical salary relationships between classifications and explore other incentives to promote to excluded classifications.

Chief of Labor Relations Paul Starkey noted CalHR was in the process of realigning labor relations staff to more effectively respond to and address excluded employee issues raised by ACSS and affecting our members. Director Ortega and Mr. Starkey confirmed a commitment to working with ACSS now to review many of the long-standing compensation issues ACSS has identified. We anticipate scheduling interim meetings to discuss specific proposals with CalHR Labor Relations. CalHR has promised feedback and is evaluating improvements to the process for sharing salary and benefit related decisions with ACSS.

President D’Braunstein thanked Director Ortega and her staff for making excluded employee issues a priority and for committing to review and respond to issues and proposals made by ACSS. As always, ACSS will continue to keep members informed of issues that affect excluded employees as they arise.


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Legislature Passes Bill Approving MOUs, Appropriates Money for Increases for Related Excluded Employees

Posted: 9/13/2019 Tags: benefits legislation policy salary Tags Views: 3978

On September 12, 2019, the Legislature approved Assembly Bill 118 which includes funding for certain excluded employee salary adjustments. AB 118 approved labor contracts for 13 state rank-and-file bargaining units (1, 2, 3, 4, 5, 7, 11, 13, 14, 15, 17, 20, and 21). The bill, which contains budget appropriations to fund employee compensation increases for both rank-and-file employees and related excluded employees, now heads to Governor Newsom for his approval.

ACSS has requested CalHR provide at least the same salary and benefit increases to supervisors, managers and confidential employees in addition to correcting standing salary inequities and compaction issues. The expectation is that CalHR will adjust salaries for excluded employees related to bargaining units 2, 7 and 13 retroactively to July 1, 2019.

Most salary adjustments and other benefits for excluded employees related to the 9 SEIU Local 1000 bargaining units (1, 3, 4, 11, 13, 15, 17, 20, and 21) are effective July 1, 2020. The SEIU rank-and-file agreements call for a few increases to take effect this fiscal year: increase in bilingual pay, recruitment & retention for Correctional Case Records Analysts, increase in the call center differential, expanding the personnel and payroll geographic differential to include Alameda County, and an increase in the commute reimbursement from $65 per month to $100 per month. Other employee compensation adjustments – general salary increases, special salary adjustments and the new provision to provide $260 per month to those enrolled in a CalPERS health plan – are scheduled to take effect July 1, 2020. ACSS has asked CalHR to provide excluded employees with at least these same increases in addition to resolving identified salary compaction issues by raising excluded employee salaries.

Following Governor Newsom’s signature on AB 118, CalHR will issue a “Pay Letter” as the official instruction to the State Controller’s Office to adjust salaries. ACSS will publicize the pay letter and its impact as soon as it is released. ACSS is next scheduled to meet with CalHR in early October and will keep all members apprised of progress made on addressing salary compaction and improving excluded employee salaries and benefits.


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Many Excluded Employees will see smaller paychecks as OPEB Deductions increase, ACSS takes action

Posted: 8/28/2019 Tags: benefits legislation policy retirement salary Tags Views: 2341

ACSS has been affirmatively taking action advocating for our members’ interests on OPEB deductions and General Salary Increases this year. As always, we represent the voice of Managers, Supervisors and Confidential State Employees and we strive to obtain fair wages and working conditions.

Although raises for many excluded employees were effective with last month’s pay warrants, the increased Other-Post Employment Benefit (OPEB) deductions will take effect with the August pay period. Your OPEB contribution is listed on your pay stub as “CERBT”, which stands for California Employers’ Retiree Benefit Trust.

Your contribution as a percentage of salary is matched with a state employer contribution. The purpose is to reduce the “unfunded liability” for retiree health care to ensure that your valuable earned health benefits will be available when you retire.

