When did the plan start, and
how many law enforcement and fire personnel in California have
long-term care coverage through NPFBA?
The plan was founded in 1999, and
we expect participation to pass 11,000 in 2007. The plan’s
popularity and the trust fund that ensures the security of the plan
have both experienced strong growth.
Who is behind the plan?
NPFBA is a jointly sponsored trust
of the California Law Enforcement Association (CLEA) and the
California Association of Professional Fire Fighters (CAPF). The
plan was developed by public safety personnel specifically for
public safety personnel and their spouses, with the goal of
offering comprehensive long
term care benefits at the best rates available.
How much have rates increased
over the past few years?
NPFBA just announced its first rate
increase for existing policyholders since the plan was first offered
in 1999. The Trustees acted on the recommendations of NPFBA’s
financial and legal advisors to balance the long-term financial
needs of the Plan with our continued goal to offer the most
competitive rates available in today’s market. As a result, the
Trustees approved a plan that raises rates by 18% – less than $9.20
a month for our average plan participant – effective July 1, 2008.
This increase is significantly less than those announced by CalPERS
and private plans. For more on the rate increase, click
here.
Is the plan financially sound?
The Plan's
consultants, have determined that the Trustees’ recent decision to
follow a prudent course of maintaining competitive rates through
modest periodic rate increases will keep the NPFBA Plan financially
sound through 2084.
What is the advantage of
NPFBA’s plan over CalPERS' LTC plan?
NPFBA’s LTC Plan provides
comprehensive benefits that often exceed those provided by CalPERS,
but at a monthly cost that is usually less than half the CalPERS
rate. The savings are even greater when the plan is compared to
coverage from private insurers.
Can I still pay my policy in
full in a single payment?
Yes. You can avoid rate increases
in the future by making a
single payment that covers the remaining balance minus a discount.
If you are considering this option, we suggest you
contact your financial advisor and the plan administrator to
discuss whether this is the best choice for you.
Do I pay for the plan, or is it
part of my benefit package?
The answer depends on your
bargaining unit. Most of our members pay the low monthly cost on
their own, some have it deducted from their paycheck, and others
receive long term care coverage from NPFBA as part of their contract
agreements with their employers, unions, or associations.
Can post-retirement funds
(457, 401k, 403b, retirement medical trust, etc.) be used to make NPFBA
Long Term Care Plan payments?
At this time, the NPFBA LTC Plan is
not a "tax-qualified" plan and post-retirement funds therefore may
not be used to make payments. You may wish to contact your tax
professional, however, to determine if payments may qualify for
medical expense deductions.
Can law enforcement and fire
personnel from outside California participate?
At this time, participation in the
plan is limited to public safety personnel and their spouses in
California.
How do I find out more about
the plans and choices available?
Call the plan administrator at
(877) 582-0003 for rate quotes and to learn more about the benefits
of NPFBA’s LTC Plan and the different payment options available.
