1. Time Off Benefits
4/5/2019

2. Time Off Benefits Three alternatives –
Administrator proposal that leaves current system intact and harmonizes number of days, with Boro Short Term Disability
Paid Time Off (PTO) utilizing same number of days as administrator proposal, with revised Short Term Disability Plan
Paid Time Off (PTO) utilizing same number of days as administrator proposal for current employees and reduced number for future employees, with revised Short Term Disability Plan
4/5/2019

3. PTO Proposal
Current Employees – Same number of PTO days as combined days in administrator proposal
Future Employees – 8 fewer days for each “years of service” grouping
Administration –
One accrual methodology using the “future employee” rate. Current employees are provided 8 additional days in their PTO bank on each January 1
Maximum accrual is one year’s PTO
Paid out on termination (similar to how vacation carryover is paid today)
Short Term Disability – after 5 PTO days, 100% coverage for number of weeks equal to ½ of service years. 75% coverage for balance to 26 weeks total
4/5/2019

4. NOTE – Purple and Red Bars Should all be at same height (technical difficulty)
4/5/2019

5. Grandfathering
Current Carryover Vacation – added to PTO bank on 1/1/13
Current Sick Leave bank – converted to dollar bank to be used for disability periods when not at 100% coverage (i.e. when it drops to 75%). Payments reduce bank.
4/5/2019

6. PTO pluses and minuses Pluses
Protects current employee time off amounts vis a vis administrator proposal
Simplified administration – no need to keep track of separate types of time off. Perpetual calendar so no need for carryover provisions
Employee Flexibility – not constrained by types of time off
Simple methodology for transitioning future employees to lower level
Will increase service provided and reduce cost over time
Disability coverage enhanced
Provides more generous benefit when it is needed most
Eliminates need for banked time, as it was formerly used for extended time off
Employees save $60/year in state disability payments, Employer savings as well
Replicable change methodology for contract negotiations
Widely used in private industry – a proven approach
4/5/2019

7. PTO pluses and minuses Minuses
Change to current system – first in state to implement
Unless unscheduled time is limited, can create managerial difficulty based on uncertainty
limiting unscheduled time is recommended for this reason
May lead to initial increase in time off taken, as employees with carryover approach annual accrual limit
Lower benefit than neighboring municipalities may lead to competitive disadvantage for labor
Only impacts when two municipalities directly competing for labor – amount is not likely to be reason to switch employers, since service time already built up.
Disability paid at 75% may net slightly lower take home pay for certain low paid Township employees for period of disability
However, period of time at 100% should make up for difference
4/5/2019

8. JLL Recommendation
Alternative #3 - Paid Time Off (PTO) utilizing same number of days as administrator proposal for current employees and reduced number for future employees, with revised Short Term Disability Plan
Future service and cost improvement with protection of current employees (meets all 3 Consolidation Commission objectives)
If not alternative #3, use Administrator Proposal
Least change required
4/5/2019

9. Cost Savings (Back-up slide)
Indirect Savings –
Reduced overtime to replace employees taking time off
Reduced per-diem coverage to replace employees taking time off (dispatch)
More work accomplished by employees that have reduced number of days off –
Billable in departments in which residents pay for service
Less use of outside resources
4/5/2019