The lawyers involved in the settlement of the CalPERS Long-Term Care Program class action lawsuit have been unable to find a California-licensed insurance provider willing to provide a substitute Long-Term Care policy for those class members who chose Option 2 in the settlement agreement.
Option 2 would have allowed eligible policyholders to use their CalPERS LTC Program premium refunds to purchase a replacement LTC policy. Brokers working on behalf of the lawyers approached more than 90 insurance companies about the possibility of offering a replacement policy. However, all of these companies declined to offer such a policy.
As a result, CalPERS LTC Program members who initially chose Option 2 will have to elect by January 28, 2022 either Option 1 - surrendering their CalPERS LTC policy in exchange for a full refund of all premiums paid (less any benefits paid), or Option 3 - requesting exclusion from the Settlement and retaining your CalPERS LTC Policy.
If you are a CSU-ERFSA member who initially chose Option 2, we recommend that before you elect Option 1 or Option 3 you should speak with a representative from our benefits partner, AMBA, to see if any of the LTC options they provide would work in your individual situation. Here is the contact information for our California AMBA representative: