Volume 4, Number 4 · September 1998

Index

State Salary Plan Structure
to be Adjusted in November

Governor Gilmore and the General Assembly have approved salary increases for state classified and wage employees.

The state's entire salary structure will increase by 2.25 percent (1 step), effective November 25, 1998. Unlike adjustments in previous years, across-the-board adjustments to salary ranges made this year will not automatically result in pay increases for all employees.

Employees whose annual performance evaluations are rated "Meets Expectations" will receive a 2.25 percent salary increase. Because this amount is equal to the adjustment of the ranges, these employees will remain in the same salary step. For example, employees whose salaries are at a step 10 in the current salary range will be at step 10 of the new range, but their salaries will be 2.25 percent higher.

Classified employees who are rated "Exceeds Expectations" or "Exceptional" will receive a 4.55 percent salary increase. With the 2.25 percent adjustment in the salary ranges, these employees will move to the next higher salary step (such as from step 10 to step 11), and their salaries will be 4.55 percent more. Employees who are rated "Fair But Needs Improvement" or "Does Not Meet Expectations" will receive no salary increase. Therefore, these employees' pay will remain unchanged, but (using the example of an employee in step 10 before the adjustment) they will match the new salary range at step 9, rather than step 10. Wage employees will receive a 3.67 percent general, or across-the-board, increase. Additional information has been provided to your agency's human resources officer, with details about the salary increase and its implementation.

The New Virginia Sickness And Disability
Program Provides Comprehensive Coverage

Current full- and part-time classified state employees also are eligible for coverage under the Virginia Sickness and Disability Program. However, they must enroll during a special openenrollment period that begins on January 1 and ends on March 31, 1999. If they enroll in the new program, their coverage begins the 1st of the month following the month the employing agency receives the election form. Current state employees cannot change their decisions once the enrollment period has ended. If they do not enroll in the new Virginia Sickness and Disability Program, they remain covered under DPT's current sick leave policy and VRS's disability retirement plan.

... Just Got a Bit Smoother

How The New Program Works How does the new policy differ from the state's current sick leave policy and disability retirement plan? Full-time, classified state employees currently receive five hours of sick leave each pay period (15 days per year), regardless of years of service. Unused sick leave is carried over to the next year, with no limit on the amount of sick leave that can accumulate. The new Virginia Sickness and Disability Program provides a total of 12 to 15 days of sick leave and family and personal leave each year, depending on an employee's length of service. Unused leave may not be carried forward from one year to the next; employees will not be paid for the unused leave when terminating state employment. Under the new program, short-term disability benefits may begin following a seven calendar-day waiting period. During the waiting period, an employee may use sick leave, family and personal leave, annual leave, compensatory and overtime leave. Short-term disability coverage provides income replacement of 60-to-100 percent, for a maximum of 125 work days. Long-term disability benefits begin after a 180-day waiting period. Long-term disability benefits provide income replacement of 60 percent of compensation. During the first 12 months of long-term disability, disability income and any other income cannot exceed 100 percent of pre-disability compensation. After 12 months, the disability benefit is reduced by any other earned income. Long-term disability may continue until normal VRS retirement age. If the disability results from a work-related injury or illness under the Virginia Workers' Compensation Act, the Workers' Compensation benefits will be primary and the Sickness and Disability Program benefits will be secondary. Employees may use sick leave for personal illness, and they may use family and personal leave because of family illness. Employees also may take family and personal leave for any other purpose, if they give reasonable notice to supervisors and if absences do not prevent agencies from delivering essential services. Current Sick Leave Balances May Be Converted Current state employees who decide to enroll in the new program have two options for crediting the sick leave they have accumulated under the current leave policy. Accumulated sick leave balances, as of January 9, 1999, may be converted to additional VRS retirement credit on the basis of one month of VRS retirement credit for each 173 hours of sick leave. The number of months that may be credited is rounded up to the next highest month. Employees also have the choice of converting their sick leave to disability credit. One hour of accumulated sick leave balance may be converted to one hour of disability credit. The disability credits may be used to substitute periods of 100 percent for the 80 percent and 60 percent periods of pay. Upon termination from state employment, employees may be paid for disability credit according to terms of the Sick Leave Policy, number 4-55, in effect on December 31, 1998. To provide more details about this new benefit program, the Virginia Retirement System will publish a special state edition of Memo to Members in October.

