EDISON STATE COLLEGE
2010-2011 EMPLOYMENT CONTRACT ANALYSIS
FOR DR. KENNETH P. WALKER
AS OF APRIL 20, 2010 ( Effective July 1, 2010)
Contract
Item # Taxable Compensation: Taxable Non-Taxable Total Annual Other Per Pay Comments
Base Salary as of July 1, 2009 $ 248,496.24
Base Salary Increase (Effective July 1, 2010) 61,503.76 Board Salary Recommendation (Effective July 1, 2010)
1 Annual Base Salary (Effective July 1, 2010) $ 310,000.00 $ 310,000.00 $ 12,916.67
2 Life Insurance Allowance 48,000.00 (2) 48,000.00 paid to Dr. Walker as a Direct Deposit
2 Life Investment (Prudential Life Ins) 46,860.00 (6) 46,860.00 paid to Dr. Walker as a separate Direct Deposit to Suncoast Federal Credit Union
3 Annual Physical Exam - - NA paid directly to physician/hospital
4 Long Term Care Insurance (Effective 5/2009) 1,577.19 (5) 3,980.00 5,557.19 paid directly to group insurance provider - Prudential Insurance by Accounts Payable Check
Housing Allowance as of July 1, 2009 34,656.00
Housing Allowance Increase (Effective July 1, 2009) increased with each salary adjustment
6 Housing Allowance 34,655.96 34,655.96 1,444.00
7 Development Allowance 25,000.00 (1) 25,000.00 paid to Dr. Walker as a separate Direct Deposit to Northern Trust
8 15 Days Personal & Professional Development Leave - - NA Additional Professional & Development Days for the purpose of developing new ideas & plans
9 College Paid Annuity - SMSC ORP 93,153.98 (3) 93,153.98 4,657.70 paid directly to Suncoast Federal Credit Union via Direct Deposit each Payperiod
9 College Paid Annuity - SMSC ORP (3) 43,399.92 43,399.92 1,808.33 paid directly to Valic by College
10 RIP Benefits - - 412,046.12 Paid upon employment termination
Based upon FRS estimated pension for average salary for 5
highest years at 6/30/2006 - Paid directly to Suncoast Federal
11 President's Retirement Incentive Plan $ 73,238.44 73,238.44 3,051.60 Credit Union Via Direct Deposit each Payperiod
12 months full pay and benefits, less Development Allowance,
12 Sabbatical Leave - 612,512.17 upon notice of retirement or upon death
Retention Bonus 82,593.09
13 President Emeritus office NA Typical office expenses as budgeted and paid by the College
14 Optional Position with College NA Faculty Position
15 Tax Withholding NA Pursuant to all laws and regulations
Reg College Matched 403(b) 9,300.01 9,300.01 387.50 paid directly to Valic by College
Reg Health Insurance 6,012.00 6,012.00 250.50 paid directly to group insurance provider
Reg Life Insurance 42.72 42.72 3.56 paid directly to group insurance provider
Reg LTD Insurance 475.20 475.20 39.60 paid directly to group insurance provider
Reg Social Security 6,621.60 6,621.60 275.90 paid directly to IRS (until S.S. Max is reached)
Reg Medicare 9,334.73 9,334.73 388.95 paid directly to IRS
Reg Annual Leave Payout Bencor 401(a) (4) 39,739.20 39,739.20 paid directly to Bencor
Car Mileage (Based on Calendar Year 2009 Information) 11,289.00 11,289.00 This is recalculated every year on December 1st
Car Lease Value 60,441.00 Vehicle leased by Foundation Office for 2 years
Grand Total of Compensation: $ 643,774.57 $ 118,905.38 $ 762,679.95 $ 1,167,592.38 $ 25,224.30
Notes:
Reg = Benefit provided to all employees in Sr. Management pay class
(1) Paid in full on July 15 each year.
(2) Life Insurance Allowance payable in June of each year.
(3) Contractual retirement rate (see below) = 24.8% x taxable compensation less ORP contribution (14% x base salary).
(4) Projected amount of 15 days annual leave to be transferred to Bencor 401(a) Plan in January of each year.
(5) Long Term Care Allowance for 2009/2010 payable in June of each year (Non-taxable based on IRS tax free limits)
(6) Life Investment payable in July of each year to Dr Walker.
