The honchos at the California Public Employees' Retirement System are in hot water again. Higher-than-expected claims and lower-than-expected returns on investments have forced the CalPERS board to raise premiums for its long-term care insurance by 85 percent.
Policyholders are upset. Back in the '90s, when CalPERS was hawking what was then the relatively novel insurance product that provides nursing home and assisted living care, it led customers to believe that premiums would never rise.
CalPERS actuaries were as wrong about long-term care as they were when they told the Legislature the next year that substantially increasing public employee pension benefits wouldn't raise costs to state and local governments.