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2009 Tentative PBC 2009 Tentative PBC Pay Agreement Pay Agreement

BriefingBriefing

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DefinitionsDefinitions Performance-Based Compensation (PBC)Performance-Based Compensation (PBC)

Rating system for those not in PDP or CAPP. Ratings are Rating system for those not in PDP or CAPP. Ratings are based on assessment of employees’ performance meeting their based on assessment of employees’ performance meeting their competencies, as compared to assessments of their colleagues competencies, as compared to assessments of their colleagues performance.performance.

Standardized Rating Score (SRS)Standardized Rating Score (SRS) Number of standard deviations an employee’s appraisal Number of standard deviations an employee’s appraisal

average is from the appraisal average for their comparison average is from the appraisal average for their comparison group group

Competitive RateCompetitive Rate Initially represented the market median for position covered Initially represented the market median for position covered

by pay plan and band but was increased in 2008 and 2009 by by pay plan and band but was increased in 2008 and 2009 by the annual adjustment negotiations. the annual adjustment negotiations.

Performance Review Group (PRG) Performance Review Group (PRG) Rating system used for PDP and CAPP employees. Ratings are Rating system used for PDP and CAPP employees. Ratings are

based on assessment of employees’ performance meeting their based on assessment of employees’ performance meeting their competencies; no formal comparison with their colleagues is competencies; no formal comparison with their colleagues is used.used.

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Union Negotiating Union Negotiating PrinciplesPrinciples

Everyone who “meets expectations” should receive some Everyone who “meets expectations” should receive some amount of Performance Based Compensation (which has amount of Performance Based Compensation (which has not always been the case in the past)not always been the case in the past)

For Band Is and IIAs, PBC should be applied to base salary For Band Is and IIAs, PBC should be applied to base salary regardless of salary range caps to recover some of the regardless of salary range caps to recover some of the earning power lost since the salary ranges were adjusted earning power lost since the salary ranges were adjusted downward in 2005downward in 2005

For Band IIBs, PBC should be applied to base salary For Band IIBs, PBC should be applied to base salary regardless of the Band IIB speed bumpregardless of the Band IIB speed bump

The PBC payout should be determined using an alternative The PBC payout should be determined using an alternative to the SRS score (which exaggerated small differences in to the SRS score (which exaggerated small differences in ratings in some instances). ratings in some instances).

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OverviewOverview Performance Appraisal Cycle Performance Appraisal Cycle (PBC)(PBC) factor of factor of

2.65%2.65%

New methodology for computing PBC increase New methodology for computing PBC increase Alternative to the Standardized Rating Score (SRS)Alternative to the Standardized Rating Score (SRS)

Band IIB speed bump removedBand IIB speed bump removed

Retroactive to pay period 1Retroactive to pay period 1

PBC increase is in addition to the annual PBC increase is in addition to the annual adjustment employees are already receiving.adjustment employees are already receiving.

NoteNote: The agreement does not apply to PDP and CAPP employees covered : The agreement does not apply to PDP and CAPP employees covered under the PRG system.under the PRG system.

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How We Got HereHow We Got Here

Agreement Components

Management Initial Proposal Negotiated Agreement

Performance Based Compensation Budget Factor*

2.0%

(subject to existing range maximums and meet expectations in all competencies)

2.65%

(subject to existing range maximums and meet expectations in all competencies)

PBC Computation method

Replace SRS methodology with alterative methodology that does not use a standard

deviation in the computation.

Replace SRS methodology with alterative methodology that does not use a standard deviation in the computation.

Band I and IIA Pay Range Maximums**

Existing Ranges Existing Ranges

Band IIB speed bump Removed Removed

Effective Date Retroactive to January 4, 2009 Retroactive to January 4, 2009

* Does not apply to PDP and CAPP employees, who receive their performance based compensation adjustments through the PRG system. ** Management agreed that pay ranges will be subject to negotiation during master contract negotiations

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Distribution of PBC Distribution of PBC Increases Among Increases Among

Bargaining Unit StaffBargaining Unit StaffThe graphic below shows that staff that at least met expectations in all competencies The graphic below shows that staff that at least met expectations in all competencies would receive PBC compensation of 1.2% to 4.2% of the applicable competitive rates. would receive PBC compensation of 1.2% to 4.2% of the applicable competitive rates.

