Transcript Command Financial Specialist Training

Module 1.3 Evaluate Salary and The Total Compensation Package
Module 1.3
CORE
FOR
CorePFRP
PFRP
forTRANSITION
Transition
1
Module 1.3 Evaluate Salary and The Total Compensation Package
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
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Module 1.3 Evaluate Salary and The Total Compensation Package
Salary Comparison
Lives in NC
$26,388
Energy Bill Increases
Moves to TX
$162 > $185
$25,116
Health Care Increases
Home prices decrease
$85 up to $93
$243K down to $197K
www.bestplaces.net
www.bankrate.com
www.retirementliving.com
www.kiplingers.com
www.military.com
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Module 1.3 Evaluate Salary and The Total Compensation Package
Military to Civilian Pay
Determine
salary range
based on
current
military pay,
allowances,
benefits and
future
career
Consider a
salary
comparison
calculator
Realistically
assess the
worth of
your skills
and
experience
Consult
Bureau of
Labor
Statistics
(BLS)
website for
national
wage data
Research
your job
skill, career
field, and
job
projections
www.salary.com
www.payscale.com
www.onetonline.org/crosswalk/MOC
www.bls.gov/bls/blswage.htm
www.onetonline.org/crosswalk/MOC/
Consider
implications
on finances
Track salary
information
(use
handout)
O*Net
Online can
translate
your military
skills to
civilian
language
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Module 1.3 Evaluate Salary and The Total Compensation Package
O*Net Online Salary & Projected Job Growth*
Bus/Truck
Mechanic &
Diesel Engine
Specialist
Automotive
Specialty
Technician
Aircraft
Mechanics &
Service
Technician
$17.21 hr
($35,790)
$19.64 hr
($40,850)
3-6% job growth
Office Clerk
General
$12.79 hr
($26,610)
$25.68 hr
($53,420)
3-6% job growth
3–6% job growth
Electrician
Police Patrol
Officer
$23.20 hr
($48,250)
$25.74 hr
($53,540)
7-13% job
growth
7–13% job
growth
Information
Security
Analyst
7–13% job
growth
Bookkeeper,
Accountant &
Auditor
$16.36 hr
($34,030)
7–13% job
growth
$36.37 hr
($75,660)
20% job growth
Network &
Computer
Systems
Administrator
$33.25 hr
($69,160)
20% + job growth
*Median wages (2010) & projected job growth 2008–2018
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Module 1.3 Evaluate Salary and The Total Compensation Package
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
CA Tax
$-213.33
Fed Tax
$-310.02
FICA
$-254.65
CA Tax
$-57.13
SDI
$-45.07
FICA
$-140.55
Medical
$-183.00
Net Pay
3999.34
Net Pay
3059.85
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Module 1.3 Evaluate Salary and The Total Compensation Package
Personal Statement of Military Compensation
‘Total Military Compensation Package’
Pension + TSP
Discounted Services
Commissary ($137.80)
vs. Supermarket ($200)
Gym $0 vs. $45
BAH + BAS +
Special/Incentive Pay +
Bonuses
Federal & State &
Local Tax Advantages
Education Programs
Tuition Assistance/ GI Bill
PFM ($250 + savings)
Transition Assistance
($4,200 savings)
OHA + COLA + FSA + CRA
Medical Care + Dental +
Life Insurance + SBP +
Long Term Care
Legal Counseling Savings
Consultation: $200
Wills: $250
Power of Attorneys $50
Calculate your Basic
Compensation
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Module 1.3 Evaluate Salary and The Total Compensation Package
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
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Module 1.3 Evaluate Salary and The Total Compensation Package
Benefit Package and Perks
Which is the better offer?
$200 a
month
parking
voucher
Company A
$45,000
Company B
$48,000
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Module 1.3 Evaluate Salary and The Total Compensation Package 10
Benefit Package and Perks
Which is the better offer?
Company A
$48,820
Company B
$48,000
Module 1.3 Evaluate Salary and The Total Compensation Package 11
Civilian Health Insurance
Individual vs. Group Health Insurance
Individual Health Insurance
Group Health Insurance
Purchased from an
insurance company
Lower rates
Generally very expensive
Many employers
provide it as a benefit
Easier to obtain
Module 1.3 Evaluate Salary and The Total Compensation Package 12
Methods of Covering Health Care Costs
INSURANCE
PAY/SAVE ON YOUR OWN
Health Maintenance Organization (HMO)
MUST get care from providers who work
with the HMO
Three methods; each with their own rules:
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
Health Savings Account (HSA)
Flexible Spending Account (FSA)
Health Reimbursement Account (HRA)
Designed to reimburse employees for outof-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
Module 1.3 Evaluate Salary and The Total Compensation Package 13
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
• $993 for one person
• $1,996 for a family
– Enrollees responsible for paying cost shares and deductibles
Module 1.3 Evaluate Salary and The Total Compensation Package 14
Consider These Comps
Significant
vacation/personal/sick
leave
Co-share insurance
costs
Money for education
and certifications
Relocation services
Paid job relocation
Company investment
plan
Transportation
reimbursement
Discounted/free gym
membership
Promotion
opportunities
Free life insurance
Strong retirement
package
Short term/long term
disability