Docstoc

WTA

Document Sample
WTA Powered By Docstoc
					                                                                                                                                                                                               Confidential
WTA COST ESTIMATOR
                                                                                                                 Data Entry

                                                                                                     Full-Time                           Annual                 On-Call   Overtime   Re-cognition
                                                                           Begin        Proposed     Employee    Employee                 Leave    Sick Leave    Leave      Leave       Leave     Comp Leave   Disability
                                                                         Continuous     Separation   50 Yrs or   Vested In    Employee   Balance    Balance     Balance   Balance      Balance      Balance     Credits
          Position   Annual Salary   Health Carrier   Health Coverage   Service Date:     Date:       Older?      VRS?        In VSDP?   (Hours)    (Hours)     (Hours)    (Hours)     (Hours)      (Hours)     (Hours)

                                        Key           2 Employees-
Example                    $35,000   Advantage        Spouse Pays          5/5/94        1/15/03       Yes         Yes          No        120         300         5          8           4           16            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0

                               $0                                                                                                          0           0          0          0           0            0            0




      3/23/2010 11:53 PM                                                                                                                                                                              Page1 of 8
                                                                                                                                                                                           Confidential
WTA COST ESTIMATOR
                                                                                                         Data Entry
                                                                                                CALCULATED FACTORS


                                                                                    Employer                                                             Re-
                                     Weekly    Years of   Weeks of                   Health    Group    Annual     Sick Leave    On-Call  Overtime    cognition   Comp Leave Disability
          Position   Annual Salary   Salary    Service    Severance   Severance   Premium Cost  Life   Leave Pay      Pay       Leave Pay Leave Pay   Leave Pay      Pay     Credits Pay


Example                    $35,000   $673.08      9          11       $7,403.85            $0     $0 $2,019.23 $1,262.02          $84.13 $134.62        $67.31       $269.23      $0.00

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0

                               $0         $0      0          4               $0            $0     $0          $0          $0          $0        $0           $0           $0         $0




      3/23/2010 11:53 PM                                                                                                                                                                       Page2 of 8
                                                                                                                                                                                Confidential
WTA COST ESTIMATOR
                                                     COSTS FOR SEVERANCE OPTION                         Data Entry               RETIREMENT OPTION COST
                                                                                                                 Retirement
                                                                                                                Option Credit
                                                                             TOTAL BENEFIT                      (Years) (Uses    Purchase Cost   TOTAL LEAVE    TOTAL COST OF
                                     TOTAL WTA    TOTAL LEAVE               (WTA PLUS LEAVE TOTAL AGENCY        .98% for Group   of Retirement    PAYMENTS       RETIREMENT
          Position   Annual Salary    BENEFIT      PAYMENTS     FICA              PAY)      COST (WITH FICA)         Life)           Option       (WITH FICA)      OPTION


Example                    $35,000     7,403.85    $3,836.54    $859.89         $11,240.38       $12,100.27           3           $15,750.00      $4,130.03        $19,880.03

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0           $0            $0           $0                $0              $0           0                    $0             $0               $0

                               $0            $0            $0        $0                 $0               $0           0                    $0             $0               $0
                                         $7,404        $3,837      $860            $11,240          $12,100                           $15,750         $4,130          $19,880




      3/23/2010 11:53 PM                                                                                                                                                            Page3 of 8
IMPORTANT! This version has no provision for the calculation of unemployment costs associated with lay
offs. Unemployment costs must be taken under consideration and the benefits that must be paid can be found
in the Code of Virginia under Title 60.2, Chapter 6.

The calculations in this spreadsheet are based upon Code of Virginia requirements, Department of Human
Resource Management policies, and Virginia Retirement System form VRS-11. The costs calculated are total
costs for the 12 months commencing with the proposed employee separation date and do not necessarily fall
into one fiscal year or another. Agencies should net the costs calculated in this spreadsheet against budgeted
amounts for salaries and all associated benefits to calculate the savings amount for the first 12 months of
separation. Thereafter, the savings should be equal to the amounts budgeted for salaries and associated
benefits.

