The California Public Employees' Retirement System (CalPERS) staff has recommended increasing co-payments for office visits, emergency room visits, and prescription drugs, which would reduce the health premium increase to no more than 10 percent. Based on CalPERS anticipated actions, an adjustment from the January proposed budget to today is required and shows a savings of $5.8 million General Fund and $7.3 million other funds associated with this recommendation. The same recommendation is being made by CalPERS regarding its health and dental benefits for annuitants. Again, based on the anticipated independent action of CalPERS, the May Revisions shows savings of $9.5 million to the General Fund. The CalPERS Board has deferred action on these staff recommendations until its May 16 board meeting.