El Dorado County is set to implement a new retirement incentive program aimed at encouraging long-term employees to retire earlier than planned. During the El Dorado County EDC Board Meeting on September 16, 2025, the board approved a plan that offers financial incentives for voluntary separations, with the goal of generating salary savings and providing flexibility for departmental staffing.

The program, proposed by the Chief Administrative Office and Human Resources, allows eligible employees to receive a monetary incentive of $2,500 for each year of full-time service if they retire by the end of this calendar year. For those who retire before the end of the fiscal year next June, the incentive will be $2,000 per year of service. Part-time employees will receive prorated amounts based on their service.

Human Resources Director Joey Carrasco explained that the initiative is designed to help the county manage its workforce more effectively while also addressing the retiree health fund. The funding for the program will come from this health fund, which currently has a balance of approximately $8 million, with a cap of $2 million set for the incentive program. This approach aims to reduce the county's overall salary costs by replacing higher-paid retirees with new hires at lower salary levels.

The board discussed the potential implications of the program, including concerns about losing institutional knowledge as experienced employees retire. However, it was noted that the program is intended for those who may be contemplating retirement rather than those who have already made definitive plans. The board emphasized the importance of clear communication regarding application timelines and eligibility criteria to ensure a smooth rollout.

Public comments during the meeting reflected a mix of support and caution regarding the program. Several county retirees expressed their appreciation for the incentive, while others raised concerns about the potential loss of expertise and the need for careful planning to mitigate any operational impacts.

As the county moves forward with this initiative, it will monitor participation and outcomes, with the possibility of adjustments based on the program's effectiveness and employee feedback. The board's decision marks a significant step in addressing workforce management and financial sustainability within El Dorado County.