CalSTRS hired ING U.S. Retirement Solutions as a third-party administrator and record keeper for the retirement system's 403(b) and 457(b) supplementary saving program.
ING will replace TIAA-CREF when its contract expires Sept. 30, 2015. The new contract will last eight years.
The two plans have a combined $559 million in assets. CalSTRS staff had recommended hiring ING last month.
Separately, Pension Consulting Alliance will retain its lead role as investment consultant to the $180.8 billion California State Teachers' Retirement System, West Sacramento, investment committee members announced April 4.
In December 2013, the investment committee approved a new arrangement that would have PCA, which has held the CalSTRS contract since 1989, share consulting duties with Meketa Investment Group.
Under the new arrangement announced April 4, PCA will continue in its role as primary investment consultant while Meketa will act as co-consultant. PCA's duties will include comprehensive general investment consulting, while Meketa will do research and analysis on two major investment committee projects each year and monitor the pension fund's strategic asset allocation.
The new contract will go for three years and can be extended for an additional two years.
The amount of compensation for the firms under the split arrangement will be negotiated with investment staff and still needs to be approved by the investment committee, said CalSTRS spokesman Ricardo Duran in a phone interview.
