Open enrollment shows lower plan switching; CalPERS outlines 2025 COLA mechanics
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Summary
CalPERS reported a lower open‑enrollment transfer rate for 2025 and reviewed the May retiree cost‑of‑living adjustment (COLA) mechanics and the purchasing power protection allowance (PPPA).
CalPERS reported lower plan switching in the recent open enrollment and provided the annual retiree cost‑of‑living adjustment (COLA) overview to trustees.
Open enrollment results: Rob Gerzombek reported an overall transfer rate of 3.9% for the latest open enrollment, down from 5.6% the prior year. The basic plans saw about a 4.5% transfer rate (roughly 55,000 members changed plans); Medicare members transferred at about 1.7% (≈5,900). The largest net gains in basic plans were Blue Shield Access+ (a net gain of ~6,200 members, +5%), UHC Alliance (≈2,800 members, +3.75%) and UHC Harmony (≈2,600 members, nearly +34%). Major losses included Kaiser (≈6,200 member decline), PERS Platinum (≈4,100 loss) and Anthem Select (≈3,100 loss), driven in part by relative premium moves.
CalPERS also noted basic plan expansions in 2025: UHC Harmony expanded into Contra Costa, Solano and Napa counties; Blue Shield Trio expanded into Contra Costa and partial Shasta zip codes; Kaiser expanded into additional zip codes in Monterey County. Staff said these expansions had mixed initial membership results but were part of broader access work.
Retiree COLA and PPPA: Kimberly Pulido explained the 2025 COLA framework. For calendar year 2024 the Consumer Price Index for All Urban Consumers (CPI‑U) rose 2.95%; COLA increases are payable in May and are limited to the lesser of CPI‑U change or an employer‑contracted COLA provision. Nearly 96% of retirees are under a 2% COLA contract; other contracts can include 3%, 4% or 5%. A small subset of very long‑retired members may be eligible for a purchasing power protection allowance (PPPA) to preserve a minimum purchasing‑power threshold (75% for state and school members; 80% for public agency members). Pulido said the PPPA population is small (roughly 16,000 members) and COLA adjustments will appear on May 1 warrants.
Trustees had no additional questions on these informational items; staff said they will continue posting member‑facing materials and survey results to their website and report follow‑up metrics as available.
