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ITEM NO: 6c _reso MEETING DATE: November 10, 2015 2016 SALARY & BENEFIT RESOLUTION NO. 3712 Effective January 1, 2016 i Table of Contents RESOLUTION NO. 3712 Page No. I. DEFINITIONS ...................................................................................................................1 II. ESTABLISHING JOBS, PAY GRADES, PAY RANGES, AND PAY RATES ..........3 A. Filling Vacant Positions and Transferring Positions and/or Employees .................3 B. Pay Ranges ...............................................................................................................3 C. Job Evaluation System .............................................................................................5 D. Pay Practices ............................................................................................................5 1. Compensation Considerations .....................................................................5 2. Payroll ..........................................................................................................5 3. Initial Pay Rates ...........................................................................................5 4 Pay for Performance ....................................................................................5 5. Overtime ......................................................................................................5 6. ICT Stand-by Pay .........................................................................................5 7. Other Pay Adjustments ................................................................................6 8. Special Pay Adjustments..............................................................................6 9. Pay for the Chief Executive Officer ............................................................6 E. Pay Rates and Pay Ranges for Non-evaluated Jobs .................................................6 1. High School, College, and Graduate Intern Positions .................................6 2. Chief of Police, Fire Chief, Deputy Chief of Police, Assistant Fire Chief ..6 3. Veteran Fellows Positions............................................................................6 4. Chief Executive Officer ...............................................................................6 F. Amending Authorized Jobs, Pay Grades, and Pay Ranges ......................................6 III. PERFORMANCE PAY .....................................................................................................6 IV. BENEFITS PROGRAMS OFFERED TO EMPLOYEES ............................................7 A. Mandated Benefits ...................................................................................................7 B. Additional Benefits for Employees ..........................................................................7 1. Paid Leave ....................................................................................................7 2. Retirement ....................................................................................................8 3. Health Care ..................................................................................................9 4. Life and Disability Insurance .......................................................................9 5. Flex Time and Alternative Work Arrangements .........................................9 6. Relocation ....................................................................................................9 C. Authorization to Amend Benefit Program ...............................................................9 D. Benefits for the Chief Executive Officer .................................................................9 V. BENEFITS OFFERED TO PORT OF SEATTLE RETIREES..................................10 A. Medical Benefits for Retirees ................................................................................10 B. Medical Benefits for Dependents of Retirees ........................................................10 C. Retiree Life Insurance ............................................................................................10 D. Retiree Parking.......................................................................................................10 E. Authorization to Amend Benefits Offered to Port of Seattle Retirees...................10 i VI. BENEFITS OFFERED TO PORT OF SEATTLE COMMISSIONERS ...................10 A. Healthcare ..............................................................................................................10 B. Life Insurance ........................................................................................................12 C. Right to Modify or Terminate Coverage ...............................................................12 VII. SPECIAL PROGRAMS AND COMMISSION NOTIFICATION .............................12 VIII. EFFECTIVE DATE .........................................................................................................12 ii ITEM NO: 6c _reso MEETING DATE: November 10, 2015 RESOLUTION NO. 3712 A RESOLUTION of the Port Commission of the Port of Seattle Establishing Jobs, Pay Grades, Pay Ranges, and Pay Practices for Port Employees not represented by a labor union; Authorizing Legally Required Benefits, Other Benefits for Port Employees not represented by a Labor Union including Retirement, Paid Leave, Healthcare, Life Insurance and Disability Benefits, Benefits for Port of Seattle Retirees, and Benefits for Port of Seattle Commissioners; and Authorizing this Resolution to be Effective on January 1, 2016, and Repealing all Prior Resolutions Dealing with the Same Subject, Including Resolution No. 3699. WHEREAS, the Port Commission has authority pursuant to RCW 53.08.170 to create and fill positions, fix wages, salaries, and establish other benefits of employment including retirement, insurance and similar benefits. BE IT RESOLVED by the Port Commission of the Port of Seattle as follows: I. DEFINITIONS Except as otherwise provided, the following definitions apply to this Resolution: At-will: A designation given to some non-represented jobs or positions at the Port where the employment relationship may be terminated by the Port or employee at any time and for any or no reason. Employees hired as at-will are not subject to the Port's progressive discipline process. Jobs designated as at-will are noted in the Exhibit A of the Salary and Benefits Resolution, and will be identified as at-will when a job opening for an at-will position is posted and/or before an offer of employment is made. Chief Executive Officer: An employee who is appointed by the Commission and who is subject to the terms and conditions of this Resolution. However, any terms, conditions, adjustments to pay, pay range or benefits for the Chief Executive Officer adopted in open session by the Commissioners shall prevail over any relevant conflicting or inconsistent terms and conditions in this Resolution. Such agreement shall become effective without an amendment to this Resolution. Commissioner: An individual who is elected and is eligible for benefits as provided in the relevant provisions of Section VI. This definition includes a Commissioner who may be appointed mid-term due to an unanticipated vacancy. DRS-retired Employee: An employee who is receiving a pension from any retirement plan administered by the State of Washington Department of Retirement Systems (DRS). Refer to the DRS web site or brochures for specific information about any limitations on working after retirement. Eligible Employee: An employee who meets the eligibility criteria for specific benefits as defined in Port policies or other governing sources. - 1 - Emergency Hire Employee: An employee who is hired for no more than 3 months without a competitive hire process. Employee: An individual who performs personal services for the Port, and receives a paycheck from the Port payroll system with employment taxes withheld. Employees of temporary agencies or independent contractors are not employees. For Cause: A designation given to most non-represented Port of Seattle jobs and positions where the employment relationship can be terminated by the Port for reasons that conform to previously defined standards of unacceptable conduct or performance. Standards are defined in policies included in the Code of Conduct, most specifically in HR-18 Standards of Performance and Conduct, Corrective Action and Discipline. Full-Time Employee: An employee who is regularly scheduled to work 80 hours per bi-weekly pay period. Hourly Employee: An employee working in a non-exempt job, one that is eligible for overtime per the provisions of the Fair Labor Standards Act (FLSA) and the Washington Minimum Wage Act (WMWA). Ineligible Employee: Ineligible employees are generally ineligible for Port benefits except as described in Port policies or other governing documents. Intern: A temporary employee who is hired in accordance with the Intern Program Guidelines is considered a student per the program guidelines and is performing duties in accordance with the student's course of study. Limited Duration Employee: An employee who is hired for more than 90 days in a job with a planned end date. Non-represented Employee: A salaried or hourly employee not represented by a labor union. On-Call Employee: An employee who does not have a regular work schedule and whose work hours can vary from week to week indefinitely. Part-Time Employee: An employee who is regularly scheduled to work at least 21 hours per week indefinitely, but less hours than a full-time employee. Probationary Employee: A newly hired or rehired employee who has not yet successfully completed the six-month probationary period and is expected to establish a consistent, acceptable level of performance and behavior that is sufficient to retain their employment. Probationary Period: The period of time from the day a newly hired or rehired employee begins work at the Port of Seattle through the end of the sixth month of employment. Salaried Employee: An employee working in an exempt job, one that is not eligible for overtime per the provisions of the Fair Labor Standards Act (FLSA) and the Washington Minimum Wage Act (WMWA). 