UNAPPROVED DRAFT BILL -- Subject to Change Without Notice!
BILL NO.
INTRODUCED BY
(Primary Sponsor)
A BILL FOR AN ACT ENTITLED: "AN ACT GENERALLY REVISING THE STATE PAY PLAN; PROVIDING PAY PLAN INCREASES FOR EMPLOYEES COVERED BY THE STATE'S GENERAL PAY PLAN; INCREASING THE LONGEVITY ALLOWANCE; INCREASING THE STATE CONTRIBUTION FOR GROUP HEALTH INSURANCE; AMENDING SECTIONS 2-18-301, 2-18-303, 2-18-304, 2-18-312, AND 2-18-703, MCA; AND PROVIDING AN EFFECTIVE DATE."
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 2-18-301, MCA, is amended to read:
"2-18-301. Purpose and intent of part -- rules. (1) The purpose of this part is to provide the market-based compensation necessary to attract and retain competent and qualified employees in order to perform the services that the state is required to provide to its citizens.
(2) It is the intent of the legislature that compensation plans for state employees, excluding those employees excepted under 2-18-103 or 2-18-104 and excluding employees compensated under 2-18-313 and 2-18-315, be based on an analysis of the labor market as provided by the department in a salary survey. The salary survey must be submitted to the office of budget and program planning as a part of the information required by 17-7-111.
(3) Except as provided in 2-18-110, pay adjustments and pay schedules provided for in 2-18-303 and in 2-18-312,
2-18-313, and 2-18-315 supersede any other plan or systems established through collective bargaining after the
adjournment of the 55th legislature.
(4) Pay levels provided for in 2-18-312, 2-18-313, and 2-18-315 may not be increased through collective
bargaining after adjournment of the 55th legislature.
(5) Total funds required to implement the pay schedules provided for in 2-18-312, 2-18-313, and 2-18-315 for any
employee group or bargaining unit may not be increased through collective bargaining over the amount appropriated by
the 55th legislature.
(6)(3) The department shall administer the pay program established by the legislature on the basis of merit, internal
equity, and competitiveness to external labor markets when fiscally able.
(7)(4) The department may promulgate rules not inconsistent with the provisions of this part, collective bargaining
statutes, or negotiated contracts to carry out the purposes of this part."
Section 2. Section 2-18-303, MCA, is amended to read:
"2-18-303. Procedures for using pay schedules. (1) The pay schedules provided in 2-18-312 must be implemented as follows:
(a) The pay schedules provided in 2-18-312 indicate the entry salary and market salary for each grade for positions classified under the provisions of part 2 of this chapter.
(b) Each employee newly hired by the state of Montana must be hired at the entry rate, except as provided in subsections (7) and (8).
(c) (i) On the first day of the first complete pay period in fiscal year 1998 October 1999, each employee, except an
employee hired on or after July 1, 1999, is entitled to a 3.5% increase in the amount of the employee's base salary as it
was on June 30, 1997 1999.
(ii) On the first day of the first complete pay period in October 2000, each employee, except an employee hired on or after July 1, 2000, is entitled to a 4% increase in the amount of the employee's base salary as it was on June 30, 2000.
(d) (i) Effective on the first day of the pay period that includes an employee's anniversary date during the fiscal
years ending June 30, 1998, and June 30, 1999, an employee's market ratio must be compared to the target market
ratio in the matrix that corresponds to the employee's grade level and completed years of uninterrupted state service.
For employees hired on or before September 30, 1994, the anniversary date is October 1.
