CalPERS Long-Term Care Class Action Settlement

The Settlement Is Final

1. Is the Settlement Final?

   Yes. The Settlement became Final on September 28, 2023. Under the terms of the Settlement, your Final Settlement Category and Award will be determined as of this date. In January 2024, you will receive a mailing from the Settlement Administrator providing (1) notification of your Final Category and Award; and (2) a check in the amount of your final Award.

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Category A Class Members Who Elected Option 1

2. If I am in Category A (a current policyholder who is not On-Claim) and elected Option 1 (surrender/refund), do I have to continue to pay my premiums?

   No. When the Settlement became Final on September 28, your Policy was surrendered (meaning you cannot receive any benefits under the Policy) and your obligation to pay premiums stopped. You will receive a refund of 80% of all premiums paid up through September 28, 2023 (less any benefits received).

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3. When can I stop paying premiums?

   If you are a current policyholder (Category A) and elected Option 1 (surrender/refund), you can immediately stop paying premiums. To the extent you paid any premiums that apply to a time period after the Settlement became Final (September 28, 2023), you will receive a refund from CalPERS equal to 100% of the post-September 28 premiums.

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4. I already made my payment for October 2023. Will this payment be refunded?

   Yes. If you paid any premiums that apply to a time period after the Settlement became Final on September 28, 2023, you will receive a refund from CalPERS equal to 100% of the post-September 28 premiums.

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5. I pay my premiums quarterly and have already paid for the fourth quarter of 2023. Will the amounts I paid for October, November, and December 2023 be refunded?

   Yes. If you paid any premiums that apply to a time period after the Settlement became Final on September 28, 2023, you will receive a refund from CalPERS equal to 100% of the post-September 28 premiums.

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6. I pay my premiums annually and have already paid for all of 2023. Will the amounts I paid for October, November, and December 2023 be refunded?

   Yes. If you paid any premiums that apply to a time period after the Settlement became Final on September 28, 2023, you will receive a refund from CalPERS equal to 100% of the post-September 28 premiums.

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7. My premium payments are automatically deducted from my pension checks. How do I stop these deductions?

   We have been advised by CalPERS that premium payments deducted from Class Members’ pension checks—or that are set up for autopay through their bank accounts—should stop automatically, and any payments deducted after September 27 will be refunded by CalPERS.

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8. My premium payments are automatically deducted from my bank account. How do I stop these deductions?

   We have been advised by CalPERS that premium payments deducted from Class Members’ pension checks—or that are set up for autopay through their bank accounts—should stop automatically, and any payments deducted after September 27 will be refunded by CalPERS.

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9. I received a letter from CalPERS with a refund check. Is this my Settlement award?

   You may have received a letter from CalPERS containing a refund check. This check IS NOT your final Settlement award. This check was a refund for premiums paid for your policy after it was cancelled on September 28, 2023.

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Recategorizations

10. I am a Category A Class Member who elected Option 1 (surrender/refund), and I just received an email/postcard saying the Settlement was Final as of September 28, 2023. It also said my Policy is no longer in force and that I can stop paying premiums. However, I just applied to go On-Claim. Am I going to lose my Policy?

    If you applied to go On-Claim prior to September 28, 2023, you will be recategorized to Category I and will be able to change your election and keep your policy. Within the next 60 days you should receive a “Late Election Form” that allows you to do this. If the Late Election Form is not returned, you will keep your Policy and will not receive the 80% premium refund. Therefore, if you still want to receive the 80% premium refund (less benefits received), it is important that you sign and return the Late Election Form within 30 days of the date it was mailed to you.

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11. What if I just went On-Claim but elected to surrender my Policy (Option 1)?

    If you went On-Claim prior to September 28, 2023, you will be recategorized to Category I and will be able to change your election and keep your policy. Within the next 60 days you should receive a “Late Election Form” that allows you to do this. If the Late Election Form is not returned, you will keep your Policy and will not receive a premium refund. Therefore, if you still want the 80% premium refund (less benefits received), it is important that you sign and return the Late Election Form within 30 days of the date it was mailed to you.

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12. What if I elected to surrender my Policy and receive the refund (Option 1) and then applied to go On-Claim after the Settlement became Final on September 28, 2023?

