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California pension fund agrees to $2.7 billion lawsuit deal

Gavel (FILE)
Posted at 12:25 PM, Jul 14, 2021
and last updated 2021-07-14 15:25:58-04

LOS ANGELES (AP) — The United States' largest public pension fund has agreed to pay up to $2.7 billion to refund policyholders hit with huge hikes in their premiums.

The deal announced Tuesday involves the California Public Employees’ Retirement System, or CalPERS. It still needs court approval.

The agreement would settle a suit filed in 2013 over 85% fee hikes that were imposed on nearly 80,000 people who had insurance policies covering long-term nursing care.

CalPERS said it needed the hikes to keep the expensive plans solvent.