Reform 4.12: Total Net Compensation Model

Adopt Total Net Compensation Model for Each Classification.

Other Information:

Once “pensionable pay” is reduced and capped for the five year period, and in preparation for the “opt-out” pension reform plan, The City should explore whether an amendment Charter Section 130 is needed in order to adopt a “net compensation” model for city employee classifications. A total sum of compensation for each city classification would be provided, along with a standard “benefits allowance” that provides for all fringe benefits (including pension costs). Employees in the higher pension benefit level will see less take-home pay than employees in lower, more affordable pension benefit levels. The net compensation model is not only designed to provide greater financial incentives to city employees to voluntarily “opt-out” of higher pension tiers, but is also explicitly designed to address the Generational Inequity that has been created within the city workforce where some city employees receive greater compensation with higher benefits at the expense of other employees with lower benefit packages.

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