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PayPoint presents benefits review; employee survey highlights salary and family-health concerns

Brentwood Ways and Means Committee · August 1, 2024
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Summary

A PayPoint HR presentation and city employee survey found Brentwood—s benefits broadly comparable to the market but highlighted salary, family-health coverage and PTO as top employee priorities; staff and committee discussed reallocating underused HRA funds and possible pension/Loggers changes.

Consultants from PayPoint HR presented a 30-page benefits report to the Brentwood Ways and Means Committee, summarizing comparator data and an employee survey conducted by city staff.

Key findings: Brentwood—s cost of benefits measured 27% of total compensation, slightly above a market median of 26%; the city offers medical, dental and vision plans similar in quality to peers; pension arrangements differ between uniformed (public safety) and nonuniformed employees, with public-safety employer contributions substantially higher than the market median. PayPoint recommended surveying employees to prioritize benefit changes and identifying targeted options (for example, modifying employer contributions for single vs. family coverage or considering alternate retirement-health arrangements).

The separate mandatory employee survey presented by city staff showed 88% of respondents reported understanding the benefit package, but 31% expressed dissatisfaction. The top employee priorities were pay, health-care premiums (particularly family coverage), retirement and paid time off (PTO). Staff noted the Health Reimbursement Arrangement (HRA) is generous in city contribution levels but underutilized by employees (city reimburses about $1,125 of a $1,500 single out-of-pocket example); staff proposed additional education and onboarding to increase utilization and discussed whether unspent HRA funds could be repurposed but cautioned that repurposing would convert a latent savings into an ongoing expense.

On pensions and retirement plan options, PayPoint noted Brentwood offers a Loggers plan and a 457 for general employees; the consultant described trade-offs such as the effect of multiplier choices and the possibility of employee contributions to boost funding levels (examples noted: 2%, 4% or 6% contribution scenarios). Committee members asked for further analysis on options targeted at nonuniform employees and the feasibility/cost of changing step and contribution structures.

Next steps: staff will return with focused analysis on Loggers options, an implementation plan to educate employees about the HRA and other benefits, and budget-level trade-offs to consider tuition reimbursement and PTO structuring during the FY2025 budget process.