Combined Virginia Campaign Takes on Statewide Focus State employees all across Virginia are joining hands to support their communities through the Combined Virginia Campaign, the annual charitable giving drive of the state work force. Last year, donations given through the CVC totaled more than $2 million and were directed to 752 individual charities. Governor Jim Gilmore has given his vote of confidence to the charitable activities of the work force by agreeing to serve as Honorary Chairman of the CVC. Anticipating a spirit of kindness and generosity, Secretary of Administration Bryan Slater, chief administrator of the CVC, has announced a 1998 state-wide goal of $2.5 million. The CVC consists of a regional network of employees and support that spans from the two-county Eastern Shore to the 22-county Southwest Virginia area. Based upon the 13 CVC regions state-wide, the most dense concentration of employees is in the Richmond area, which represents 38 percent of the work force population. The New River Region (Blacksburg) represents 13 percent of the work force, while the Charlottesville region is home to ten percent of all employees. Northern Virginia falls in at nine percent, while Lynchburg and the South Hampton Roads regions each represent seven percent of the work force. The most enthusiastic campaign for the 1997 year was the Peninsula area's - encompassing Gloucester, Hampton, Isle of Wight, Mathews, Newport News, Poquoson and York, with 46 percent of all employees participating in the CVC. Other high energy areas included the Eastern Shore (26 percent), Williamsburg (26 percent), Charlottesville (23 percent) and the Tidewater area (29 percent). Representing the statewide diversity of the work force, a CVC Advisory Council has been appointed to three-year terms by members of the Governor's cabinet. The 1998 CVC will run from October 1 to November 30, as determined by the CVC Advisory Council. Newly expanded to embrace ALL areas of the State, the Council will be making many enhancements to the CVC over the next year. With a mission of encouraging state employees to participate by supporting the CVC charities of their choice, the Council hopes to maximize giving levels and personalize giving decisions. The Council is fine-tuning the CVC. For example, a subcommittee will be reviewing the charity criteria for participation in the CVC - specifically those charities whose primary operations are outside Virginia - such as the currently accepted internationals, and animal health groups, such as the Society for the Prevention of Cruelty to Animals. Additionally, this group will focus on the campaign effort itself. Sara Wilson, director of the Department of Personnel and Training and CVCAC chairperson believes the key to a successful CVC is educated employees. "The CVC is such a wonderful and cost-effective way to support our communities, and it's all about choice. An employee can choose whether or not he or she wishes to participate. A donor can choose how much he or she would like to give per pay period and to whom. And finally, by participating in the CVC, a donor can choose to protect his or her privacy and limit personal solicitation." From a fundraising standpoint, the CVC is efficient. The 1998 budget anticipates an administrative cost of no more than 8 percent, which is lower than most direct mail, events, or other standard fundraising vehicles. The CVC also is organized to maximize donor giving. In 1997, for every dollar that was designated to a charity, an additional twenty three cents of "undesignated contributions" was given to that very charity. So a donation of $100 to your favorite charity in reality became a donation of $123. The Combined Virginia Campaign is coordinated within the Department of Personnel and Training. Any questions or comments about the 1998 Campaign should be directed to DPT, at 804-225-2159

1998 CVC Advisory Council

Health Benefits Update

Additional Health Benefits Coverage
Now Available

Coverage for several services has been added to the Key Advantage, Cost Alliance, and HMO plans. This new coverage is in addition to the benefit changes communicated to you in the April issue of Spotlight 98, which was mailed to your home in the spring.

Prostate Specific Antigen (PSA) Screening Becomes Standard Benefit
PSA screening is the analysis of a blood sample to determine the level of prostate-specific antigen which can be an indicator of prostate cancer. All state health benefits plans now cover PSA screening for men aged 40 and over. A digital rectal examination for detection of prostate cancer, along with the office visit associated with the screening exam, is included in this benefit.

Prior to July 1, 1998, the PSA screening was only covered under Key Advantage if you selected the Expanded Benefits option.

Coverage For Early Intervention Services
HMO plans began covering this service on July 1, 1998. This service was already covered under the Key Advantage and Cost Alliance plans.

