CalPERS beneficiaries were apparently swayed away from social activism at least in part by a consultant in 2016 who found that the fund's beneficiaries missed up to $3B in investment gains from 2001–14 in the wake of divestiture from tobacco holdings. (Photo: AP)
The California Public Employees' Retirement System will face a June lawsuit over rate hikes on its long-term care insurance plan, under a new board president.
According to a report in the Sacramento Bee, the class-action lawsuit could end up costing CalPERS as much as a billion dollars, over whether the pension fund carried out a contract-breaking rate hike on their long-term health care plans five years ago.
Because there are so many people involved—some 122,000 retirees who bought into the insurance plan in question—damages could run as high as $1 billion, the report says.
Continue Reading for Free
Register and gain access to:
- Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Marlene Satter
Marlene Y. Satter has worked in and written about the financial industry for decades.
