Lawrence Grossman | Archvest Wealth Advisors | Jul 27th, 2021
Category: Financial News
After eight years of legal battling, CalPERS just this July tentatively settled a class-action lawsuit filed by policyholders who argued that CalPERS had announced premium increases of 85% in 2013, and implemented starting in 2015, contrary to policy contracts. The settlement provides for $2.7 billion to be paid to about 80,000 policyholders who purchased policies with inflation-adjusted benefits during the years 1995-2004 and still had those policies in 2013.
The details of the suit are quite complex, as is the settlement. At this time, information available indicates that such policyholders today should keep in force their policies until the settlement is finalized. Additional information about the settlement will be sent soon to policyholders concerning settlement options available to choose from; please contact us for assistance in making those decisions.