May Revise 2010-2011: Employee Compensation
- Current furlough program scheduled to end 6-30-10.
- Components of 2010-2011 employee compensation savings:
- 5% increase in all employees' monthly pension contribution to CalPERS;
- 5% reduction in all salaries;
- Additional 5% reduction in all salaries in exchange for 1 day/mo. personal leave; and
- 5% departmental salary savings by reducing size of State workforce.
- The first three changes will require collective bargaining and/or statute changes.
Increasing Employees' Pension Contribution
- Increasing the employee's share of pension contributions will help lower the State's costs of providing pension benefits. This change will apply to all retirement categories (misc., safety, peace officer/firefighter, patrol, and industrial).
- Most State employees ("misc" retirement category) will see their monthly CalPERS payroll deduction rise from roughly 5% of salary to 10% of salary.
5% Pay Cut
- Applies to all employees in the Executive Branch, including civil service, non-civil service, and non-elected officers. (Elected officials' salaries are set independently.)
- Pension calculations will be based on this revised (lower) salary level.
- Salaries will be reduced equal to one day of pay per month (roughly 5%). In return, employees will receive eight hours of personal leave each month.
- This personal leave will have no cash-out value, nor will it adversely affect any benefits such as health or retirement.
Capping the Size of State's Workforce
- Administration previously directed departments to implement plans to reduce their payroll an additional 5% effective 7-1-10.
- Departments may use employee attrition to achieve this savings target. If attrition will be insufficient to meet this target, the department must lay off employees to meet it.
- A department may continue hiring to fill vacancies if doing so does not cause it to exceed its "workforce cap."
- The Franchise Tax Board's direct revenue collection functions will be exempt from this workforce cap to avoid adverse impact on State finances. The Constitutional Offices will be exempted as those offices' budgets had a permanent reduction in FY 2009-10.
All this means to me is that I'll continue to have the same pay without the days off. The funniest thing about this is that two of the things the Governator wants to do were in the contract members voted to support 18 months ago. (The contract had that unpaid "personal day" and a 5% increase to medical.)
Life sure is grand.
Life sure is grand.