8b 2019 Salary and Benefits Redline
Redline of Port of Seattle Commission Policy Directive: Salaries and Benefits for Employees Not Covered by a Collective Bargaining Agreement As Amended November 28, 2017 Document last updated Month D, YYYY Table of Contents Section 1. Purpose ................................................................................................................................... 4 Section 2. Definitions ............................................................................................................................... 4 Section 3. Scope and Applicability............................................................................................................ 6 Section 4. Responsibilities ....................................................................................................................... 6 Section 5.1. Policy Establishing Jobs, Pay Grades, Pay Ranges, and Pay Rates .......................................... 7 A. Reporting requirements for certain positions. ................................................................................ 7 (1) General Counsel ...................................................................................................................... 7 (2) External Relations Senior Director ........................................................................................... 7 (3) Internal Audit Director ............................................................................................................ 7 (4) Commission Chief of Staff ........................................................................................................ 7 B. Filling Vacant Positions and Transferring Positions and/or Employees. ........................................... 8 C. Pay Ranges. .................................................................................................................................... 8 D. Job Evaluation System. ................................................................................................................... 9 E. Pay Practices. ............................................................................................................................... 10 (1) Compensation Considerations ............................................................................................... 10 (2) Payroll ................................................................................................................................... 10 (3) Initial Pay Rates ..................................................................................................................... 10 (4) Overtime ............................................................................................................................... 10 (5) Information and Communications Technology Stand-by Pay .................................................. 10 (6) Other Pay Adjustments ......................................................................................................... 11 (7) Special Pay Adjustments ....................................................................................................... 11 (8) Pay for Performance ............................................................................................................. 11 (9) Pay for the Executive Director ............................................................................................... 11 F. Pay Rates and Pay Ranges for Non-Evaluated Jobs ....................................................................... 11 (1) High School, College, and Graduate Intern Positions .............................................................. 11 (2) Chief of Police, Fire Chief, Deputy Chief of Police, Assistant Fire Chief ................................... 12 (3) Veteran Fellows Positions ..................................................................................................... 12 (4) Executive Director ................................................................................................................. 12 G. Amending Authorized Jobs, Pay Grades, and Pay Ranges ............................................................. 12 Section 5.2. Policy Regarding Benefit Programs Offered to Employees................................................... 12 A. Competitive Benefit Package........................................................................................................ 12 B. Mandated Benefits ...................................................................................................................... 12 C. Additional Benefits for Employees................................................................................................ 13 (1) Paid Leave ............................................................................................................................. 13 (2) Retirement ............................................................................................................................ 14 (3) Healthcare ............................................................................................................................. 15 (4) Life and Disability Insurance................................................................................................... 15 (5) Flex Time and Alternative Work Arrangements ...................................................................... 16 (6) Relocation ............................................................................................................................. 16 D. Authorization to Amend Benefits Programs ................................................................................. 