CalPERS rehired Pension Consulting Alliance, its real estate consultant, for three years.
PCA won the contract over Callan Associates and Courtland Partners, following interviews Monday by the board of the $225.5 billion California Public Employees’ Retirement System, Sacramento. The three firms were rated on a point system based on the interview and a technical review by the staff, said CalPERS spokesman Wayne Davis in an e-mail. PCA received 404 points, followed by Callan with 388 points and Courtland with 380 points, Mr. Davis said.
The exact value of the contract, which is scheduled to start in April, will be the subject of negotiations between CalPERS and PCA, Mr. Davis said. PCA has held the existing contract with CalPERS since 2009, which was for $1.14 million annually, Mr. Davis said. But PCA also earned more than $6 million in the fiscal year ended June 30 from consulting with CalPERS real estate staff, CalPERS records show.
PCA will no longer be able to earn the consulting fees. New rules put in place by the CalPERS board prevent consultants working for the board from also advising staff.