CalPERS Long-Term Care  Insurance Highlights

CalPERS Long-Term Care Insurance Highlights

CalPERS has suspended open enrollment for the Long-Term Care Program they had been offering. 

CalPERS is NOT an insurance company, nor is it regulated by any state's department of insurance. The California Public Employees' Retirement System is a California state agency that 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. 

Class Action Settlement

If you were a California Citizen on February 1, 2013, and purchased a Long-Term Care insurance policy from CalPERS that included inflation protection benefits, you are entitled to participate in a proposed class action settlement.

The settlement involves all plans that included inflation benefits and was subjected to the plan's rate increase announcement. Unlike private Long-Term Care Insurance, which must abide by each state's regulatory rules, the CalPERS's plan, not being private insurance, did not have to get approval for rate increases. The rate increases resulted in lawsuits. 

If you fall into the affected class, you are entitled to participate in a proposed class action settlement.


  • The Settlement provides different benefits to Settlement Class Members depending on their status:
  • Current policyholder NOT on claim
  • Current policyholders ON CLAIM
  • Former policyholder that allowed their policy to LAPSE, exhausted their benefits, or passed-away

The settlement categories and benefits provided by the Settlement for each category are outlined in the notice and on the Frequently Asked Questions page of the CalPERS website.

Individual Settlement Award Forms were mailed or emailed to all affected parties. If you think this settlement impacts you, you can call the settlement administrator at 1-866-217-8056. 

More information on the lawsuit, the settlement, and your rights are available by CLICKING HERE.

The program has had financial issues and has implemented numerous rate increases on policyholders. There is NO guarantee or other financial commitment on the part of the State of California for the CalPERS long-term care program in the event they are unable to meet its obligations.

CalPERS Key Features and Benefits

The plan that was offered was comprehensive.

  • Daily benefit 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

Find the current and future cost of long-term care services where you live, along with the availability of partnership plans and tax incentives - Cost of Care Calculator - Choose Your State | LTC News.

Remember, no insurance agent or financial advisor can give a consumer a special discount which is not available otherwise. 

There are more similarities than differences when it comes to features and benefits. However, options and benefits do vary from company to company. Premiums can vary between companies by over 100% when comparing equal benefits.

Every company has its own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.

Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy. You can find a trusted and qualified specialist representing the major insurance companies that offer these products by clicking here.

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 Specialist will ask you several questions about your health to provide you with 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.

Because Long-Term Care Insurance is custom-designed, you can design the plan to fit your specific needs, concerns, and budget. A specialist will help you develop your plan to address your concerns. Generally, you can design a plan to meet some or all of these common goals:

  • Safeguard income and savings
  • Protect the lifestyle of your spouse/partner
  • Provide options for quality care
  • Reduce the stress and burdens otherwise placed on family members
  • Give your adult children time to be family
  • Provide a legacy for loved ones

State variations may apply.

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