Time Off Benefits 4/5/2019

Time Off Benefits Three alternatives – Administrator proposal that leaves current system intact and harmonizes number of days, with Boro Short Term Disability Paid Time Off (PTO) utilizing same number of days as administrator proposal, with revised Short Term Disability Plan Paid Time Off (PTO) utilizing same number of days as administrator proposal for current employees and reduced number for future employees, with revised Short Term Disability Plan 4/5/2019

PTO Proposal Current Employees – Same number of PTO days as combined days in administrator proposal Future Employees – 8 fewer days for each “years of service” grouping Administration – One accrual methodology using the “future employee” rate. Current employees are provided 8 additional days in their PTO bank on each January 1 Maximum accrual is one year’s PTO Paid out on termination (similar to how vacation carryover is paid today) Short Term Disability – after 5 PTO days, 100% coverage for number of weeks equal to ½ of service years. 75% coverage for balance to 26 weeks total 4/5/2019

NOTE – Purple and Red Bars Should all be at same height (technical difficulty) 4/5/2019

Grandfathering Current Carryover Vacation – added to PTO bank on 1/1/13 Current Sick Leave bank – converted to dollar bank to be used for disability periods when not at 100% coverage (i.e. when it drops to 75%). Payments reduce bank. 4/5/2019

PTO pluses and minuses Pluses Protects current employee time off amounts vis a vis administrator proposal Simplified administration – no need to keep track of separate types of time off. Perpetual calendar so no need for carryover provisions Employee Flexibility – not constrained by types of time off Simple methodology for transitioning future employees to lower level Will increase service provided and reduce cost over time Disability coverage enhanced Provides more generous benefit when it is needed most Eliminates need for banked time, as it was formerly used for extended time off Employees save $60/year in state disability payments, Employer savings as well Replicable change methodology for contract negotiations Widely used in private industry – a proven approach 4/5/2019

PTO pluses and minuses Minuses Change to current system – first in state to implement Unless unscheduled time is limited, can create managerial difficulty based on uncertainty limiting unscheduled time is recommended for this reason May lead to initial increase in time off taken, as employees with carryover approach annual accrual limit Lower benefit than neighboring municipalities may lead to competitive disadvantage for labor Only impacts when two municipalities directly competing for labor – amount is not likely to be reason to switch employers, since service time already built up. Disability paid at 75% may net slightly lower take home pay for certain low paid Township employees for period of disability However, period of time at 100% should make up for difference 4/5/2019

JLL Recommendation Alternative #3 - Paid Time Off (PTO) utilizing same number of days as administrator proposal for current employees and reduced number for future employees, with revised Short Term Disability Plan Future service and cost improvement with protection of current employees (meets all 3 Consolidation Commission objectives) If not alternative #3, use Administrator Proposal Least change required 4/5/2019

Cost Savings (Back-up slide) Indirect Savings – Reduced overtime to replace employees taking time off Reduced per-diem coverage to replace employees taking time off (dispatch) More work accomplished by employees that have reduced number of days off – Billable in departments in which residents pay for service Less use of outside resources 4/5/2019