Title
Chief Administrative Office and Human Resources Department recommending the Board:
1) Find that a public benefit is derived by offering an opportunity for employee attrition through a voluntary separation monetary incentive to achieve General Fund and other fund savings;
2) Approve the Retirement Incentive Plan (Plan) for Fiscal Year (FY) 2025-26;
3) Authorize the Director of Human Resources, with concurrence of the Chief Administrative Officer, to approve Plan applicants;
4) Authorize the Director of Human Resources to execute any documents relating to the establishment of Health Reimbursement Arrangement accounts for approved Plan participants, contingent upon approval by County Counsel;
5) Grant Human Resources the authority to correct any minor clerical errors or adjustments, if necessary, to the Summary of Plan Provisions, Application, and/or template agreement; and
6) Direct the Chief Administrative Officer to include funding for the Plan in the FY 2025-26 Adopted Budget, including to cover approved employee separation incentive payments, any employer fees related to setting up the Health Reimbursement Arrangement accounts, and the Patient-Centered Outcomes Research Institute Fee.
FUNDING: Retiree Health Fund.
Body
DISCUSSION / BACKGROUND
On November 5, 2024, with Legistar file 24-1916, the Board directed staff to explore options for potential General Fund savings. The County has previously used separation incentives, including most recently in 2015, to achieve General Fund savings in an effort to mitigate the need for reductions to the workforce. On April 8, 2025, with Legistar file 25-0654, the Board directed staff to develop a Retirement Incentive Plan.
The Retirement Incentive Plan (Plan) aims to reduce salary and benefits expenditures by offering an opportunity for attrition through a voluntary separation incentive. The Plan in its simplest form provides as follows for those approved participants:
If the participant retires from County ser...
Click here for full text