CalPERS staff recommended issuing an RFP for its pool of general pension consultants backing up Wilshire Associates, the $145 billion pension fund's primary consultant. Contracts with Pension Consulting Alliance, R.V. Kuhns and Strategic Investment Systems expire June 30, 2004. Staff also recommended continuing the fund's contract with Wilshire, which has no fixed duration. If the investment committee of the California Public Employees' Retirement System, Sacramento, approves the move on Aug. 18, an RFP will be issued by Sept. 30, with a Dec. 1 response deadline. Finalists will be interviewed at the committee's March 2004 meeting.
Separately, CalPERS may press Seagate Technology LLC to reincorporate in the United States from the Cayman Islands. A staff memo to the investment committee says officials from CalPERS and from the $100 billion California State Teachers' Retirement System, Sacramento, met with Seagate's general counsel on April 22 to discuss the issue but did not reach an agreement.
Through a Wilshire 2500 index fund, CalPERS owns 0.11% of the outstanding stock of Seagate, which had been taken private in November 2000 but issued an IPO in December. CalPERS indirectly owns 1.55% of Seagate stock through limited partnerships run by Silver Lake Partners and Texas Pacific Group. Silver Lake, TPG and three other firms formed a sponsor group that controls 60.7% of the outstanding shares; that combined stake will slip to 49.3% upon completion of a recently announced secondary offering.