NPFBA Announces Rate Increase Effective
July 1, 2008;
First Since Plan Began in 1999
A message from the Board of Trustees to current participants in
NPFBA’s Long Term Care Plan:
The Trustees’ responsibility is to ensure the security of the Plan so
that it remains sound and available to you and your family. For the
first time in the nine-year history of the plan, the Trustees determined
that a rate increase is necessary for current participants as a result
of the escalating cost of health care and specific recommendations from
the California Department of Insurance.
The Trustees, acting on the recommendations of the Plan’s
financial and legal advisors, have balanced 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.
To ensure the long-term stability of the plan, our financial consultants have projected
that similar increases will be necessary in 2010, 2012 and 2014.
Therefore, the Trustees decided to offer new options that can lower your
monthly cost. The Trustees also preserved the single-pay option that
allows you to make a one-time payment to pay your policy in full at a
discount.
In addition to the current 20-year payment plan, NPFBA will now offer
plans with payments spread over 25, 30, 35 or 40 years. More information
on these options will be sent to you in early 2008. If you wish to
determine the discounted payoff amount for your current plan, contact
the plan administrator at (877) 582-0003.
While we regret the need to raise rates, it is a necessary step to
ensure that the Plan you have built through your investment remains
strong so that it is ready to serve you and your family now and in the
future. The Trustees made this decision with the strong belief that even
at a somewhat higher monthly cost, the Plan continues to hold tremendous
value – not just when compared to rates of our competitors, but as a way
to preserve your independence or offset the potentially catastrophic
cost of ongoing care should the need arise.
Thank you for your loyal participation in the NPFBA Long Term Care
program. The Trustees will continue to work to preserve the financial
strength of the Plan and to maintain its outstanding benefits for you
and your family. If you have any questions or concerns, please contact
the Plan Administrator toll free at (877) 582-0003.
Yours truly,
Dave Boffi,
Chairman,
On Behalf of the Board of Trustees
The Board of Trustees:
Ken Blanton
Kern County
Fire Dept
Dave Boffi
Sonoma County District Attorney
Dennis Campanale (Ret.)
West Sacramento Fire Dept.
Joe Chirillo
Beverly Hills Police Dept.
Gene Dangel (Ret.)
San Ramon Valley Fire Dept.
Jim Galvin (Ret.)
Los Angeles City Fire Dept.
Jerry Hall (Ret.)
Santa Clara County Sheriff’s Dept.
Ken Marlin (Ret.)
San Leandro Police Dept.
Roger Mathias
San Diego County Sheriff’s Dept.
Bob Perez
Santa
Barbara County Fire Dept.
Erick Mattson
Redding Fire Dept.
Darin Ryburn
Burbank Police
Dept.