This coverage provides medically necessary early intervention services for eligible children from birth to age three. The Department of Mental Health, Mental Retardation and Substance Abuse Services determines eligibility for care under Part H of the Individuals with Disabilities Education Act. Covered services include speech and language therapy, occupational and physical therapy, and assistive technology services and devices.

Viagra Prescription Drug
This is a new, widely publicized medication recently approved by the U. S. Food and Drug Administration for the treatment of erectile dysfunction. The following is the policy for coverage of this drug under Key Advantage and Cost Alliance:

1. Viagra requires prior authorization before it will be covered. You may learn how to go about obtaining prior authorization by calling Trigon's state-dedicated customer service unit at (804) 355-8506 or 1-800-552-2682.

2. Viagra is available to men aged 19 or older with a documented diagnosis of erectile dysfunction.

3. A prescription is limited to 8 tablets per 34-day supply.

The HMO plans also cover Viagra with similar guidelines. Contact the HMO plan directly for more information.

Let Uncle Sam Assist You in 1999

Child care and uninsured medical, vision and dental expenses can take a lot of money straight from your pocket every year. That's why the Commonwealth of Virginia has contracted with Fringe Benefits Management Company (FBMC) to provide Flexible Spending Accounts (FSA) allowing you to pay these expenses tax-free.

What is a Flexible Spending Account ?
An FSA is an IRS-approved, tax-free account that saves you money on eligible medical and dependent care expenses. There are two kinds of FSAs:

Medical Expense FSA and Dependent Care FSA.
A Medical Expense FSA reimburses you for eligible medical, dental and vision expenses. Eligible expenses are certain services that are not covered by your health benefits plan. Specific examples include copayments, deductibles, eyeglasses, x-rays and corrective lenses.

A Dependent Care FSA reimburses you with tax-free money if you have dependent children, aged 13 and under, or family members who require custodial care while you work.

How Do the Accounts Work?
Let's say you spend $50 each month on prescription drug copayments:

Without an FSA: If that $50 is left in your paycheck, taxes are deducted. Now, your $50 is worth only $42.50 and Social Security taxes still haven't been deducted _that's another $3.82. Your $50 earned is now worth only $38.70.
With an FSA: The same $50 deposited in a Medical FSA retains its full value because you do not have to pay any taxes on this money. The Medical FSA entitles you to the entire $50 to pay for your medicine instead of the $38.70 you would have without it.

The result? You have more spendable income and less taxes paid to Uncle Sam. Who can argue with that?
The Flexible Reimbursement Accounts have a "Use It or Lose It" rule. This means if you don't use all of the money in your account, you cannot get a refund or roll the funds over into the next plan year. So, it's important to plan your expenses carefully.

The Annual Flexible Benefits Enrollment period, (November 1st through December 1st) is the time to enroll in the 1999 FSA. You may enroll in either or both FSAs, through KATY, by calling 1-800-539-7675. New Flexible Benefits SourceBooks, produced by FBMC, will provide additional information on FSAs. These will be available in your agency's Benefits Office in early October.

Who is FBMC?
Fringe Benefits Management Company is a third party administrator specializing in payroll deduction benefits services. Based in Tallahassee, Florida, FBMC assists with the enrollment and administers the FSAs for state employees. The firm has more than 22 years of experience in this industry.

REMINDER: Even if you participate in the 1998 FSA, you must reenroll by 12/1/98 to participate in the 1999 plan year.

Everyone Pays for Benefits to Ineligible Dependents

Carrying ineligible persons on a state health benefits membership is a losing proposition for us all. State employees must remove ineligible persons from their health benefits account within 31 days of their becoming ineligible, or they may lose their own state health benefits for up to three years. Additionally, we employees bear the cost of claims for those who are not entitled to coverage.

The state's contribution to an employee's health benefits is a significant piece of our total compensation package. Also,
we contribute to the cost of our health benefits and have a stake in managing these costs. The first line of defense in cost management is to provide coverage only for eligible persons. The following persons are eligible to be enrolled under an employee's membership:

- The legally married spouse of a state employee

- An employee's unmarried biological or legally adopted children, or children placed in the home of a state employee under a formal pre-adoptive agreement*

- Unmarried step-children who live full-time with the employee in a parent-child relationship and who are claimed as a dependent on the employee's federal tax return.

