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San Jose retirement board authorizes staff to sign multi‑year contracts with Chiron, Reed Smith and Aon
Summary
The board authorized the CEO to negotiate and execute agreements with Chiron (actuarial), Reed Smith (fiduciary/general counsel) and Aon (governance consulting) following competitive RFPs and staff recommendations.
The San Jose Office of Retirement Services Board of Trustees authorized the CEO to negotiate and execute multi‑year agreements with three outside service providers after staff and ad‑hoc committees evaluated competitive proposals.
Actuarial services: The board approved staff’s recommendation to contract with Chiron for actuarial services. Staff described the recommended agreement as a six‑year term not to exceed $1,700,000, with a four‑year option to extend (ten years maximum). Staff told trustees that Chiron scored highest among respondents and had the requisite experience to perform valuation work and periodic experience studies.
Legal services: After an RFP and finalist interviews, the board authorized the CEO to negotiate a contract with Reed Smith for fiduciary and general counsel services. Staff and trustees noted that Reed Smith was the current firm and that the recommended not‑to‑exceed amount reflected historical billing patterns and anticipated workload; staff cited a proposed term of six years and discussed a not‑to‑exceed amount of roughly $3,000,000 in the presentation materials. Trustees discussed past year‑to‑year variability in legal spend and how retainers and ad‑hoc litigation costs can drive totals.
Governance consulting: The board also approved awarding governance consulting services to Aon after interviews of finalists. Staff told trustees the firm will support governance policy reviews, board self‑assessments, CEO/CIO evaluation facilitation, trustee education, and strategic‑planning support; staff said the engagement includes a set of fixed services and hourly rates for additional work, and noted an approximate not‑to‑exceed amount presented to trustees of about $800,000 over six years.
Trustees discussed transition considerations and the possibility of moving some recurring work in‑house in the future (for example, an internal general counsel), but supported the staff recommendations. Each of the three awards was put to a motion and approved by the board.
Staff said that if negotiated terms materially differ from the board packet estimates, they will return to the board for approval.
