Compensation Packages

1Module 1.3 Evaluate Salary and The Total Compensation Package

CORE PFRP FOR TRANSITION

Module 1.3

Core PFRP for Transition


Cost of Living Analysis

When relocating, consider what could impact your financial plan

– Salary– Housing– Utilities– Taxes (including tax benefits for veterans)– Food– Child care– Commuting costs, clothing, entertainment,

school costs, climate, health insurance


Cost of Living Comparison

www.bestplaces.netwww.bankrate.com

www.retirementliving.comwww.kiplingers.comwww.military.com

www.bestplaces.netwww.bankrate.com

www.retirementliving.comwww.kiplingers.comwww.military.com


Military to Civilian Pay

www.salary.comwww.payscale.com

www.onetonline.org/crosswalk/MOCwww.bls.gov/bls/blswage.htm

www.salary.comwww.payscale.com

www.onetonline.org/crosswalk/MOCwww.bls.gov/bls/blswage.htm


O*Net Online Salary & Projected Job Growth*

*Median wages (2010) & projected job growth 2008–2018


A Pay Comparison

Monthly Military Pay (Single E5 > 4 yrs)

Monthly Civilian Pay ($26/hr)

Base Pay $2487.60 Base Pay $4507.04

BAH $1671.00 Fed Tax $-751.14

BAS $348.44 State Tax $-213.33

Fed Tax $-310.02 FICA $-254.65

State Tax $-57.13 SDI $-45.07

FICA $-140.55 Medical $-183.00

Net Pay $3999.34 Net Pay $3059.85


Compensation Comparison

• Use “Compensation Comparison” handout to compare compensation packages and track future job offers

• Include retirement plans, healthcare, insurance, and other benefits

• Consider what you will need for both replacement income and benefits


Personal Statement of Military Compensation‘Total Military Compensation Package’


Benefit Package and Perks

Which is the better offer?

Company A$45,000Annual salary

Company A$45,000Annual salary

Company B$48,000Annual salary

Company B$48,000Annual salary

Benefits Package:$200 @ month parking voucher worth $2400

Free annual gym membership worth $720Health care plan worth $700 annually

No Benefits Package


Benefit Package and Perks

Company B$48,000

Company B$48,000

Company A$48,820

Company A$48,820


Civilian Health Insurance

Individual vs. Group Health Insurance


Methods of Covering Health Care Costs

INSURANCE

Health Maintenance Organization (HMO)

MUST get care from providers who work with the HMO

Preferred Provider Organization(PPO):

More flexible than a HMO; can get care from provider of your choice/no referrals

Point of Service Plan (POS): More flexible than HMO but less than

PPO

Primary Care Physician must be within the participating provider list

PAY/SAVE ON YOUR OWN

Three methods; each with their own rules:

Health Savings Account (HSA)Flexible Spending Account

(FSA)Health Reimbursement

Account (HRA)

Designed to reimburse employees for out-of-pocket costs

(deductibles, co-insurance payments, eye exams, etc.)

Check with your HR Department, or the IRS website (www.irs.gov)

for the more information


Continued Health Care Benefit Program (CHCBP)

• For Service-members separating from active duty (& families) – Must be under other than adverse conditions – Eligibility is for up to 18 months of CHCBP health

benefits after enrollment• Enrollment & Fees

– Must enroll w/in 60 days of loss of military health care benefits

– Coverage must be effective as of the date eligibility for military health care is terminated

– Quarterly premiums • $1,065 (FY12) / $1,138 (FY13) member only • $2,390 (FY12) / $2,555 (FY13) member and family

– Enrollees responsible for paying cost shares and deductibles


Consider These Comps

Documents

Compensation Packages