SACRAMENTO -- CalPers is the target of huge class action suit saying the retirement system sold a long term care insurance plan, then slammed policy purchasers with a big rate increase.
CalPers directors approved the rate increases last fall, the hike amounts to an 85 percent increase, set to take effect in 2015.
The giant pension-retirement system says they need to boost the premium on the policies to offset massive losses suffered by the company.
They call the hikes a "stabilizing" of the company. The suit is being filed by a Los Angeles law firm. More than hundred thousand CalPers policy holders are being represented.