The California Public Employees' Retirement System is trying to remove about 29,000 people -- government employees' children, spouses and domestic partners -- who are thought to be wrongly receiving benefits. Aon Hewitt, however, estimates that figure may be too conservative. While CalPERS expects that removing people will save about $40 million a year, recouping premiums will be difficult because "it's just a very messy process to look retroactively and figure out the point at which someone should never have been covered," says Karen Frost of Aon Hewitt.

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