If you were a California Citizen on February 1, 2013 and you purchased a Long-Term Care insurance policy from CalPERS that included inflation protection benefits, and you were subjected to the 85% premium increase announced by CalPERS in 2013 and implemented in 2015 and 2016, you are entitled to participate in a proposed class action settlement.

Updates: April 21, 2022

For All Settlement Class Members:

Under Section 19.1 of the Settlement Agreement, the Settlement could be terminated if more than 10% of the Settlement Class opted out. Because approximately 30% of the Class opted out, the parties have determined that the existing Settlement will not be going forward. A recent letter by the Parties to the Court confirming the Settlement will not be going forward is available here.

FAQ's for All Settlement Class Members:

Why was the Settlement terminated?
Under Section 19.1 of the Settlement Agreement, the Settlement could be terminated if more than 10% of the Settlement Class opted out. Because approximately 30% of the Class opted out, the parties have determined that the existing Settlement will not be going forward.
What happens now?
The parties continue to work with the Honorable Layn Phillips (Retired) to attempt to reach agreement on an amended settlement that would be acceptable to both CalPERS and the members of the class. If an amended settlement cannot be reached, the case will be set for a jury trial. These issues will be addressed with Judge Highberger at the next Case Management Conference.

At this time, there are no details on how any amended settlement may be structured. You may continue to check this website for any available updates. We suggest you check every three to four weeks for updates. Any updates will be posted on this website when they are available.
What happens if I cancel or let my CalPERS Long-Term Care Policy lapse? Do I need to keep paying premiums?
The current settlement has been terminated. Please be aware that if you should cancel your policy, it may adversely affect your ability to participate in, or the recovery you may receive from, any future settlement or judgment, should one be negotiated or entered.
If I opted out of the Settlement, does that mean I am no longer a part of the case?
No. You opted out of the Settlement but not the case. Since the Settlement is not going forward, that election no longer applies, and will not affect any ability you may have to participate in any future settlement or judgment in the case.
When will the Class be told whether an amended settlement has been reached or the case is going to trial?
Currently, we do not have an expected timeline for further updates. However, you may continue to check this website for any available updates. We suggest you check every three to four weeks for updates. Any updates will be posted on this website when they are available.
If a new settlement is reached, how will I be informed about it?
If a new settlement is reached, all Settlement Class Members will be informed using available contact information on file with CalPERS and the Settlement Administrator. Please make sure to keep your email and physical address current by submitting any recent contact information updates in writing to both CalPERS and the Settlement Administrator.
Can I speak to anyone further regarding the terminated settlement or any potential new settlement?
At this time, no additional information is available regarding the prior settlement or any potential new settlement. Any updates will be posted on this website as they become available. All Settlement Class Members may contact the Settlement Administrator to confirm their contact information on file, but agents will not be able to answers any questions regarding any potential amended settlement beyond what has been provided on the settlement website and FAQs on the toll-free line.

The Settlement resolves a class action lawsuit for a subgroup of Class Members that included claims that CalPERS breached the insurance contract between Plaintiffs and other individuals who purchased a Long-Term Care Policy (either LTC1 or LTC2) who had automatic inflation protection benefits by raising premiums 85% for these Class Members. This increase was announced by CalPERS in 2013 and implemented in 2015 and 2016. CalPERS denies all liability to Settlement Class Members, and asserts that it did not breach the terms of the contract of insurance and has entered into the Settlement solely for purposes of resolving this dispute.

The Settlement provides different benefits to Settlement Class Members depending on whether they are current policyholders who are not On Claim, current policyholders who are On Claim, or prior policyholders who allowed their CalPERS Long-Term Care (“LTC”) Policy to lapse, exhausted their benefits, or passed away. The various Settlement categories and benefits provided by the Settlement for each category are outlined in the Class Notice and on the Frequently Asked Questions page of this website.

