Paid Time Off How, and How Many?

Time Off – Current Situation Separate annual allotments for sick days, personal days, floating holidays and vacation Vacation increases as service years increase Each allotment tracked separately, and different provisions for whether or not they are paid out on termination 2/27/2019

Paid Time Off How does it work?

Combined Time Off Alternative – Paid Time Off Incorporate sick, personal, floating and vacation into one PTO bank Employees accrue set PTO hours per pay period, and then use when available Sliding scale with higher PTO accrual for longer tenured employees (see next page for example) Accrual capped at one year’s worth of PTO Eliminates classification of time off Eliminates need for carryover provisions – rolling accrual per calendar year Excludes bereavement, jury duty, military 2/27/2019

Paid Time Off Example Assume bi-weekly payroll (26 per year) Service Years Bi-weekly Accrual Annual Days 0 – 5 .75 day 19.5 days 6 – 10 .90 days 23.4 days 11 – 15 1.05 days 27.3 days 16 – 20 1.15 days 29.9 days 21 + 1.25 days 32.5 days 2/27/2019

Paid Time Off Example Hypothetical Utilization – Employee with 2 years service Week # Bi-weekly Accrual Rate Accrual Days off Balance 1 – 6 .75 day 2.25 days 1 1.25 days 7 – 12 3.5 days 13 – 18 5 .75 days 19 – 24 3 days 25 – 30 5.25 days 31 – 36 2.5 days 37 – 42 4.75 days 43 – 48 7 days 49 – 52 1.5 days New Year 1 day 5.75 days 2/27/2019

Paid Time Off Example Hypothetical Utilization – Employee with 25 years service Week # Bi-weekly Accrual Rate Accrual Days off Balance 1 – 6 1.25 days 3.75 days 3 .75 days 7 – 12 4.5 days 13 – 18 5 3.25 days 19 – 24 7 days 25 – 30 5.75 days 31 – 36 9.5 days 37 – 42 13.25 days 43 – 48 14 days 49 – 52 2.5 days 10 6.5 days New Year 10.25 days 2/27/2019

Paid Time Off How many days per year?

Time Off – Current Situation Identical numbers of sick leave, personal days and floating holidays. Township provides higher level of vacation days. Boro total is slightly above local municipalities, Township higher than Boro based on additional vacation Sick leave of 12 days per year in both municipalities Rarely taken in full Average utilization is currently 6 days. For planning purposes, State government utilizes 5 days. Boro police, which have unlimited sick days, average 3 days Unused sick time is banked - primarily for use in the event of disability. Bank is partially paid out upon termination in Boro 2/27/2019

Short Term Disability Current situation Sick days above those taken banked to be used for STD supplement Boro and Township policies differ and are not generous (unless supplemented by banked time) Proposed solution – enhance disability benefit STD begins after 5 days of sickness (5 days counted against PTO) STD paid at 100% for number of weeks equal to 50% of years of service Balance to 26 weeks paid at 75% e.g. A 10 year employee would have 5 weeks paid at 100%, 21 weeks paid at 75% Provides higher level of protection when needed most 2/27/2019

Short Term Disability – Grandfathering of Banked Time Current banked time for employees converted to dollar amount on 1/1/2013 Employees can use $ bank to supplement STD when payment drops to 75% e.g. Employee making $1000 per week. When on STD and being paid 75%, $250 from sick time bank would be used each week to bring salary to 100% Determine whether to allow current Boro employees to be paid out remaining bank based on current policy 2/27/2019

Holidays Potential to reduce number of holidays while keeping overall time off benefit constant e.g. if holidays reduced by one day, PTO accrual calculation increased by one day year Would increase days “open for business” Consider elimination of certain holidays (New Year’s Eve/Veterans’ and Good Friday) and Retain one floating holiday to be determined based on calendar (e.g. 7/3 if 7/4 is Tuesday). If floating holiday not used, add to that year’s PTO bank by adding one day on 1/1 2/27/2019

2/27/2019

Grandfathering of Current Benefits Paid Time Off Grandfathering of Current Benefits

Grandfathering Unused Sick Time Vacation Carryover Current banked time for employees converted to dollar amount on 1/1/2013 Employees can use $ bank to supplement STD when payment drops to 75% Determine whether to allow current Boro employees to be paid out remaining bank based on current policy Vacation Carryover Prime PTO pump by starting 1/1/2012 with carryover vacation, to a maximum of one year’s vacation accrual based on current system and current tenure e.g. – Boro employee with 23 carryover vacation days and 12 service years would start 1/1/2013 with 21 days in their PTO bank 2/27/2019