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CalHR Increases Commute Reimbursement for ALL Excluded Employees; ACSS Advocacy on Salaries Continues

Posted: 2/20/2020 Tags: benefits legislation policy representation salary Tags Views: 1684

CalHR has announced the reimbursement amount for transit passes and vanpools will increase by $35 per month for all supervisors, managers, and confidential employees. Effective February 1, 2020, excluded employees will be eligible for 75% reimbursement for public transit passes, up to $100 per month. Vanpool riders will be reimbursed 75% of the monthly fee, up to $100 per month, and vanpool drivers will receive $135 per month.

When SEIU Local 1000 representing rank-and-file bargaining units negotiated an increase in commute reimbursement amounts, ACSS immediately proposed that CalHR extend the increases to all excluded employees. After several meetings with CalHR where this topic was discussed, we are pleased that CalHR has adopted ACSS’ proposal and extended the increased commute reimbursement amounts to all excluded employees, regardless of bargaining unit affiliation.

What’s Next for the Remainder of the 2019-2020 Fiscal Year?
CalHR is expected to implement adjustments to bilingual pay, recruitment & retention for the Correctional Case Records series, and an increase in the call center differential. ACSS has met with CalHR and requested these same increases for excluded employees. CalHR will soon implement salary adjustments for Bargaining Unit 18. ACSS has requested CalHR provide at least the same salary increases for supervisors, managers and confidential employees, in addition to correcting standing salary inequities and compaction issues.

What About July 1, 2020 Increases?
Sixteen of the state’s 21 bargaining units are scheduled for salary increases July 1, 2020. The other five will be in negotiations this spring to adjust salaries. In addition to continued advocacy with CalHR for salary increases and corrections to salary inequities, ACSS is working to ensure the state budget contains funding for salary and benefit increases for excluded employees. While the state budget remains subject to the May Revise and legislative approval, at this point we are optimistic that the budget will adequately fund general salary increases and many special salary adjustments for excluded employees.


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2020-21 State Budget: Governor Aims to Eliminate Debts, Pay Down Pension Liabilities and Grow Reserves

Posted: 1/24/2020 Tags: budget legislation policy politics salary Tags Views: 1572

On January 10, 2020, Governor Gavin Newsom released his proposed 2020-2021 State Budget that will fund the government for the 12-month period starting July 1, 2020.

Under the governor’s plan, state spending next year would total just over $222 billion, with $153 billion in general fund and $63.8 billion in special fund spending. Another $5.4 billion in state bond spending makes up the difference. This is about a 3.5% increase over current fiscal year spending.

In this Budget, as with last year’s, the majority of the surplus is devoted to one-time spending. This approach enables the state to make significant investments in critical areas without making commitments to ongoing spending in future years.

Here is the quick rundown on a few items that will specifically interest ACSS members:

State Employee Compensation
The budget proposal includes $1.5 billion ($654 million general fund) in new funding for increased employee compensation, higher health care costs for active state employees, and the state’s contribution to prefund retiree health care costs for active employees. The budget summary notes the Administration will begin negotiations with 7 of the state’s 21 bargaining units, whose contracts expire in late June or early July 2020.

Building Budget Resiliency and Paying Down Unfunded Retirement Liabilities
In addition to the state’s required contributions, the Budget proposes to accelerate the payment of the remaining $500 million currently scheduled over fiscal years 2020-21 through 2022-23 into a single payment in 2020-21.

State Health Care/Retiree Health Care
Through the collective bargaining process, the state’s 21 employee bargaining units and related supervisors and managers now prefund retiree health benefits. As a result, $2.6 billion is currently set aside in the prefunding trust fund to pay for future retiree health benefits. A small but important step in paying for what is an estimated $85.6 billion in unfunded health care liability.

State Employee Position Increases
The budget projects the hiring of an additional 3,187 state employee positions in 2020-21 for a total of 219,017.

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

As the proposed state budget progresses, ACSS will continue to meet with CalHR to advocate for inclusion of funding for supervisory and managerial compensation salary increases. ACSS will also be meeting-and-conferring with the state over realignments impacting ACSS members including the workforce programs moving into the new Department of Better Jobs and Higher Wages and the Juvenile Justice reorganization into the new Department of Youth and Community Restoration.

As we delve into more of the proposed budget details, we will report on any new positions and increased funding proposals for departments outlined in the full budget or if there are other proposals that impact ACSS and its members. Please let us know if you have any questions.

Click here to read the full version of the ACSS State Budget Report as presented by our ACSS Legislative Advocate, Ted Toppin at the January 18th, 2020, ACSS Board Meeting.


