Wedding v. CalPERS - Frequently Asked Questions

Why did I get the Notice?
Defendant's records show that you were a California citizen in February 2013, that you hold or held an LTC Policy issued by CalPERS that included automatic inflation protection benefits, and that you were subject to an 85% premium increase announced by CalPERS in 2013. The Notice explains the Action, the New Settlement, and your legal rights.

The lawsuit is known as Holly Wedding et al. v. California Public Employees’ Retirement System et al., and is pending in the Superior Court of California for the County of Los Angeles, Case No. BC517444 (the “Action"). Holly Wedding, Richard Lodyga, and Eileen Lodyga are the Plaintiffs and Class Representatives, and they sued CalPERS and others who are called the Defendants.

To view a copy of the Class Notice, click here.

Back to Top
What is the Action about?
In 1995, CalPERS began selling LTC policies to Class Members. In February 2013, CalPERS announced it was increasing the premiums for certain policies sold between 1995 and 2004 by 85% and that these premium increases would be implemented in 2015 and 2016. The lawsuit generally alleges that it was improper for CalPERS to impose this 85% premium increase. CalPERS denies that it did anything improper and denies that anything it may have done caused injuries to the Class.

Back to Top
Why is this lawsuit a class action?
In a class action, one or more people called the "Plaintiff" sues on behalf of people who have similar alleged claims. All of these people are a "class" or "class members." The Court resolves the issues for all class members, except for those who exclude themselves from the class. On January 28, 2016, the Honorable Jane Johnson issued an order certifying a class in this case. Thereafter, on March 10, 2023, the Honorable William F. Highberger issued an Order conditionally certifying this Settlement Class for purposes of this Settlement only.

Back to Top
Why is there a settlement?
After the Prior Settlement was terminated, Class Counsel and CalPERS immediately began negotiations to see if a new settlement could be reached, while at the same time preparing to bring this case to trial.

The New Settlement allows Settlement Class Members who want to exit the program and give up their LTC Policies to receive an 80% premium refund, less benefits paid. However, unlike the Prior Settlement, Class Members who wish to retain their Policies can do so. Class Members who choose to keep their policies will receive a $1,000 cash payment as well as a moratorium on premium increases through November 1, 2024. The New Settlement will also provide benefits to those who died or let their policies lapse. The New Settlement balances the interests of all Settlement Class Members by providing significant benefits to those who wish to leave the program while at the same time ensuring that the CalPERS LTC program is able to meet its ongoing and future financial obligations for those who want to keep their policies. Plaintiffs and their lawyers believe the New Settlement achieves the above goals and is in the best interests of all Settlement Class Members.

Back to Top
Who is in the Settlement Class?
“Settlement Class Members” or the “Settlement Class” means all persons who meet all the following criteria:
1. Purchased an LTC1 or LTC2 policy between 1995 and 2004;
2. Were citizens of California in February 2013;
3. In 2013 their policies included automatic inflation protection benefits; and
4. They were subjected to the 85% premium increase announced by CalPERS in 2013 and implemented in 2015 and 2016.
Policyholders who converted their policies to LTC3 policies prior to the implementation of the Challenged Increase are not included in the Settlement Class, even if the conversion occurred after the 85% premium increase was approved by the CalPERS Board in October 2012. The Settlement Class also does not include those individuals who opted out of the Class certified by the Court on January 28, 2016. However, to be clear, if you opted out of the Prior Settlement in 2021, that opt out is no longer operative since the Prior Settlement was terminated, and you are still a Settlement Class Member in the New Settlement. If you do not want to receive any benefits from the New Settlement you must opt out again by submitting a valid request for exclusion.

If you are still unsure if you are part of the Settlement Class, please contact the Settlement Administrator at 1-866-217-8056 (Toll-Free).

Back to Top
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 this criteria but did not receive a Notice, you can contact the Settlement Administrator by sending an email to info@CalpersLTCClassAction.com.

Back to Top
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 as to 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”), the case will continue on your behalf and Class Counsel intends to appeal the court ruling against this group of class members.

Back to Top
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. It 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.

Back to Top
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.

Back to Top

The Settlement Categories

What are the Settlement Categories?