(ii) The matrix for the target market ratios is as follows:
TARGET MARKET RATIOS
Grade Years
0 1 2 3 4 5 6 7 8 9 10
4 0.844 0.874 0.904 0.935 0.967 0.999 1.000 1.000 1.000 1.000 1.000
5 0.842 0.871 0.900 0.930 0.961 0.992 1.000 1.000 1.000 1.000 1.000
6 0.840 0.868 0.896 0.925 0.955 0.985 1.000 1.000 1.000 1.000 1.000
7 0.838 0.865 0.892 0.920 0.949 0.978 1.000 1.000 1.000 1.000 1.000
8 0.836 0.862 0.889 0.916 0.944 0.972 1.000 1.000 1.000 1.000 1.000
9 0.834 0.859 0.885 0.911 0.938 0.965 0.993 1.000 1.000 1.000 1.000
10 0.832 0.857 0.882 0.908 0.934 0.961 0.988 1.000 1.000 1.000 1.000
11 0.830 0.854 0.878 0.903 0.928 0.954 0.980 1.000 1.000 1.000 1.000
12 0.828 0.851 0.875 0.899 0.924 0.949 0.975 1.000 1.000 1.000 1.000
13 0.826 0.849 0.872 0.896 0.920 0.945 0.970 0.996 1.000 1.000 1.000
14 0.824 0.846 0.869 0.892 0.915 0.939 0.963 0.988 1.000 1.000 1.000
15 0.822 0.844 0.866 0.888 0.911 0.934 0.958 0.982 1.000 1.000 1.000
16 0.820 0.841 0.863 0.885 0.907 0.930 0.953 0.977 1.000 1.000 1.000
17 0.818 0.839 0.860 0.882 0.904 0.926 0.949 0.972 0.996 1.000 1.000
18 0.816 0.836 0.857 0.878 0.899 0.921 0.943 0.966 0.989 1.000 1.000
19 0.814 0.834 0.854 0.875 0.896 0.917 0.939 0.961 0.984 1.000 1.000
20 0.812 0.831 0.851 0.871 0.892 0.913 0.935 0.957 0.979 1.000 1.000
21 0.810 0.829 0.849 0.869 0.889 0.910 0.931 0.953 0.975 0.997 1.000
22 0.808 0.827 0.846 0.866 0.886 0.906 0.927 0.948 0.970 0.992 1.000
23 0.806 0.825 0.844 0.863 0.883 0.903 0.923 0.944 0.965 0.987 1.000
24 0.804 0.822 0.841 0.860 0.879 0.899 0.919 0.940 0.961 0.982 1.000
25 0.802 0.820 0.838 0.857 0.876 0.895 0.915 0.935 0.956 0.977 0.999
(iii) On the first day of the pay period that includes an employee's anniversary date during the fiscal years ending
June 30, 1998, and June 30, 1999, the employee's base salary must be increased to the greater of:
(A) the market salary for the employee's grade multiplied by the target ratio that corresponds to the employee's
grade level and completed years of uninterrupted state service not to exceed 4%;
(B) if under subsection (1)(d)(iii)(A), progression from one target market ratio to the next exceeds 3%, then the
employee's base salary increased by the amount of that progression plus 1%; or
(C) the employee's base salary as it was on the last day of the pay period immediately preceding the pay period that
includes the employee's anniversary date, plus 1%.
(e)(d) An employee's base salary may be no less than the entry salary for the employee's assigned grade.
(f) The maximum salary for each grade is determined by subtracting the entry salary from the market salary and
adding that amount to the market salary.
(2) The pay schedules provided in 2-18-312 and the provisions of subsection (1) of this section do not apply to those teachers or blue-collar occupations compensated under the pay schedules provided in 2-18-313 and 2-18-315.
(3) The pay schedules provided in 2-18-313 and 2-18-315 must be implemented as follows:
(a) (i) The pay schedules provided for in 2-18-313 indicate the annual compensation for teachers employed under
the authority of the department of corrections or the department of public health and human services for fiscal years
1998 and 1999.
(ii) The compensation of each teacher on July 1, 1997, is the same as it was on June 30, 1997.
(iii) On the first day of the first pay period that includes October 1 of each fiscal year, a teacher employed under the
authority of the department of public health and human services or the department of corrections before October 1,
1994, shall advance one step on the appropriate pay schedule adopted in 2-18-313. A teacher hired after October 1,
1994, shall advance on the teacher's actual anniversary date.
(b) (i) The pay schedules provided in 2-18-315 indicate the maximum hourly compensation for fiscal years ending
June 30, 1998, and June 30, 1999, for employees in apprentice trades and crafts and other blue-collar occupations
recognized in the state blue-collar classification plan who are members of units that have collectively bargained separate
classification and pay plans.
(ii) The to provide that the compensation of each employee on the first day of the first pay period in each fiscal year
is that amount corresponding to the grade occupied on the last day of the preceding fiscal year.
(4) (a) (i) A member of a bargaining unit may not receive a pay increase until the employer's collective bargaining
representative receives written notice that the employee's bargaining unit has ratified a completely integrated collective
bargaining agreement covering the biennium ending June 30, 1999 2000.
(ii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is
not completed by July 1, 1997 1999, retroactivity to that date may be negotiated.
