lawsuit against CalPERS and other state and local agencies. In January 2003, CalPERS settled the suit by agreeing to pay $50 million in retroactive benefits and $200 million in future benefits to 1,700 officers; the settlement "was by far the largest in the EEOC's history". Furthermore, CalPERS agreed to not use an age-based formula in the future, which "basically nullifie[d]" the 1980 state law. Death benefits If a CalPERS member dies before retirement, CalPERS may provide death benefits to certain beneficiaries. The benefits can include one-time payments and/or monthly payments, but "depend on the member's age, years of service, job classification, employer's contract with CalPERS, eligible beneficiary, date of separation from employment, and whether or not they were eligible to retire at the time of death". California Employers’ Retiree Benefit Trust Fund The California Employers’ Retiree Benefit Trust Fund was established by CalPERS in March 2007 to provide California public agencies with a cost-efficient, professionally managed investment vehicle for prefunding other post-employment benefits (OPEB) such as retiree health benefits. Prefunding reduces an agency's long-term OPEB liability. Participating agencies can use investment earnings to pay future OPEB liabilities, similar to the CalPERS pension fund in which three out of four dollars paid in retirement benefits come from investment earnings. Health benefits In 1961, the Meyer-Geddes Hospital and Medical Health Care Act was passed, which led to SERS' offering health insurance for state employees beginning in 1962. After the Health Maintenance Organization (HMO) Act of 1973, PERS began to deal with HMOs "to create more unified and standardized health care benefit rates". In 1978, the Meyer-Geddes Act was renamed the "Public Employees' Medical and Hospital Care Act". By the early 1990s, CalPERS received national attention for its attempt at implementing "managed competition," which is the theory that health care costs "can be controlled by forcing health providers to compete with one another under government supervision". As of 1994–1995, CalPERS contracted with 24 health plans for its "over 900,000" members and was able to reduce health insurance premiums by 1% compared with 1993–1994. At the time CalPERS was "called a model for the so-called health alliances" proposed in the 1993 Clinton health care plan. Rates continued to decline by 5.3% in 1996 and 1.4% in 1997, but rose by 2.7% in 1998 and 5.1% in 1999. CalPERS attracted national attention again in the mid-2000s, this time for health maintenance organization rate increases of