Settlement Class Members are broken out into categories based upon factors such as whether someone currently has a Policy or let it lapse, is On Claim or not On Claim, paid premiums after a certain increase, or is living or deceased. These categories dictate what benefits Settlement Class Members will receive and the type of action they must take, if any, to receive them. However, it is important to understand that the relief you are entitled to receive will be based on the category you are in when the settlement becomes Final. If your Category changes at any time between January 2023 and the date the settlement becomes Final, you will receive notice of this and be given an opportunity to dispute the change. The categories and options for each are as follows:

Final Settlement Category	Summary
Category A: Participating Settlement Class Members who are Current Policyholders and who are not On Claim on the Final Settlement Date	Participating Settlement Class Members who, on the Final Settlement Date, are Current Policyholders and who are not On Claim shall have the following options: Option 1: Receive a refund equivalent to 80% of all premiums paid to CalPERS for their CalPERS LTC Policy from the inception of the policy through the Final Settlement Date, less any benefits paid under the CalPERS LTC Policy. Any Participating Settlement Class Member who elects Option 1 shall receive a minimum payment of no less than $8,000. All Participating Settlement Class Members who select Option 1 shall Surrender their CalPERS LTC Policy upon payment of this refund. Option 2: Participating Settlement Class Members who elect Option 2 shall receive a $1,000 cash payment and shall retain their Policies and all benefits due thereunder. In addition, CalPERS has agreed to a moratorium on any additional premium increases through November 1, 2024. Any Participating Settlement Class Member who does not make an election shall be deemed to have selected Option 2. IMPORTANT: To maintain your status in Category A and participate in the Settlement in this category, you MUST continue to pay premiums to CalPERS through the date the New Settlement becomes Final.
Category B: Participating Settlement Class Members who are On Claim both on the Notice Date and the Final Settlement Date and who paid the Challenged Increase	Participating Settlement Class Members who paid any part of the Challenged Increase and are On Claim both on the Notice Date and on the Final Settlement Date, shall have the following options: Option 1: Receive a refund equivalent to 80% of all premiums paid to CalPERS for their CalPERS LTC Policy from the inception of the Policy through the Final Settlement Date, less any benefits paid under the CalPERS LTC Policy. Any Participating Settlement Class Member who elects Option 1 shall receive a minimum payment of no less than $8,000. All Participating Settlement Class Members who select Option 1 shall Surrender their CalPERS LTC Policy upon payment of this refund. Option 2: Participating Settlement Class Members who elect Option 2 shall receive a $1,000 cash payment and shall retain their Policies and all benefits due thereunder. Any Participating Settlement Class Member who does not make an election shall be deemed to have selected Option 2.
Category C: Participating Settlement Class Members who are On Claim both on the Notice Date and the Final Settlement Date and who reduced benefits as a result of the Challenged Increase	Participating Settlement Class Members who are On Claim on both the Notice Date and the Final Settlement Date, but reduced their benefits as a result of the Challenged Increase before going On Claim, shall have the following options: Option 1: Receive a refund equivalent to 80% of all premiums paid to CalPERS for their CalPERS LTC Policy from the inception of the Policy through the Final Settlement Date, less any benefits paid under the CalPERS LTC Policy. Any Participating Settlement Class Member who elects Option 1 shall receive a minimum payment of no less than $8,000. All Participating Settlement Class Members who select Option 1 shall Surrender their CalPERS LTC Policy upon payment of this refund. Option 2: Participating Settlement Class Members who elect Option 2 shall receive a $1,000 cash payment and shall retain their Policies and all benefits due thereunder. Any Participating Settlement Class Member who does not make an election shall be deemed to have selected Option 2.
Category D: Participating Settlement Class Members who let their CalPERs LTC Policy Lapse between February 1, 2013, and December 31, 2014	Participating Settlement Class Members who let their CalPERS LTC Policy Lapse between February 1, 2013, and December 31, 2014, and who submitted a timely Lapse Claim Form stating under penalty of perjury that they let their Policy Lapse as a result of the Challenged Increase, shall receive a refund equivalent to 40% of all premiums paid to CalPERS for their CalPERS LTC Policy from the inception of their CalPERS LTC Policy through the date their CalPERS LTC Policy Lapsed, less any amounts paid in benefits under their CalPERS LTC Policy.
Category E: Participating Settlement Class Members who let their CalPERs LTC Policy Lapse between January 1, 2015, and the Final Settlement Date	Participating Settlement Class Members who let their CalPERS LTC Policy Lapse between January 1, 2015, and the Final Settlement Date, and who submitted a timely Lapse Claim Form stating under penalty of perjury that they let their CalPERS LTC Policy Lapse as a result of the Challenged Increase, will receive 80% of all Additional Premiums paid, or $2,000, whichever is greater.
Category F: Participating Settlement Class Members who passed away after February 1, 2013, and before the Final Settlement Date, and who reduced benefits as a result of the Challenged Increase	The estates of Participating Settlement Class Members who (1) died after February 1, 2013, and before the Final Settlement Date, (2) were Current Policyholders or were On Claim at the time of their death, and (3) reduced their benefits as a result of the Challenged Increase, shall receive 80% of all Additional Premiums paid or, $2,000, whichever is greater.
Category G: Participating Settlement Class Members who passed away after February 1, 2013, and before the Final Settlement Date, and who paid the Challenged Increase and never reduced benefits in response to the Challenged Increase	The estates of Participating Settlement Class Members who (1) died after February 1, 2013, and before the Final Settlement Date, (2) were Current Policyholders or were On Claim at the time of their death, (3) paid the Challenged Increase, and (4) never reduced their benefits as a result of the Challenged Increase, shall receive 80% of all Additional Premiums paid.
Category H: Participating Settlement Class Members who paid the Challenged Increase, went On Claim, and exhausted their benefits before the Final Settlement Date	Participating Settlement Class Members who paid the Challenged Increase, who went On Claim at any time before the Final Settlement Date, and exhausted their benefits before the Final Settlement Date, shall receive a refund of 80% of all Additional Premiums paid.
Category I: Participating Settlement Class Members who are Current Policyholders who were not On Claim as of the Notice Date but are On Claim as of the Final Settlement Date	Participating Settlement Class Members who are Current Policyholders, who were not On Claim as of the Notice Date, but are On Claim as of the Final Settlement Date, shall receive a Late Election Form giving them the following options: Option 1: Receive a refund equivalent to 80% of all premiums paid to CalPERS for their CalPERS LTC Policy from the inception of the policy through the Final Settlement Date, less any benefits paid under the CalPERS LTC Policy. Any Participating Settlement Class Member who elects Option 1 shall receive a minimum payment of no less than $8,000. All Participating Settlement Class Members who select Option 1 shall Surrender their CalPERS LTC Policy upon payment of this refund. Option 2: Participating Settlement Class Members who elect Option 2 shall receive a cash payment of $1,000 and shall retain their Policies and all benefits due thereunder. Any Participating Settlement Class Members who do not submit a Late Election Form shall be deemed to have selected Option 2.

