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.

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Marlene Satter

Marlene Y. Satter has worked in and written about the financial industry for decades.

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