The following chart showing the legislatively approved contribution rate increases for OPEB and CalHR approved increases for exempt and excluded employees not related to a specific bargaining unit:

OPEB INCREASES for EXCLUDED
EMPLOYEES Effective August 2019
 Percentage Increase
 1, 3, 4, 11, 14, 15,
17, 20, 21 (SEIU Units)
 1.1%
 2  0.7%
 6  N/A 
 7  1.3%
 8  1.4%
 9  1%
 10  1.4%
 12  1%
 13  1.3%
 16  N/A
 18  1.4%
 19  1%
 Exempt and excluded employees not
directly tied to a BU (E48, E97, E98, E99)
 0.8%

Not all excluded employee salaries increased on July 1, 2019. State Bargaining Units 2 and 18 have not reached new labor contracts. ACSS President Todd D’Braunstein has urged CalHR to provide a General Salary Increase to supervisors, managers and excluded employees related to these units. Click here to read President D’Braunstein’s letter to CalHR. ACSS has been proactive in the fight for fair and appropriate wages on behalf of these excluded employees.

Excluded employees related to state Bargaining Units 9 and 10, will also see a temporary one-half percent increase in the employee pension retirement contribution. The Unit 9 increase will be for this fiscal year only and the Unit 10 increase will be for two years. A one-half percent increase for excluded employees related to Unit 16 will take affect this paycheck and thereafter.

ACSS will continue to stand up for your rights while communicating and working with the Administration. As we receive new information, we will continue to keep you informed on these important issues.

>> Click here to read details of the OPEB provisions.

>> Click here to read OBEB FAQ's from CalHR.


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All State Employees Begin Prefunding Retiree Health Care

Posted: 8/24/2018 Tags: budget legislation policy salary Tags Views: 4416

Your August paystub will likely reflect a deduction for something called CERBT. That stands for the California Employers’ Retiree Benefit Trust. Along with the General Salary Increases received by supervisors, managers and confidential employees on July 1, the budget includes provisions to begin prefunding retiree health care. While some excluded employees have already seen this contribution take effect, all state employees are now prefunding retiree healthcare.

Your contribution as a percentage of salary is matched with a state employer contribution. The purpose is to reduce the “unfunded liability” for retiree health care which has received substantial negative public and media attention and to ensure that your valuable earned health benefits will be available when you retire.

In July, CalHR announced that excluded and exempt employees not directly associated with a bargaining unit, e.g., E48, E97, E98, and E99, will begin prefunding 0.8% of their pensionable compensation to Other Post-Employment Benefits (OPEB) effective with the August 2018 pay period.

ACSS compiled the following chart showing the legislatively approved contribution rates for OPEB and information provided by CalHR for exempt and excluded employees not related to a specific bargaining unit. OPEB Contribution rates:

OPEB Rates for EXCLUDED EMPLOYEES
AFFILIATED WITH BARGAINING UNIT
Effective August 2018:
 CERBT
 1, 3, 4, 11, 14, 15,
17, 20, 21 (SEIU Units)
 1.2%
 2  1.3%
 6  4% 
 7  2.7%
 8  3%
 9  1%
 10  1.4%
 12  2.5%
 13  2.6%
 16  1.4%
 17  1.2%
 18  2.6%
 19  2%
 Exempt and excluded employees
not directly tied to a BU
 0.8%

Details of the OPEB provisions are available here: http://hrmanual.calhr.ca.gov/Home/ManualItem/1/1422

Click here to read OBEB FAQ's from CalHR.


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General Salary Increases for Excluded Employees Effective July 1, 2018

Posted: 6/26/2018 Tags: budget legislation policy salary Tags Views: 4851

The Department of Human Resources (CalHR) has informed ACSS of General Salary Increases (GSI) for state excluded employees effective July 1, 2018. As detailed below, excluded employees will receive the same percentage raises as the bargaining unit they are associated with.