For more information about these Categories, please see the Class Notice. At this time there is no way to dispute your award or categorization. An opportunity to dispute your categorization will be provided after the Settlement becomes Final and Settlement Categorizations and Awards have been finalized.

The category listed on my Award Letter is wrong. What should I do?
The information used to create the Award Letter was based on CalPERS’ data as of December 31, 2022. However, your final category and the amount you receive from the Settlement will be based on your Policyholder status on the date the Settlement becomes Final. If the Settlement is approved by the Court at the Fairness Hearing on July 26, 2023, the Settlement is expected to become Final in late-September 2023. When the Settlement becomes Final you will receive a notice that provides you with your final category and the amount you are to receive from the Settlement based on your Policyholder status and premium payments as of the Final Settlement Date. If for some reason the category or amount you are being paid under the Settlement is wrong, you can dispute the determination at that time.

Back to Top
What happens if I drop my Policy before the Settlement becomes Final?
Under the Settlement, your potential award payment is determined by the category you fall into on the date the Settlement becomes Final. If approved by the Court at the Fairness Hearing in late-July, the Settlement is expected to become Final in late-September 2023. If you decide to drop your Policy before the Settlement becomes Final, you would move from Category A to Category E. Class Members in Category E are not entitled to an 80% premium refund. Therefore, if you want a premium refund from the Settlement, it is important that you continue paying premiums until the Settlement becomes Final.

Back to Top
What if I reduce my coverage before the Settlement becomes Final?
Under the Settlement, your potential award payment is determined by the category you fall into on the date the Settlement becomes Final. If approved by the Court at the Fairness Hearing in late-July, the Settlement is expected to become Final in late-September 2023. As long as you are a current policyholder and paying premiums when the settlement becomes Final, you will fall into Category A whether or not you reduced your benefits. Therefore, reducing your benefits between now and the date the Settlement becomes Final will not impact your ability to receive the benefits available to Class Members in Category A. This is why it is important that you continue paying premiums until the Settlement becomes Final so that you remain in Category A.

