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Richland County HR recommends step program continuation and changes to retiree health subsidies effective July 1, 2026
Summary
HR director Finney Carley told council staff are recommending continuation of the step program, selective reclassifications and a retiree subsidy redesign that would preserve 100% subsidy for 25+ year retirees, offer 50% for 20—24 years, and remove the subsidy for retirees with under 20 years for those retiring on/after 07/01/2026 (current retirees unaffected). Carley said the change could avoid an estimated $1.8 million in additional annual liabilities.
Director of Human Resources Finney Carley presented the personnel and benefits components of the recommended FY27 budget at the May 5 work session, focusing on making the workforce more efficient while managing long-term benefit costs.
Carley said departments requested multiple new positions and reclassification changes; the recommended package includes a fiscal impact of roughly $500,000 for certain recommended positions and a recommended set of reclassifications (29 requests were made; 16 are recommended for funding this cycle). She noted seven positions currently grant-funded in the sheriff's office are recommended to transition into the general fund because state law requires funding continuation for deputy positions if they move into the sheriff's budget.
On compensation, Carley said staff intend to present a recommended step program allocation that would provide eligible employees with a 2.5-step increase if they achieve a fully proficient annual performance rating.
On retiree health benefits, HR recommended aligning retiree subsidy policy with peer local governments: maintain a 100% subsidy for employees with 25 or more years of service, subsidize 50% for employees with 20—24 years, and remove the subsidy for employees retiring with fewer than 20 years effective for retirements on or after July 1, 2026. Carley said this recommendation would not affect current retirees and that continuing the existing, broader subsidy could expose the county to an additional roughly $1.8 million in annual costs; she also said eliminating dependent subsidies could save about $250,000 per year.
Ending: Carley asked council to weigh the trade-offs between sustaining benefits and long-term sustainability; council members asked clarifying questions about reclassifications and transition timing for grant-funded positions.