01/01/2016 - 2 - Temporary Assignment: An assignment for a full-time or part-time employee that is generally expected to last no longer than six months. A Temporary Assignment may only be extended one time for a maximum of six additional months with the approval of HR Management. Veteran Fellows: An employee who is hired and receives pay and benefits in accordance with the Veteran Fellowship Program. II. ESTABLISHING JOBS, PAY GRADES, PAY RANGES AND PAY RATES A. Filling Vacant Positions and Transferring Positions and/or Employees: The Chief Executive Officer is hereby authorized to: Recruit and fill authorized positions (except that of Chief Executive Officer) up to the full- time-equivalent number of positions authorized; Set salaries within pay ranges established below; Transfer positions and/or employees from one work unit to another and to reorganize functions to promote organizational effectiveness; Approve non-competitive placements in select circumstances; Establish additional positions, provided that funding is available in the Commission approved budget; and, Establish an additional position on a temporary basis when an employee has given notice of termination or retirement in order to provide overlap and effective business continuity. B. Pay Ranges: All non-represented jobs shall be evaluated and assigned to a pay grade according to their relative skill requirements, responsibilities, and other factors as explained in Section II.C. Each job will have a pay range that corresponds to its pay grade. The following 2016 Pay Grades and Pay Ranges for non-represented jobs at the Port of Seattle are hereby established: 01/01/2016 - 3 - GRADED PAY RANGE STRUCTURE 2% Range Adjustment Effective January 1, 2016 Grade Minimum Midpoint Maximum Minimum Midpoint Maximum 42 $88.26 $110.32 $132.39 $183,577 $229,471 $275,366 41 $83.69 $104.61 $125.54 $174,077 $217,597 $261,116 40 $79.30 $99.12 $118.95 $164,944 $206,180 $247,416 39 $75.14 $93.92 $112.71 $156,288 $195,360 $234,431 38 $71.16 $88.95 $106.74 $148,013 $185,017 $222,020 37 $67.36 $84.20 $101.04 $140,106 $175,132 $210,158 36 $63.79 $79.74 $95.69 $132,691 $165,863 $199,036 35 $60.34 $75.43 $90.51 $125,514 $156,892 $188,271 34 $57.07 $71.34 $85.60 $118,704 $148,379 $178,055 33 $53.97 $67.46 $80.96 $112,260 $140,324 $168,389 32 $50.99 $63.74 $76.49 $106,069 $132,587 $159,104 31 $48.20 $60.24 $72.29 $100,246 $125,307 $150,368 30 $45.49 $56.86 $68.23 $94,613 $118,266 $141,919 29 $42.93 $53.66 $64.40 $89,298 $111,623 $133,947 28 $40.50 $50.62 $60.75 $84,238 $105,298 $126,357 27 $38.17 $47.72 $57.26 $79,401 $99,251 $119,101 26 $35.97 $44.96 $53.96 $74,818 $93,523 $112,227 25 $33.87 $42.33 $50.80 $70,443 $88,054 $105,664 24 $31.85 $39.82 $47.78 $66,258 $82,822 $99,386 23 $29.94 $37.43 $44.91 $62,280 $77,849 $93,419 22 $28.13 $35.16 $42.19 $58,509 $73,136 $87,763 21 $26.37 $32.96 $39.55 $54,849 $68,561 $82,274 20 $25.22 $31.53 $37.83 $52,462 $65,578 $78,693 19 $24.14 $30.17 $36.20 $50,203 $62,753 $75,304 18 $23.10 $28.88 $34.65 $48,054 $60,068 $72,081 17 $22.14 $27.67 $33.21 $46,049 $57,562 $69,074 16 $21.20 $26.50 $31.80 $44,093 $55,116 $66,139 15 $20.27 $25.33 $30.40 $42,151 $52,689 $63,227 14 $19.43 $24.29 $29.15 $40,416 $50,521 $60,625 13 $18.65 $23.31 $27.98 $38,793 $48,492 $58,190 12 $17.86 $22.33 $26.79 $37,155 $46,444 $55,732 11 $17.14 $21.43 $25.72 $35,659 $44,574 $53,489 10 $16.43 $20.54 $24.65 $34,179 $42,724 $51,268 9 $15.77 $19.72 $23.66 $32,811 $41,013 $49,216 8 $15.15 $18.93 $22.72 $31,506 $39,382 $47,259 7 $14.55 $18.19 $21.83 $30,265 $37,831 $45,397 6 $13.93 $17.41 $20.90 $28,976 $36,220 $43,464 5 $13.40 $16.74 $20.09 $27,862 $34,828 $41,793 4 $12.89 $16.11 $19.34 $26,812 $33,515 $40,218 3 $12.40 $15.50 $18.60 $25,794 $32,242 $38,691 2 $11.90 $14.87 $17.84 $24,744 $30,929 $37,115 1 $11.45 $14.32 $17.18 $23,821 $29,776 $35,731 01/01/2016 - 4 - C. Job Evaluation System: It is the policy of the Commission to pay Port employees based on the Port's Total Rewards Philosophy. It is also the policy of the Commission to establish a job evaluation system that evaluates compensation characteristics based on skill level, responsibility, effort required and working conditions, among other characteristics, of each job. The job evaluation system shall evaluate jobs on an on-going basis and be administered by Human Resources Management under the direction of the Chief Executive Officer. The results of the job evaluation system shall be considered in determining the appropriate pay grade for each job as well as the appropriate exempt or non-exempt status of each job according to the criteria of the Federal Fair Labor Standards Act (FLSA). The Senior Director, Human Resources, under the supervision of the Chief Executive Officer, shall have the final approval authority for all job evaluation outcomes and title changes except for that of the Chief Executive Officer. This authority shall include re-evaluation of existing jobs and establishment and evaluation of new jobs. D. Pay Practices: 1. Compensation Considerations: An employee's work schedule shall consist of their normal daily and weekly work schedule during a two-week pay period. A full-time employee's work schedule is 80 hours each bi-weekly pay period. Full-time employees work between 8 and 10 hours each day and salaried, exempt, employees are expected to work the hours necessary to complete assigned work. 2. Payroll: Employees shall be paid bi-weekly, typically on Friday. The Port's payroll week shall begin Sunday at 12:01 a.m. and end Saturday at midnight. Employees are required to complete a Direct Deposit Authorization Form upon hire and to keep such information current so that electronic paycheck deposits can be made automatically to the employee's designated financial institution. The Port shall have the right and obligation per RCW 49.48.200 to recover any amounts paid in error. 