Retirement Benefit Calculation:
Grand Total of Taxable Compensation before taxable retirement: $ 550,620.59
FRS Local Agency ORP @ 14% x base salary: $ 43,399.92
Taxable Retirement @ 24.8% x Total Comp. less ORP: $ 136,553.91
Compensation Calculation for Insurance Benefit:
Total Annual Compensation $ 762,679.95
Life Insurance Allowance $ 48,000.00
Life Investment (Prudential Life Ins) $ 46,860.00 The calculations for salary changes effective September 1st, 2009, have
Annual Compensation $ 667,819.95
Value of Life Insurance equals 4 x Annual Compensation = $ 2,671,280.00
Gina B Doeble, Executive Director of Financial Services
Pamela A Fairfax, Associate Vice President, Human Resources
i:\\bo\payroll_new\drwalker\ba1d8268-82ad-49d7-a834-b5ab16dccb3a.xlsx 1/14/2012 8:17 AM
EDISON STATE COLLEGE
2009-2010 ITEM 9 ON CONTRACT ANALYSIS
FOR DR. KENNETH P. WALKER
AS OF SEPTEMBER 1, 2009 (1% Effective July 1, 2009)
Contract
Item # Taxable Compensation: Taxable
1 Annual Base Salary (Effective July 1, 2010) $ 310,000.00
2 Life Insurance Allowance 48,000.00
2 Life Investment (Prudential Life Ins) 46,860.00
4 Long Term Care Insurance 1,577.19
6 Annual Housing Allowance 34,655.96
7 Development Allowance 25,000.00
11 President's Retirement Incentive Plan 73,238.44
Car Mileage (Based on Calendar Year 2009 Information) 11,289.00
Total Taxable Compensation before taxable retirement: $ 550,620.59
Taxable Retirement @ 24.8% x Total Comp. less ORP: $ 136,553.91
FRS Local Agency ORP @ 14% x Annual base salary: $ (43,399.92)
Total Taxable Retirement less ORP: $ 93,153.98
Retention Bonus @ 15% x Total Taxable Compensation $ 82,593.09
EDISON STATE COLLEGE
RETIREMENT INCENTIVE PROGRAM AGREEMENT
Estimate of RIP Benefits
As of 26-JUNE-2006
DR KENNETH WALKER
Item 10 - Revised on July 1, 2009
Hire Date: 1-Jul-91
RIP Effective Retirement Date1: 30-Jun-08
Service Adjustment: 0 years
Total Years of Creditable Service
as of Termination Date: 17.0 years
Current Salary: $643,774.57
Anticipated Salary at Effective Retirement Date: $643,774.57
Anticipated Daily Rate at Effective Retirement Date: $2,649.28
Leave Balances (estimated at effective retirement date):
Sick - Eligible for Terminal Pay: 113 days 904 hours/8 hours per day
Sick - Not Eligible for Terminal Pay: 65 days
ECC RIP Policy
RIP Benefits:
1. Sick Leave Payout -
a. 50% of accumulated and unused
sick leave for the first 10 years
of service: $149,684.32
b. 2.5% x accumulated sick leave
for each year of creditable service
> 10 years - max = 20 years: $30,295.74
2. Salary Bonus:
a. 10% x Final Annual Salary
if notice given 1 calendar year or
more prior to effective date of
retirement: $64,377.46
b. 5% x Final Annual Salary
if notice given 6 calendar months
to 1 calendar year prior to
effective date of retirement: N/A
TOTAL RIP PAYMENTS TO BE MADE:2 $244,357.52
3. Medical & Life Insurance:
50% x Cost of Employee Health &
Life Insurance premiums x 36 months
after Effective Date of Separation:
Annual Health Insurance Premium: $2,838.00
Annual Life Insurance Premium: 72.60 * Only upto 5,000
x 36 months (max) 3.00
Total Value of Health/Life Premiums: $8,731.80
3
4. Accrued Annual Leave (vacation):
Annual Leave - Eligible for Terminal Pay: 60.0
Annual Leave - Not Eligible for Terminal Pay:
Annual Leave Payout $158,956.80
TOTAL RIP PAYOUT: $412,046.12
1
Per employment contract, effective date for RIP retirement = FRS Normal Retirement Date, i.e.;
"earliest date which the FRS allows such member to receive a retirement benefit without an actuarial
reduction for early retirement."
2
Employee may elect to have Annual Leave Payout included with RIP Payout, which limits the annual
payout to $15,000 per year after the first year.
3
Unused accrued annual leave is a terminal pay benefit available to all employees (except Faculty), not just a RIP benefit.
