However, the money for the settlement won’t come from those assets, which cover pensions, but rather from a separate long-term care fund of nearly $5.5 billion, according to the news release. The fund has suspended new enrollment and plans to implement two more rate increases as early as this November and next year that could nearly double the premium cost, the Sacramento Bee reported.ĬalPERS, which has some $470 billion in assets, provides pension and other retirement benefits to more than 2 million employees of state and local agencies and public schools, retirees and their families. Several policyholders sued in 2013 after CalPERS notified them that their premiums would jump by 85% over two years beginning in 2015.ĬalPERS said it needed to raise the premiums to keep the expensive long-term care policies solvent. The California Public Employees’ Retirement System, or CalPERS, has agreed to settle a class-action lawsuit over the fee hikes that were imposed on nearly 80,000 people who paid for policies to cover the long-term costs of nursing care and included “inflation-protection” coverage, according to a joint news release from CalPERS and the plaintiffs.Ī judge must approve the deal, which could happen sometime next year, according to the release. LOS ANGELES (AP) - The nation’s largest public pension fund has agreed to pay up to $2.7 billion to refund policyholders hit with huge hikes in their premiums, it was announced Tuesday.
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