Please note that Individual Settlement Award Forms were sent via mail and email (where available) to all Settlement Class Members, and those forms identified the Initial Settlement Category into which you fall and the amount of benefit that you may be entitled to receive from the Settlement. If you did not get notice and believe you are part of this Settlement, please contact the Settlement Administrator at 1-866-217-8056 (Toll-Free).

Overview of Your Legal Rights and Options
Settlement CategoryLegal RightSummaryDue Date
A Complete the Award Acknowledgment Form

Subject to the Court’s final approval of the terms of the Settlement, you will be entitled to receive a refund of all premiums paid to CalPERS for your LTC Policy from its inception through the Final Settlement Date (less any benefits paid).

In exchange for this refund, you will give up your claims in this case within the scope of the release set forth in the Class Notice, and you will give up your CalPERS LTC Policy. By giving up your CalPERS LTC Policy, you will not be entitled to any of the benefits of your CalPERS LTC insurance going forward.

The option to elect to have your premium refund issued to a private insurance carrier and obtain a replacement insurance policy passed on September 22, 2021.

To receive either settlement benefit, you must complete an Award Acknowledgment Form.

 January 28, 2022 Passed (if you are not interested in selecting a Replacement LTC Policy)

Important: To receive a return of all premiums, you must continue to pay premiums on your CalPERS LTC Policy until the Settlement becomes final and effective which is estimated to be the summer of 2022. This includes either paying the upcoming premium increase CalPERS recently announced or reducing your benefits pursuant to the process described by CalPERS in its premium increase notice. Your right to receive a full refund of premiums is dependent on the status of your LTC Policy on the Final Settlement Date, which is the date that the Settlement becomes final and effective. This is described further in FAQ 47 and FAQ 48.
D & E Complete the Lapse Claim Form In order to receive your settlement payment, you must sign and return a Lapse Claim Form. If you do not sign and return a Lapse Claim Form, you will not receive any benefits from the Settlement. January 28, 2022 Passed
All Categories Exclude Yourself

If you submit a Request for Exclusion, you will NOT receive a settlement payment and will not be releasing any claims you may have against CalPERS (see FAQ 15).

If you are a current policy holder in Category A: If you request exclusion, you will also retain your CalPERS LTC policy and the benefits to which you are entitled under that policy. However, if you elect to keep your LTC policy, you must continue paying premiums to CalPERS, including the upcoming premium increase and any other premium increases CalPERS may impose in the future.

 January 28, 2022 Passed
All Categories Object If you wish to object to the Settlement, you must submit a written objection, and supporting papers, to the Settlement Administrator (see FAQ 24). You may not request exclusion and also object to the Settlement. January 28, 2022 Passed
All Categories Go to a Hearing The Court will hold a “Final Approval Hearing” on June 8, 2022 at 10:00 a.m. to decide whether to approve the Settlement. You may attend and you may ask to speak at the Final Approval Hearing, but you do not have to. January 28, 2022 Passed (To file a "Notice of Appearance")
All Categories Do Nothing If you do nothing, you will automatically receive the benefits provided for in the Settlement in accordance with your Final Settlement Category, and you will be bound by the release of claims, subject to the Court’s final approval of the terms of the Settlement. N/A

Your rights and options as a Settlement Class Member—and how to exercise them—are explained in more detail on the Frequently Asked Questions page of this website.


Current Status

Pursuant to the terms the settlement, the Parties have informed the Court the Settlement will not proceed. See FAQs for All Class Members.


Important Dates
  • September 22, 2021 Passed
    Deadline to Complete the Award Acknowledgment and Election Form for a Potential Replacement LTC Policy (Category A, Option 2)
  • January 28, 2022 Passed
    Deadline to Complete the Revised Election Form (Category A, Option 2)
  • January 28, 2022 Passed
    Deadline to Complete the Award Acknowledgment and Election Form (Category A)
  • January 28, 2022 Passed
    Deadline to Complete a Lapse Claim Form (Categories D and E)
  • January 28, 2022 Passed
    Deadline to Exclude Yourself from the Settlement
  • January 28, 2022 Passed
    Deadline to Submit a Written Objection to the Settlement