    You may be able to reverse your election and choose Option 2 (keeping your policy). To do so, you must timely comply with all of the following requirements: (1) as of September 28, 2023, you were in need of and were receiving the type of care that would qualify for benefits under your CalPERS LTC Policy; (2) no later than October 28, 2023, you submit an application for LTC benefits to CalPERS (which is subsequently granted); and (3) no later than November 12, 2023, you contact CalPERS or the Settlement Administrator in writing asking to reverse your election (i.e., to change your election from Option 1 to Option 2, so as to keep your CalPERS LTC policy).

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13. Why was I recategorized from Category A to Category E?

    As stated in the Class Notice, your Initial Settlement Category was based on your policyholder status as of December 31, 2022. However, as was also set forth in the Notice, your Final Settlement Category was determined based on your policyholder status on the date the Settlement became Final on September 28, 2023. Therefore, if your Policy had lapsed or was cancelled prior to September 28, 2023, you were recategorized into Category E and will receive the benefits for Class Members in Category E. To obtain the benefits of a Category E Class Member, you must complete a Lapse Claim Form. The Lapse Claim Form will be mailed to you in late-November 2023, and it must be signed and returned within 30 days of the date it was mailed to you.

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14. What happens if I was recategorized from Category A into Category E?

    Class Members in Category E do not receive an 80% premium refund of all premiums paid from the inception of their Policy. Instead, these Class Members receive a refund equal to 80% of all Additional Premiums paid, or $2,000, whichever is greater. It is important to understand that “Additional Premiums” paid is any additional amount you paid because of the 85% premium increase announced in 2013 (and implemented in 2015-2016). It is not 80% of all the premiums you paid since the inception of your Policy.

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15. I only stopped paying my premiums a few months ago, can my Policy be reinstated so I can still get the 80% refund?

    No. The Class Notice repeatedly advised Class Members that if they were in Category A (current policyholders) and wanted to remain eligible to receive the Option 1 premium refund they, must keep their Policies current and keep paying premiums. Unfortunately, Class Members who stopped paying premiums and let their Policies lapse before the Settlement became Final on September 28, 2023, were recategorized into Category E and cannot retroactively change their status at this point.

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16. Why was I recategorized from Category B or C to Category A?

    As stated in the Class Notice, your Initial Settlement Category was based on your policyholder status as of December 31, 2022. However, as was also set forth in the Notice, your Final Settlement Category was determined based on your policyholder status on the date the Settlement becomes Final. The Settlement became Final on September 28, 2023. Therefore, if you were previously On-Claim, but went off claim as of September 28, 2023, you would be recategorized to Category A. As a Class Member in Category A, you will be given the option of surrendering your Policy in exchange for an 80% premium refund (less benefits received) or keeping your Policy and receiving a cash payment of $1,000 and a rate freeze until November 1, 2024. You will be sent an Award Letter and Election Form in late-November 2023. If the Election Form is not returned, you will keep your Policy and will not receive the 80% premium refund. Therefore, if you want to receive the 80% premium refund (less benefits received), it is important that you sign and return the Election Form within 30 days of the date it was mailed to you.

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17. When I was On-Claim and in Category B or C, I elected Option 2 to keep my CalPERS Policy and receive a $1,000 payment. However, I am no longer On-Claim and want to change my election and receive the 80% refund (less benefits received). Can I do this?

    Yes. If you were no longer On-Claim as of September 28, 2023, your Final Settlement Category will change from Category B or C (On-Claim) to Category A (current policyholder). As a Class Member in Category A, you will be given the option of surrendering your Policy in exchange for an 80% premium refund (less benefits received) or keeping your Policy and receiving a cash payment of $1,000 and a rate freeze until November 1, 2024. You will be sent an Award Letter and Election Form in late-November 2023. If the Election Form is not returned, you will keep your Policy and will not receive the 80% premium refund. Therefore, if you want to receive the 80% premium refund (less benefits received), it is important that you sign and return the Election Form within 30 days of the date it was mailed to you.

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18. If I choose the 80% refund (Option 1), will the amount CalPERS paid in benefits while I was On-Claim be deducted from my premium refund?

    Yes. Under the terms of the Settlement, any long-term care benefits paid on your behalf by CalPERS under your Policy will be deducted from your Option 1 premium refund.

    Included with the Notice Settlement Class Members received in the mail (or by email) is an Individual Award Letter that identifies the Initial Settlement Category and the amount they are entitled to receive under the Settlement. It is important to note that the Category identified in the Award Letter and the amount is based on data provided by CalPERS on December 31, 2022. Therefore, the amount may decrease if the Initial Settlement Category changes or if a Settlement Class Member uses any benefits under their CalPERS Policy prior to the Final Settlement Date. If the Policyholder status does change, the Final Award will be based on the Final Settlement Category on the Final Settlement Date.