Back to Top
What if I was in Category A and elected a premium refund but must go On Claim before the Settlement becomes Final?
Under the Settlement, your final Settlement award is determined by your Policyholder status and the category you fall into on the date the Settlement becomes Final. If approved by the Court at the Fairness Hearing in late-July, the Settlement is expected to become Final in late-September 2023.

If you were in Category A when you received the Settlement Notice and elected to surrender your Policy and receive a premium refund (Option 1), but have to go On Claim before the Settlement becomes Final, you will receive an Election Form giving you the opportunity to reverse your prior election and keep your Policy (Option 2). In only very rare circumstances would it make sense for a Class Member who has gone On Claim to surrender their Policy and seek a premium refund. Therefore, if you are considering this Option, we strongly recommend that you contact Class Counsel (see FAQ 31) to discuss this decision.

Back to Top
What if a Settlement Class Member dies before the Settlement becomes Final?
Under the Settlement, final Settlement payment is determined by the Policyholder status and the category a Class Member falls into on the date the Settlement becomes Final. If approved by the Court at the Fairness Hearing in late-July, the Settlement is expected to become Final in late-September 2023.

Therefore, if a Settlement Class Member dies before the Settlement becomes Final, they will fall into Categories F or G, and their estate will receive the awards available to the Class Members who fall into those categories.

Back to Top
My Award Letter says I am in Category A. What happens if I never submit a claim selecting either Option 1 or 2?
If you do not fill out the online Claim Form selecting either Option 1 or 2, it will be presumed that you want to keep your Policy and want to select Option 2 and you will retain your policy and receive $1,000.

Back to Top

The Settlement Benefits

What does the Settlement provide?
Under the terms of the New Settlement, Defendant will pay an amount that is equal to benefits payable to all Settlement Class Members who elected to receive premium refunds or other cash payments based on the categories described above. If there are no requests for exclusion from the Settlement Class and the Settlement Class Members make the same decisions they made in the Prior Settlement, the total amount to be paid by CalPERS to Class Members is estimated by Plaintiffs’ experts to be $740 million. In addition, CalPERS will also pay up to $80 million in total for attorneys’ fees and expenses, Settlement Administration costs, and Service Awards for the named Plaintiffs.

Included with the Notice Settlement Class Members received in the mail (or by email) is an Individual Award Letter which 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.

For those Settlement Class Members who are in Categories A, B, or C, the amount of the potential premium refund listed in your Award Letter reflects 80% of all premiums you have paid for your CalPERS LTC Policy up to December 31, 2022, less any benefits paid. If you remain in Category A as of the Final Settlement Date, you do not use any benefits under your Policy, and you choose to receive a premium refund in exchange for giving up your CalPERS LTC Policy, you will also receive 80% of all premiums paid after December 31, 2022, so the amount in your Award Letter may increase upon final approval of the New Settlement.

The Settlement becomes "Final" on the latest of the following dates, as applicable: (i) expiration of all potential appeal periods without a filing of a notice of appeal of the final approval order or judgment which would be 60 days after the Court enters the Order granting Final Approval; (ii) final affirmance of the final approval order and judgment by an appellate court as a result of any appeal(s), or (iii) final dismissal or denial of all such appeals (including any petitions for review, rehearing, certiorari, etc.) such that the final approval order and judgment is no longer subject to further judicial review.

If the Settlement is approved by the Court and no appeal is filed, it is expected that the Settlement will become final in late-September 2023 and that payments will be issued in January 2024.

Following distribution of the individual Settlement payments, any uncashed checks issued to Settlement Class Members will be sent to the California State Controller's Unclaimed Money Fund and will include information required by the State Controller to identify the beneficiary of the funds. Any other remaining funds will be distributed to a cy pres recipient (a charitable organization) approved by the Court.

Back to Top
What am I giving up in exchange for the Settlement benefits?
Under the term of the New Settlement, all Settlement Class Members will release CalPERS and all of its respective current, former, and future parents, subsidiaries, predecessors and successors, and affiliated entities, and each of their respective officers, directors, employees, partners, shareholders, and agents, and any other successors, assigns, or legal representatives from any and all breach of contract claims, rights, demands, liabilities, and/or causes of action of every nature and description, whether known or unknown, arising from or related to the 85% premium increase announced in 2013, including, without limitation, statutory, constitutional, contractual, and/or common law claims.

