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CalPERS committee approves $38 million for data and tech modernization, extends vendor term to seven years
Summary
Finance and Administration Committee approved $38 million in FY2025–26 funding for CalPERS’ investment data and technology modernization initiative and extended the selected SaaS vendor contract term to seven years to secure implementation and cost savings.
The Finance and Administration Committee on April 8 approved funding and a contract‑term extension for CalPERS’ investment data and technology modernization initiative, which aims to replace legacy investment platforms and create a unified data platform for total‑fund and private‑markets operations.
Staff sought $38 million in FY2025–26 to advance two projects in the current plan: a total‑fund and capital markets platform and private‑markets tooling, and to begin design work for a centralized data platform. Committee members were told the initiative already received $10 million in FY2024–25 and that the full program cash outlays are expected to peak in FY2026–27 before tapering as implementations conclude in later years.
Rob Patterson, initiative lead, said CalPERS selected a software‑as‑a‑service provider for the capital‑markets/total‑fund platform and is short‑listing vendors for private‑markets systems. Patterson said the program will be staffed with a mix of permanent state employees and consultants; Jen Hafner has been hired as initiative director and will lead implementation.
The committee approved two separate motions: one to allocate $38 million for the FY2025–26 budget, moved by Trustee Jose Luis Pacheco and seconded by Trustee Melissa Willette; and a second motion to extend the selected SaaS partner contract from the standard five‑year term to a seven‑year term with a three‑year extension option, which staff said is expected to reduce vendor costs by 5–10% and to provide two years for implementation and five years of production use. Both motions passed by voice vote. Committee discussion emphasized governance, change management and vendor selection process.
Staff outlined next steps: complete implementation planning for the capital‑markets platform, begin implementation work in Q2 of FY2025–26, shortlist and validate private‑markets vendors, and commence data‑platform business‑requirements work. Consultants will be retained to assist with implementation and transfer knowledge to state staff.
