1. Payroll Changes – Exempt Staff Individual School Meetings October - November, 2011

2. Payroll Changes – Exempt Staff

3. Why?

4. – NC General Assembly passed House Bill 720 prohibiting the pre-payment of teachers beginning in August 2012. This legislation has rewritten NC General Statute 115C-302.1(b) to say: “Teachers shall be paid only for the days employed as of the set pay date. Payment for a full month when days employed are less than a full month is prohibited, as this constitutes prepayment.” DPI has informed us there may be some type of technical correction to the legislation, which may change the date for the first pay check. – Per Leanne E. Winner, NCSBA Director of Governmental Relations, the bill sponsor is working to get the technical correction passed in a special session in November. Otherwise, it will have to wait until May. Payroll Changes Exempt Staff

5. Summer 2011 – NC General Assembly passed House Bill 720 September 2011 – K-12 presentation October 2011 – November 2011 – Present overview to schools and departments December 2011– March 2012 – Determine and evaluate details of legislative changes March 2012 – K-12 presentation and school treasurer (train the trainer) April - May 2012 – Present details to schools and departments July 1, 2012 – 12 month employees are converted to new schedule August 20, 2012 – Certified employees are converted to new scheduleTimeline

6. Who?

7. Payroll Changes Exempt Staff – Teachers and other certified staff Technology Facilitators Media Specialists Athletic Directors English, Math, or Science Teachers K-5, 6-8, 9-12 Teachers CTE Teachers ROTC All others not listed (not all inclusive) – Superintendent – Cabinet Members – Principals and Assistant Principals – Directors and Supervisors – In other words, YOU! Who? – All exempt staff Examples of exempt staff

8. What?

9. – Prepaid to payment upon completion of work – Monthly to bi-weekly Bi-weekly ≠ (is NOT equal to) semi-monthly Payroll Changes Exempt Staff

11. Bi-weekly ≠ (is NOT equal to) semi-monthly – Bi-weekly – paid every 2 weeks Receive 23 checks per year (20 ten day payments, 3 five day payment) A0-A3 = $3043 per month ÷ 21.5 days = $141.54 per day – Based on calculation method per DPI $141.54 per day x 10 days = $1,415.40 per pay $1,415.40 x 20 per year = 28,308.00 ( 20 ten day payments) + 2,123.10 ( 3 five day payments) = $30,431.10 annually – Semi-monthly – paid 2 times per month Receive 20 checks per year A0-A3 = $3043 per month ÷ 2 times = $1,521.50 per pay $1,521.50 x 20 per year = $30,430 annually Payroll Changes 10 Month Certified Staff

12. A0-A3 = $3043 per month ÷ 21.5 days = $141.53 per day

13. Bi-weekly ≠ (is NOT equal to) semi-monthly – Bi-weekly – paid every 2 weeks Receive 26 checks per year Assistant Principal A0-A7 = $3781 per month x 12 months / 52 weeks / 5 days = $174.51 per day x 10 days = $1,745.10 per pay – Based on calculation method per DPI $1,745.10 x 26 per year = $45,372.60 per year – Semi-monthly – paid 2 times per month Receive 24 checks per year Assistant Principal A0-A7 = $3781 per month ÷ 2 times = $1,890.50 per pay $1,890.50 x 24 per year = $45,372 per year Payroll Changes 12 Month Exempt Staff

15. When?

16. – July 1 = 12 month staff – August 20 = 10 month staff What else? – TimeKeeper approval day will still be Monday – Direct deposit day will be Friday – Pay Day will be Tuesday Payroll Changes Exempt Staff

17. Draft of Pay Schedule 10 month Certified Staff Current Payroll (Now) Bi-Weekly Payroll (Later) Friday, Aug 31 st – 21.5 days Friday, Sept 28th– 21.5 days Wednesday, Oct 31 st – 21.5 days Friday, Nov 30 th – 21.5 days Monday, Dec 22 nd – 21.5 days Thursday, Jan 31 st – 21.5 days Thursday, Feb 28 th – 21.5 days Friday, March 29th– 21.5 days Tuesday, April 30 th – 21.5 days Friday, May 31 st – 21.5 days Tuesday, Aug 28 th – 5 days Tuesday, Sept 11 th – 5 days Tuesday, Sept 25 th – 10 days Tuesday, Oct 9 th – 10 days Tuesday, Oct 23 rd – 10 days Tuesday, Nov 6 th – 10 days Etc…continuing pattern Tuesday, June 4 th – 10 days Tuesday, June 18 th – 10 days Friday, June 21 st – 5 days 215 days = 215 days

