External Affairs Branch
Robert Udall Glazier, Deputy Executive Officer
Brad Pacheco, Chief, Office of Public Affairs
Contact: Bill Madison, Information Officer email@example.com
CalPERS Distributes More Than $19 Million in Medicare
Retiree Drug Subsidies
SACRAMENTO, CA - The California Public Employees'
Retirement System (CalPERS) announced today that it
distributed more than $19 million in Medicare Retiree Drug
Subsidy (RDS) funds to 826 of its contracting local public
agency employers in June. This is CalPERS fifth subsidy
disbursement to its contracting agency employers since the
Medicare Part D Program was established in January 2006.
CalPERS has distributed a total of $81.9 million in local
public agency RDS funds over the past five years.
The Medicare program added the Part D voluntary federal
outpatient prescription drug benefit in 2006. CalPERS
participates in the Medicare Part D RDS Program for all
Medicare members not enrolled in a Medicare Advantage
"These funds will assist cities and counties that are
struggling to maintain their health care benefits for
retirees and their beneficiaries during these tough
economic times," said Ann Boynton, Deputy Executive Officer
for CalPERS Benefit Programs Policy and Planning. "This
should help offset rising prescription drug coverage costs
and overall health care services."
The State Controller's Office has already distributed the
reimbursement checks. Contracting agencies received RDS
funds based on a formula that considers each individual
agency's contribution toward Medicare health premiums in
CalPERS is the largest purchaser of public employee health
benefits in California, and the second largest public
purchaser in the nation after the federal government. It
spends approximately $7 billion a year to provide care to
more than 1.3 million active and retired State and local
government employees, retirees, and their family members.
The average CalPERS pension is $2,332 per month. The
average benefit for those who retired in the most recent
fiscal year that ended June 30, 2011, is $3,065 per month.
For more information about CalPERS, visit