Frequently Asked Questions


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 were determined based on your policyholder status as of that date. The first round of payments was sent by mail on January 11, 2024. If you are included in the first round, you will receive from the Settlement Administrator: (1) a 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

  1. 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, 2023, your Policy was terminated (meaning you cannot receive any benefits under the Policy) and your obligation to pay premiums stopped.

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  2. When can I stop paying premiums?

    If, on the Final Settlement Date of September 28, 2023, you were 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 on September 28, 2023, you will receive a refund from CalPERS equal to 100% of the post-September 28 premiums. These have been issued on a rolling basis by CalPERS, so you may have already received the overpayment refund.

    If your policy was canceled and you have not received a refund for amounts paid after the Final Settlement date, you will need to contact the CalPERS LTC program regarding the status of your post-September 28 premium refund. The customer service number for contacting the CalPERS LTC program is 1-800-982-1775. When calling, please select the option for premiums. You may also contact the CalPERS LTC program by email at CalPERSltc@illumifin.com.

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  3. 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. This refund will be provided separately from your settlement check.

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  4. 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. This refund will be provided separately from your settlement check.

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  5. 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. This refund will be provided separately from your settlement check.

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  6. 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 28 will be refunded in full by CalPERS. However, it may take several months for these automatic deductions to be halted by the pension/banking institution.

    If your policy was canceled and you have not yet received a refund for amounts deducted after the Final Settlement date, you will need to contact the CalPERS LTC program regarding the status of your post-September 28 premium refund. The customer service number for contacting the CalPERS LTC program is 1-800-982-1775. When calling, please select the option for premiums. You may also contact the CalPERS LTC program by email at CalPERSltc@illumifin.com.

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  7. 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 28 will be refunded by CalPERS. However, it may take several months for these automatic deductions to be halted by the pension/banking institution.

    If your policy was canceled and you have not yet received a refund for amounts deducted after the Final Settlement date, you will need to contact the CalPERS LTC program regarding the status of your post-September 28 premium refund. The customer service number for contacting the CalPERS LTC program is 1-800-982-1775. When calling, please select the option for premiums. You may also contact the CalPERS LTC program by email at CalPERSltc@illumifin.com.

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

    No. 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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  9. Is it too late to submit a claim form for Option 1 if I defaulted to Option 2?

    Yes, it is too late to submit a claim form to be included as an Option 1 claimant.

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Recategorizations

  1. 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 were recategorized to Category I and were sent a “Late Election Form” that allowed you to change your election and keep your policy. If the Late Election Form was not returned, you were defaulted to Option 2, which was to keep your policy and receive a $1000 payment and a moratorium on new premium increases until November 2024.

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  2. What if I went On-Claim prior to September 28, 2023 but elected to surrender my Policy (Option 1)?

    If you were originally a Category A Class Member who applied to go or went on On-Claim prior to September 28, 2023, you were recategorized to Category I and were mailed a Late Election Form on November 13, 2023. The deadline to return your Late Election Form was December 13, 2023. If the Late Election Form was not postmarked or returned by the deadline on December 13, 2023, you were defaulted to Option 2, which was to keep your policy and receive a $1000 payment and a moratorium on new premium increases until November 2024.

    Please note: There will be no additional opportunities to submit your Late Election form after the deadline to change this selection.

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  3. 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?

    If (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 submitted an application for LTC benefits to CalPERS (which is subsequently granted); and (3) no later than November 12, 2023, you contacted 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), then you may be permitted to reverse your election from Option 1 to Option 2. You will not be permitted to reverse your election if you did not comply with these requirements.

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

    You were likely recategorized from Category A to Category E because you stopped paying premiums prior to September 28, 2023, when the settlement became final.

    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 September 28, 2023, the date the Settlement became Final. Therefore, if your Policy 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. A Lapse Claim Form was mailed to you on January 3, 2024, and it must be signed and returned within 30 days of the date it was mailed to you. There will be no additional opportunities to submit your Lapse Claim Form after the deadline. Failure to timely submit a Lapse Claim Form means you will be ineligible for any benefit under the Settlement.

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  5. 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 in exchange for the surrender of their policy, because they do not have a policy to surrender. 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.

    To obtain the benefits of a Category E Class Member, you must complete a Lapse Claim Form. The Lapse Claim Form was mailed to you on January 3, 2024, and it must be signed and returned within 30 days of the date it was mailed to you. There will be no additional opportunities to submit your Lapse Claim Form after the deadline. Failure to timely submit a Lapse Claim Form means you will be ineligible for any benefit under the Settlement.

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  6. 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, then they were required to keep their Policies current and keep paying premiums until the Settlement became Final. 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 time.

    If you were recategorized to Category E, then you will 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.

    To obtain the benefits of a Category E Class Member, you must complete a Lapse Claim Form. The Lapse Claim Form was mailed to you on January 3, 2024, and it must be signed and returned within 30 days of the date it was mailed to you. There will be no additional opportunities to submit your Lapse Claim Form after the deadline. Failure to timely submit a Lapse Claim Form means you will be ineligible for any benefit under the Settlement.