Earlier this month ACSS President Frank Ruffino, ACSS Executive Director Rocco Paternoster, and ACSS Director of Representation Nellie Lynn met with CalHR Director Richard Gillihan to discuss issues affecting state excluded employees – including pay raises and retiree health benefits. Following the meeting and the announcement of salary increases, Director Gillihan shared the following with ACSS, “Managers and supervisors are the backbone of California state government. Their dedication ensures we are serving the public and safeguarding the state. I am pleased that the state is able to increase their salaries in recognition of the work they do.” Ruffino thanked the Director for his continued support of excluded employees.

Along with the General Salary Increases, the state budget includes provisions regarding state employee contributions for prefunding retiree healthcare. While some excluded employees already participate, all will soon see an employee contribution as a percentage of salary which is matched with a state employer contribution. The purpose is to reduce the “unfunded liability” for retiree health care which has received substantial negative public and media attention and to ensure that your valuable earned health benefits will be available when you retire. The deduction, expected to appear or adjust with your August pay warrant (received at the end of August/beginning of September), will show as CERBT – which stands for the California Employers’ Retiree Benefit Trust.

 EXCLUDED EMPLOYEES AFFILIATED
 WITH BARGAINING UNIT:
 GSI
 1, 2, 3, 4, 11, 14, 15, 17, 20, 21  4%
 6, 18  3%
 7, 13, 16  2% 
 10  5%
 12  3.5%
 19  2.5%

Exempt and Excluded Employees not directly tied to a bargaining unit (such as many employees who have an “E” Collective Bargaining Identifier) will receive a 4% GSI.

The official “Pay Letters” implementing the salary increases are expected to be released shortly after the Governor signs the State Budget later this week.


UPDATED 7/5/2018

Click here to view Pay Letter1815 for details on the General Salary Increases for Excluded Employees.


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May Revision of the Budget: Continue Saving for the Future as Surplus Grows

Posted: 5/16/2018 Tags: benefits budget legislation pension policy retirement salary Tags Views: 1421

Governor Jerry Brown released his May Revise of the Budget on May 11th, 2018. ACSS Legislative Advocate Ted Toppin provides relevant analysis and insight of the May Revise that may be of interest to managers, supervisors and other excluded state employees:

“The state continues to generate revenue at unprecedented levels and now it is coming in faster. In January, the surplus was predicted to be $6 billion. The surplus now is expected to be $9 billion.

The May Revise proposes saving for the future. In January, the Governor proposed to put an additional $4.4 billion into the state rainy day fund, topping it out at $13.8 billion – the constitutional limit. In the May Revise, he socks another $3.3 billion into a different reserve account.

Budget negotiations between the Administration and the Legislature will now heat up. The Governor will urge restraint. Legislators of both parties will push for billions of dollars in additional spending. Ultimately, you can expect the Governor to agree to modest increased spending while keeping his rainy day reserves. Regardless, the Legislature will pass a budget by June 15 and the Governor will sign it by June 30.

Here’s what the May Revise says about issues important to ACSS members:

State Employee Compensation

The January budget proposal included $1.2 billion ($589.5 million General Fund) for:

  • increased employee compensation
  • health care costs for active state employees
  • retiree health care prefunding for active employees

The May Revise decreases this amount by $8.1 million to reflect:

  • corrections to 2019 health rates
  • natural changes to enrollment in health and dental plan
  • updated employment information for salary increases
  • updated employment information for salary increases
  • revised pay increases for judges
  • updated costs related to the salary survey estimates for the California Highway Patrol (Bargaining Unit 5)

State CalPERS Contribution

The state’s contribution – $6.2 billion – to CalPERS is down slightly ($18 million) from the January estimate. The decline in the revise is mainly driven by:

  • CalPERS’ higher than expected investment return in 2016-17
  • the benefit of the state’s additional $6 billion pension payment in 2017-18
  • higher than projected enrollment of members under the Public Employees' Pension Reform Act of 2013, who have lower benefit formulas

Overall, pension reforms are beginning to reduce costs. The May Revise proposes no additional pension reforms.