(iii) If ratification of a completely integrated collective bargaining agreement, as required by subsection (4)(a)(i), is
not completed by July 1, 1997 1999, members of the bargaining unit must continue to receive the compensation that
they were receiving as of June 30, 1997 1999, until an agreement is ratified.
(b) Methods of administration not inconsistent with the purpose of this part and necessary to properly implement the pay schedules and adjustments provided in 2-18-312, 2-18-313, 2-18-315, and this section may be provided for in collective bargaining agreements.
(5) The current wage or salary of an employee may not be reduced by the implementation of the pay schedules provided for in 2-18-312, 2-18-313, and 2-18-315.
(6) The department may authorize a separate pay schedule for medical doctors if the rates provided in 2-18-312 are not sufficient to attract and retain fully licensed and qualified physicians at the state institutions.
(7) The department may develop programs that enable the department to mitigate problems associated with difficult recruitment, retention, transfer, or other exceptional circumstances. To the extent that the program applies to employees within a collective bargaining unit, it is a negotiable subject under 39-31-305.
(8) The department shall review the competitiveness of the compensation provided to all occupations under this part. If the department finds that substantial problems exist with recruitment and retention because of inadequate salaries when compared to competing employers, the department may establish criteria allowing an adjustment in pay or classification to mitigate the problems. To the extent that these adjustments apply to employees within a collective bargaining unit, the implementation of these adjustments is a negotiable subject under 39-31-305."
Section 3. Section 2-18-304, MCA, is amended to read:
"2-18-304. Longevity allowance. (1) (a) In addition to the compensation provided for in 2-18-303, 2-18-312,
2-18-313, or 2-18-315, each employee who has completed 5 years of uninterrupted state service must receive 1.5% 2%
of the employee's base salary multiplied by the number of completed, contiguous 5-year periods of uninterrupted state
service.
(b) Each employee must, on the first day of the first full pay period in October 1999, receive an increase in the employee's base salary of 0.5% for each 5-year period of service for which the employee is eligible under subsection (1)(a).
(c) Service to the state is not interrupted by authorized leaves of absence.
(2) (a) For the purpose of determining years of service under this section, an employee must be credited with 1 year of service for each period of:
(i) 2,080 hours of service following the employee's date of employment; an employee must be credited with 80 hours of service for each biweekly pay period in which the employee is in a pay status or on an authorized leave of absence without pay, regardless of the number of hours of service in the pay period; or
(ii) 12 uninterrupted calendar months following the employee's date of employment in which the employee was in a pay status or on an authorized leave of absence without pay, regardless of the number of hours of service in any month. An employee of a school at a state institution or the university system must be credited with 1 year of service if the employee is employed for an entire academic year.
(b) State agencies, other than the university system and a school at a state institution, shall use the method provided in subsection (2)(a)(i) to calculate years of service under this section.
(3) For the purposes of calculating longevity, employment as a short-term worker does not apply toward years of service."
Section 4. Section 2-18-312, MCA, is amended to read:
"2-18-312. Statewide pay schedules for fiscal years 1998 2000 and 1999 2001. (1) The statewide classification
pay schedule for the period beginning on the first day of the first full pay period in fiscal year 1998 2000, is as follows:
Annual Hours -- 2080 Note: Does Not Include Insurance
Pay Matrix -- State Matrix Type -- Annual
Pay Range: Entry Salary to Market Salary
GRADE ENTRY SALARY MARKET SALARY
1 8,986 10,571
2 9,679 11,413
3 10,424 12,323
4 11,234 13,312
5 12,140 14,419
6 13,118 15,618
7 14,171 16,910
8 15,360 18,372
9 16,630 19,941
10 18,039 21,680
11 19,570 23,578
12 21,269 25,687
13 23,112 27,980
14 25,151 30,523
15 27,399 33,331
16 29,903 36,469
17 32,698 39,974
18 35,779 43,848
19 39,233 48,198
20 43,086 53,060
21 47,367 58,478
22 52,149 64,541
23 57,543 71,393
24 63,601 79,104
25 70,302 87,657
1 9,076 10,677
2 9,776 11,527
3 10,528 12,446
4 11,346 13,445