16 E. Benefits for the Executive Director ............................................................................................... 16 Section 5.3. Policy Regarding Benefits Offered to Port of Seattle Retirees .............................................. 16 A. Benefits for Qualified Retirees ..................................................................................................... 16 B. Repealed (Res. 3752) ................................................................................................................... 16 C. Repealed (Res. 3752) ................................................................................................................... 17 D. Retiree Life Insurance .................................................................................................................. 17 E. Retiree Parking ............................................................................................................................ 17 F. Authorization to Amend Benefits Offered to Port of Seattle Retirees .......................................... 17 Section 5.4. Policy Regarding Benefits Offered to Port of Seattle Commissioners .................................. 18 A. Benefits for Port Commissioners .................................................................................................. 18 B. Healthcare ................................................................................................................................... 18 (1) Medical and Pharmacy Benefits for Commissioners ............................................................... 18 (2) Vision Benefits for Commissioners ......................................................................................... 18 (3) Dental Benefits for Commissioners ........................................................................................ 19 (4) Healthcare Premiums ............................................................................................................ 19 C. Life Insurance............................................................................................................................... 19 D. Right to Modify or Terminate Coverage........................................................................................ 20 Section 5.5. Policy Regarding Special Programs and Commission Notification ....................................... 20 Section 6 intentionally left blank ........................................................................................................... 20 Section 7 Fiscal Implications .................................................................................................................. 20 Section 8 intentionally left blank ........................................................................................................... 21 Revision History ..................................................................................................................................... 22 Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 3 of 20 SECTION 1. Purpose. The Port of Seattle 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. The intent of this policy directive is to administer pay and benefits in accordance with state and federal law. (Res. 3739, 7, 2017) SECTION 2. Definitions. Except as otherwise provided, the following definitions apply to this policy directive: "At-will" meansa 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 with an asterisk in Exhibit A of this policy directive. When a job opening is posted for an a t-will position, the at-will designation will be identified in the posted notice. An offer of employment made to a current employee or external candidate for an at-will position will state that the position is at-will and exempt from any progressive discipline policy. 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. Employees hired, or appointed, into at-will jobs prior to January 1, 2014, are grandfathered as 'for cause' employees. However, any employee hired prior to January 1, 2014, who is transferred or promoted into an at-will position is no longer subject to the termination "for cause" standard and will be exempt from any progressive discipline policy. "Commissioner" means an individual who is elected to the office of Port of Seattle Commissioner and is eligible for benefits as provided in the relevant provisions of Section 5.4. This definition includes a Commissioner who may be appointed mid-term due to an unanticipated vacancy. "DRS-retired employee" means anemployee 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. "Emergency hire employee" means anemployee hired without a competitive hiring process whose initial employment is limited to three months and whose employment may be extended for no more than two additional months without a competitive hiring process. "Employee" means anindividual 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. Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 4 of 20 "ExecutiveDirector" means an employee who is appointed by the Commission and who is subject to the terms and conditions of this policy directive. In the event of any conflicting or inconsistent terms and conditions between this policy directive and the employment agreement, the employment agreement will prevail. This includes any terms, conditions, adjustments to pay, pay range, or benefits for the Executive Director adopted in open session by the Port of Seattle Commission. "For cause" means a designationgiven 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" means anemployee who is regularly scheduled to work 80 hours per biweekly pay period. "Guided rating distribution" means the guideline for the distribution of employee performance review ratings across the Port. The guided distribution is not a forced ranking or distribution, rather a guideline to support consistent application of the various performance ratings, based on rating definitions, across the Port. "Hourly employee" means anemployee 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). "Intern" means atemporary 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" means anemployee who is hired for more than 90 days in a job with a planned end date. "Non-represented employee" means asalaried or hourly employee not represented by a labor union. "On-call employee" means an employee who does not have a regular work schedule and whose work hours can vary from week to week indefinitely. "Part-timeemployee" means an employee who is regularly scheduled to work less than 80 hours per bi-weekly pay period. "Probationary employee" means a newly hired or rehired employee who has not yet successfully completed the six-month probationary period and is expected to establish a Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 5 of 20 consistent, acceptable level of performance and behavior that is sufficient to retain their employment. "Probationaryperiod" means an extension of the hiring process, 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. "Regular employee" means an employee hired to perform a job without a specified end date. "Salaried employee" means 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). "Temporaryassignment" means 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 Human Resources management. "Temporary employee" means an employee hired to perform a job with a specified end date. "Veteran fellow" means an employee who is hired and receives pay and benefits in accordance with the Veteran Fellowship Program. (Res. 3739, 1, 2017) SECTION 3. Scope and Applicability. A. This policy directive pertains to Port employees not represented by a labor union. (Res. 3739, 2017) B. The Port of Seattle reserves the right to amend or terminate any employee welfare benefit plan and/or pay practice. (Res. 3739, 7, 2017) SECTION 4. Responsibilities. A. The Executive Director is authorized to take necessary action to make effective all terms, provisions, and conditions contained within this policy directive. Should any part of this policy directive require a change to pay or benefit administration practices by reason of any existing or subsequently enacted local, state, or federal legislation, such change(s) will be incorporated without the need for Commission action. (Res. 3739, 7, 2017) Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 6 of 20 SECTION 5.1. Policy Establishing Jobs, Pay Grades, Pay Ranges, and Pay Rates. A. Reporting requirements for certain positions. (1) General Counsel. The General Counsel will have a dual direct reporting relationship with the Executive Director and the Commission by way of the Commission President. The Executive Director will have, in consultation with the Commission, responsibility for review and approval of performance expectations for the General Counsel and legal department staff. Legal department staff, including workplace responsibility staff, will report to the General Counsel. (2) Public External Relations Senior Director. The Public External Relations Senior Director will report jointly to the Commission President and the Executive Director. The Commission President and the Executive Director will have responsibility for review and joint approval of performance expectations for the Public External Relations Senior Director and Public External Relations Department staff and will each provide direct input for the Public External Relations Senior Director performance review. Decisions regarding hiring, firing, or re-positioning the Public External Relations Senior Director will receive concurrence from the Commission President and the Executive Director. Public External Relations will have direct accountability to both the Commission and the Executive Director's office and will independently execute judgment on external affairs strategies based on ethical and professional support of overall port objectives and the Port's role as a public agency. Public External Relations department staff will report to the Public External Relations Senior Director. (3) Internal Audit Director. The Commission, through the Audit Committee, oversees the internal audit function. The Internal Audit Director reports to the Audit Committee and administratively to the Executive Director as provided in the Audit Committee charter. The Audit Committee is charged with making recommendations to the Commission on the appointment, replacement, or dismissal of the Internal Audit Director; provides input to the Executive Director Chief Financial Officer on the Internal Audit Director's performance evaluation; oversees the Internal Audit Director's plans and activities; and reviews with the Internal Audit Director the staffing and organizational structure of the internal audit function. The internal audit department staff will report to the Internal Audit Director. (4) Commission Chief of Staff. The Commission Chief of Staff is appointed to the Commission pursuant to an employment agreement. The Commission Chief of Staff is subject to the terms and conditions of this policy directive. In the event of any conflicting or inconsistent terms and conditions between this policy directive and the