CalPERS: Long-Term Care Program Semi-Annual Update
The CalPERS Long-Term Care Program has provided long-term care services to its participants for 20 years. In October, 2014, the Fiscal Year 2013-14 Long-Term Care Fund Valuation was approved by the CalPERS Board of Administration (Board). In November, 2014, staff reported highlights of the Long-Term Care Program's Valuation to the Board. These highlights updated the Board on the Long-Term Care Program stabilization plan, 2013-14 Long-Term Care Fund margin of 23.49 percent, long-term care policy conversion rates, and plans for the 2015-16 premium increase. The three-year Stabilization and Open Application Period Project closed at the end of December, 2014. This three year project incorporated activities that would stabilize and sustain the Long-Term Care Program including changes to the investment asset allocation, reducing the discount rate, ending the 5 percent annual rate increase in 2014, implementing the 2015-16 rate increase of 85 percent spread over two years, providing new policy conversion options to avoid these rate increases, improving program performance, providing innovative services, and reopening the Long-Term Care Program to new participants.