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19. What happens if I need to go back On-Claim before I get my refund check?

    Under the Settlement, your Final Settlement Category was determined on the date the Settlement became Final (September 28, 2023). But you may be able to reverse your election and instead choose Option 2 (keeping your policy). To do so, you must timely comply with all of the following requirements: (1) as of September 28, 2023, you were in need of and were receiving the type of care that would qualify for benefits under your CalPERS LTC Policy; (2) no later than October 28, 2023, you submit an application for LTC benefits to CalPERS (which is subsequently granted); and (3) no later than November 12, 2023, you contact CalPERS or the Settlement Administrator in writing asking to reverse your election (i.e., to change your election from Option 1 to Option 2, so as to keep your CalPERS LTC policy).

    Unfortunately, if you elected Option 1 and do not meet the foregoing requirements, there is no way to reverse your election. Your policy is considered “surrendered” as of September 28 and you are not entitled to receive any benefits from your policy.

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20. Why was I recategorized from Category E to Category A?

    As stated in the Class Notice, your Initial Settlement Category was based on your policyholder status as of December 31, 2022. However, as was also set forth in the Notice, your Final Settlement Category was determined based on your policyholder status on the date the Settlement became Final, which was September 28, 2023. Therefore, if your Policy had lapsed but was reinstated prior to September 28, 2023, you were recategorized into Category A. As a Category A Class Member, you will be given the option of surrendering your Policy in exchange for an 80% premium refund (less benefits received) or keeping your Policy and receiving a cash payment of $1,000 and a rate freeze until November 1, 2024. You will be sent an Award Letter and Election Form in late-November 2023. If the Election Form is not returned, you will keep your Policy and will not receive the 80% premium refund. Therefore, if you want to receive the 80% premium refund (less benefits received), it is important that you sign and return the Election Form within 30 days of the date it was mailed to you.

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21. Why was my loved one recategorized from Category A to Category F or G?

    As stated in the Class Notice, your loved one’s Initial Settlement Category was based on their policyholder status as of December 31, 2022. However, as was also set forth in the Notice, their Final Settlement Category was determined based on their policyholder status on the date the Settlement became Final, which was September 28, 2023. If your loved one was initially categorized as a current policyholder (Category A) but then passed away before September 28, 2023, they would be recategorized into Categories F or G.

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22. My deceased loved one submitted a claim for the 80% refund (Option 1) months before they passed away. Why are we not getting the refund amount?

    As stated in the Class Notice, your loved one’s Initial Settlement Category was based on their policyholder status as of December 31, 2022. However, as was also set forth in the Notice, their Final Settlement Category was determined based on their policyholder status on the date the Settlement became Final, which was September 28, 2023. If your loved one was initially categorized as a current policyholder (Category A) but then passed away before September 28, 2023, they would be recategorized into Categories F or G.

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23. Why is my deceased loved one’s Category F or G award so much less than their Category A award?

    As stated in the Class Notice, your loved one’s Initial Settlement Category was based on their policyholder status as of December 31, 2022. However, as was also set forth in the Notice, their Final Settlement Category was determined based on their policyholder status on the date the Settlement became Final, which was September 28, 2023. If your loved one was initially categorized as a current policyholder (Category A) but then passed away before September 28, 2023, they would be recategorized into Categories F or G. Unfortunately, Class Members in these categories are not entitled to an 80% premium refund. Instead, they are only entitled to 80% of the “Additional Premiums” paid during their period their policy was in force—meaning only those additional premiums paid due to the challenged increase announced in 2013 and implemented in 2015/2016.

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Payments

24. When will I receive my Settlement payment?

    Settlement payments for most Class Members are expected to be sent out in January 2024.

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25. If the Settlement was Final on September 28, 2023, why is it taking so long for Settlement payments to be sent out?

    It unfortunately takes so long to distribute Settlement payments because there are a number of required steps and deadlines to meet before Payments can be sent out, including the time necessary: (1) for CalPERS to calculate Class Members’ Final Settlement Categories and Final Awards; (2) to resolve the issue and selections of Class Members who went On-Claim during the time between the initial Class Notice and the Final Settlement Date; (3) for CalPERS to liquidate the appropriate assets to fund the Settlement; and (4) for the Settlement Administrator to receive the Final Categories and Final Awards, receive the funds from CalPERS, and to prepare/mail the payment packets to nearly 80,000 Settlement Class Members.

