The California Public Employees’ Retirement System (CalPERS) was created to protect public employees after their years of service were completed. However, over the last few years, as the entire state of California has dealt with budgetary concerns, CalPERS has made some sweeping reforms that have led to widespread criticism. Most recently, the organization chose to raise long-term care insurance rates by 85% by the year 2015. The not inconsiderable hike has shaken the public employee community and resulted in a lawsuit.
In a lawsuit filed by multiple long-term insurance policyholders and their California labor law attorneys, CalPERS is being charged with misleading public employees about the fiscal stability of their program. Employment attorneys, and lawyers focused on medical retirement cases, point to CalPERS lack of communication with policyholders regarding just how under-funded the program actually was, and how this lack of funds would eventually trickle down to the policyholders themselves.
While CalPERS has been offering alternative plans to policyholders, and is making an effort to create more financial stability, for many retirees it may prove to be too little, too late.
Faunce, Singer & Oatman
Fighting for the Rights of Disabled Public Employees