CalSTRS Seeks Third Party Administrator for New Deferred Compensation Plan Services
SACRAMENTO, CA – The California State Teachers’ Retirement System has launched a search for one or more firms that are experienced in administering deferred compensation plans for new services that CalSTRS will offer later this year.
The final filing date for proposals is March 26, 2007, with selection(s) expected by May 2007. A copy of the request for proposal is available at www.CalSTRS.com/rfp.
The Request for Proposal consists of two components and a firm may bid on one or both. One part is serving as third party administrator for recordkeeping of assets for CalSTRS’ supplemental retirement savings program for its members. This program will be expanded from its current offering of a 403(b) plan to include a Roth 403(b) and a 457(b) plan. The contractor will perform all recordkeeping and trust functions and act as custodian of program records and assets.
“With the expansion of our supplemental retirement savings program, we are at the inception of an unprecedented change in how we serve our members,” said Jack Ehnes. “California’s educators will have investment vehicles to secure their retirement and from a provider they trust.”
Additionally, CalSTRS seeks a third party administrator for compliance and administration services it plans to offer to school districts. Proposed federal regulations impose a greater responsibility for school districts to manage their 403(b) programs. CalSTRS will provide a service to school districts that may otherwise have trouble complying with these proposed regulations.
With a $157.9 billion investment portfolio, the California State Teachers’ Retirement System is the second-largest public pension fund in the United States. It provides retirement, disability and survivor benefits to California’s nearly 800,000 public school educators from kindergarten through community college.