3. Initial Pay Rates: Pay rates shall normally be based on skill, knowledge and experience and set between the minimum and midpoint of the pay range for employees hired or otherwise moving into a non-represented job. Under special conditions and with appropriate documentation, Human Resources Management may authorize pay above the midpoint of the pay range for employees possessing exceptional qualifications or experience, or for internal/external equity reasons. 4. Pay for Performance: The Pay for Performance program shall be administered in accordance with Port Policy HR-21 Pay Administration. The pay for performance amount shall be established by the Port budget process and administered according to a plan approved by the Chief Executive Officer and implemented by Human Resources Management. 5. Overtime: Full-time and part-time hourly employees, those whose jobs are classified as non-exempt, shall receive overtime compensation in accordance with prevailing State and Federal laws. 6. ICT Stand-by Pay: Hourly, non-exempt, ICT Employees who are required to be available during non-work hours to respond to issues or solve problems will be eligible for ICT Stand-by Pay as specified in Port policy, HR-21 Pay Administration. 01/01/2016 - 5 - 7. Other Pay Adjustments: Other pay adjustments including, but not limited to, Promotional Increases, Completion of Probation Increases, Six-Month Increases, and Temporary Assignment Adjustments shall be administered consistent with Port Policy HR-21 Pay Administration. 8. Special Pay Adjustments: The Chief Executive Officer, or Human Resources Management under the supervision of the Chief Executive Officer, may approve special pay adjustments for reasons deemed appropriate. Special adjustments provide flexibility in ensuring appropriate compensation in unusual situations and circumstances that are not otherwise addressed by Port pay administration policies or procedures. 9. Pay for the Chief Executive Officer: Pay and performance evaluation for the Chief Executive Officer shall be approved by the Commission in public session. The Commission shall have discretion in determining the pay of the Chief Executive Officer. E. Pay Rates and Pay Ranges for Non-evaluated Jobs: Pay Rates, ranges, and a provision for a special allowance have been developed for non-evaluated positions: 1. High School, College, and Graduate Intern Positions: Pay Rates and employment conditions for students employed under provisions of the Port of Seattle Intern Program shall be determined by Human Resources staff based upon state or local minimum wage regulations. 2. Chief of Police, Fire Chief, Deputy Chief of Police, Assistant Fire Chief: These jobs are not evaluated, and ranges are established based on local market rates for similar work to facilitate appropriate pay administration for employees in these jobs. 3. Veteran Fellows Positions: Veteran Fellowship jobs are not evaluated, and ranges are established to facilitate appropriate pay administration based on the work performed and in accordance with the Veteran Fellowship Program guidelines. 4. Chief Executive Officer: This job is not evaluated and no pay range is established. The CEO's pay is established by the Port Commission. F. Amending Authorized Jobs, Pay Grades, and Pay Ranges: Pay Ranges may be amended by ordinary motion approved by the Commission at any regular or special meeting when the changes are the result of provisions contained in this Resolution. Exhibit A may be amended by Human Resources Management when the changes are the result of provisions contained in this Resolution (e.g., on-going job evaluations). III. PERFORMANCE PAY Performance Pay is a self-funding pay plan that provides lump sum payments to eligible non-represented employees based on both Port performance and employee performance. Performance Pay is a calendar year plan funded with a positive budget variance, financial results that are better than the Port's budget. Half the positive budget variance is retained by the Port and half funds the pool Performance Pay awards are 01/01/2016 - 6 - paid from. The Performance Pay pool must be sufficient to fund the minimum level payout or no payout will be made. The budget which the variance will be determined against shall be approved by the Port Commission and communicated to non-represented employees eligible for the Performance Pay before the Performance Pay plan year begins. Performance Pay also has two non-financial targets, each worth 25% that must be met for the