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PERS modernization: agency outlines cautious 8—10-year shift to COTS pension system, seeks interim funding

Joint Interim Committee on Ways and Means, General Government Subcommittee · January 13, 2026

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Summary

PERS told the subcommittee its modernization program will pursue a commercial off-the-shelf (COTS) pension administration system and a phased, multi-year rollout; the agency asked for $4.8 million in other funds for near-term planning and implementation items, while LFO recommended partial approval and deferral on DevOps funding.

PERS modernization director Christy Ivers and CFO Richard Horford told the General Government Subcommittee the pension administration system (PAS) the agency uses is more than 20 years old and that the modernization program has completed an options analysis and a "strategic reset." PERS intends to purchase a commercial off-the-shelf (COTS) pension administration system and pursue a phased rollout over what the program estimates could be eight to 10 years.

Ivers said the program will pursue two RFPs in this biennium: a specialized consultant to draft the complex PAS RFP and then the PAS vendor RFP, with the consultant's work expected to take about eight months. PERS plans phased releases, deliverable-based contracts and controlled funding releases and said Gartner serves as independent quality management services (IQMS).

PERS requested $4,800,000 of other funds expenditure limitation and five permanent positions (2.5 FTE) for immediate needs including the consultant to write the PAS RFP, additional IQMS funding, data cleaning and program office staff. LFO recommended approving $2,918,801 and the positions but deferring approximately $1,900,000 of the request (DevOps) pending further validation; the subcommittee approved LFO's recommendation and will carry the package to the full committee.

Why it matters: The PAS serves roughly 420,000 PERS members and 900 participating employers; a multi-year modernization affects benefit administration and long-term costs for employers and the trust fund.

What's next: PERS expects to post the consultant RFP in early 2026 and the PAS RFP in early 2027, with a target of on-boarding a vendor by mid-2027 and phased implementation thereafter. The agency said it will return with more detailed scope, schedule and budget information in 2027-2028.

Attributions: Christy Ivers (PERS modernization director) and Richard Horford (PERS CFO) presented the program update; LFO and DAS CFO offered recommendations.