Visit our website at Visit our website at www.gaoanalysts.org for a larger for a larger version of this graphicversion of this graphic

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New Methodology for New Methodology for Computing PBC IncreaseComputing PBC Increase

New methodology removes standard deviation from computation

PBC increase is calculated by subtracting the average applicable group rating score from an individual’s rating score and adding the PBC factor of 2.65. The group rating score is computed using the ratings of other

persons in your same band, position, and team. Both your rating score and your group’s rating score will become available in CBPS

Resulting PBC percentage is multiplied by the applicable competitive rate for the employee’s band, position, and geographic location

PBC increase is then applied as to an employee’s permanent base salary, up to the applicable maximum salary for the band, position, and geographic zone. Any amount that exceeds the applicable maximum salary is paid as a cash bonus

8Note: IT Analyst, FMA Auditors and CA's under other ranges

Non-PDP Analyst PBC Pay Non-PDP Analyst PBC Pay Range Components – 2009 Range Components – 2009

(Zone 3 - DC)(Zone 3 - DC)

LevelLevel Competitive Competitive RateRate

MaximumMaximum Transition Transition Maximum*Maximum*

11 $66,354$66,354 $85,625$85,625

2A2A$96,685$96,685 $114,642$114,642 $118,700$118,700

2B**2B** $118,693$118,693 $144,753$144,753

* Applies to staff on board as of January 8, 2006

** The Band IIB speed bump is removed by negotiated agreement.

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Non-PDP Analyst Non-PDP Analyst Pay Calculation ExamplePay Calculation Example

Band I in DCBand I in DC Current 2009 salary = $77,100Current 2009 salary = $77,100

D.C. staff’s current salaries already include a 2009 annual D.C. staff’s current salaries already include a 2009 annual adjustment of 4.78%adjustment of 4.78%

Rating Factor = 0.5 Rating Factor = 0.5 The rating factor has not yet been provided in CBPS for The rating factor has not yet been provided in CBPS for

employees to use in this calculation.employees to use in this calculation. The rating factor will differ for each employee.The rating factor will differ for each employee.

Competitive Rate = $66,354Competitive Rate = $66,354 Maximum Rate = $85,625Maximum Rate = $85,625

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Non-PDP Analyst Non-PDP Analyst Example – Step 1Example – Step 1

Calculate the PBC IncreaseCalculate the PBC Increase Add 2009 PBC Budget Factor and Rating Add 2009 PBC Budget Factor and Rating

Factor*Factor*

2.65 + 0.50 = 3.152.65 + 0.50 = 3.15 Turn it into a percent by multiplying by .01Turn it into a percent by multiplying by .01

3.15 x .01 = .03153.15 x .01 = .0315 Multiply result by competitive rateMultiply result by competitive rate

..0315 x $66,354 = $2,0900315 x $66,354 = $2,090

* Ratings information has not yet been provided in CBPS to determine your rating * Ratings information has not yet been provided in CBPS to determine your rating factor.factor.

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Non-PDP Analyst Non-PDP Analyst Example – Step 2 Example – Step 2

Determine amount of PBC to be Determine amount of PBC to be applied to salaryapplied to salary Add PBC increase to current 2009 Add PBC increase to current 2009

SalarySalary $77,100 + $2,090 = $79,190$77,100 + $2,090 = $79,190 $79,190 < $85,625 (Band I pay cap)$79,190 < $85,625 (Band I pay cap)

New 2009 Salary is $79,190New 2009 Salary is $79,190

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It’s Up To YouIt’s Up To You Need More InformationNeed More Information

Read materials on our website Read materials on our website Read the Communiqué from Monday, April 20, Read the Communiqué from Monday, April 20,

20092009 Contact an Assembly Delegate or OfficerContact an Assembly Delegate or Officer

www.gaoanalysts.org/HTML_Pages/Contact.htmwww.gaoanalysts.org/HTML_Pages/Contact.htm

Ratification VoteRatification Vote Ballots will go out to our Members by way of GAO email Ballots will go out to our Members by way of GAO email

addressesaddresses Votes must be cast by 8:00 pm EST on May 1, 2009 Votes must be cast by 8:00 pm EST on May 1, 2009 Not a Member yet? Contact a union official ASAP!Not a Member yet? Contact a union official ASAP!