Tukukkk

At my company, per-year health-insurance premiums increase by $1044 once a salary is greater than or equal to A. A does not seem to change with time, and it is the highest value where a premium increase occurs. The premiums are piece-wise constant with respect to salary.

I currently make B, such that, if I received a 2.28% raise, I would make A. I expect my new salary to be between A and (A+$1300), with the latter being a 3.3% increase.

The only other factors that come to mind that would be affected by salary are 1) 10% company match for 401(k), and 2) raises are expressed in terms of percentages of existing salary; these percentages are functions of performance category and ratio of current salary to midpoint. Therefore, there is compounding, but the percentage can be reduced if the current salary is higher.

Based on some crude calculations that consider the premium increase and the 401(k) matching, it seems it would be better to make (A-$0.01) than it would be to make between A and (A+$950).

Therefore, if my new salary is between A and (A+$950), should I request (A-$0.01)? Are there other factors I should consider?

Therefore, if my new salary is between A and (A+$950), should I
request (A-$0.01)?

Assuming you are able to request raises, it would seem to make a lot more sense to request (A+$1300).

You can use your argument about the net loss due to higher insurance costs to bolster your request.

Your company has a perverse incentive in place, and it would be a more constructive response to lobby for it be changed than to engage in shenanigans that simply perpetuate it rather than addressing it. You're proposing responding to one form of dysfunction with more dysfunction, which is bad for the company and likely for you. If you really can't get the policy changed, you'll have to decide whether $1000 is sufficient compensation for contributing to the dysfunction of the corporate world (and the risk of looking like an employee trying to game the system).

I don't think you should request a lower raise.

Although the situation of having to pay more for the same health coverage isn't pleasant, requesting a lower raise would set a bad precedent for yourself. Even though it is for financial reasons, it sends the message that you don't need/want more money. The next time you are considered for a raise, they may continue with the lower raise since you previously rejected a higher one.

Also, requesting A-$.01 means that it will take longer for you to get to A+$950. There is no guarantee that your next raise, if you accept A-$.01, will get you to A+$950 ( What will you do then? Reject a raise completely? ). You could end up losing more money than the extra cost of insurance for a shorter period.

Last time that happened at my company, we have negotiated to officially raise the salary to A - 0.01, but keep track of the intended salary C (being A < C < A + 950), so next raise would be based on C instead of A - 0.01.

That way, the affected employee kept the best salary they could, as the company couldn't pay A + 950 or higher, but the employee didn't miss the C - (A - 0.01) raise permanently - they only refused it while it wasn't a benefit for them.

This only works if there's trust between both parties - I don't think there's a legally binding instrument to agree on this.

Consider that the raise is forever. If you get 1% less salary this year (and are happy about it), you will also get 1% less salary next year, and the year after, and the year after that. You gain a bit this year, but you will lose out all the following years.

Take the raise that you can get.