News from CalPERS
CalPERS has announced that the return on investment number for fiscal year 2018/19 is 6.7%. This is a shortfall of 0.3% from the discount rate objective of 7%. The struggle continues for CalPERS to reach the target rate of return. The new Chief Investment Officer (CIO), Ben Meng, is still searching for the right combination of global equities staff and outside investment managers. The CIO has the same issue with private equity investment staff and outside managers. A new private equities head, Greg Ruiz, is due to start in July. Private equity is considered to be a key element in the future investment performance of CalPERS. Hopefully, we will soon see a stabilization of CalPERS investment strategies that will achieve results closer to those of CalSTRS.
In your May retirement warrant, most of you will notice a Cost-Of-Living-Allowance (COLA) amount of 2%. This is the standard allowance for retired members of CalPERS. However, if you retired between 2005 and 2015 you will receive 2.44%. Those of you retired in 2016 or 2017 will receive 2%. The COLA benefit amount changes from time to time but the standard 2% still prevails for most members.
For those who are entitled to the 3% provision (retired in 1979 or earlier) you will receive 3%. Members who retired under the 3% provision after 1979 will receive 2.44%.
Some members are entitled to the 4% provision. I you retired in 1965 you get a3.55% COLA. Those who retired in 1966 - 1969 you get 4%. If you retired in 1970 – 1971, you will receive 2.44%. Retired in 1972, you get 2.77%. Retired in 1973-2017, you get 2.44%.
Under the 5% provision: if you retired in 2017 or earlier, you get 2.44%.
If you retired in 2018, you do not receive a COLA increase in 2019.
Benefits are paid at the beginning of the month for the previous month's benefits. For tax reasons, your December retirement check is always dated the first day of the new year. The State Controller's Office issues checks and determines mailing dates. If you have direct deposit, contact your financial institution to see when funds are placed in your account.
|Benefit Month||Southern California/ Out of State Mail Date||Northern California Mailing Date||Direct Deposit Date|
|January||January 29||January 30||February 1|
|February||February 26||February 28||March 1|
|March||March 26||March 27||March 29|
|April||April 26||April 29||May 1|
|May||May 28||May 29||May 31|
|June||June 26||June 27||July 1|
|July||July 29||July 30||August 1|
|August||August 27||August 28||August 30|
|September||September 26||September 27||October 1|
|October||October 29||October 30||November 1|
|November||November 22||November 25||November 27|
|December||December 27||December 30||January 2, 2020|
The State Controller's Office distinguishes Northern and Southern California using ZIP codes:
- Southern California is between90000 through 93599
- Northern California is between93600 through 96199
Find upcoming CBEEs dates, locations and directions, schedules, printable resources, and links regarding online registration in the table below.
- A valid email address isrequired to register online (it will be used for business purposes only,including electronic notifications of educational events and surveys).
- Member Tip: Keep track of allyour education history by signing up for events, classes and appointmentsthrough my|CalPERS instead.
- If you need specialaccommodations at the event, and are unable to register online, pleasecall us at 888 CalPERS (or 888-225-7377).
- Downloadclass presentations on the Event Classes page beforeattending the event.
2019 CBEEs Calendar
|Jan 11 & 12, 2019||
Embassy Suites Monterey Bay-Seaside
|Register for Seaside|
|Jan 25 & 26, 2019||
DoubleTree by Hilton Hotel Golf Resort Palm Springs
|Register for Cathedral City|
|March 1 & 2, 2019||
Sacramento Convention Center
|Schedule and Flyer Coming Soon||Registration is availableapproximately six weeks before each event.|
|March 22 & 23, 2019||
Red Lion Hotel Eureka
|Schedule and Flyer Coming Soon||Schedule and Flyer Coming Soon|
|June 7 & 8, 2019||
San Ramon Marriott
|Schedule and Flyer Coming Soon||Schedule and Flyer Coming Soon|
This year, through a partnership with CalHR and CSU, we began an ongoing effort to regularly verify dependent eligibility for enrollment in the CalPERS Health Program. This process is specific to state and CSU employees and retirees, not public agency or school members.
Only eligible dependents should be enrolled for health benefits. Sometimes members mistakenly add dependents who are ineligible, or forget to unenroll dependents who no longer qualify, for example, a spouse or domestic partner who is no longer eligible for health coverage.