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  7. 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 were recategorized to Category A. You were sent a Late Election Form on November 13, 2023. If the Late Election Form was not returned, then you were defaulted to Option 2, which was to keep your policy and receive a $1000 payment and a moratorium on new premium increases until November 2024.

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  8. If I chose 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 that Settlement Class Members received in the mail (or by email) was an Individual Award Letter that identified your Initial Settlement Category and the amount you were entitled to receive under the Settlement. It is important to note that the Category identified in the Award Letter and the amount was based on data provided by CalPERS on December 31, 2022. Therefore, the amount may have decreased if your Initial Settlement Category changed or if you used any benefits under your CalPERS Policy prior to the Final Settlement Date. If your Policyholder status did not change, your Final Award was based on your Final Settlement Category on the Final Settlement Date.

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  9. 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, which was September 28, 2023. Unfortunately, if you elected Option 1 then your policy was terminated as of that date. You are not allowed to reinstate your policy or receive any benefits from your policy. Instead, you will be receiving your Option 1 benefit, which, for most class members, was placed in the mail on January 11, 2024.

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  10. 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 were 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 were sent an Award Letter and Election Form on November 13, 2023. If the Election Form was not returned, then you were defaulted to Option 2, which was to keep your policy and receive a $1000 payment and a moratorium on new premium increases until November 2024.

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  11. 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, then they were recategorized into Category F or G.

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  12. 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. Unfortunately, Class Members in these categories are not entitled to an 80% premium refund in exchange for the surrender of their LTC policy, because they do not have a policy to surrender. Instead, they are only entitled to 80% of the “Additional Premiums” paid during the period their policy was in force, meaning only those additional premiums paid due to the challenged 85% premium increase announced in 2013 and implemented in 2015/2016.

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  13. 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 in exchange for the surrender of their LTC policy, because they do not have a policy to surrender. Instead, they are only entitled to 80% of the “Additional Premiums” paid during the period their policy was in force, meaning only those additional premiums paid due to the challenged 85% premium increase announced in 2013 and implemented in 2015/2016.

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Payments

  1. When will I receive my Settlement payment?

    Settlement payments for most Class Members were sent out on January 11, 2024. Please allow 5 to 7 business days for delivery. If you do not receive your check within two to three weeks, please feel free to contact us for a reissue.

    However, if after the Final Settlement date on September 28, 2023, you were recategorized, were working with Class Counsel to submit a late claim, or were seeking to reverse your initial election, it is likely that you were not included in the initial disbursement on January 11, 2024, and will be included in a later disbursement.

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

    Yes. 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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  4. 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 an issue regarding receipt of your check, please call 1-866-217-8056 (Toll-Free).

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

    Checks for deceased class members are issued to the estate of the deceased class member. If the check relates to a deceased Class Member and, after working with your financial institution to cash that check, you are not able to cash it 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 request a form from the administrator. The administrator can be contacted at:

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

    emailIcon Email: info@CalPERSLTCClassAction.com

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

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

    Yes. To make this request, please contact the Administrator by phone, email, or mail using the following information:

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

    emailIcon Email: info@CalPERSLTCClassAction.com

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

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  8. 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

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

    To dispute the amount of your Settlement payment, please request a Dispute Form from the settlement administrator and return it by email or mail to:

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

    Please note that if you cash or deposit the settlement check before any dispute is resolved, you are waiving the right to dispute your Final Award amount or Final Category.

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

    To dispute your categorization in the Settlement, please request a Dispute Form from the settlement administrator and return it by email or mail to:

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

    Please note that if you cash or deposit the settlement check before any dispute is resolved, you are waiving the right to dispute your Final Award amount or Final Category.

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  3. 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 fees and costs, as approved by the Court.

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Not in Settlement

  1. 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 (1) were citizens of California in February 2013; (2) purchased an LTC Policy from CalPERS during the period 1995 to 2004 (LTC1 or LTC2); (3) in 2013 their policies included automatic inflation protection benefits; and (4) 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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  2. 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. However, the Court later ruled that policyholders who only had lifetime benefits without automatic inflation protection did not have a claim against CalPERS. Since the Court ruled against these policyholders, 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 were 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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  3. 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 the CalPERS LTC program. The customer service number for contacting the CalPERS LTC program is 1-800-982-1775. You may also contact the CalPERS LTC program by email at CalPERSltc@illumifin.com.

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  4. 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 benefits, this meant that the daily benefit amount of your Policy (the amount you receive when you are On Claim) increased 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 benefits. This is why the Settlement only includes Policyholders with this type of benefit.

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The Lawyers Representing You

  1. 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
    Gregory L. Bentley
    BENTLEY & MORE, LLP
    4931 Birch Street
    Newport Beach, CA 92660
    Gretchen M. Nelson, Esq.
    NELSON & FRAENKEL LLP
    601 South Figueroa Street
    Suite 2050
    Los Angeles, CA 90017
    Stuart C. Talley
    KERSHAW TALLEY BARLOW PC
    401 Watt Avenue
    Sacramento, CA 95864

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Getting More Information

  1. 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 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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  2. 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 the CalPERS LTC program.

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