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New allegations about CalPERS long-term care management
Sacramento Bee

Actuaries cautioned CalPERS nearly 20 years ago that its new long-term care insurance fund was set up for failure, an attorney suing on behalf of policyholders says, but officials ignored the warning.

The California Public Employees’ Retirement System denies those and other allegations outlined by Stuart Talley, one of the lawyers who last week asked a Los Angeles court to grant class-action status for a lawsuit against CalPERS. The plaintiffs claim the fund and its business agents misrepresented the insurance in sales pitches and materials, then made poor business decisions that wound up foisting huge rate hikes on tens of thousands of policyholders.