CalPERS (California Public Employees' Retirement System)

CalPERS is the California Public Employees' Retirement System and a retirement fund that provides benefits to members of the public sector in California. It is the largest public pension fund in the United States and is administered by the California State Treasury.

CalPERS is NOT an insurance company, nor is it regulated by any state's insurance department. CalPERS manages the pension and health benefits for California public employees, retirees, and their families.

The CalPERS Long-Term Care Program had been a voluntary benefit that eligible state employees and family members could purchase. The agency is not-for-profit and entirely funded by participant premiums and investment returns. The State of California did not contribute to any portion of the premium. 

Discontinued Long-Term Care Insurance

CalPERS no longer offers Long-Term Care Insurance; however, policies are still paying claims. There are several Long-Term Care Insurance options available for those in California; see below for options.

Lawsuit and Class Action Settlement

The class-action lawsuit Holly Wedding et al. v. California Public Employees’ Retirement System (CalPERS) challenged large premium increases imposed on participants in the CalPERS Long-Term Care Program. The case began in 2011 after policyholders alleged that CalPERS engaged in unfair and deceptive practices, breached insurance contracts, and violated fiduciary duties by dramatically increasing premiums on policies that many members believed would remain relatively stable.

Final Settlement

The second class-action settlement was granted final approval by the Los Angeles County Superior Court on July 28, 2023, resolving the litigation. The settlement became final on September 28, 2023, after the appeals period expired.

Payments and notices to class members began in early 2024.

Key Terms of the Settlement

The agreement provided policyholders several options:

• Cancel the policy and receive a refund of about 80% of premiums paid (minus benefits received).
• Keep the policy and receive a cash payment along with a temporary freeze on premium increases through October 2024.
• Modify benefits to reduce premiums.

The total settlement value was estimated at about $800 million.

Current Program Status

• The CalPERS Long-Term Care program remains closed to new applicants and only serves existing policyholders.
• The program is self-funded and overseen by the CalPERS board, rather than regulated like private Long-Term Care Insurance sold by commercial insurers.

Related settlement site for certain policyholder groups:

CalPERS Lifetime‑Only Settlement Site

CalPERS Key Features and Benefits

If you have a CalPERS LTC Insurance policy, it offered comprehensive benefits.

• Daily benefits from $150 to $400 (monthly benefit for home care)
• Benefit periods of 1, 2, 3,6, and 10 years, creating a pool of money
• Elimination Periods from 30 to 90 days
• Inflation options include 3% and 5% compounded 
• Restoration of benefits option
• Care advisory services
• Spousal discounts
• Stay at home benefit includes home modifications and other services
• Limited international benefit
• Optional return of premium and survivorship benefits
• Optional plan to qualify under California Partnership Program

Other Options to Consider for LTC Insurance in California

If you are looking for Long-Term Care Insurance, there are many options to consider. These plans are all regulated by the federal government and the State of California. 

Several top-rated insurance companies offer both traditional and partnership-certified plans. The following are the top insurance companies for traditional Long-Term Care Insurance:

• Mutual of Omaha
• Thrivent Financial
• National Guardian Life
• New York Life
• Northwestern Mutual

The top insurance companies for hybrid plans that combine life insurance or an annuity with a qualified rider (those meeting federal guidelines) for long-term health care include:

• Nationwide
• One America
• Brighthouse (not available currently in California but pending)
• Lincoln Financial
• Securian Financial 

Claims

If you own a CalPERS Long-Term Care policy and seek help submitting a claim, LTC NEWS offers free - no-obligation assistance - including help finding quality caregivers and facilities. 

Since most agents have little or no experience in this area, this assistance can be helpful for the entire family - Filing a Long-Term Care Insurance Claim.

Find State-Specific Information

Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information on care providers, and other important information - LTC NEWS Cost of Care Calculator.

Shopping for Long-Term Care Insurance?

When looking for Long-Term Care Insurance, keep in mind that many state and federal regulations affect Long-Term Care Insurance. Each state's insurance department regulates products and premiums.

Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise. Use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning.

When it comes to features and benefits, there are more similarities than differences. However, options and benefits differ from company to company, and premiums can differ by more than 100% when comparing equal benefits.

Comparing LTC Insurance Products

Since your health is a primary consideration in determining your eligibility for coverage, it is always best to start planning before retirement when health is usually better. An experienced Long-Term Care Insurance specialist will ask several questions about your health to provide accurate quotes and professional recommendations.

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.

When comparing Long-Term Care Insurance, you should understand the differences between the various companies. 

There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance; however, the primary features and benefit choices are comparable from company to company. 

Premiums and underwriting criteria vary dramatically between insurance companies. 

State variations may apply.