State Health Care/Retiree Health Care

The May Revise makes no changes to the expected costs of providing state employees and state retirees health care.

State Employee Position Increases

The May Revise also reports that there is expected to be an additional 3,878 position in state government next year for a total of 210,767 in FY 2018-19.”

The Governor’s complete budget summary and draft budget can be found here: www.ebudget.ca.gov.


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Another Successful ACSS Lobby Day!



Click here to view larger.

On March 21, 2018, ACSS members marched into the Capitol and met with legislators to discuss important issues affecting managers, supervisors and confidential state employees. Lobby Day was a resounding success with 54 members in attendance. Thanks to the dedicated members who attended, our presence at the Capitol was visible and our voices were clearly heard! For 18 consecutive years, ACSS members have participated in Lobby Day to deliver the ACSS message in person to Assemblymembers and Senators. 

>> Read more...


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State Personnel Board Passes IT Consolidation Plan

Posted: 2/2/2018 Tags: legislation policy representation salary Tags Views: 2973

Effective January 31, 2018, the State Personnel Board approved a plan to consolidate and re-classify a wide range of IT job descriptions as part of the ongoing Civil Service Improvement Project. An estimated 1,694 excluded employees are impacted by this consolidation effort.

Also on January 31, 2018, CalHR released Pay Letter 18-04 which outlines details of the Consolidation plan and how it affects specific job classifications. 36 service-wide classifications consolidated into 9 new classifications as outlined in this SPB Specification sheet. The IT Consolidation Career Path document charts how these new classifications relate to each other and the ranges within each.

If you have individual concerns about how your job is affected by the IT Consolidation plan, please contact your local ACSS Labor Relations Representative.


Updated 2/9/2018

>> Minutes from the January 11, 2018 SPB meeting

>> SPB webpage with other Board Meetings, Agendas and Live Streaming videos


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CalHR Releases Pay Letter with CDTFA Raises and AOD Pay Differential for OIG

Posted: 1/25/2018 Tags: legislation policy representation salary Tags Views: 1670

On January 18, 2018, CalHR released Pay Letter 18-03 which outlines Special Salary Adjustments (SSA) for some Managers and Supervisors of the California Department of Tax and Fee Administration (CDTFA), Franchise Tax Board (FTB) and Employment Development Department (EDD). We reported on this issue earlier this month about how ACSS’ efforts helped alleviate salary compaction for some classifications at CDTFA. The SSA for these classifications are effective as of January 1, 2018.

Pay Letter 18-03 also includes Administrator-of-the-Day (AOD) Pay Differential 422 for excluded employees at the Office of the Inspector General (OIG). This Pay Differential affects the following classifications:

  • Special Assistant Inspector General
  • Senior Assistant Inspector General
  • Chief Assistant Inspector General

ACSS intends to advocate for Pay Differential compensation in a similar approach for excluded classifications at other departments who have AOD responsibilities. We plan on discussing this issue with CalHR in the near future.


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Special Salary Adjustment Resolves Salary Compaction for some CDTFA Excluded Employees

Posted: 1/9/2018 Tags: legislation representation salary Tags Views: 2605

Because of ACSS’ efforts, CalHR has approved the proposed Special Salary Adjustments for excluded employees of the California Department of Tax and Fee Administration (CDTFA). This SSA alleviates salary compaction for impacted classifications at CDTFA and is effective as of January 1, 2018. These are some of the classifications that ACSS identified that CalHR did not adhere to their own criteria to set and maintain a 5% pay differential. Click here to view a copy of the current and proposed salaries for these impacted classifications.

President Frank Ruffino comments on this latest win, “ACSS has been advocating tirelessly on behalf of CDTFA and we have been patiently waiting for results. This is great news for our members and all affected CDTFA excluded employees.”

An official pay letter from CalHR is coming soon and we will share it as soon as it is released.


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