full payout to be earned and paid. The non-financial targets shall be determined and communicated to non-represented employees eligible for Performance Pay before the Performance Pay plan year begins. Eligibility, funding, payout calculations and other details of the Performance Pay plan are specified in Port policy, HR-21 Pay Administration. IV. BENEFITS PROGRAMS OFFERED TO EMPLOYEES The Port Commission supports the Port providing a competitive benefits package for employees and their families that will assist the Port in retaining and attracting employees with the skills and abilities essential to carry out the Port's work. As such, the Commission authorizes the following benefits programs: A. Mandated Benefits: The Port will make benefits required by federal, state or local laws available to employees and ensure they are administered consistent with the governing laws. These benefits include, but are not limited to: Social Security (FICA) Insurance Industrial Insurance/Workers Compensation Coverage Unemployment Compensation Military Leave (both Federal and State requirements) Faith and Conscience Days Pregnancy Disability Leave Family and Medical Leave Act (FMLA) of 1993 The Family Care Act (FCA) of 2002 B. Additional Benefits for Employees: The following benefits shall be administered consistent with eligibility requirements and other details included in Port Policy HR-5 Leave or Port Policy HR-31 Employee Benefits for Non-Represented Employees as applicable. 1. Paid Leave: The following paid leave plans shall be administered consistent with Port Policy HR-5 Leave and the Addendum to Port Policy HR-5 Leave. a. Paid Time Off (PTO): Paid time away from work for vacation or personal reasons. Employees are encouraged to take at least two weeks of PTO each year. b. Extended Illness (EI) Leave: Paid time away from work in the event of illness, injury or other specified reasons. 01/01/2016 - 7 - c. Holidays: The Port shall observe the following 10 holidays. New Year's Holiday Martin Luther King, Jr. Day Presidents' Day Memorial Day Independence Day Labor Day Thanksgiving Day Native American Heritage Day Port Designated Floater (day before or day after Christmas) Christmas Day d. Bereavement Leave: Time off to attend or make arrangements for funeral services of a close family member. e. Supplemental Military Leave: Additional partially paid military leave in response to an involuntary deployment resulting from Presidential recall or a declared State of Emergency. f. Civic Duty Leave: Paid time away from work to serve on jury duty, or in limited circumstances appear in court as a subpoenaed witness. g. Awarded Time: Paid time granted to salaried employees to recognize extra work hours necessary to meet critical deadlines, assure coverage, or otherwise accomplish Port objectives. h. Shared Leave: Accrued leave donated by one employee to another to prevent the receiving employee from taking leave without pay for a serious health condition. i. Parental Leave: Paid time away from work following the birth, adoption, or placement for foster care of a new child. 2. Retirement: Pension benefits that provide vested employees with post-retirement income. a. Employees (other than DRS-retired employees receiving a pension from any State of Washington DRS pension plan) will become members of the Washington Public Employees' Retirement System (PERS) or Law Enforcement Officers and Fire Fighters Retirement System (LEOFF) based on their job responsibilities. Retirement benefits will be administered consistent with applicable Washington State laws, and supplemental information contained in Port Policy HR-31 Employee Benefits for Non-Represented Employees. (1) Employees hired in otherwise eligible positions under RCW 41.40, who are excluded from membership in PERS because of non-citizen, nonresident status, may be provided from date of employment with an individual pension or annuity arrangement which will provide benefits similar to those provided under PERS, Plan Two. The Port Auditor is authorized to execute any and all documents and to take any and all action necessary to implement such an arrangement. 01/01/2016 - 8 - 3. Health Care: Medical and dental coverage offered to eligible employees consistent with Patient Protection and Affordable Care Act (ACA) requirements and as specified in Port Policy HR-31 Employee Benefits for Non-Represented Employees. a. Employees will have the option to choose from at least two medical plan options. b. Employees will have the ability to enroll their eligible dependents in the same medical and dental plans the employee elects. c. Employees may be required to pay all or a portion of their medical and dental premiums by payroll deduction and the Port retains the right to modify or terminate healthcare benefits. 