18. Draft of Pay Schedule 10 month Certified Staff

19. Draft of Pay Schedule 12 month Exempt Staff Current Payroll (Now) Bi-Weekly Payroll (Later) Tuesday, July 31st – 22 days Wednesday, Aug 31st – 22 days Friday, Sept 30th – 22 days Monday, Oct 31st – 21 days Wednesday, Nov 30th – 22 days Thursday, Dec 22nd – 23 days Tuesday, Jan 31st – 21 days Wednesday, Feb 29th – 20 days Friday, March 31st – 23 days Monday, April 30th – 21 days Thursday, May 31st – 22 days Friday, June 22nd – 22 days Tuesday, July 17 th - 5 days Tuesday, July 31 st – 10 days Tuesday, Aug 14 th – 10 days Tuesday, Aug 28 th – 10 days Tuesday, Sept 11 th – 10 days Tuesday, Sept 25 th – 10 days Etc…continuing pattern Tuesday, May 21 st – 10 days Tuesday, June 4 th – 10 days Tuesday, June 18 th – 10 days Tuesday, July 2 nd – 10 days Tuesday, July 16 th – 10 days

20. Draft of Pay Schedule - 12 month Exempt Staff

21. What else?

22. Why was my paycheck not as high as I thought? – Hours were reduced as a part of budget cuts – 10 months pay was divided over 23 pay periods, not 20 (bi-weekly vs. semi-monthly) – Staff were not conscious of the impact of deductions (“insurance poor”) What happened to my deductions? – There were deduction errors that were unrelated to the conversion – Two enrollment periods for state health plan – Premium increases/decreases – For 10 month employees on installments, deductions are taken over 10 months vs. 12 Q & A

23. Does this affect me if I am on installments? – YES Payments made under state installments are for June and July 2012 (now) Payments made under state installments are for July and August 2013 (later) August check will be delayed the same for all teachers and certified staff Does this affect me if I am a 12 month employee? – YES Every CCS employee will be on bi-weekly pay Every employee must evaluate their own personal financial needs and plan accordingly Every 12 month employee will have a 7 day processing time Q & A

24. I am a 10 month teacher and/or certified employee, why is my pay being held for three weeks when 12 month is held one week? – Teachers and/or certified employees have been prepaid for approximately 2 weeks under the current calendar legislation Plus – Every employees will have a 7 day processing time Why is a 7-day processing time necessary? – One day for employee to approve time on TimeKeeper – One day for supervisor/Principal to approve time on TimeKeeper – Three days for Cabarrus County Schools to process payroll – Two days for the bank to process direct deposit file Can mortgage/loan payment dates with SECU be changed? – NCSBA has begun conversations with the SECU and we will be back in touch once we have a definitive answer. Q & A

25. Increase efficiency and fiscal accountability Increases cash flow (due to no advance pay) Increases employee understanding of paycheck – All employees will be on the same schedule – Absence period and pay period will be the same – Change will eliminate advance payments Difficult to collect “unearned” pay from employees – Terminated employment – Did not report to work and did not have accrued leave Change Benefits

26. Align pay with work Employees are currently paid in advance – for up to 12 days (56% of their pay) Reduces time between pay checks – Old schedule – December – January gap = approximately 40 days – New schedule – 2 week intervals – New employees will have a shorter waiting period for their first pay check Supplements may be paid earlier than June 2013 – (more details in April-May 2012) Change Benefits

27. Help and Assistance?

28. Finance will provide encouraging reminders through email and/or TimeKeeper sign on screens – Think about and/or adjust summer cash NOW – Call State Employees Credit Union – Consider additional (2nd or 3rd) direct deposit – Employee Assistance Program (EAP) has financial planning assistance To receive professional, confidential assistance, call 704-786-7918 – Save Longevity – Save November 2011 and June 2012 Supplements The expectation is that employees understand the bottom line affect of this change and have time to plan for the conversion as needed. Finance Dept. Planning Assistance

29. Every effort will be made to provide information and assistance during this conversion period including: – Final pay schedule (pending legislation) non-draft – State installment option (pending legislation) – Deduction schedule with amounts – Salary schedule with daily rate of pay for teachers – Salary schedule for other exempt staff Finance Dept. Planning Assistance