New York City Retirement Systems has chosen State Street Bank & Trust Co., as its master custodian, confirmed Connor Osetek, a spokesman for City Comptroller John Liu.
Mr. Liu serves as investment adviser to, and custodian and trustee of, the five public pension funds that make up the $137 billion retirement system.
“Pending successful contract negotiations,” State Street would replace Bank of New York Mellon, whose contract expires in March 2014, Mr. Osetek said in an interview. BNY Mellon has held the contract since 2004.
Mr. Osetek declined to say if BNY Mellon had been invited to re-bid. The new contract will run for nine years, he said.
“In addition to being the lowest cost proposal, State Street's submission offers a valuable combination of services that will increase audit transparency and modernize reconciliation capabilities for the more than 2,000 accounts held by” the five city pension funds, according to a news release issued by Mr. Liu's office on Friday.
The five city pension funds are the Teachers' Retirement System of the City of New York, New York City Employees Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System of the City of New York.