1. 1 Module 1.3 Evaluate Salary and The Total Compensation Package CORE PFRP FOR TRANSITION Module 1.3 Core PFRP for Transition

2. 2 Module 1.3 Evaluate Salary and The Total Compensation Package Cost of Living Analysis When relocating, consider what could impact your financial plan – Salary – Housing – Utilities – Taxes (including tax benefits for veterans) – Food – Child care – Commuting costs, clothing, entertainment, school costs, climate, health insurance

3. 3 Module 1.3 Evaluate Salary and The Total Compensation Package Salary Comparison www.bestplaces.net www.bankrate.com www.retirementliving.com www.kiplingers.com www.military.com www.bestplaces.net www.bankrate.com www.retirementliving.com www.kiplingers.com www.military.com Lives in NC $26,388 Moves to TX $25,116 Home prices decrease $243K down to $197K Health Care Increases $85 up to $93 Energy Bill Increases $162 > $185

4. 4 Module 1.3 Evaluate Salary and The Total Compensation Package Military to Civilian Pay Determine salary range based on current military pay, allowances, benefits and future career Consider a salary comparison calculator Realistically assess the worth of your skills and experience Consult Bureau of Labor Statistics (BLS) website for national wage data Research your job skill, career field, and job projections Consider implications on finances Track salary information (use handout) O*Net Online can translate your military skills to civilian language www.salary.com www.payscale.com www.onetonline.org/crosswalk/MOC www.bls.gov/bls/blswage.htm www.onetonline.org/crosswalk/MOC/ www.salary.com www.payscale.com www.onetonline.org/crosswalk/MOC www.bls.gov/bls/blswage.htm www.onetonline.org/crosswalk/MOC/

5. 5 Module 1.3 Evaluate Salary and The Total Compensation Package O*Net Online Salary & Projected Job Growth* Bus/Truck Mechanic & Diesel Engine Specialist $19.64 hr ($40,850) 3-6% job growth Automotive Specialty Technician $17.21 hr ($35,790) 3-6% job growth Office Clerk General $12.79 hr ($26,610) 7–13% job growth Aircraft Mechanics & Service Technician $25.68 hr ($53,420) 3–6% job growth Information Security Analyst $36.37 hr ($75,660) 20% job growth Police Patrol Officer $25.74 hr ($53,540) 7–13% job growth Bookkeeper, Accountant & Auditor $16.36 hr ($34,030) 7–13% job growth Electrician $23.20 hr ($48,250) 7-13% job growth Network & Computer Systems Administrator $33.25 hr ($69,160) 20% + job growth *Median wages (2010) & projected job growth 2008–2018

6. 6 Module 1.3 Evaluate Salary and The Total Compensation Package A Pay Comparison Monthly Military Pay (Single E5 > 4 yrs)Monthly Civilian Pay ($26/hr) Base Pay$2487.60Base Pay$4507.04 BAH$1671.00Fed Tax$-751.14 BAS$348.44CA Tax$-213.33 Fed Tax$-310.02FICA$-254.65 CA Tax$-57.13SDI$-45.07 FICA$-140.55Medical$-183.00 Net Pay3999.34Net Pay3059.85

7. 7 Module 1.3 Evaluate Salary and The Total Compensation Package Personal Statement of Military Compensation ‘Total Military Compensation Package’ Calculate your Basic Compensation BAH + BAS + Special/Incentive Pay + Bonuses OHA + COLA + FSA + CRA Medical Care + Dental + Life Insurance + SBP + Long Term Care Federal & State & Local Tax Advantages Pension + TSP Discounted Services Commissary ($137.80) vs. Supermarket ($200) Gym $0 vs. $45 Education Programs Tuition Assistance/ GI Bill PFM ($250 + savings) Transition Assistance ($4,200 savings) Legal Counseling Savings Consultation: $200 Wills: $250 Power of Attorneys $50

8. 8 Module 1.3 Evaluate Salary and The Total Compensation Package Compensation Comparison Use “Compensation Comparison” handout to compare compensation packages and track future job offers Include retirement plans, healthcare, insurance, and other benefits Consider what you will need for both replacement income and benefits

9. 9 Module 1.3 Evaluate Salary and The Total Compensation Package Benefit Package and Perks Which is the better offer? Company A $45,000 Company A $45,000 Company B $48,000 Company B $48,000 $200 a month parking voucher Free gym mem- bership worth $720 Health care plan worth $700

10. 10 Module 1.3 Evaluate Salary and The Total Compensation Package Benefit Package and Perks Which is the better offer? Company A $48,820 Company A $48,820 Company B $48,000 Company B $48,000

11. 11 Module 1.3 Evaluate Salary and The Total Compensation Package Civilian Health Insurance Individual vs. Group Health Insurance Individual Health Insurance Purchased from an insurance company Generally very expensive Group Health Insurance Lower rates Many employers provide it as a benefit Easier to obtain

12. 12 Module 1.3 Evaluate Salary and The Total Compensation Package Methods of Covering Health Care Costs INSURANCE Health Maintenance Organization (HMO) MUST get care from providers who work with the HMO Preferred Provider Organization(PPO): More flexible than a HMO; can get care from provider of your choice/no referrals Point of Service Plan (POS): More flexible than HMO but less than PPO Primary Care Physician must be within the participating provider list PAY/SAVE ON YOUR OWN Three methods; each with their own rules: Health Savings Account (HSA) Flexible Spending Account (FSA) Health Reimbursement Account (HRA) Designed to reimburse employees for out- of-pocket costs (deductibles, co-insurance payments, eye exams, etc.) Check with your HR Department, or the IRS website (www.irs.gov) for the more information

13. 13 Module 1.3 Evaluate Salary and The Total Compensation Package Continued Health Care Benefit Program (CHCBP) For Service-members separating from active duty (& families) – Must be under other than adverse conditions – Eligibility is for up to 18 months of CHCBP health benefits after enrollment Enrollment & Fees – Must enroll w/in 60 days of loss of military health care benefits – Coverage must be effective as of the date eligibility for military health care is terminated – Quarterly premiums $993 for one person $1,996 for a family – Enrollees responsible for paying cost shares and deductibles

14. 14 Module 1.3 Evaluate Salary and The Total Compensation Package Consider These Comps Significant vacation/personal/sick leave Promotion opportunities Money for education and certifications Relocation services Paid job relocation Company investment plan Transportation reimbursement Discounted/free gym membership Co-share insurance costs Free life insurance Strong retirement package Short term/long term disability