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Branstad: Non-contract employees to earn salary increases, contribute 20 percent of health care costs

Gov. Terry Branstad
Gov. Terry Branstad

(DES MOINES) – Gov. Terry E. Branstad today released details on the FY 2014/FY 2015 salary and benefits package he has authorized for State of Iowa employees not covered by a collective bargaining agreement.

The governor has approved salary increases for state non-contract employees at the same level as provided to members of the State Police Officers Council—which is a series of one percent non-recurring raises on July 1, 2013, Jan. 1, 2014, July 1, 2014 and Jan. 1, 2015.

In addition, Gov. Branstad has authorized state non-contract employees to participate in health insurance plans that require a 20% employee contribution, but which also allows employees to earn a $90 a month premium reduction in return for participating in new employee wellness programs. Those participating in wellness programs can significantly reduce their health insurance premium costs.

State non-contract employees will enroll in these new health insurance programs this fall and they will be effective for the calendar year beginning on Jan. 1, 2014. In the aggregate, the raises provided by Gov. Branstad will exceed the cost of employee contributions to their health insurance plan.

“We want the best possible deal for state workers in Iowa while protecting the taxpayers who fund state government, which is why we are providing both pay increases and wellness programs to this group of state employees,” said Branstad. “We are pleased to offer this great deal for all state non-contract employees, because we will have healthier employees and a better deal for Iowa’s taxpayers.”

“If Iowa is to have the healthiest state in the nation, it is time for Iowans to have ownership of their own health, starting with our hard-working state employees,” said Branstad. “By offering these wellness programs and health risk assessments, these non-contract state employees will identify risk factors to their health and make corrections in order to live long, healthy lives with their families and friends.”

The Governor’s decision includes the following:

· Employees pay 20 percent of their health insurance premium

· Implementation of a wellness program through which employees can receive a $90 a month reduction in their health insurance premium

· A one percent non-recurring salary increase in July and January of both FY 2014 and FY 2015 in lieu of increases in base pay

· Implementation of merit-based within grade pay increases in each FY 2014 and FY 2015 at the discretion of department and agency directors

The decision covers 3,435 state employees not covered by a collective bargaining contract and will cost $3 million in FY 2014 and $5.7 million in FY 2015.

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