employment agreement, the employment agreement will prevail. (Res. 3739, 2, 2017) Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 7 of 20 B. Filling Vacant Positions and Transferring Positions and/or Employees. The Executive Director is hereby authorized to: (1) Recruit and fill authorized positions (except that of Executive Director) up to the fulltime-equivalent number of positions authorized; (2) Set salaries within pay ranges established below; (3) Transfer positions and/or employees from one work unit to another and to reorganize functions to promote organizational effectiveness; (4) Approve non-competitive placements in select circumstances; (5) Establish additional positions, provided that funding is available in the commission approved budget; and (6) 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. (Res. 3739, 2, 2017) C. 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 subsection (D). Each job will have a pay range that corresponds to its pay grade. The following pay grades and pay ranges for non-represented jobs at the Port of Seattle are hereby established: GRADED SALARY RANGE STRUCTURE (Effective January 1, 2019) Grade Hourly Annual Minimum Midpoint Maximum Minimum Midpoint Maximum 45 $114.86 $143.58 $172.29 $238,911 $298,639 $358,367 44 $108.36 $135.45 $162.54 $225,387 $281,734 $338,081 43 $102.23 $127.78 $153.34 $212,630 $265,788 $318,946 42 $96.44 $120.55 $144.66 $200,594 $250,743 $300,892 41 $91.45 $114.31 $137.17 $190,214 $237,768 $285,322 40 $86.65 $108.31 $129.98 $180,235 $225,294 $270,353 39 $82.10 $102.63 $123.16 $170,776 $213,470 $256,164 38 $77.76 $97.20 $116.64 $161,734 $202,168 $242,602 Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 8 of 20 Grade Hourly Annual Minimum Midpoint Maximum Minimum Midpoint Maximum 37 $73.60 $92.00 $110.40 $153,093 $191,366 $229,639 36 $69.71 $87.13 $104.56 $144,991 $181,239 $217,487 35 $65.94 $82.42 $98.90 $137,148 $171,435 $205,722 34 $62.36 $77.95 $93.54 $129,707 $162,134 $194,561 33 $58.97 $73.72 $88.46 $122,666 $153,332 $183,998 32 $55.72 $69.65 $83.58 $115,902 $144,878 $173,854 31 $52.66 $65.83 $78.99 $109,538 $136,923 $164,308 30 $49.70 $62.13 $74.56 $103,384 $129,230 $155,076 29 $46.91 $58.64 $70.37 $97,577 $121,971 $146,365 28 $44.25 $55.32 $66.38 $92,047 $115,059 $138,071 27 $41.71 $52.14 $62.57 $86,761 $108,451 $130,141 26 $39.30 $49.13 $58.96 $81,754 $102,193 $122,632 25 $37.01 $46.26 $55.51 $76,974 $96,217 $115,460 24 $34.81 $43.51 $52.21 $72,400 $90,500 $108,600 23 $32.72 $40.90 $49.08 $68,053 $85,066 $102,079 22 $30.74 $38.42 $46.10 $63,932 $79,915 $95,898 21 $28.81 $36.02 $43.22 $59,933 $74,916 $89,899 20 $27.56 $34.45 $41.34 $57,326 $71,657 $85,988 19 $26.37 $32.97 $39.56 $54,857 $68,571 $82,285 18 $25.25 $31.56 $37.87 $52,510 $65,637 $78,764 17 $24.19 $30.24 $36.29 $50,318 $62,898 $75,478 16 $23.16 $28.95 $34.75 $48,181 $60,226 $72,271 15 $22.14 $27.68 $33.22 $46,058 $57,573 $69,088 14 $21.23 $26.54 $31.85 $44,164 $55,205 $66,246 13 $20.38 $25.47 $30.57 $42,390 $52,987 $63,584 12 $19.52 $24.40 $29.28 $40,599 $50,749 $60,899 11 $18.73 $23.42 $28.10 $38,965 $48,706 $58,447 10 $17.96 $22.44 $26.93 $37,348 $46,685 $56,022 9 $17.24 $21.55 $25.85 $35,851 $44,814 $53,777 8 $16.55 $20.69 $24.83 $34,426 $43,033 $51,640 7 $15.90 $19.87 $23.85 $33,070 $41,338 $49,606 (Res. 3739, 2, 2017) D. 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 jobs based on required skill level, responsibility, effort required, and working conditions, among other characteristics, of each job. Jobs shall be evaluated on an on-going basis and administered by Human Resources management under the direction of the Executive Director. The results of the job evaluation Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 9 of 20 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 of Human Resources, under the supervision of the Executive Director, shall have the final approval authority for all job evaluation outcomes and title changes except for that of the Executive Director. This authority shall include re-evaluation of existing jobs and establishment and evaluation of new jobs. (Res. 3739, 2, 2017) E. 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. Fulltime 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 the Washington State Constitution Article VIII, Section 7, 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) 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. (5) Information and Communications Technology (ICT) Stand-by Pay. Hourly, nonexempt , 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. (6) Other Pay Adjustments. Other pay adjustments including, but not limited to, promotional increases, completion-of-probation increases, six-month increases, Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 10 of 20 and temporary assignment adjustments shall be administered consistent with Port Policy HR-21 Pay Administration. (7) Special Pay Adjustments. The Executive Director, or Human Resources management under the supervision of the Executive Director, 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. (8) Pay for Performance. The Pay for Performance program shall be administered in accordance with Port Policy HR-21 Pay Administration. The Pay for Performance program is comprised of the two components, a base pay increase component and an incentive pay plan component. The incentive pay plan may be addressed in a separate resolution. (a) Base Pay Component. This component permits eligible non-represented employees to earn increases to their base pay that are based on performance ratings earned during the previous performance review period. The amount of the base pay increases shall be approved by the Commission as part of the Port budget process and administered according to a plan approved by the Executive Director and implemented by Human Resources management. 