In addition, Settlement Class Members in Categories A, B, or C who elect a premium refund (Option 1), will also be required to surrender their CalPERS LTC Policy and will not be entitled to any benefits from that Policy in the future.

Back to Top
What are the “Released Claims?”
"Released Claims" are the claims that you will be releasing against CalPERS, which means that you cannot sue CalPERS in the future for any claims arising from its 85% rate increase that was announced in 2013 and implemented in 2015 and 2016.

If you are in Categories A, B, or C, and you elected to keep your CalPERS policy by selecting Option 2, you will keep your CalPERS LTC Policy, any benefits available under that Policy, and you will also be entitled to obtain certain benefits from the Settlement. In exchange you will release your claims asserted in the lawsuit against CalPERS associated with its decision to increase premiums in 2013.

The Settlement Agreement at paragraph 1.39 defines Released Claims as the following:

"Released Claims" means any and all Claims that (a) were asserted in the Action, (b) could have been asserted in the Action, (c) hereafter may be asserted, and (d) arise out of or relate to the facts, transactions, events, occurrences, acts, disclosures, statements, omissions, or failures to act concerning the Challenged Increase. Except as to the benefits provided under the terms of this Settlement, "Released Claims" include the denial of benefits to any Settlement Class Member while On Claim if benefits are denied solely because the Settlement Class Member has exhausted their benefits as a result of choosing to reduce their benefits in response to the Challenged Increase. "Released Claims" specifically do not include any claims arising from the denial of benefits to any Settlement Class Member while On Claim for any other reason.

Paragraph 1.39 Settlement Agreement

Back to Top
How do I get a Settlement payment?
Subject to the Court's final approval of the terms of the New Settlement, the submission of the required information, and the New Settlement becoming Final, any Settlement payment Settlement Class Members are entitled to under the Settlement Agreement will automatically be mailed to them to the address on record. In exchange for this Settlement payment, Settlement Class Members will give up their claims in this case.

Please Note: Action is required by Settlement Class Members in Categories A, B, C, D, E, and I. For more information, click here.

Back to Top
When does the Settlement become “Final”?
The Settlement becomes "Final" on the latest of the following dates, as applicable: (i) expiration of all potential appeal periods without a filing of a notice of appeal of the final approval order or judgment which would be 60 days after the Court enters the Order granting Final Approval; (ii) final affirmance of the final approval order and judgment by an appellate court as a result of any appeal(s), or (iii) final dismissal or denial of all such appeals (including any petitions for review, rehearing, certiorari, etc.) such that the final approval order and judgment is no longer subject to further judicial review. If the Settlement is approved by the Court and no appeal is filed, it is expected that the Settlement will become final in late-September 2023 and that payments will be issued in January 2024.

Back to Top
If the Settlement is approved, when will I receive my payment?
Checks will be mailed to eligible Settlement Class Members only after the Court grants "final approval" of the New Settlement. If the Court approves the Settlement after a Fairness Hearing on July 26, 2023 (see FAQ 35), there may be appeals. If there are appeals, resolving them could take some time, so please be patient. If there is an appeal, the settlement website will be updated. If there is no appeal, then the New Settlement will become Final 60 days after the Court approves the New Settlement. Class Counsel estimate that checks will be mailed to eligible Settlement Class Members within 105 days after the New Settlement becomes Final and effective.

Please also be advised that eligible Settlement Class Members will only have 90 days from the date that the checks are issued to cash the check. If the check is not cashed within 90 days of the date of its issuance, the individual Settlement check will be voided. Check reissuance will be available from the Settlement Administrator for a period of up to 90 days thereafter. If Settlement funds are ultimately sent to the State Controller’s Unclaimed Property Fund, eligible Settlement Class Members will be entitled to obtain the funds from the State Controller.

Back to Top
If I chose a premium refund, will that be a taxable event?
Taxes will not be deducted from your Settlement check if you chose a return of premiums paid, and a 1099 will not be issued for this Settlement.

Epiq (the Settlement Administrator) and Plaintiffs' Counsel are not tax lawyers and cannot provide any tax advice to you or the Class Members. The answer is likely dependent on each taxpayer's individual financial and income/deduction reporting circumstances. Each Class Member is encouraged to consult with a tax advisor of their own before deciding how to proceed.

Back to Top
How do I dispute my award amount or categorization?
At this time there is no way to dispute your award or categorization. An opportunity to dispute your categorization will be provided after the Settlement becomes Final and Settlement Categorizations and Awards have been finalized.