5 12,261 14,563
6 13,282 15,813
7 14,385 17,164
8 15,630 18,695
9 16,964 20,341
10 18,447 22,171
11 20,062 24,171
12 21,858 26,398
13 23,810 28,825
14 25,975 31,522
15 28,365 34,506
16 31,033 37,847
17 34,016 41,585
18 36,137 44,286
19 39,625 48,680
20 43,517 53,591
21 47,841 59,063
22 52,670 65,186
23 58,118 72,107
24 64,237 79,895
25 71,005 88,534
(2) Effective on the first day of the first full pay period in fiscal year 1999 2001, the statewide classification pay
schedule is as follows:
Annual Hours -- 2080 Note: Does Not Include Insurance
Pay Matrix -- State Matrix Type -- Annual
Pay Range: Entry Salary to Market Salary
GRADE ENTRY SALARY MARKET SALARY
1 9,076 10,677
2 9,776 11,527
3 10,528 12,446
4 11,346 13,445
5 12,261 14,563
6 13,249 15,774
7 14,313 17,079
8 15,514 18,556
9 16,796 20,140
10 18,219 21,897
11 19,766 23,814
12 21,482 25,944
13 23,343 28,260
14 25,403 30,828
15 27,673 33,664
16 30,202 36,834
17 33,025 40,374
18 36,137 44,286
19 39,625 48,680
20 43,517 53,591
21 47,841 59,063
22 52,670 65,186
23 58,118 72,107
24 64,237 79,895
25 71,005 88,534
1 9,076 10,677
2 9,776 11,527
3 10,528 12,446
4 11,346 13,445
5 12,261 14,563
6 13,315 15,853
7 14,456 17,250
8 15,748 18,835
9 17,134 20,545
10 18,677 22,448
11 20,363 24,534
12 22,240 26,860
13 24,286 29,402
14 26,559 32,231
15 29,074 35,368
16 31,886 38,888
17 35,036 42,833
18 36,137 44,286
19 39,625 48,680
20 43,517 53,591
21 47,841 59,063
22 52,670 65,186
23 58,118 72,107
24 64,237 79,895
25 71,005 88,534"
Section 5. Section 2-18-703, MCA, is amended to read:
"2-18-703. Contributions. (1) Each agency, as defined in 2-18-601, shall contribute the amount specified in this section towards the group benefits cost.
(2) For employees defined in 2-18-701 and for members of the legislature, the employer contribution for group
benefits is $245 per $285 a month for the fiscal year ending June 30, 1998, beginning the first full pay period in January
2000 and $270 $295 a month for the fiscal year ending June 30, 1999, and for each succeeding fiscal year beginning the
first full pay period in January 2001. When a state employee is terminated to achieve a reduction in force, the
continuation of contributions for group benefits beyond the termination date is subject to negotiation under 39-31-305.
Permanent part-time, seasonal part-time, and temporary part-time employees who are regularly scheduled to work less
than 20 hours a week are not eligible for the group benefit contribution. An employee who elects not to be covered by
a state-sponsored group benefit plan may not receive the state contribution. A portion of the employer contribution for
group benefits may be applied to an employee's costs for participation in Part B of medicare under Title XVIII of the
Social Security Act, as amended, if the state group benefit plan is the secondary payer and medicare the primary payer.
(3) For employees of elementary and high school districts and of local government units, the employer's premium contributions may exceed but may not be less than $10 a month.
(4) Unused employer contributions for any state employee must be transferred to an account established for this purpose by the department of administration and upon transfer may be used to offset losses occurring to the group of which the employee is eligible to be a member.
(5) Unused employer contributions for any government employee may be transferred to an account established for this purpose by a self-insured government and upon transfer may be used to offset losses occurring to the group of which the employee is eligible to be a member or to increase the reserves of the group.
(6) The laws prohibiting discrimination on the basis of marital status in Title 49 do not prohibit bona fide group insurance plans from providing greater or additional contributions for insurance benefits to employees with dependents than to employees without dependents or with fewer dependents."
NEW SECTION. Section 6. Contingent voidness. If House Bill No. 2 does not contain appropriations that provide a means for funding the increases contained in [this act], then [this act] is void.
NEW SECTION. Section 7. Effective date. [This act] is effective July 1, 1999.
- END -
Latest Version of LC 638 (LC0638.01)
Processed for the Web on December 22, 1998 (7:20AM)
New language in a bill appears underlined, deleted material appears stricken.
Sponsor names are handwritten on introduced bills, hence do not appear on the bill until it is reprinted. See the status of this bill for the bill's primary sponsor.
Status of this Bill
| 1999 Session | Leg. Branch HomePrepared by Montana Legislative Services
(406)444-3064
lheiman@mt.gov