1. Consistent with the general delegation of authority, the Commission shall provide input to the Executive Director regarding performance of those employees that report directly to the Executive Director for the Executive Director's benefit in rating the performance of the Executive Director's direct reports. Such input shall be provided in executive session no later than the last commission meeting in January. (9) Pay for the Executive Director. Pay and performance evaluation for the executive director shall be approved by the Commission in public session. The Commission shall have discretion in determining pay of the Executive Director. (Res. 3739, 2, 2017) F. Pay Rates and Pay Ranges for Non-Evaluated Jobs. Pay rates, pay ranges, and a provision for a special allowance for non-evaluated positions shall be as follows: (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. Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 11 of 20 (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) Executive Director. This job is not evaluated and no pay range is established. The executive director's pay is established by the Port Commission. (Res. 3739, 2, 2017) G. 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 policy directive. Exhibit A may be amended by human resources management when the changes are the result of provisions contained in this policy directive (e.g., on-going job evaluations or technical errors). (Res. 3739, 2, 2017) SECTION 5.2. Policy Regarding Benefit Programs Offered to Employees. A. The port commission supports the Port's providing a competitive benefit package for employees and their families that assists 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. (Res. 3739, 3, 2017) B. 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, the following: (1) Social Security (FICA) insurance (2) Industrial insurance/Workers Compensation coverage (3) Unemployment compensation (4) Military leave (based on both federal and state requirements) (5) Faith and Conscience Days Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 12 of 20 (6) Pregnancy disability leave. (7) Family and Medical Leave Act (FMLA) of 1993 (8) The Family Care Act (FCA) of 2002 (Res. 3739, 3, 2017) C. 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). Employees are encouraged to take at least two weeks of paid time away from work for vacation or personal reasons each year. (b) Sick Leave. Paid time away from work in the event of illness, injury, or other specified reasons. (c) Holidays. The port shall observe the following 10 holidays as specified in the Total Rewards Program Guide: 1. New Year's Holiday 2. Martin Luther King, Jr., Day 3. Presidents Day 4. Memorial Day 5. Independence Day 6. Labor Day 7. Thanksgiving Day 8. Native American Heritage Day the day after Thanksgiving 9. Port Designated Floater (in lieu of Veterans Day) Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 13 of 20 10. Christmas Day. (d) Personal Day. One full day each year based on the payroll calendar with no accrual and no carry forward, based on the payroll calendar. (e) Bereavement Leave. Time off to attend or make arrangements for funeral or memorial services of a close family member. (f) Supplemental Military Leave. Additional partially paid military leave in response to an involuntary deployment resulting from Presidential Recall or a declared State of Emergency. (g) Civic Duty Leave. Paid time away from work to serve on jury duty, or in limited circumstances appear in court as a subpoenaed witness. (h) 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. (i) Shared Leave. Accrued leave donated by one employee to another to prevent the receiving employee from taking leave without pay due to a serious health condition. (j) 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 postretirement income shall be as described in this section. 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. (a) 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 that 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. Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 14 of 20 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 that 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. 2. Police Department employees in non-evaluated, non-represented management jobs hired into LEOFF eligible positions who are excluded as stated in RCW 41.04.270 from LEOFF membership as a result of their previous employment will receive port contributions to an alternative plan. These Port contributions will be equal to the contributions the Port would have made to the LEOFF plan the Police Department employee would have been eligible to enroll in. Any Port retirement contributions made consistent with authority and prior to January 1, 2018, are hereby ratified and confirmed. 