Amtrak 2012 Annual Report Download - page 20

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Salaries, Wages, Taxes and Employee Benefits
Salaries: Salaries are basically flat to FY2011. In FY2012, Amtrak has decided to forego performance
pay increases to non-agreement employees, but the company did award one-time lump sum payments to
eligible employees in lieu of performance merit raises. Also, as previously described, 162 employees
voluntarily left Amtrak in December 2011 as a result of the VSIP program. However because many of
these employees will receive severance pay through April 2012 and medical coverage for a full year, the
savings in FY2012 are minimal but will be fully realized in future years. By not increasing base wages,
over a period of five years the company is estimated to forgo approximately $50 million in salaries and
payroll taxes.
Wages: Wage rates are governed by the new labor agreements that began being ratified in the summer of
2010 and which remain in effect until June 30, 2015. Agreements with all unions follow the same wage
increase patterns, and accordingly all unions including those still not yet ratified by the unions were
budgeted using the terms of the new agreements. FY2012 Wages are planned to decrease from FY2011
due to the loss of a commuter contract.
Employee Benefits: Employee benefit costs were calculated using total planned payroll expense across
all business activity including capital and reimbursable projects. An outside consulting firm provided
actuarial projections for the pension and retirement expense planning. Insurance costs were projected by
Amtrak’ s Benefit Accounting group, with assistance from the outside firm, using the projected
participation in each plan and the projected costs of those plans. Railroad taxes were planned in
accordance with the prevailing tax rates applied to wage and salary budgets. The decrease from FY2011
is primarily due to a vacation accrual adjustment in FY2011 that is not recurring in FY2012.
Chart 9 – Salaries, Wages, Taxes and Benefits
FY2012 Budget Post Board 1.20.12.doc 20 of 79
$0.
$200.
$400.
$600.
$800.
$1,000.
$1,200.
FY08 FY09 FY10 FY11 FY12 Budget
Salaries 212.0 225.7 239.1 258.3 263.5
Wages & OT 871.6 887.8 941.8 1,008.5 998.1
Employee Benefits 527.4 554.2 561.1 643.2 627.7
Millions
Salaries, Wages and Benefits