Pennsylvania State Employees' Retirement System, Harrisburg, will search for a third-party administrator for its $4.1 billion 457 plan and $103 million 401(a) plan in 2023 and a general investment consultant in 2024.
The retirement system plans to issue the third-party administrator RFP before the end of 2023, spokeswoman Pamela J. Hile said in an email.
Empower Retirement, the current administrator, will be eligible to rebid, Ms. Hile said.
The board at its meeting Tuesday had approved a new one-year contract for general investment consultant Callan to allow the firm to assist PennSERS in the search for an administrator.
Callan, which provides the services for the retirement system's $33.7 billion defined benefit plan along with the DC plans, currently has a contract set to expire Feb. 25, 2024, with no available extensions.
"Because it is not feasible to use the available methods of procurement to replace the consultant for just one year, the board authorized an extension of the contract for one year," Ms. Hile said. "During 2024, an appropriate procurement process will commence to select a consultant, in accordance with the commonwealth's procurement code."
Ms. Hile said Callan will be eligible to rebid. Timelines for both searches have yet to be determined.