Retirement Benefits

Retirees: Change Coming to the Complementary Annuitant Premium Program

Retiree talking with her doctor

The Complementary Annuitant Premium Program (CAPP) allows retirees the option to remain enrolled in a CalPERS-sponsored health plan when their retirement warrant does not cover the full health premium. Once you elect into the program, we set up a prepaid health account for you, and pay your health premiums through that account.

In the past, we determined how much your retirement warrant would be, and we calculated the difference between that and your health premium and billed you for the balance. The money you paid was deposited into your prepaid health account. When your retirement warrant was issued, we withheld it and used it along with the balance in your prepaid account to pay your health premium for the same month. When the amounts of other deductions changed, the CAPP bill amount could change, and we received feedback that keeping up with the billing could be confusing.

To make it easier for you to understand and pay your premium invoices, and to streamline the billing process, as of March 2020 we have stopped withholding retirement warrants and we are now billing the full amount of the health premium. Now you will receive your full retirement allowance and a bill for the full amount of your monthly health insurance premium.

With this change, your health premium amount will be the same each month during a calendar year. This will make it easier for you to plan payments and keep records. You still have a prepaid health account, and your payment must be received before the 10th of each month for the following month’s health coverage.

In preparation, we’ve asked you to review and update your banking information and mailing address to ensure your information is current. If you don’t have direct deposit, you can enroll online through your myCalPERS account.