California Public Employees' Retirement System staff is asking for a two-year extension on State Street Bank & Trust's master custody contract with the $140 billion system. They made the request partly because of concern about potential year 2000 computer problems.
In a memorandum to the fund's board of trustees, the staff said it intends to do a master custody search that could be completed in late 1999. But, staff members don't want trustees to make a selection until the first quarter of 2000. This will give CalPERS staff time to assess which custodian has the best system that is free from Y2K problems.
State Street's contract is due to expire June 30. Trustees will take up the contract extension and RFP request Monday at their investment committee meeting.