4. Life and Disability Insurance: Benefits to protect against unexpected loss. a. Life Insurance: Benefits paid to beneficiaries in the event of death. The Port will provide basic life insurance for employees and limited life insurance for employees' dependents. Employees will have the ability to purchase additional life insurance for themselves and/or their dependents. b. Accidental Death and Dismemberment (AD&D): Benefits paid to employees in the event they lose a limb or their beneficiaries in the event of accidental death. Employees will have the ability to purchase additional AD&D insurance for themselves and/or their dependents. c. Long-Term Disability: Partial income continuation benefits paid to employees unable to work for extended periods of time. 5. Flex Time and Alternative Work Arrangements: Work schedules that include varied start and stop times, flex time, as well as longer work weeks combined with a non-work day each week or pay period, compressed work week arrangements. Telecommuting or telework schedules are another form of alternative work arrangement. 6. Relocation: Reimbursement, as specified in Port policy HR-24 Relocation, to newly hired salaried employees for pre-approved moving expenses related to their relocation to the Seattle area as a result of accepting a job with the Port of Seattle. C. Authorization to Amend Benefit Programs: The Chief Executive Officer is authorized to amend benefits as necessary to comply with any changes in statutory requirements. All policies are subject to approval by the Chief Executive Officer. The Port retains the right to modify or terminate any benefits and/or modify the cost charged to employees or dependents for benefits coverage at any time for any reason. D. Benefits for the Chief Executive Officer: The Chief Executive Officer will be offered the same benefits package other eligible employees are offered as provided in Sections IV.A. and IV.B. The Port Commission may also authorize different or additional benefits for the Chief Executive Officer. 01/01/2016 - 9 - V. BENEFITS OFFERED TO PORT OF SEATTLE RETIREES In addition to pension benefits offered to Port of Seattle retirees, the Port Commission authorizes the following benefits and conditions for qualified retirees. A. Medical Benefits for Retirees: Qualified Port of Seattle retirees will be offered the opportunity to obtain medical coverage through the Port of Seattle as specified below. 1. Eligibility Requirements for Retiree Medical Benefits: A retiree is eligible for retiree medical benefits subject to insurance contract provisions and upon payment of 100% of the associated premiums if the following requirements are satisfied: a. Has at least five (5) consecutive years of credited service in a non-represented position with the Port of Seattle immediately preceding retirement and is eligible to begin receiving a pension, based in part upon Port of Seattle employment, within one month following departure from the Port. b. Completes and submits an enrollment form, if any, for the desired retiree benefit plan within 31 days of his/her retirement date. c. Retirees who are 65 years of age or more must have coverage under Medicare Parts A and B to be eligible for enrollment in a retiree healthcare plan. B. Medical Benefits for Dependents of Retirees: Dependents of retirees are eligible for enrollment in a retiree medical plan, subject to insurance contract provisions, if the retiree and dependent(s) enroll on a timely basis. Spouse and domestic partners covered by retirees as dependents are eligible to continue coverage should they survive the retiree. C. Retiree Life Insurance: Retirees are eligible for enrollment in the retiree life insurance plan if the eligibility requirements listed in Section V.A.1 are satisfied. D. Retiree Parking: Retirees are eligible for free vacation parking at the north employee parking lot at Sea-Tac airport. A valid retiree identification badge is required to access the north employee parking lot and can be obtained from the front desk at Pier 69. E. Authorization to Amend Benefits Offered to Port of Seattle Retirees: The Port is authorized to amend the benefits in this section as necessary to comply with any changes in statutory regulations, to require retirees to contribute all or a portion of the premium, and to amend or terminate governing contracts at any time for any reason. VI. BENEFITS OFFERED TO PORT OF SEATTLE COMMISSIONERS Benefits contained in this section are available to Port Commissioners. A. Healthcare: Port Commissioners shall have the same healthcare, medical and dental, benefits choices offered to Port employees. 01/01/2016 - 10 - 1. Medical Benefits for Commissioners: Port Commissioners are eligible to elect medical and dental coverage effective on the first of the month following one calendar month as a Port Commissioner. They shall be eligible for healthcare coverage in such amounts and in such manner as the Port has established with organizations selected to provide or administer such benefits. Commissioners who elect Port sponsored medical coverage must elect coverage via approved methods. a. Medical Benefits for Commissioner's Dependents: Port Commissioners are eligible to elect medical benefits for their dependents on the first of the month following one calendar month as a Port Commissioner. Coverage for dependents shall be provided by the same medical plan which the Commissioner has chosen. b. Medical Benefits for Commissioners Eligible for Retiree Medical: A Port of Seattle Commissioner is