The Second Half of the Negotiation

The unique nature of the Superintendency justifies the need for both an employment agreement and compensation structure that is different from other employees. Allowances, supplemental pay, deferred compensation plans, additional insurances, and other benefits are common for Superintendents and help ensure they are compensated for the challenges and risks associated with the position. Since these are also not common for other staff, it is not surprising that these benefits do not always get implemented properly. Too many times a deferred compensation plan does not get paid (or gets reported incorrectly), insurance does not get purchased, or a benefit gets taxed incorrectly. While the preparation and negotiation of benefits is critical to the financial plan of a Superintendent, too often the implementation gets overlooked.??

Here are tips to make sure the contract benefits are properly implemented:?

• Create a Spreadsheet Outlining All the Benefits and Value in the Contract?

This helps outline the hard-dollar value of the contract and helps set the expectations of what should be the total amount paid.?

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• Meet with the Finance and Payroll Team to Ensure Agreement on How Items Should be Reported and Paid?

Some items will be treated differently from both tax and pension perspectives. It is important that each group that is responsible for implementing the contract knows how the items will be treated and can ask any appropriate questions and get correct answers. Additionally, you will want to verify what you think your compensation should be versus your pension statement to make certain they are aligned.??

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• Have Payroll Run a Sample Pay Stub to Review?

Before the first paycheck is paid, have the Payroll Office provide a sample paycheck to verify everything is correct. This helps prevent any errors before payment and reduces surprises when you are paid.??

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• For Deferred Compensation Plans, ensure that the District’s Plan Documents are Up to Date for Employer Contributions?

Not all plan documents allow employer payments. This is a simple update to the plan and does not typically require Board action, but you want to make sure this is reviewed before contributions are made to the plan. “Deferred Compensation Plan” is a generic term, and it is important that each type of plan be referred to by its technical name when remitting contributions, doing tax reporting and reporting for pension and state department of education purposes (e.g., 403(b), 457(b), 401(a), etc.).? In the tax world, a deferred compensation plan is usually a form of 457 plan.?

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• Utilize Experts in the Area of Executive Compensation?

While Chief Financial Officers and payroll teams are experts in their field, they may not be aware of the nuances of deferred compensation plans and pension rules. It is important to have someone knowledgeable of the intricacies of these issues that can provide a third-party review to verify that all items are being reported properly.?

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Please let HUB know if you would like us to audit your contract to make sure you are receiving all the benefits in the agreement and that they are being implemented properly.?