Back to Top

Excluding Yourself from the Settlement

How do I exclude myself or “opt out” of the Settlement?
The deadline to exclude yourself or “opt out” of the Settlement passed on June 6, 2023.

Back to Top
If I exclude myself, can I get anything from the Settlement?
No. If you exclude yourself, you will not get anything from the New Settlement. You will not get a Settlement payment and will not be entitled to the temporary freeze on premium increases. If you exclude yourself and wish to proceed with litigation against CalPERS, then you will need to retain your own attorney to pursue litigation against CalPERS.

The deadline to exclude yourself or “opt out” of the Settlement passed on June 6, 2023.

Back to Top
Can I receive a premium refund if I ask to be excluded from the Settlement and then later change my mind and decide to drop my CalPERS LTC Policy?
No. The Settlement is the only way a Policyholder who cancels his or her CalPERS LTC Policy can receive a refund of premiums. If you exclude yourself from the Settlement and then later decide to drop your coverage, CalPERS will not refund your premiums, and you will forfeit all the premiums you paid since you first signed up for your Policy.

Back to Top
If I do not exclude myself from the Settlement, can I sue later?
No. Unless you exclude yourself from the New Settlement, you give up the right to sue the Defendant for the claims in this lawsuit. You must exclude yourself from the Settlement Class to start or continue your own lawsuit with your own lawyer.

Back to Top
Are there any other important factors I should consider when making my decision to accept the Settlement or exclude myself from the Settlement?
Yes. There are several important facts you should consider in making your decision. The actuaries hired by Class Counsel have thoroughly examined the claims history of the CalPERS LTC Program over the past 25 years. Based on this history, the actuaries estimate that only 41% of current policyholders will ever use their LTC Insurance. This information is important for you to consider in weighing the benefit of receiving a refund of premiums paid to CalPERS or deciding to remain with the CalPERS LTC Program and continue paying premiums.

In addition, you should be aware of the difficulties that have been presented in this hard-fought litigation, which has lasted nearly 10 years. These include significant sums expended in costs and a considerable narrowing of the claims over the lifespan on this litigation. Were you to exclude yourself from the Settlement, you will need to retain your own lawyer and will face many of these same difficulties in further litigating against CalPERS.

Back to Top
What if too many people decide to exclude themselves from the Settlement?
Under the terms of the New Settlement, CalPERS has the right to walk away from the Settlement if more than 1% of the Class decides to exclude themselves from the Settlement. If this occurs, the lawsuit will continue as if there was no Settlement. This is another reason why it is critical that you make any decisions concerning your LTC Insurance as if there was no New Settlement.

Back to Top

The Lawyers Representing You

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

How will the costs of the lawsuit and the Settlement be paid?
In addition to the refunds and other relief provided to Class Members, CalPERS has also agreed as part of the New Settlement to separately pay no more than $80 million that will be used to pay Class Counsels’ attorneys' fees, unreimbursed litigation expenses incurred by Class Counsel that are no more than $2.5 million, Settlement Administration costs for both the Prior Settlement and this Settlement (estimated to be $5 million), and Service Awards for the Plaintiffs.

A request will be made to the Court for approval of a total amount not to exceed $85,000 for Service Awards to be paid from the award of fees and costs. This payment is for the service Plaintiffs have provided to the Class in bringing this lawsuit and for taking on the risk of litigation, and for the extensive assistance they provided throughout the course of the Action. The Court may award less than the amount requested for Service Awards and it may award less in attorneys’ fees and expenses.

Importantly, under no circumstances will the amounts awarded for attorneys’ fees and costs or the Service Awards or Settlement Administration costs reduce the payments to be made to Settlement Class Members under the New Settlement.

Back to Top

Objecting to the Settlement

How do I object to the Settlement?
The deadline to object to the Settlement passed on June 6, 2023.

Back to Top
What is the difference between objecting and asking to be excluded?
Objecting is simply telling the Court you do not like something about the Settlement. If you object, you are still a part of the Settlement Class. Excluding yourself is telling the Court that you do not want to be part of the Settlement Class.

