New York City Comptroller John C. Liu said State Street has been selected to provide master custody services for the five New York City pension funds after an open bidding process.
State Street will replace BNY Mellon, whose contract as the funds’ custody bank is expiring.
The conversion to State Street is expected to take place in fall 2013.
State Street will provide coverage for all asset classes held by the $137 billion pension system, including equity, fixed income, private market accounts, and hedge funds.
A Request for Proposal was issued on June 27, 2012, and proposals were evaluated by Comptroller’s Office staff.
In addition to being the lowest cost proposal, State Street’s submission offers a valuable combination of services that will increase audit transparency and modernize reconciliation capabilities for the more than 2,000 accounts held by the Funds, said a statement from the Comptroller’s office.
“Implementing this proposal will make our top-flight pension fund management even stronger,” said Comptroller Liu. “As the composition of our funds change and financial markets become increasingly complex, we will be able to continue to carefully safeguard and track every dollar of the City’s pension assets.”
New York City’s five pension funds are the Teachers’ Retirement System of the City of New York, New York City Employees Retirement System, New York City Police Pension Fund, New York City Fire Department Pension Fund, and Board of Education Retirement System of the City of New York.
New York City Pension Funds Replace BNY Mellon With State Street
New York City Comptroller John C. Liu said State Street has been selected to provide master custody services for the five New York City pension funds after an open bidding process.
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