CalPERS staff proposed creating a pool of up to 10 real estate consultants to back up primary consultant Pension Consulting Alliance in the event of a conflict of interest or a situation in which specialized knowledge is required. If approved on May 12 by the investment committee of the $131 billion California Public Employees Retirement System, Sacramento, staff plans to issue an RFP in July.
Recently, PCA recommended a real estate investment in which the consultant had a potential conflict. Through an interagency agreement with the $90 billion California State Teachers Retirement System, Sacramento, which was also reviewing the deal, CalPERS was able to use other services to vet the investment. CalPERS staff also wants the ability to hire special consultants on a one-time basis to evaluate unusual investment opportunities such as vineyards and water rights.
Separately, CalPERS board, in closed session, unanimously approved a six-month extension for Strategic Investment Management, which runs a $2 billion manager development program for the system.