News from CalPERS
Eligible retirees, including survivors and beneficiaries who receive a monthly benefit, receive COLA on their May 1 retirement check. Follow this link to see what your COLA effective May 1st.
BY RANDY DIAMOND UPDATED DECEMBER 29, 2021
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March 21, 2018
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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.
The Cost-of-Living Adjustment (COLA) is a benefit to ensure your value of money at retirement keeps up with the rate of inflation. Typically, this benefit begins the second calendar year of retirement, although the annual rate of inflation and retirement law could affect the onset of your COLA. Under existing retirement law, retirees receive an annual COLA paid in the May 1 warrant each year.
|Year of Retirement||% COLA Increase Effective May 1, 2021||Year of Retirement||
% COLA Increase Effective May 1, 2021
|2% COLA||2003 & earlier||2%||3% COLA||1979 & earlier||3%|
|2016||1.62%||4% COLA||2019 & earlier||1.23%|
|2018-2019||1.23%||5% COLA||2019 & earlier||1.23%|
|2020||Not Eligible||2020||Not Eligible|