Edison State College
Pro forma Pension / DROP Calculation
for Dr. Walker
As of 20Jun2006
Optional Annual Total Regular
REPORTED TO FRS Leave payout Earnings
FY 2006 239,665.75 55,746.00 295,411.75
FY 2005 230,447.68 - 230,447.68
FY 2004 202,383.51 - 202,383.51
FY 2003 181,061.52 - 181,061.52
FY 2002 175,218.88 - 175,218.88
5 Year Total 1,028,777.34 55,746.00 1,084,523.34
5 Year Average 216,904.67
Years of Creditable Service 15
Pension Calculation:
Average 5 Highest Years Salary 216,904.67
Years of Service 15
SMSC Pension Rate 2%
Estimated Annual Pension $65,071.40
Estimated Monthly Pension $5,422.62
Estimated Semi-Monthly Payment $2,711.31
Maximum DROP Accumulation (5 Years) $325,357.20
3% COLA Increase
EVERY July 1st Semi-Monthly Rate
FY 2006 - 2007 $ 65,071.44 $ 2,711.31
FY 2007 - 2008 $ 67,023.60 $ 2,792.65
FY 2008 - 2009 $ 69,034.34 $ 2,876.43
FY 2009 - 2010 $ 71,105.28 $ 2,962.72
FY 2010 - 2011 $ 73,238.44 $ 3,051.60
EDISON STATE COLLEGE
2009-2010 ITEM 12 OF CONTRACT ANALYSIS
FOR DR. KENNETH P. WALKER
AS OF SEPTEMBER 1, 2009 (1% Effective July 1, 2009)
Contract Annual Sabbatical
Item # Taxable Compensation: Sabbatical Benefits Per Pay Comments
1 Annual Base Salary (Effective July 1, 2010) $ 310,000.00 $ 12,916.67 Same % as approved for faculty and Staff (Effective January 1, 2009)
2 Life Insurance Allowance 48,000.00 paid to Dr. Walker as a Direct Deposit
2 Life Investment (Prudential Life Ins) 46,860.00 paid to Dr. Walker as a separate Direct Deposit to Suncoast Federal Credit Union
3 Annual Physical Exam NA paid directly to physician/hospital
4 Long Term Care Insurance 5,557.19 paid directly to group insurance provider - Prudential Insurance by Accounts Payable Check
6 Housing Allowance 34,655.96 1,444.00 increased with each salary adjustment
8 15 Days Personal & Professional Development Leave NA Additional Professional & Development Days for the purpose of developing new ideas & plans
9 College Paid Annuity - SMSC ORP (Taxable) 93,153.98 3,881.42 paid directly to Suncoast Federal Credit Union via Direct Deposit each Payperiod
9 College Paid Annuity - SMSC ORP (Non-Taxable) 43,399.92 1,808.33 paid directly to Suncoast Federal Credit Union via Direct Deposit each Payperiod
12 Sabbatical Leave - 581,627.05
Reg College Matched 403(b) 9,300.01 387.50 paid directly to Valic by Edison State College
Reg Health Insurance 6,012.00 250.50 paid directly to group insurance provider
Reg Life Insurance 42.72 3.56 paid directly to group insurance provider
Reg LTD Insurance 475.20 39.60 paid directly to group insurance provider
Reg Social Security 6,621.60 275.90 paid directly to IRS (until S.S. Max is reached)
Reg Medicare 8,433.59 351.40 paid directly to IRS
Grand Total of Sabbatical: $ 581,627.05 $612,512.17 $ 21,358.87
LIFE INSURANCE SCHEDULE FOR DR KENNETH P WALKER
Policy Number Insurance Amount Annual Premium
Life Insurance Information Prior to Consolidation
1. Prudential V1008894 $ 732,000.00 $ 24,927.84
V1032325 205,000.00 12,086.50
V1018998 205,000.00 11,418.20
Total Life Insurance Allowance prior to Consolidation: $ 1,142,000.00 $ 48,432.54
Four Times total compensation FY 10-11 $ 2,671,280.00
1. John Hancock 94 586 393 $ 300,000.00 $ 12,000.00
94 545 233 300,000.00 12,000.00
94 586 773 300,000.00 12,000.00
94 586 781 300,000.00 12,000.00
Total Current Life Insurance Allowance: $ 1,200,000.00 $ 48,000.00
Life Insurance Investment Information
2. Life Investment (Prudential) 731,000.00 $ 46,860.00
Total Current Life Insurance Investment: $ 731,000.00 46,860.00
Four Times total compensation FY 09-10 $ 2,671,280.00
Total Current Life Insurance Allowance (1,200,000.00)
Less Life Insurance Investment (731,000.00)
