CalPERS Long Term Care Lawsuit Wins Class Certification

Class certification has been granted in a lawsuit alleging the California Public Employees Retirement System, commonly known as CalPERS, improperly imposed an 85 percent increase on certain long term care policies issued through their insurance program.

Specifically, the CalPERS class action lawsuit, claims that in Oct. 2012, CalPERS adopted an 85 percent rate increase for certain policy holders that was allegedly necessitated by investment losses in the LTC Program and CalPERS’ decision to change its investment strategy.

Plaintiff Elma Sanchez, who brought forth the class action lawsuit, along with three other named plaintiffs assert that under the contracts between CalPERS and Class Members, CalPERS is not permitted to increase premiums for these reasons.

The plaintiffs further contend that the 85 percent premium increase is a breach of CalPERS fiduciary duty.

In addition, the complaint alleges that Towers Watson negligently performed actuarial services in and before 2004 relating to the LTC program and this also caused the 85 percent increase adopted by CalPERS in Oct. 2012.

The plaintiffs are seeking a recovery with respect to the 85 percent rate increase that was implemented in two phases in 2015 and 2016 only and not for earlier premium increases.

Both CalPERS and Towers Watson deny that they have done anything improper to cause the injuries claimed by the plaintiffs.

To be eligible to participate in the Class, you must be a California citizen who purchased a long-term care policy from CalPERS between 1995 and 2004 and were subject to the 85 percent rate premium increase announced to policyholders in or around February 2013, and implemented beginning in 2015.

This includes LTCI policies sold from 1995-2002 and LTC2 policies sold from 2003-2004.

However, you are not eligible to be part of the Class if your policy went into claim and your premium payments were suspended prior to the increase and has remained in claim ever since.

Those Class Members who decide to “opt out” of the Class, must send a letter with your name, present address and a simple statement that you wish to be excluded from this lawsuit to: Sanchez v.CalPERS Class Action, c/o Heffler Claims Group, PO Box 58460, Philadelphia, PA 19102.

Opt out letters must be postmarked by Oct. 14, 2016.

A Trial Readiness Conference has been scheduled for Sept. 18, 2017 and a Trial Date has been set for Oct. 2, 2017.

If you have any questions, contact Heffler Claims Group toll free at 1-844-528-0188 or visit www.CalPERSLTCClassAction.com.

The Class is represented by Michael J. Bidart and Gregory L. Bentley of Shernoff Bidart Echeverria Bentley; Stuart C. Talley of Kershaw, Cook & Talley PC; and Gretchen M. Nelson of Nelson & Fraenkel LLP.

The CalPERS Long Term Care Class Action Lawsuit is Sanchez, et al. v. California Public Employees’ Retirement Systems, et al., Case No. BC517444, in the Superior Court of the State of California, County of Los Angeles.