- Other children who live in the permanent court-ordered custody of a state employee.

- Disabled adult dependents who are certified as such by the plan within 31 days of losing state coverage due to age.

- A child who is self-supporting is not eligible for coverage under the State Health Benefits Program.

When a covered person loses eligibility, you must take action to remove that person from your membership within 31 days of the loss of eligibility. The coverage will remain in effect through the last day of the month in which the dependent actually became ineligible. In the case of divorce, a court order for an employee to provide coverage does not entitle the ex-spouse to be carried in the state program. Ex-spouses, like all other ineligibles, must be removed within 31 days of the event.

Ineligibles generally are eligible to enroll in Extended Coverage in the plan in which they have been enrolled. However, Extended Coverage can be offered only if you notify the agency within 60 days of the loss of a dependent's eligibility.

Most employees are very conscientious about removing ineligible dependents. Nevertheless, a number of persons have been excluded because they failed to do so. It is possible that additional personnel action may be taken by an employee's agency if an employee covers ineligibles on his or her health care membership. Please ensure that this does not happen to you.

Your agency benefits administrator will be happy to answer questions you may have about eligibility. Available from your agency human resources office, the brochure Eligibility Rules For The State Health Benefits Program contains information on eligibility. The new Statewide Plans Sourcebook which also contains information on eligibility will be available soon.

*Certain criteria apply. The Department of Personnel and Training must authorize.

Salary Structure and Incentive Plan To Affect Take-Home Pay in November
Where do you fall within this chart? See explanation on page 1.

Pay Grades 1-6

Pay Grades 7-12

Pay Grades 13-18

Pay Grades 19-23

Commonwealth
Management Institute
Makes a Comeback

One sure sign that professional development and employee training is on the rebound in state government is the robust attendance at recent sessions of the Commonwealth Management Institute, a mid-level career training porgram that has been inactive for the last few years. In case you've been wondering, CMI is back, alive and well.

CMI is unique. It combines the latest information about successful management skills and techniques with the customized knowledge of how these skills and management strategies can best be applied within the specific context of Virginia's state government. In that sense, CMI does something that external management development programs cannot speak knowledgeably from the perspective of realities in Virginia state government when evaluating the potential of management techniques used elsewhere. In fact, the CMI's curriculum is heavily influenced by the experiences of Virginia's top middle managers, many of whom have graduated from the program and now provide feedback as members of the Commonwealth Managers Association.

But why should non-management employees care about CMI? "All employees are affected by the quality of workplace management," explained CMI Program Director Karen Washabau. "At every level of the organization, employees are being challenged to change, constantly. The impact of new technologies, reductions in the work force and adapting to new service demands all place a great deal of stress and uncertainty on employees. Middle managers, more than anyone else, must have the skills to identify these changes and assist every state employee to successfully adjust and excel in this new reality of constant change." Washabau speaks from experience, having served in several significant state posts, as Deputy Secretary of Finance, Deputy and then Acting Director of the Department of Personnel and Training and Director of the Department of Planning and Budget. She now directs the Office of Public Policy Training at Virginia Commonwealth University's Center for Public Policy.

CMI focuses on leadership training and four specific sets of professional and personal skills development: self-examination, self-expectation, self-direction and self-actualization. A less formalized but equally important objective of CMI is to create and nurture relationships among managers in diverse state agencies, fostering a greater degree of agency cooperation. "Consistently, incoming agency heads and other top-level government appointees comment about how surprised they are to find out just how talented and dedicated state employees are," said Washabau.

"Because of the quality of our work force, Virginia's state government has a high ranking, when compared with other states, in the areas of productivity and financial management. Let's face it: We no longer have the large budgets and ample resources to operate the way we used to. In order to maintain and improve the quality of our work, each individual has to be willing, and able, to cope with change and be prepared to take individual responsibility for getting the job done. Managers are key to motivating employees they supervise, mostly by example," she added. When they enroll in CMI, managers undergo a "360-degree" evaluation of their performance and leadership skills which includes rankings by the people they supervise. Their ultimate success as managers in a constantly changing work environment, as well as their ability to assist employees in adpating to these changes, depends upon each manager's effectivenesss as a superviser, motivator and leader. Candidates for CMI are nominated by their supervisors, agency heads and/or cabinet secretaries.