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26. Are taxes being taken out of my Settlement payment?

    No. Taxes will not be deducted from your Settlement check, and no Form 1099 will be issued for this Settlement.

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27. Am I responsible for reporting/claiming my Settlement payment on my taxes?

    You are responsible for determining if you owe taxes on your Settlement payment, and for paying any such taxes. Epiq (the Settlement Administrator) and Plaintiffs' Counsel are not tax attorneys and cannot provide any tax advice to you or Settlement Class Members. Whether you owe taxes on your Settlement payment is likely dependent on your individual financial and income/deduction reporting circumstances. Each Class Member is encouraged to consult with their own tax attorney or financial advisor about whether they owe taxes on their Settlement payment.

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28. How will my Settlement payment be sent to me?

    Settlement payments will be provided to Class Members by check sent via USPS First-Class Mail. This is the most secure manner of transmitting Settlement payments to Class Members.

    If you have some particular issue regarding receipt of your check, please call 1-866-217-8056 (Toll-Free).

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29. Can my spouse’s award amount be combined into one check with my Settlement award?

    No. Each Class Member will receive a separate check because each Settlement Class Member’s claim is processed individually.

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30. How are checks issued for Class Members who have passed away?

    If the check relates to a deceased Class Member and you are not able to present payment in the name of the decedent or his or her Estate, the check can be issued to a different payee name. To have a check reissued to a different payee’s name, please submit the appropriate legal documents indicating how the Estate assets are to be handled to Updates@CalpersLTCClassAction.com.

    If there are no legal documents specifying how the Estate assets are to be handled, please contact the Settlement Administrator to discuss other options. You can contact the Administrator by phone, email, or mail using the following information:

     Phone: 1-866-217-8056 (Toll-Free)

     Email: info@CalPERSLTCClassAction.com

     Mail:
    Wedding v. CalPERS
    P.O. Box 6790
    Portland, OR 97228-6790

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31. Can the Settlement payment to a deceased Class Member be split between their heirs?

    This may be possible. To split a Settlement payment between multiple heirs, please submit the appropriate legal documents indicating how the Estate assets are to be handled to Updates@CalpersLTCClassAction.com.

    If there are no legal documents specifying how the Estate assets are to be handled, please contact the Settlement Administrator to discuss other options. You can contact the Administrator by phone, email, or mail using the following information:

     Phone: 1-866-217-8056 (Toll-Free)

     Email: info@CalPERSLTCClassAction.com

     Mail:
    Wedding v. CalPERS
    P.O. Box 6790
    Portland, OR 97228-6790

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32. I deposited my check, but my bank put a hold on the money, why is there a hold?

    Banks commonly put a hold on newly deposited checks to provide the bank with time to validate the check. Holds are particularly common with large deposits. A check hold does not mean that anything is wrong, it just means that the bank is taking additional time to ensure that the funds clear before you have access to them. If you feel that your bank has placed an excessively long hold on your Settlement payment, then you should contact your bank to discuss that with them.

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Category and Award Disputes

33. My Final Award amount is incorrect. How do I dispute this?

    To dispute the amount of your Settlement payment, please complete the Dispute Form (available after checks mail in January-February 2024) and return it by email or mail to:

    Disputes@CalpersLTCClassAction.com
    Wedding v. CalPERS
    P.O. Box 6790
    Portland, OR 97228-6790

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34. My Final Category is incorrect. How do I dispute this?

    To dispute your categorization in the Settlement, please complete the Dispute Form (available after checks mail in January-February 2024) and return it by email or mail to:

    Disputes@CalpersLTCClassAction.com
    Wedding v. CalPERS
    P.O. Box 6790
    Portland, OR 97228-6790

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35. Was my Settlement payment reduced because of the fees, costs, and service awards being paid to Class Counsel and the Plaintiffs?

    No. Your Settlement payment was not reduced because of attorneys’ fees, costs, or service awards. CalPERS provided an additional, separate sum of money to account for those costs/fees, as approved by the Court.

