CalPERS steps up annual benefit verification, reports millions recovered in overpayments

CalPERS staff said the agency is moving from a biennial to an annual benefit verification cycle for high‑risk retirees to reduce overpayments tied to unreported deaths and payroll data errors.

Kim Malm, a CalPERS team member, told trustees that the 2025 benefit‑verification cycle will begin March 27 and CalPERS will mail certification requests to about 10,000 retirees who meet risk thresholds (including age, benefit amount and time since last contact). The certification may be notarized or supported by a letter from a health‑care provider, care facility or bank; if a required certification is not returned, staff said the agency will hold the retiree’s August 1 benefit payment if the roll closes on July 18.

Collections and results: Malm summarized recent results from CalPERS’ combined efforts, including a death‑verification vendor and a contract with a collections firm. In 2024, a benefit‑verification mailing of about 8,700 letters produced reports of more than 200 deaths across California and 24 other states, which generated roughly $2.2 million in identified overpayments and $1.7 million collected to date. CalPERS began using SoCure as a death‑verification vendor in July 2024; SoCure has reported about 460 deaths to date, corresponding to approximately $4.1 million in overpayments with about $3.3 million collected. Combined, CalPERS said the death‑verification and benefit‑verification efforts identified nearly 700 deaths and about $6 million in overpayments, with roughly $5 million collected in the past year.

Operational fixes: CalPERS staff also said payroll data errors — for example, inaccurate scheduled work hours reported by employers — contributed to calculation errors that lead to benefit adjustments and potential overpayments. The actuarial office is developing tools to detect calculation errors sooner, and CalPERS’ legal office contracted with Cedar Financial to pursue debt recovery across states.

Member assistance and outreach: Staff encouraged affected members to contact the CalPERS call center or use secure messages in myCalPERS if they have questions. CalPERS also reported ongoing member education events: a March in‑person session in Visalia drew 439 attendees, virtual events drew more than 1,800 attendees, and upcoming in‑person and virtual sessions were scheduled for Burbank, Monterey, Anaheim and Redding in 2025–2026.

Trustees asked no substantive follow‑up questions during the presentation; staff said they would continue to report on the program’s outcomes.