At its inception in 1987, CMI annually conducted only two sessions. A shift in budgeting priorities eliminated the program during the mid-1990s. However, Governor Gilmore gave the CMI and its sister program the Virginia Executive Institute a strong vote of confidence by restoring full funding to both programs in his amendments to the 1998 state budget.

"With Governor Gilmore's clear support of state employees, the outlook for CMI and all employee training programs is quite positive," Washabau observed. "The demand for the program is so great that we conducted three CMI sessions last year, and already we have received more than 200 nominations for the 60 available slots this year. We may conduct as many as six sessions.

"Managers have one of the most pivotal positions in any organization," Washabau continued. "The mid-level manager is 'on-point' to make sure things happen on a daily basis. For years now, during the extended period of downsizing and flattening organizations, the role of mid-level managers has been pushed aside. Now, the realization of their importance is making a comeback, not only in state government but in private industry as well," Washabau concluded. For managers, and employees at all levels who work to keep Virginia's state government among the best in the nation, that comeback is reassuring news.

Stated Briefly...

· Fast on the heels of the recent state-wide survey of all Commonwealth employees, Governor Gilmore accompanied by top state officials who have a direct stake in employment issues will continue his employee outreach effort in late September by hosting a series of regional "town hall" meetings in locations throughout Virginia. Among those joining the Governor will be G. Bryan Slater, Secretary of Administration; other members of Governor Gilmore's senior staff; William H. Leighty, Director of the Virginia Retirement System; Neil A.G. McPhie, Director of the Department of Employee Relations Counselors and Sara Redding Wilson, Director of the Department of Personnel and Training. All employees are urged to attend these town hall meetings and take advantage of this special opportunity to speak with the Governor. Although these meetings will be held during the work day, employees who attend will not be required to submit a leave form. Detailed information about the dates, times and locations of the regional meetings was delivered to agency human resources officers for posting and distribution to employees state-wide.

· Each year, as the summer winds down in Virginia, we enter the season of "SEPTOBER" that time of year when the Virginia Department of Agriculture and Consumer Services calls special attention to the thousands of Virginia-grown or produced products that have won the quality distinction of being listed as "Virginia's Finest." From September 16 through October 16, retail grocers throughout the state will erect special Virginia's Finest displays, broadcasters will air a series of commercials, and newspapers will run special advertisements to increase consumer awareness and promote the sale of products which bear the Virginia's Finest label. Anita Showers of VDACS encourages all state employees to put Virginia's Finest products on their shopping lists during the SEPTOBER period. More information about the Virginia's Finest program is available by dialing (804) 371-7682.

Personnel Development Services
Expands Training Opportunities

The Office of Personnel Development Services within the Department of Personnel and Training has begun extending its offering of training courses to convenient regional locations outside of Richmond. Agencies are encouraged to notify PDS of potential training sites that are convenient for their employees. One such regional course offered this month to state employees is Sexual Harrassment for Managers and Supervisors, being held at the Department of Social Services in Virginia Beach on September 29. The registration fee is $25. Another example is the Performance Evaluation System course, held at the Virginia Museum of Natural History in Martinsville. This same course, with a registration fee of $35, will be offered September 22 in the PDS training center in Richmond. Other courses offered in September at the Richmond location include:

• The Americans with Disabilities Act,
  September 23. Cost: $25.
• Employment Law/Personnel Recruitment and Selection Process,
  September 23. Cost: $25.
• Train-theTrainer Course,
  September 23, 24, 25. Cost:$200.

All courses begin at 8:30 a.m. and end at 4:30 p.m. If held in Richmond, these courses are located in the PDS Training Center, James Monroe Building, 101 No. 14th Street.

Agencies may obtain a wide variety of courses for in-house delivery by utilizing the existing DPT vendor contracts. Course descriptions, and ordering information is available on DPT's web site:
(http://www.cns.state.va.us/dpt).

Or call Janice Coles, at (804) 225-2157.

Training Links

PDS continues to look for the training and development web sites of other state agencies. If your agency or institution has training opportunities listed on the web, please contact Susan Luck, at (804) 225-2157, with the name and internet address of the site.