3. Police and Fire Department non-evaluated, non-represented management employees are covered under the Police and Fire Department FICA alternative plans in lieu of Social Security. (3) Healthcare. Medical, pharmacy, dental, and vision 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 shall be as follows: (a) The Port shall maintain at least two medical plan options. (b) Employees will have the ability to enroll their eligible dependents in the same medical, pharmacy, dental, and vision and dental plans the employee elects. (c) Employees may be required to pay all or a portion of their healthcare medical and dental premiums by payroll deduction. (d) The Port retains the right to modify or terminate healthcare benefits. (4) Life and Disability Insurance. Benefits to protect against unexpected loss shall be as follows: Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 15 of 20 (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 to 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 days 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. (Res. 3739, 3, 2017) D. Authorization to Amend Benefits Programs. The Executive Director is authorized to amend benefits as necessary to comply with any changes in statutory requirements. All policies are subject to approval by the Executive Director. 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. (Res. 3739, 3, 2017) E. Benefits for the Executive Director. The Executive Director will be offered the same benefits package other eligible employees are offered as provided in subsections (B) and ( C). The Port Commission may also authorize different or additional benefits for the Executive Director. (Res. 3739, 3, 2017) SECTION 5.3. Policy Regarding Benefits Offered to Port of Seattle Retirees. A. In addition to pension benefits offered to Port of Seattle retirees, the Port Commission authorizes the following benefits and conditions for qualified retirees. (Res. 3739, 4, 2017) B. Repealed by Resolution No. 3752. Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 16 of 20 C. Repealed by Resolution No. 3752. B. 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 percent of the associated premiums if the following requirements are satisfied: (a) Has at least five 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. (Res. 3739, 4, 2017) C. 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. (Res. 3739, 4, 2017) D. Retiree Life Insurance. Retirees are eligible for enrollment in the retiree life insurance plan if the eligibility requirements listed in subsection (B)(1) are satisfied. (Res. 3739, 4, 2017) E. 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. (Res. 3739, 4, 2017) F. 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. (Res. 3739, 4, 2017) Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 17 of 20 SECTION 5.4. Policy Regarding Benefits Offered to Port of Seattle Commissioners. A. Benefits contained in this section are available to Port Commissioners. (Res. 3739, 5, 2017) B. Healthcare. Port Commissioners shall have the same healthcare, medical, pharmacy, dental, and vision and dental benefits choices offered to Port employees. (1) Medical and Pharmacy Benefits for Commissioners. (a) Coverage for Commissioners. Port Commissioners are eligible to elect medical 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. (b) Medical Benefits Coverage for Commissioners' 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 that 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 percent of the associated premiums if the commissioner has at least five 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 Section 5.3(B)(1)(b) and (c). Additionally, spouses or domestic partners of commissioners who are eligible for retiree medical coverage are eligible to remain enrolled in coverage should they survive the eligible commissioner. (2) Vision Benefits for Commissioners. (a) Coverage for Commissioners. Port Commissioners are eligible to elect vision coverage effective on the first of the month following one calendar month as a Port Commissioner. They shall be eligible for vision coverage in such amounts and in such manner as the Port has established with organizations Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 18 of 20 selected to provide or administer such benefits. Commissioners who elect Port-sponsored vision coverage must elect coverage via approved methods. (b) Coverage for Commissioners' Dependents. Port Commissioners are eligible to elect vision coverage 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 vision plan that the Commissioner has chosen. (3) Dental Benefits for Commissioners. (a) Coverage for Commissioners. Port Commissioners who so elect coverage shall receive these benefits effective the first of the month following 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 Commissioners' 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 that the Commissioner has chosen. (4) Healthcare Premiums. Commissioners will be responsible for paying a share of their healthcare premiums by payroll deduction in the same manner as nonrepresented 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. (Res. 3739, 5, 2017) C. 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. Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 19 of 20 (a) For Commissioners Eligible for Retiree Life Insurance. A Commissioner is eligible for enrollment in the retiree life insurance plan if the service requirements listed in subsection (B)(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. (Res. 3739, 5, 2017) D. 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. (Res. 3739, 5, 2017) SECTION 5.5. Policy Regarding Special Programs and Commission Notification. The Executive Director 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 this policy directive 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 this policy directive. The Commission shall be notified of any material changes in the administrative details of the programs authorized by this policy directive before changes are implemented. (Res. 3739, 6, 2017) Port of Seattle Commission Salary and Benefits Policy Directive Redline Page 20 of 20
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