Back to Top

The Court’s Final Fairness Hearing

When and where will the Court decide whether to approve the Settlement?
The Court will hold a “Final Fairness Hearing” on July 26, 2023, at 11:00 a.m., in Department 10 at the Superior Court of California for the County of Los Angeles, located at 312 N. Spring St., Los Angeles, CA 90012. The hearing may be moved to a different date and/or time without additional notice but any change of date or time will be posted on the Settlement website. At this hearing, the Court will consider whether the New Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will also decide how much to pay Class Counsel for their fees and costs, and the amount in Service Awards for Plaintiffs. After the hearing, the Court will decide whether to grant final approval to the New Settlement. It is unknown how long these decisions will take.

Back to Top
Do I have to come to the hearing?
No. Class Counsel will answer any questions the Court may have. But you are welcome to come at your own expense. If you send an objection, you do not have to come to Court to talk about it; as long as you have mailed your written objection on time, the Court will consider it. You may also pay (at your own expense) another lawyer to attend for you, but it is not required.

Back to Top
May I speak at the hearing?
If you wish to appear at the Final Fairness Hearing and orally present your objection to the Court, you should include in your written objection that you intend to appear at the Final Fairness Hearing. Notwithstanding, in the discretion of the Court, the objection of any Settlement Class Member who has not requested exclusion, or person purporting to object on behalf of any Settlement Class Member, may be received or considered by the Court at the Final Fairness Hearing, regardless of whether a written notice of objection is mailed to the Settlement Administrator.

Back to Top
Is there a chance the Settlement may not go forward?
Yes. Like the Prior Settlement, under the terms of the New Settlement, CalPERS has the option to terminate the Settlement. CalPERS may exercise this option if more than 1% of Class Members exclude themselves from the New Settlement. Also, there is a possibility that the Court may not grant Final Approval of the New Settlement. If either of these events occurs, the litigation against CalPERS will continue.

Since there is the possibility that the New Settlement may not go forward, it is critical that you make any decisions concerning your LTC Insurance as if there was no New Settlement.

Back to Top

If You Do Nothing

What happens if I do nothing at all?
If you do nothing and you are in Categories A, B, C, F, G, H, or I, you will receive the benefits provided for in the New Settlement in accordance with your Final Settlement Category as described in FAQ 10, and you will be bound by the release of claims, subject to the Court’s final approval of the terms of the New Settlement. If you are in Categories A, B, C, or I and do nothing, it will be presumed that you have selected Option 2 (keeping your LTC Policy and receiving the $1,000 payment and temporary rate freeze) for each of those Categories. If you are in Category D or E, you must submit your Lapse Claim Form to receive any benefits under the New Settlement.

Back to Top

Getting More Information

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.

Back to Top
How do I update my Address?
Settlement payments you are entitled to under the Settlement Agreement will be sent to the address where the Class Notice was mailed to. It is your responsibility to update 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

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 relates to communications and mailings in conjunction with this Settlement. These updates are not provided to CalPERS or the Long-Term Care Group.

Back to Top

The Previous Settlement

Why was the Prior Settlement terminated?
Under Section 19.1 of the Prior 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 in order to keep their CalPERS LTC policies, the Settlement was terminated.

Back to Top
Why is there a “New Settlement”?
After the Prior Settlement was terminated, Class Counsel and CalPERS immediately began negotiations to see if a new settlement could be reached, while at the same time preparing to bring this case to trial. Class Counsel requested a trial date on the earliest possible date it could be scheduled. The Court set the trial for May 15, 2023.

The New Settlement allows Settlement Class Members who want to exit the program and give up their policies to receive an 80% premium refund (less benefits received), or, for those who wish to retain their policies, the option of receiving $1,000 cash payments as well as a moratorium on premium increases until at least November 1, 2024. The New Settlement will also provide benefits to those who lapsed or died. The New Settlement balances the interests of all Settlement Class Members by providing significant benefits to those who wish to leave (or have left) the program while at the same time ensuring that the CalPERS LTC program is able to meet its ongoing and future financial obligations.

Plaintiffs and their lawyers believe the New Settlement achieves the above goals and is in the best interests of all Settlement Class Members.

Back to Top
If I opted out of the Prior Settlement, does that mean I am no longer a part of the case?
No. You opted out of the Prior Settlement but not the case. Since the Prior Settlement did not go forward, that election no longer applies and will not affect your ability to participate in the New Settlement or any future settlement or judgment in the case.

Back to Top
If I returned a form in the Prior Settlement, am I bound by the choices I made then?
No. Since the Prior Settlement did not go forward, any elections you made for that Settlement no longer apply and will not affect your options in the New Settlement.

Back to Top