FY 2017-18 Annual Compensation Report

In accordance with C.R.S. 24-50-104(4), the Department of Personnel & Administration the FY 2017-18 Annual Compensation Report for State employee total compensation, covering salaries, state contributions for group benefit plans, and merit pay, to the Governor and the Joint Budget Committee of the general assembly is published.

The Department recognizes the importance of evaluating the overall value of total compensation in order to assess the competitiveness of the State’s total compensation package. To evaluate the competitiveness of the total compensation package offered by the State, the methodology focuses on the value of the compensation package as opposed to solely the cost. Value is defined in terms of the dollar value received compared to the dollar cost to provide the benefit. 

Overall, the State’s total compensation package is competitive with the market. Findings show the State is slightly below prevailing market at -2.4%. The acceptable variance is +/- 5% from market median. While the value of the State’s total compensation package varies only slightly from market, maintenance is required to sustain that acceptable variance. Other findings include:

  • Actual Base Salary: Overall, actual base salary for State employees is approximately 5.7% below market median. Acceptable variance between an organization’s actual practices compared to market levels typically is +/- 5%. Base Salary makes up the majority of a State employee’s package at 76% of the total. 
  • Health Care Benefits: Employee enrollment in medical benefits has remained consistent over the past three years. However, there has been a change in employees’ choice of plans. There has been a migration throughout the four options provided by the State. The Kaiser Health Maintenance Organization plan remains the most popular, followed by the United Health Care (UHC) CO-pay plan. The UHC High Deductable Health Plan (HDHP) has had the largest increase in participation, while the Kaiser HDHP has had the largest decrease. The value of the State’s medical plan is between the 50th and 75th percentile. The most populated plan is 7.4% above the market median.
  • Retirement: Overall, the State’s retirement plan is 11.6% higher than market retirement plans, including Social Security.  ​

Based on the findings of the annual compensation report, the Department will continue to work closely with the Governor’s Office of State Planning and Budgeting to develop recommendations for consideration in the Governor’s November 1, 2016 Budget Request for FY 2017-18.