CalPERS' board on Wednesday extended for 18 months the contract of Voya Financial, the third-party administrator for the $1.7 billion CalPERS Supplemental Income Plan, a deferred compensation program, while it conducts a search.
In 2017, the $355.9 billion California Public Employees' Retirement System, Sacramento, launched an RFI to survey the record-keeper/plan administrator marketplace. Voya, the incumbent was one of the qualified vendors. CalPERS is extending Voya's contract through Dec. 31, 2019, to allow it time to issue an RFP to ensure competitive services and fees are offered to the plans' participants.
CalPERS' staff will be responsible for selecting the new third-party administrator. Information on the timing of the RFP was not available.
Separately, the board approved a transfer agreement that results in moving $4.3 million in assets to the $9.7 billion San Bernardino County (Calif.) Employees' Retirement Association. Big Bear City Community Services District asked CalPERS to transfer the value of CalPERS retirement benefits that have been accrued for current active safety participants of the Big Bear district to SBCERA so it could consolidate its pension costs into one retirement system. Under the agreement, liabilities for the transferred participants also will be shifted to SBCERA as of June 23.
In other action, the board adopted a "support, if amended" position for a state bill that would create a new trust fund for state and local public agencies in California to prefund their defined benefit plan contributions. CalPERS would administer and invest the trust fund assets. Current law allows employers to provide only surplus funds to CalPERS to pay down or directly offset their unfunded pension liability or unfunded actuarial accrued liability.