Percent into range data for all classified employees provides that, as of January 1, 2023, the majority of classified salaries (55.5%) fall between the minimum and midpoint of their respective pay ranges. Thus, the majority of classified employees are paid at a rate considered to be “below market.” However, the Market Adjustment rule has helped reduce the percentage of employees that are paid below market since 2018 and remains a key component of the state’s pay philosophy to maintain market competitiveness. Although the percentage of employees paid below market has decreased by an amount of less than 3% each year since 2018, a larger percentage of 7.8% was observed in 2023, down from 63.3% of employees paid below market last year. IMPACT OF HEALTH INSURANCE COSTS An assessment of health insurance costs is provided in an effort to show the impact of this cost for classified employees. Although five plan options are offered, most employees choose the Magnolia Local Plus plan. According to the Office of Group Benefits, 80.7% of classified employees who have selected one of the five OGB health plans have chosen the Magnolia Local Plus plan. Information in this section highlights the impact that premiums associated with the Magnolia Local Plus Employee Only and Family coverages may have on employees. These coverages are being highlighted since they are the lowest and highest cost coverages within the most popular plan. It was found that since 2016, premiums have increased by over 47% with an average increase of 5.6% annually since 2020. Premiums associated with the Magnolia Local Plus plan, especially those for Family coverage, may be unaffordable for lower-wage earners. This could result in employees seeking Medicaid as an alternative. For example, approximately 8.1% of employees in the Social Services pay schedule are on Medicaid as of January 1, 2025. It is important to consider the impact of health insurance costs because if employees cannot afford health insurance coverage, they may seek opportunities with other employers.
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State Civil Service 2025 Annual Pay Plan Report
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