CalSTRS Seeks New Penalties & Interest System
Vendor software, hardware and support for P&I system is foundation for accounting system replacement.
WEST SACRAMENTO, CA – The California State Teachers’ Retirement System (CalSTRS) is seeking a vendor to provide a systematic way to assess penalties and interest when encountering employer reporting issues.
The final filing date for proposals is May 24, 2010, with the successful vendor selection expected by mid-summer. The Request for Proposal is available for viewing on the CalSTRS website at www.calstrs.com/rfp.
The selected firm will help CalSTRS assess penalties and interest to employers for late payments, late reporting and incorrect or late adjustments associated with the defined benefit and cash balance programs.
Besides bidding on the initial penalties and interest system implementation, the successful bidder is required to provide a high-level, non-binding bid and proposed solutions for a larger, replacement accounting system. CalSTRS may pursue both elements of the bid with the successful P&I system vendor or return to the market for an accounting system replacement vendor.
Features of the proposed penalties and interest system should address some of the following needs:
- The solution should feature a robust commercial off the shelf system as its central component.
- The solution should provide maximum flexibility throughout its life in ways that allow CalSTRS to apply all vendor-supplied upgrades.
- The system should employ a relatively small number of components that perform a set of cohesive functions.
- The new system should minimize changes to existing CalSTRS systems and be easily adaptable to meet future CalSTRS accounting needs.
- The system should be designed and implemented so as to avoid the need to customize the underlying code.
The California State Teachers’ Retirement System, with a portfolio valued at $138 billion, is the second largest public pension fund in the United States. It administers retirement, disability and survivor benefits for California’s 848,000 public school educators and their families from the state’s 1,400 school districts, county offices of education and community college districts.