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CalHR releases Pay Letter Covering Supervisors and Managers Related to Bargaining Unit 7

Posted: 12/5/2019 Tags: legislation policy salary Tags Views: 2625

The Department of Human Resources (CalHR) has issued Pay Letter 19-19 adjusting salaries for supervisory and managerial employees related to Bargaining Unit 7. All S07 and M07 employees will receive a General Salary Increase of 2.75% retroactive to July 1, 2019.

The Pay Letter also provides Special Salary Adjustments retroactive to July 1, 2019 for nearly one hundred different supervisory and managerial classifications related to Unit 7. Upon initial review, most of the special salary adjustments are the same or higher than those received by the related rank-and-file employees. A number of the special salary adjustments are much higher than the salary increases for the rank-and-file. We encourage all S07 and M07 members to review the attached Pay Letter 19-19 to determine whether you and your classification will receive a special salary adjustment. Note that the special salary adjustments for supervisors and managers begin on page 7 of the pay letter. The “SSA” percentage is the salary adjustment above and beyond the general salary increase of 2.75%.

Because of ACSS' tireless efforts on behalf of members concerns, CalHR and the Newsom Administration appear to have extended nearly all of the special salary adjustments to supervisory and managerial employees, and in some instances provided even larger salary increases to supervisors and managers. This is a big win for ACSS members and other excluded employees.

CalHR expects to issue pay letters covering state bargaining units 2 and 13 and related excluded employees on December 9. The goal is for the State Controller’s Office to implement these salary increases with the December 31, 2019 pay warrant with retroactive back pay to follow in early 2020.

CalHR has not indicated to ACSS when it will implement the new and revised pay differentials (e.g., bilingual pay, commute reimbursement) for the 9 SEIU Local 1000 units and how these increases will impact related excluded employees.

As always, ACSS will continue to provide you with updates as we receive them in regards to compensation for excluded employees.


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Retroactive Salary Increases for Supervisors and Managers Related to Units 2, 7 and 13

Posted: 11/19/2019 Tags: legislation policy representation salary Tags Views: 2632

The Department of Human Resources (CalHR) has provided confirmation to ACSS of salary increases for state excluded employees related to bargaining units 2, 7, and 13. Effective July 1, 2019, excluded employees related to Bargaining Units 2 and 7 will receive General Salary Increases of 2.75%.

  • Excluded employees related to Bargaining Unit 13 will see their maximum salary ranges increase by 2.75% also effective July 1, 2019. This means those at the old maximum salary for 12 pay periods will see an immediate retroactive increase.
  • Excluded employees related to Bargaining Unit 2 enrolled as a subscriber in a state sponsored health plan will receive a $260 taxable cash benefit/health stipend retroactive to July 1, 2019 through the June 2020 pay period.
  • As part of the BU 7 Labor Agreement, employees in specific classifications will receive Special Salary Adjustments retroactive to July 1, 2019. CalHR has confirmed that excluded employees tied to those classifications “may also be eligible for Special Salary Adjustments retroactive to July 1, 2019” and that details of impacted classifications and percentages will be outlined in a forthcoming Pay Letter.

Many of the recently approved labor contracts (including the 9 SEIU Local 1000 units) include new and revised pay differentials that may affect related excluded employees. Specific details of how these changes will affect related excluded employees will also be included in the forthcoming Pay Letter. ACSS has requested that CalHR make all increases applicable to excluded employees.

CalHR is currently developing the Excluded Compensation package for Fiscal Year 2020 – 21. Items of compensation including general and special salary adjustments and the $260 month cash benefit for healthcare for employees in the 9 SEIU Local 1000 bargaining units (1, 3, 4, 11, 13, 15, 17, 20, and 21) are effective July 1, 2020. ACSS has requested at least the same increases as rank-and-file employees. CalHR says it will announce the excluded compensation package upon approval of the Budget Act of 2020.

ACSS continues to discuss the compensation of excluded employees related to Bargaining Unit 18 with CalHR. The announcements of salary adjustments do not indicate any adjustments to employees related to Unit 18, but ACSS will continue to ask CalHR to make appropriate salary adjustments for these supervisory and managerial employees, even if the rank-and-file is unable to reach a new labor contract.

When the official Pay Letters are released instructing the State Controller’s Office to adjust salaries, we will provide details of the adjustments including the expected timing of pay adjustments and retroactive pay warrants.


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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: 2992

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: 5564

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: 4326

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: 5749

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: 5554

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: 1825

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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