eligible for retiree medical benefits subject to insurance contract provisions and upon payment of 100% of the associated premiums if the Commissioner has at least five (5) consecutive years of service with the Port of Seattle immediately preceding the end of their last term as a Port Commissioner, and an employment history as an elected Port of Seattle Commissioner equivalent to that which would be necessary to retire under one of the State of Washington PERS plans within one month following departure from the Commission.. The Commissioner must also satisfy the eligibility requirements in Sections V.A.1.b and V.A.1.c. Additionally, spouses or domestic partners of Commissioners who are eligible for retiree medical coverage are eligible to enroll in coverage should they survive the eligible Commissioner. 2. Dental Benefits for Commissioners: a. Coverage for Commissioners: Port Commissioners who so elect coverage shall receive these benefits after one calendar month as a Port Commissioner. Dental coverage will be provided in such amounts and in such manner as the Port has established with organizations providing or administering such benefits. The eligibility and other conditions of coverage are established with the organization selected by the Port to provide such benefits. b. Coverage for Commissioner's Dependents: Port Commissioners are eligible to elect dental benefits for their dependents on the first of the month following one calendar month as a Port Commissioner. Coverage for dependents shall be provided by the same dental plan which the Commissioner has chosen. 3. Healthcare Premiums: Commissioners will be responsible for paying a share of their healthcare premiums by payroll deduction in the same manner as non-represented employees. Commissioners are responsible for notifying the Port by an approved enrollment method of their coverage elections and eligible dependents. Any additional healthcare costs associated with a lack of notification shall be the Commissioner's responsibility. 01/01/2016 - 11 - B. Life Insurance: Commissioners shall be eligible to elect life insurance coverage as specified below. 1. For Commissioners: Port Commissioners who so elect shall have coverage under a $50,000 basic life insurance policy and/or $100,000 business travel accident insurance policy on a self-paid basis on the first of the month following one calendar month as a Port Commissioner subject to provisions of contracts with organizations selected by the Port to provide such benefits. For purposes of optional, self-paid basic life insurance and business travel accident insurance benefits, Port Commissioners are included in the definition of eligible employee. a. For Commissioners eligible for retiree life insurance: A Commissioner is eligible for enrollment in the retiree life insurance plan if the eligibility requirements listed in Section V.I.A.1.b. are satisfied and the Commissioner elected and was covered by the $50,000 basic life insurance policy immediately prior to the expiration of their term as a Port Commissioner. C. Right to Modify or Terminate Coverage: The Port retains the right to modify or terminate benefits and/or to modify the cost charged to Commissioners or dependents for such coverage. VII. SPECIAL PROGRAMS AND COMMISSION NOTIFICATION The Chief Executive Officer is authorized to establish and implement Voluntary Separation, Furlough, or other similar programs deemed necessary to benefit the financial health of the Port and amend benefits provided for in the Salary and Benefit Resolution as necessary to execute the provisions of these programs. The Commission shall be notified of any amendments to benefits prior to implementation of any special programs not currently provided for in the Salary and Benefit Resolution. The Commission shall be notified of any material changes in the administrative details of the programs authorized by this Resolution before changes are implemented. VIII. EFFECTIVE DATE THIS RESOLUTION shall be effective January 1, 2016 through December 31, 2016. The Chief Executive Officer is authorized to take necessary action to make all terms, provisions, and conditions contained herein effective as of January 1, 2016. Notwithstanding the foregoing, the Port reserves the right to amend or terminate any Employee welfare benefit plan and/or pay practice. The intent of this resolution is to administer pay and benefits in accordance with State and Federal law. Should any part of this resolution require a change to pay or benefit administration practices by reason of any existing or subsequently enacted legislation such change(s) will be incorporated without the need to amend this Resolution. BE IT FURTHER RESOLVED that all prior resolutions dealing with these subject matters, including but not limited to Resolution No. 3699, are hereby repealed. 01/01/2016 - 12 - ADOPTED by the Port Commission of the Port of Seattle this _____ day of ______________, 20__, and duly authenticated in open session by the signatures of the Commissioners voting in favor thereof and the seal of the Commission. Port Commission 01/01/2016 - 13 -
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