If you were a California Citizen on February 1, 2013, and you purchased a Long-Term Care (“LTC”) Insurance Policy between 1995 and 2004 (LTC1 or LTC2) from CalPERS that included “automatic 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 this proposed new class action settlement.

UPDATE: July 28, 2023

Notice of Entry of Judgment and Order Approving Class Action Settlement - Please Read Carefully

On July 28, 2023, the Court in Wedding v. CalPERS granted final approval of the CalPERS Long-Term Care Class Action Settlement. The Court’s Orders approving the settlement, the plaintiff’s Motion for Fees and Costs, and the Final Judgment can be accessed by clicking here. However, this does not mean the Settlement is Final. At the earliest, the Settlement will not become Final until September 28, 2023. However, the Final Settlement Date could be later if one of the Class Members who objected to the Settlement appeals the Court’s ruling. If there is an appeal, the Settlement will not become Final until the appeal is concluded.

IMPORTANTLY, if you are a current LTC policyholder and elected Option 1 (to receive the 80% refund for policy surrender): You must keep paying any premiums due until the Settlement becomes Final to remain eligible for the 80% refund. Please keep paying those premiums until you receive an email, letter, or postcard from us advising you that: (1) the Settlement is Final; (2) your policy is no longer in force; and (3) you can stop paying your premiums. "

If you submitted your Claim Form by mail, it must be postmarked on or before June 6, 2023. If you are a Category A Class Member and did not submit a Claim Form by the deadline, you will be deemed to have elected Option 2.

Settlement Class Members in Settlement Category A must continue to make premium payments to CalPERS until the Settlement becomes Final in order to remain in Category A. If you cancel or otherwise let your Policy lapse before the Settlement becomes Final, you will no longer be in Category A and will no longer be eligible to receive either of the options available to those in Category A.

This Settlement resolves a class action lawsuit for Class Members who purchased a Long-Term Care Policy (either LTC1 or LTC2) with automatic inflation protection benefits and were subject to the 85% announced by CalPERS in 2013 and implemented in 2015 and 2016. Plaintiffs claim this was a breach of contract. CalPERS denies all liability to Settlement Class Members and asserts that it did not breach the terms of the contract of insurance and has agreed to the New Settlement solely for purposes of resolving this dispute.

Unfortunately, because too many Class Members elected to opt out of the Prior Settlement and keep their CalPERS LTC policies, the Prior Settlement was terminated on April 20, 2022. However, a new proposed class action settlement (the “New Settlement,” "Settlement," or “Second Settlement”) has been reached between CalPERS and Plaintiffs on behalf of themselves and the proposed Settlement Class. This is a new settlement with different terms and conditions.

The New 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 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 on the Frequently Asked Questions page of this website.

Please note that Individual Settlement Award Letters were sent via mail and email (where available) to all Settlement Class Members, and those letters identified the Initial Settlement Category into which you fall and the amount of benefit that you may be entitled to receive from the Settlement based on your Policyholder status as of December 31, 2022. Please carefully read the Notice you received, and, if required, respond to the Notice. Any selection you made with respect to the Prior Settlement will not be carried over to the New Settlement.

If you did not get notice and believe you are part of this Settlement, please contact the Settlement Administrator at info@CalpersLTCClassAction.com.

Overview of Your Legal Rights and Options
Settlement CategoryLegal RightSummaryDue Date
A, B, or C Complete the Claim Form

Subject to the Court’s final approval of the terms of the New Settlement, you will be entitled to receive a refund of 80% 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 below, 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.

OR, you can retain your CalPERS LTC Insurance Policy and receive $1,000. Additionally, if you elect this option, your current premium rate cannot be increased prior to November 1, 2024. If you are a “Category A, B or C” Class Member and do not respond to this Notice then you will be deemed to have selected Option 2 to retain your CalPERS LTC Insurance Policy and receive the $1,000 cash payment and the benefit of the temporary premium freeze.

Importantly, to receive either of the two options under Category A you MUST be a Current Policyholder—and continue paying premiums—until the New Settlement becomes final and effective. Your right to receive the benefits 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 17.

June 6, 2023 (Passed)
D, or E Complete the Lapse Claim Form

In order to receive your Settlement award, you must have submitted a Lapse Claim Form by June 6, 2023. If you did not submit a Lapse Claim Form, you will NOT receive any benefits from the New Settlement.

June 6, 2023 (Passed)
All Categories Exclude Yourself

If you submitted a Request for Exclusion, you will NOT receive any Settlement payment and will not release any Claims you may have against CalPERS. You will then need to retain your own attorney if you wish to pursue those Claims. (see FAQ 25)

June 6, 2023 (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 33). You may not request exclusion and also object to the Settlement. June 6, 2023 (Passed)
All Categories Go to a Hearing The Court will hold a “Final Fairness Hearing” on July 26, 2023 at 11:00 a.m. to decide whether to approve the Settlement. You may attend and ask to speak at the Final Fairness Hearing, but you do not have to. July 26, 2023, at 11:00 a.m.
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.