Item No. __7a_Supp___
Date of
Meeting November 3, 2009


Commission Briefing
Salary and Benefit Resolution

Salary and Benefit Resolution 
What is it?
Delegates authority from the Commission to the CEO to
direct administration of pay and benefits for non-
represented employees
Covers approximately 900 (53%) Port employees
Contains provisions similar to collective bargaining
agreements
Holidays, Time off benefits, insurance benefits, basis
for pay increases
Does not set actual salaries for non-represented
employees
2

Salary and Benefit Resolution 
What is it?
Authorizes the Port to provide medical and dental
insurance benefits
Permits sharing premium costs with employees
Establishes Pay for Performance (PfP) as the manner for
granting pay increases
Merit-based increases tied to employees'
performance plans and appraisals
Stipulates that PfP will be administered under the
Salary Administration Policy
Funding for PfP established by the Port budget
3

Salary and Benefit Resolution 
What is it?
Reviewed annually, updated as necessary
Changes informed by
New or changing laws governing pay or benefits
Updates to Port pay or benefit policies
Market pay levels
Known or estimated pay increases for the coming
year
Local public employers
Private sector employers
The Port's collective bargaining agreements
4

Unique Aspects of the Port
Operates and oversees major transportation hubs and
industrial facilities
Manages a large construction program
Is an economic engine for the region
In addition to being a government, is also a business
Skilled and motivated employees are the most valuable
asset

5

Unique Aspects of the Port
Many non-represented employees perform technical,
often specialized work
Engineers specializing in runway pavements and
designing piers
Environmental specialists collaborating with other
agencies on major remediation projects
ICT staff working on the airport's flight displays
Staff working with Passenger Facility Charges and
overseeing various grants

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Unique Aspects of the Port
The Port's pay                        Typical
Port of
program is different                       Public
Seattle
Employer
from typical public
employer programs     Pay for
Performance    YES      NO
Cost of Living
Adjustments    NO      YES
(COLAs)
Step      NO      YES
Increases
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Port Salary Ranges vs.
Typical Public Employer Ranges
Ranges without Steps       Ranges with Steps
85,000                                          85,000

75,000                                          75,000

65,000                                          65,000

55,000                                          55,000

45,000                                          45,000

35,000                                          35,000

25,000                                          25,000

15,000                                          15,000

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Unique Aspects of the Port
Comparison of 2009 Pay Increases
Port of Seattle        King County        City of Seattle
YTD PfP = 5.38%
4.88% COLA       4.5% COLA
average
2.4 to 7.2% step
4.0% step increase
increase
7.28 - 12.08% total
9.5% total increase
Increase
10 furlough days       10 furlough days    7 furlough days for many
1.58% average net     3.48  8.28% net
7.2% net increase
increase           increase
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Other Considerations for 2010
Benefit plan design changes will be implemented for the
second consecutive year
10% co-insurance added in 2009
Average co-insurance is approximately $316 through
September 2009
Medical insurance premium sharing will be implemented in
2010
Employee premium share will range from $8.28 to
$263.80 per month
Group Health co-pays will increase in 2010
10

Other Considerations for 2010
2010 changes shift additional costs from the Port to
employees
Cost shifting maintains the Port's 2010 medical costs at
2009 levels
Port medical benefits will align more closely with plans
provided by other employers


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Recommendations for 2010
A few minor wording changes
An updated holiday schedule for 2010
A reduction to Paid Time Off (PTO) accumulation limits
A new section specifying eligibility of retiring employees
for medical and life insurance following retirement
No adjustment to salary ranges

12

2010 Minor Wording Changes
Will align employee definitions with policies and
practices
Will help increase understanding and applicability of
overtime and shift differential provisions



13

Holidays and PTO
2010 Port holidays specified
Reduced PTO accumulation limits
Reduction is consistent with the 1999 PTO program
implementation plan
Reduction from 1000 hours to 900 hours


14

New Section
Describes eligibility requirements for retiree medical and
life insurance
At least 5 years of Port employment
Immediate eligibility for pension
Specifies that retirees pay the entire cost of their medical
premiums
Through 2009 the Port subsidized premiums
Elimination of the subsidy eliminates related Other
Post Employment Benefits (OPEB) liability
15

Non-Represented Ranges
No adjustment recommended for non-represented salary
ranges
252 jobs, or 46%, are market priced
16 published salary surveys utilized
Middle point of Port salary ranges compared to
market average actual pay
Market analysis indicates ranges are currently 1.2%
below market

16

Non-Represented Ranges
2010 market projected pay increases
4 salary planning surveys referenced
Data from local public employers analyzed
Port collective bargaining agreements reviewed
Current projected pay increases range from 2.6% to
9.2%
General industry, private and public employers,
anticipate an average 2.6% merit-based increase
Port union employees' pay expected to increase 3% to
6% based on current labor agreements
17

Non-represented Ranges
Range/
Step    Total
Planned and estimated           COLA
Increase  Increase
pay changes at other             increase
public employers*         Seattle    2%   4%   6%
Range increases result                2.4 -   4.4 
King County    2%
7.2%   9.2%
in equivalent increases
to employee pay         Kent    0%   5%   5%
Step increases result in     Everett    0%   3-9%   3-9%
increases to employee     Renton    0%   5%   5%
pay, up to range
Pierce County   2.5%   Varies   2.5% +
maximum
Bellevue,
*increases may not be final until later        Redmond,
this year when approved by each                     n/a     n/a      n/a
Federal Way,
organization's governing body
Port of Tacoma
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Non-Represented Ranges
Maintaining ranges for non-represented jobs could result
in retention or hiring challenges
Hiring activities could increase before the end of 2010
Some skill sets remain in high demand



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Non-Represented Ranges
Data on projected pay changes also informs the average
Pay for Performance (PfP) increase
3.75% average PfP increase included in 2010 budget
Estimated cost is $2.2 million
3.75% average is
Less than projected total increases at other public
employers
More than projected general industry merit increases
Appropriate compared to both public employer and
general industry merit projections
20

Conclusion
Salary and Benefit Resolution changes will be minimal
Related programmatic changes will have much greater
impact on employees and retirees
All changes reflect a conservative approach to benefits
for non-represented employees in 2010


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