Posted on 11/15/2006 7:04:22 AM PST by NormsRevenge
Rejecting calls to spread out a looming jump in premiums, a state pension board panel on Tuesday endorsed an average 33.6 percent increase in long-term care insurance rates for 170,000 government workers and retirees in California.
The boost would help the giant California Public Employees' Retirement System establish a reserve and generate additional capital to cover a projected $600 million deficit over the next five to six decades.
If adopted today by the full CalPERS board, the move would be the second increase since 2003, when trustees boosted rates an average of 17 percent.
"We're better off to get it (done) in one year. There is an additional cost every year if you don't bite this bullet," said trustee Tony Oliveira, a member of the fund's Health Benefits Committee.
The panel rejected calls by some retiree groups and trustee Charles Valdes to soften the financial blow and phase in the increase over two years for the $4 billion insurance program.
The committee voted 8-0 to recommend the increase, as James Zerio, board representative for Treasurer Phil Angelides, abstained. Trustee Marjorie Berte tried but failed to push through a bigger hike in premiums -- 36.3 percent -- arguing the lower figure could be too conservative.
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Robinson backs a price break for elderly policyholders who pay the highest premiums: "They're not able to absorb the rate increase as readily as the younger workers. The initial notice going out will be a shock."
Under the proposal, the new rates would be effective July 1, 2007, and apply to policyholders who purchased plans from 1995 to 2004. Newer enrollees already are paying higher premiums.
(Excerpt) Read more at sacbee.com ...
" a projected $600 million deficit over the next five to six decades.
If adopted today by the full CalPERS board, the move would be the second increase since 2003, when trustees boosted rates an average of 17 percent. "
Did Burke raise his fees again ?
Or is this a shell game of shuffling the funds from LTC to hide the deficit of Burkel's bad investments for Cal Pers.
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