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Not in Settlement

36. I never received a Class Notice. Why?

    If you did not receive a Class Notice, it is likely because you are not a member of the Settlement Class. The only Class Members who are included in the New Settlement are Class Members who were citizens of California in February 2013; and (1) purchased an LTC Policy from CalPERS during the period 1995 to 2004 (LTC1 or LTC2); (2) in 2013 their policies included automatic inflation protection benefits; and (3) they were subjected to the 85% premium increase announced by CalPERS in 2013 and implemented in 2015 and 2016. Class Members who only had “lifetime benefits” without “automatic inflation protection” or Policyholders who converted to LTC3 policies are not included in the Settlement. If you believe you meet these requirements but did not receive a Notice, you can contact the Settlement Administrator by sending an email to info@CalpersLTCClassAction.com.

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37. I received a Notice back in 2016 indicating that I was in the Class, but I never received Notice of the Settlement. Why?

    The original Class certified by the court in 2016 included Policyholders who had “automatic inflation protection benefits” as well as those who had “lifetime benefits” without automatic inflation protection. Since the Court ruled against policyholders who only had lifetime benefits without automatic inflation protection, CalPERS was not willing to settle with this group of Class Members. This is the most likely explanation for why you may have received a Notice in 2016 indicating that you are in the Class but did not receive Notice of the Settlement. If you fall into this category (a Policyholder with “lifetime benefits” but not “automatic inflation protection benefits”), Class Counsel has filed an appeal as to the Court’s ruling against this group of Class Members.

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38. What is an LTC3 policy, and what does it mean if I’m told that I “converted” to an LTC3 policy?

    In or around 2004, CalPERS began selling the LTC3 Policy. This policy had different terms and a different premium structure than LTC1 or LTC2 Policies. CalPERS also offered Policyholders who had previously purchased either LTC1 or LTC2 Policies the option of converting those policies to an LTC3 Policy. Those Policyholders who converted to LTC3 policies were not subjected to the 85% premium rate increase and are therefore not a part of the Settlement Class. If you have questions as to whether you converted to an LTC3 Policy, we recommend that you contact CalPERS and/or the Long-Term Care Group.

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39. What are “automatic inflation protection” benefits?

    CalPERS’ LTC Policies could be purchased with or without “automatic inflation protection.” If you selected a Policy with automatic inflation protection, this meant that the daily benefit amount of your Policy (the amount you receive when you are On Claim) would increase by 5% every year that you were a Policyholder. This type of benefit is different than a Policyholder who increased their benefits through a Benefit Increase Option (“BIO”). A Benefit Increase Option is not automatic and simply allows Policyholders to increase their benefits at various points in time if they chose to do so. In this case, the Plaintiffs alleged that CalPERS breached its insurance contract by targeting premium increases on Policyholders with automatic inflation protection. This is why the Settlement only includes Policyholders with this type of benefit.

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The Lawyers Representing You

40. Do I have a lawyer in this case?

    The Court has appointed the following lawyers to serve as Class Counsel for the Settlement Class:

    Michael J. Bidart SHERNOFF BIDART ECHEVERRIA LLP 600 South Indian Hill Boulevard Claremont, CA 91711  mbidart@shernoff.com	Gregory L. Bentley BENTLEY & MORE, LLP 4931 Birch Street Newport Beach, CA 92660  gbentley@bentleymore.com
    Gretchen M. Nelson, Esq. NELSON & FRAENKEL LLP 601 South Figueroa Street Suite 2050 Los Angeles, CA 90017  gnelson@nflawfirm.com	Stuart C. Talley KERSHAW TALLEY BARLOW PC 401 Watt Avenue Sacramento, CA 95864  stuart@ktblegal.com

    
    

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Getting More Information

41. How do I get more information?

    This website and the Notice summarize the Settlement. More details are in the Settlement Agreement and filings made before the Court. Such documents are accessible on this website by clicking here. You may also contact Class Counsel or the Settlement Administrator for more information.

    Do not contact the Court, CalPERS, or the Long-Term Care Group about the Settlement, as they will be unable to provide you with additional information.

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42. How do I update my Address?

    Settlement payments will be sent to the address where the Class Notice was mailed. It is your responsibility to advise the Settlement Administrator if you move or your contact information changes. You can provide your updated contact information by sending the information to the Settlement Administrator at: Updates@CalPERSLTCClassAction.com

    When contacting the Settlement Administrator, please provide your Unique ID or Tracking Number from your Notice. Please note that updates provided to the Settlement Administrator will only update their records, which relate to communications and mailings in conjunction with this Settlement. These updates are not provided to CalPERS or the Long-Term Care Group.

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