Alera Group Update: California Long-Term Care
Industry News
Thursday, September 28 2023
Alera Group has just released an update on where things stand in California on the Long-Term Care proposal. LTC Task Force Committee reviewed the preliminary Actuarial Analysis report by OliverWyman.
Click Here to go to the CA Long Term Care Task Force website. See the Preliminary Actuarial Report, the commissioner’s letter, meeting notes from prior meetings, etc.
If you have any questions, please contact Dickerson Sales Representative Today!
- The actuarial assumptions include employers paying 50% of the LTC tax, with no waiver on the first $30,000 of an employee’s income and no cap on the income.
- Employees would not pay the tax on the first $30,000 of income and would only pay on income up to $400,000.
- They are assuming that the taxes held in reserve will be invested in bonds, stocks, and other equities. However, they cannot use those investments unless there is an amendment to the state constitution which would have to approved by voters. Without the amendment, the estimated rates would need to be increased by 20% to 25% depending on the Design option.
- If they reduce the employer contribution or remove it, then the tax rates would need to be increased significantly.
Click Here to go to the CA Long Term Care Task Force website. See the Preliminary Actuarial Report, the commissioner’s letter, meeting notes from prior meetings, etc.
If you have any questions, please contact Dickerson Sales Representative Today!