Business Journal: Calpers Cuts Next Year?

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(Sacramento, CA)
Monday, May 22, 2006

The California Public Employees Retirement System is weighing new cost cutting measures, revealed for the first time this week. These include across the board cuts in benefits, and trimming HMO coverage in rural areas. 

CalPERS continues to struggle with climbing costs. These reductions could save $64 million. Organized labor and some CALPERS board members are against it. A vote is expected by June 20th. In real terms, it means co-payments could rise for some, others might have to change plans. Healthcare costs continue to rise nationally, with no end in sight.