$ 740,280.00
Notes
Allowance paid to Dr. Walker by Direct
Deposit to Suncoast Federal Credit Union
$48,000 Annually in June
Paid to Dr. Walker by Direct Deposit
to Suncoast Federal Credit Union
EDISON STATE COLLEGE
2010-2011 EMPLOYMENT CONTRACT ANALYSIS
FOR DR. KENNETH P. WALKER
AS OF APRIL 20, 2010 ( Effective July 1, 2010)
FY 2009 - 2010 Compensation Analysis
Contract
Item # Taxable Compensation: Taxable Non-Taxable Total Annual Other Taxable Non-Taxable Total Annual Other Difference
Base Salary as of July 1, 2009 $ 248,496.24
Base Salary Increase (Effective July 1, 2010) 61,503.76
1 Annual Base Salary (Effective July 1, 2010) $ 310,000.00 $ 310,000.00 $ 248,496.24 248,496.24 $ 61,503.76
2 Life Insurance Allowance 48,000.00 (2) 48,000.00 48,000.00 48,000.00 $ -
2 Life Investment (Prudential Life Ins) 46,860.00 (6) 46,860.00 46,860.00 46,860.00 $ -
3 Annual Physical Exam - - NA NA
4 Long Term Care Insurance (Effective 5/2009) 1,577.19 (5) 3,980.00 5,557.19 1,577.19 3,980.00 5,557.19 $ -
Housing Allowance as of July 1, 2009 34,656.00
Housing Allowance Increase (Effective July 1, 2009)
6 Housing Allowance 34,655.96 34,655.96 34,655.96 34,655.96 $ -
7 Development Allowance 25,000.00 (1) 25,000.00 25,000.00 25,000.00 $ -
8 15 Days Personal & Professional Development Leave - - NA NA
9 College Paid Annuity - SMSC ORP 93,153.98 (3) 93,153.98 84,868.97 84,868.97 $ 8,285.01
9 College Paid Annuity - SMSC ORP (3) 43,400.00 43,400.00 34,789.44 34,789.44 $ 8,610.56
10 RIP Benefits - - 412,046.12 364,189.03 $ 47,857.09
11 President's Retirement Incentive Plan $ 73,238.44 73,238.44 71,105.28 71,105.28 $ 2,133.16
12 Sabbatical Leave - 612,512.17 530,242.96 $ 82,269.21
Retention Bonus 82,593.09 $ 82,593.09
13 President Emeritus office NA NA
14 Optional Position with College NA NA
15 Tax Withholding NA NA
Reg College Matched 403(b) 9,300.01 9,300.01 7,454.89 7,454.89 $ 1,845.12
Reg Health Insurance 6,012.00 6,012.00 5,124.00 5,124.00 $ 888.00
Reg Life Insurance 42.72 42.72 42.72 42.72 $ -
Reg LTD Insurance 475.20 475.20 475.20 475.20 $ -
Reg Social Security 6,621.60 6,621.60 6,621.60 6,621.60 $ -
Reg Medicare 9,334.73 9,334.73 8,226.76 8,226.76 $ 1,107.97
Reg Annual Leave Payout Bencor 401(a) (4) 39,739.20 39,739.20 35,022.45 35,022.45 $ 4,716.75
Car Mileage (Based on Calendar Year 2009 Information) 11,289.00 11,289.00 6,799.00 6,799.00 $ 4,490.00
Car Lease Value 60,441.00 61,242.50 $ (801.50)
Grand Total of Compensation: $ 643,774.57 $ 118,905.46 $ 762,680.03 $ 1,167,592.38 $ 567,362.64 $ 101,737.06 ########## $ 955,674.49 $ 305,498.22
Retirement Benefit Calculation: Retirement Benefit Calculation:
Grand Total of Taxable Compensation before taxable retirement: $ 550,620.59 Grand Total of Taxable Compensation before taxable retirement: $ 482,493.62
FRS Local Agency ORP @ 14% x base salary: $ 43,400.00 FRS Local Agency ORP @ 14% x base salary: $ 34,789.44
Taxable Retirement @ 24.8% x Total Comp. less ORP: $ 136,553.91 Taxable Retirement @ 24.8% x Total Comp. less ORP: $ 119,658.42
Compensation Calculation for Insurance Benefit: Compensation Calculation for Insurance Benefit:
Total Annual Compensation $ 762,680.03 Total Annual Compensation $ 669,099.65
Life Insurance Allowance $ 48,000.00 Life Insurance Allowance $ 48,000.00
Life Investment (Prudential Life Ins) $ 46,860.00 Life Investment (Prudential Life Ins) $ 48,860.00
Annual Compensation $ 667,820.03 $ 620,239.65
Value of Life Insurance equals 4 x Annual Compensation = $ 2,671,280.00 Value of Life Insurance equals 4 x Annual Compensation = $ 2,480,959.00
i:\\bo\payroll_new\drwalker\ba1d8268-82ad-49d7-a834-b5ab16dccb3a.xlsx 1/14/2012 8:17 AM