The Dependent Eligibility Verification (DEV) process helps ensure everyone on a CalPERS health care plan should be. Dependents include:
- Registered domestic partners
- Natural born children
- Adopted children
- Children of registered domestic partners
Every three years, DEV requires members to submit verification of dependent eligibility, which might include copies of birth certificates, tax returns, etc. If you have at least one enrolled dependent, you will receive a series of three letters reminding you to verify. You have 90 days to submit documentation to your agency’s human resources office for continued dependent coverage.
The first round of verifications began February 2018: We sent notification letters to members with April birthdays. By April 30, we hope to verify approximately 35,000 dependents. In May, we will contact those with July birthdays, and so on, until we cover each birth month over a three-year period. CalPERS will begin notifying retirees later this year, following the same process. All told, 247,969 active and retired state and CSU subscribers with dependents enrolled in the CalPERS health benefits program will need to verify their dependents by 2021.
Members responded well to the DEV pilot program, which kicked off in spring 2015 before the state senate passed SB 98, requiring state and CSU employers to continually verify dependent eligibility. By removing ineligible dependents, the pilot saved an estimated $122 million in costs. The 2018-2021 phase will continue to improve the long-term affordability of member care.
For more information about Dependent Eligibility Verification, visit calpers.ca.gov or call the CalPERS Customer Contact Center at 888 CalPERS (or 888-225-7377).
This morning, CalPERS CEO Marcie Frost was interviewed on Capital Public Radio. In the 15-minute conversation, she discussed the funding and sustainability of the System, and our recent work in collaboration with stakeholders to secure the future of the fund.
Link to audio interview: http://www.capradio.org/news/insight/2018/04/12/insight-041218b/
Link to “A Solid Foundation for the Future” document outlining our recent work to strengthen the fund, which is discussed in the interview: https://www.calpers.ca.gov/docs/forms-publications/solid-foundation-for-the-future.pdf
David Teykaerts | Stakeholder Strategy Manager | CalPERS |
March 21, 2018
Communications & Stakeholder Relations
Contact: Bill Madison, Information Officer
(916) 795-3991 - firstname.lastname@example.org
New PERS Select plan designed to increase engagement and improve health
SACRAMENTO, Calif. - The California Public Employees' Retirement System Board of Administration today took another step forward to bring innovative health benefits to its members. The board approved a value-based insurance design (VBID) plan for PERS Select.
VBID is designed to improve coordination of care through engagement with a personal doctor and uses incentives to improve member health and wellness.
"This is a major change and innovative way of delivering value-based insurance," said Priya Mathur, the president of the CalPERS Board. "Members still have a choice of plans, and this new PERS Select option encourages enrollees to be more engaged in their own health care, and enables them to make better informed health care decisions."
The new VBID design takes effect as a two-year pilot in the 2019 plan year for the PERS Select Preferred Provider Organization non-Medicare plan.
The board's decision revises the PERS Select PPO non-Medicare plan to a VBID approach that allows a member to choose a personal care physician to coordinate their health care, and ensures they are getting the proper care when needed. The new Select plan will also provide incentives for members to become more involved in their health decisions and earn credits to reduce their annual deductible costs.
Currently, over 50,000 CalPERS members are enrolled in the PERS Select non-Medicare plan. CalPERS estimates that those enrolled in the PERS Select plan will save between $221 and $277 annually on their premiums, for an overall savings of more than $3 million a year. The system estimates a total cost savings of nearly $10 million.
The new plan also allows members in rural areas with no Health Maintenance Organization (HMO) options to have HMO-type support. Currently, 18 counties in California are without an HMO in their area.
"A number of our members live in rural areas where an HMO-like option of having a personal physician will be appreciated," said Rob Feckner, chair of the CalPERS Pension and Health Benefits Committee. "They, too, will have access to a doctor who supports their care and guides them through the health care system, and an opportunity to participate in wellness activities to improve their overall health."
Members in PERS Select can also easily reduce their annual deductible costs by participating in up to five evidence-based health and wellness activities:
- Get anannual biometric screening
- Receive anannual flu shot
- Certify thatthey are non-smokers, or participating in a smoking cessation program
- Get a secondopinion for non-emergency elective surgeries
- Engage witha nurse manager for disease management (for those who can be treated bydisease management programs)
Members who participate in the incentives program can save between $500 and $1,000 per year on annual deductibles of $1,000 to $2,000 per year.
CalPERS will evaluate the PERS Select plan changes quarterly during the two-year period, and report the findings to the Board with recommendations to continue the plan as it is or modify the benefits.