INSTRUCTIONS:
1) Fill-in the yellow shaded areas of the spreadsheet only. The remaining cells are calculated.
2) Most of the columns are self explanatory.
3) For salaries, exclude temporary pay but include other special rate, If any.
4) The columns for health carrier, health coverage, VSDP participation, whether an employee is full-time and
over 50, and whether an employee is vested in VRS are "drop-down" boxes where one and only one of the
choices should be selected.
5) Enter the dates for the beginning of an employee's continuous service and proposed separation in the
following format: MM/DD/YY (Where MM=month, DD=Day, and YY=Year).
6) Enter all leave balances in terms of hours (not days or weeks).
7) The cost of benefits for both the severance option of WTA (See Section 2.2-3203 of the Code of Virginia
and the retirement option (See Section 2.2-3204 of the Code of Virginia if applicable) are calculated and can
be found towards the right side of the sheet. Only one of these two costs will apply, depending upon individual
choice.
8) Special considerations regarding the retirement option: A) If the employee’s age is younger than 55 after
the credit is added, he or she must have a minimum of 10 years of service to retire under 50/10 retirement. B)
Part-time classified employees do not qualify for the retirement option. C) While VRS will bill agencies for the
service purchased immediately upon the retirement of the employee, by law agencies have 12 months to pay.
Therefore, if an employee retires under the WTA retirement provisions during March of 2003, the agency can
pay VRS any time before March 2004.
ssociated with lay-
be paid can be found


artment of Human
ts calculated are total
o not necessarily fall
 eet against budgeted
rst 12 months of
s and associated




           time and
nd only one of the

eparation in the


  Code of Virginia)
 calculated and can
ending upon individual

ounger than 55 after
 50/10 retirement. B)
 bill agencies for the
ve 12 months to pay.
003, the agency can
SEVERANCE OPTION ASSUMPTIONS

Severance is based on the following:
Given the following years
                                  Weeks of Salary         Weeks of Salary     Tenure-based
of consecutive service
                                    (Standard)            (Tenure-based)       Conditions
(Rounded Up):
2 Years or Less                               4                 0
9 Years or Less                               4                 1            for each year
                                                                             over 2
14 Years or Less                          12                    2            for each year
                                                                             over 9
15 Years or More:                             0                 2            for each year,
                                                                             maximum 36
                                                                             weeks
Health Insurance for the severance option is based on the following:
(ANNUAL EMPLOYER                                                                Kaiser         Aetna     Aetna
PREMIUMS)                          Key Advantage           Cost Alliance      Permanente       POS       HMO
Single                                       3,288                   6,528           2,892       3,288     3,024
Employee + 1                                 4,980                   6,528           4,392       4,980     4,572
Family                                       6,684                   6,528           5,892       6,684     6,144
2 Employees-Employee
Pays                                              7,980             6,528              7,032     7,980     7,332
2 Employees-Spouse
Pays                                                  0                 0                  0         0         0
Cost Alliance                                     6,528             6,528              6,528     6,528     6,528
Waived Coverage                                       0                 0                  0         0         0

Group Life For Severance Option:
Since there is currently a premium holiday for group life employer contributions, the rate used for the severance
option is 0%. However, this is not the same for the retirement option (see below).

Leave Payments:
Hourly Rate = (Annual Salary/52 weeks)/40 hours
Annual Leave Balances:
Annual Leave Pay = Hourly Rate x leave balance in hours with the following maximums:
Less than 5 years of service: max 192 hours
5-9 years of service: max 240 hours
10-19 years of service max 288 hours
20 or more years of service: max 336 hours

Sick Leave Balances and disability credits:

Sick Leave Pay = Hourly Rate x 25% of Sick Leave balance (in hours) with the following exceptions:

-Individuals in VSDP get no sick leave pay-out but do get a disability credit pay-out.
-Individuals with less than 5 years of service get no sick leave pay-out.
-The maximum sick leave pay-out is $5,000
-VSDP Participants get:
 Disability Credit Pay = Hourly Rate x 25% of Disability Credit (in hours)
Other Leave Types:
Leave Pay = Hourly Rate x leave balance in hours

FICA:
FICA is calculated on both the severance payments and leave balance portions
FICA is 7.65%


RETIREMENT OPTION ASSUMPTIONS

The amount of purchased retirement credit is found by first adding the following:

The Severance Amount plus the Health Insurance Amount plus the group life amount

These are the same amounts as under the severance option with the following exceptions:

-In the case of the retirement option, a factor of 0.98% is used for group life.
The reason for this is that in the interest of fairness, it has been determined that
individuals taking the retirement option should get some value from group life counted
towards their retirement credit calculations. 0.98% is the actuarially determined value.

-The other exception under the retirement option is the way certain employees' health premium
costs are calculated. Specifically, amounts for employees under "two state employees" coverage
are calculated using the family rate for their respective carrier if the employee pays the premiums and the
single rate if the spouse of the employee pays the premiums.


Years of credit = severance+health insurance+group life divided by 15% of the annual salary, rounded up

Cost to the agency of the purchased service= 15% of salary x years of credit

The leave costs under the retirement option are the same as under the severance option.
             Piedmont
            Community
                  2,964
                  4,488
                  6,024

                    7,188

                       0
                       0
                       0



for the severance

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:7
posted:3/24/2010
language:Italian
pages:8