CalPERS has given final approval to an 85 percent rate hike for policyholders in its long-term care insurance program.
The vote Wednesday by the full CalPERS board followed committee testimony earlier in the week by retirees who said the steep increase would cause hardship. CalPERS officials said they had no choice but to raise rates, since the program was hit with inadequate investment gains and higher-than-expected claims.
Policyholders pay $1,400 to $2,400 a year in premiums; the proposed increase would cost them hundreds or even thousands more, depending on age and type of coverage.
The California Public Employees' Retirement System also voted to create a less comprehensive benefit package that's designed to cost no more than the current plan. Instead of lifetime benefits, the plan would cover 10 years. CalPERS officials said only 1 percent of policyholders need more than 10 years' worth of benefits.