State Employee Compensation Plan

ACE meets one or more times per year with the Department of  Personnel Management on state employee compensation issues and benefits and testifies before the Wisconsin Legislatures’s Joint Committee on Employment Relations (JCOER) on the compensation plan.

2019-2021 Compensation Plan

Compensation history since 2009

1) 2019-2021 biennium.  GWAs were adopted with a 2 percent increase on January 5, 2020 and 2 percent on January 3, 2021)

2) 2017-2019 biennium.  GWAs were adopted with a 2 percent increase on June, 2018 and 2 percent on January 6, 2019) Some market and parity adjustments were funded in 2017-2019.  Two year progression for Congressional Officers and Sergeants, Psychiatric Care Physicians and Youth Counselors, a progression for Conservation Warden and Capitol Police relative to labor market and an add on for CNAs as a pilot project.

3) 2015-2017 biennium. There was no GWA in the 2015-2017 biennium.

4) 2013-2015 biennium. GWAs were adopted with 1 percent June 30, 2013 (the beginning of the biennium), and 1 percent on June 29, 2014 (the beginning of the first year of the biennium).Also effective June 30, 2013, any employee whose base pay rate was less than $15.00 per hour after implementation of the 1.0% GWA effective on that date, received an additional GWA increase of $0.25 per hour, except that the increase did not result in a base pay rate exceeding $15.00 per hour.

5) 2011-2013 biennium.  There were no GWA increases in the 2011-2013 biennium.

6)  Inflation.  Since the last GWA increase in 2009,  the CPI-Urban inflation index increased from 215.693 in June 2009 to 246.524 in December 2017.  This reflects inflation of 14.3 percent from mid-2009 through 2017.

7) Act 10 effects – retirement contribution reduction in compensation. 2011 Wisconsin Act 10 decreased state and university employee compensation by 5.8 percent beginning in mid-2011, newly requiring employees to pay 50 percent of retirement contributions.

a) Act 10 effects – health insurance contribution reduction in compensation.

Act 10 required that the employee share of health insurance premiums increase from approximately 6 percent to 12.6 percent.  This equates to an increased annual cost of approximately $1,000 for family coverage. This equals approximately 2.6 percent for an employee with a wage of $18 per hour.

b) Add up the loss in purchasing power.  [Note:  Need to do some updated calculations on this part.]

Inflation 2009-2017 from 2009 through 2017 = 14.3 percent.   Reduction due to 2011 Wis Act 10 retirement contribution = – 5.8 percent.  Reduction due to 2011 Wis Act 10 health insurance premiums = 2.6 percent.  Gross loss of purchasing power = -14.3 – 5.8 – 2.6 = -22.7 percent.  In the same period GWA increases were 1 percent + 1 percent = 2 percent in the 2013-2015 biennium.

8) Net.  Net loss of purchasing power = 20.7 percent.  The 4 percent increase approved for state fiscal year 2019 reflects only a small recovery of purchasing power lost from mid-2009 through 2017.

 

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