CalPERS faces scrutiny over retiree health benefits changes

During a recent government meeting, concerns surrounding long-term care coverage and retiree health benefits were prominently discussed, highlighting the challenges faced by state employees and retirees.

One participant expressed anxiety over potential increases in long-term care costs associated with CalPERS, the California Public Employees' Retirement System. The individual noted that while they initially believed in the value of the plan, rising costs could make it unaffordable. This sentiment was echoed by others, who pointed out that many insurance companies have withdrawn from offering long-term care coverage due to its high expense. The discussion underscored the need for transparency, with assurances that any rate increases would be communicated via letter and updates would be available on the CalPERS website.

The meeting also addressed the status of retiree health benefits, which have been a point of contention. A representative from SEIU 1000 raised concerns about the security of these benefits, questioning whether they remain a protected right under current leadership. The board member responded by clarifying that retiree health benefits were not previously protected and referenced a court ruling that allowed employers to modify such benefits since employees were not contributing to them. To address this issue, the board member emphasized the importance of prefunding retiree health benefits to secure them for the future, suggesting that a small contribution during employment could safeguard these benefits post-retirement.

The discussions reflect ongoing efforts to navigate the complexities of retirement planning and health care coverage for state employees, emphasizing the need for strategic decisions to ensure long-term security.