President’s Update for January 7, 2017

Compensation Changes and Effective Dates

Health Insurance:  The new insurance premiums begin with the January 13, 2017 pay check.  Everyone’s new premium was established based on the bargaining agreement and published by the employee during open enrollment.

With the approval of the current bargaining agreement, the TMSA approved a continual systemic change to health insurance premium costs.  Article 16, Section 16.02, Subd. 3, states, “In each year following 2017 in which the total premium for medical or dental premiums increases from the prior year, the employee contribution for that insurance plan shall be determined by increasing the employee contribution, stated as a percentage of the total premium, by 0.5% until the employee’s contribution reaches 10% of the total single premium and 20% of the total family premium for all medical and dental insurance plans.  In any year in which there is a decrease in premium over the prior year, the employee contribution, stated as a dollar amount, shall remain unchanged.”

The change in percentage that TMSA members are paying between 2016 and 20017 is:

–          Single – Distinctions III – 2016 2.5% – 2017 4.3%

–          Family – Distinctions III – 2016 14.95% – 2017 16.4%

–          Single – HRA – 2016 2% – 2017 2.3%

–          Family – HRA – 2016 15% – 2017 17%

In 2018, the premium will be decided and then we will increase our percentage of cost by .5%.  So, if the total premium of Distinctions III single increases to $850, we would have to pay 4.8% of the premium which would be $41.

Pay Increases:  All of the pay increases go into effect on April 8, 2017.  The pay grade ranges will increase by 2%.  Members who do not meet expectations on their annual review, do not receive a pay raise.  There is a general increase of 2% for all qualifying members.

Qualifying members in the “step” zone (steps 4 through 8) will receive their general increase and then the 2.5% step increase.

Qualifying members in the performance zone (step 9 and above) will receive their general increase and then their performance increase.  The performance increases for 2017 are 1% for meets expectations, 1.35% for surpasses expectations, and 2.15% for exceptional.

Performance Ratings:  Except for those members still in probation, everyone’s reviews are in.  What we find is almost a prefect bell curve between meets expectations, surpasses expectations and exceptional.  21% of our members met expectations, 55% surpassed expectations and 18% received the top rating of “exceptional.”