In this report, we present estimates of the burden of preventable chronic disease on active members of the California Public Employees Retirement System and describe the distribution of that burden by demographic characteristics, and across geographic areas, state agencies/departments, and participating health plans. The estimates show that a 1 percent reduction in the prevalence of the common conditions included in the analysis could save the state $3.6 million per year. The literature suggests that reductions of 5 to 15 percent are feasible, depending on how well-designed and targeted interventions are, indicating potential savings of $18 million to $54 million annually.