CalPERS Y2K survey...READ THIS!!greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
The California Public Employees' Retirement System, one of the largest Pension programs in the world, released a Y2K readiness report yesterday. Read this for yourself @ www.calpers-governance.org
-- Iben (firstname.lastname@example.org), June 17, 1999
CalPERS INTERNATIONAL Y2K SURVEY RESULTS SHOW COMPANIES MAY NOT BE PREPARED
Fund posts findings on World Wide Web at www.calpers-governance.org
SACRAMENTO, CA - Y2K problems may be looming in the international investment markets, according to survey results released today by the California Public Employees' Retirement System (CalPERS).
A low response rate and cautious answers to the survey indicate that many companies may not be prepared for impending Y2K computer problems. Of the 2,469 companies surveyed in which CalPERS has invested more than $35 billion, only 600 companies responded to the survey, and only 13.5 percent elected to disclose information or respond meaningfully.
"The surprisingly low number of direct, meaningful responses to our survey concerns us," said Charles P. Valdes, Chair of CalPERS Investment Committee. "A company's failure to make adequate disclosures about its Y2K exposure makes it extremely difficult for an investor to make informed investment decisions."
Responses to the survey have been posted on CalPERS Shareowner Forum - the System's corporate governance web site (www.calpers- governance.org) - for the world's investors to view. (The results of the survey can be accessed on the web site under "Shareowner Alert" and can be searched by company and country.)
CalPERS also intends to share the survey results with the fund's active international equity managers and other institutional investors.
Response rates to CalPERS survey varied across the 48 countries represented in the CalPERS international investment portfolio. The lowest overall response rate was from Latin America, where only 5.9% of the 239 companies in which CalPERS has an investment responded.
On average, nearly 22 percent of the total computer budget at responding firms has been devoted to Y2K issues in the past two years. This may mean that Y2K expenditures supplanted a significant number of productivity-enhancement investments in computer equipment and software.
More significantly, respondents indicated that cost of addressing Y2K issues was 0.7 percent of total company revenues since 1996. If this is a reasonable estimate across the entire international company universe, the total cost of Y2K would exceed $160 billion.
The survey also revealed some bright spots. Overall, respondents indicated that almost 75 percent of all computer systems had been renovated and tested for Y2K compliance by January 1, 1999.
Only twelve companies certified that they will be Y2K compliant and attested that they have a written plan for implementing a Y2K solution, including a contingency plan. They also reportedly have made a check of key customers and vendors for compliance, and had checked and renovated 100 percent of their systems by January 1, 1999. The companies are:
Brahma (Cia Cervejaria) Brazil Bank of East Asia Hong Kong Itochu Corp. Japan Mitsui Mining & Sm Japan Kian Joo Can Fact Malaysia Bonheur As Norway Minas Buenaventura Peru LG Chemicals South Korea Seoul Bank South Korea China Trust Com Taiwan Post Publishing Thailand Sg Asia Credit Plc Thailand
The exceptional performance in Y2K readiness of these 12 companies could be the result of a greater commitment of resources to Y2K issues. According to survey responses, more than 47 percent of their computer budgets for 1998 and 1999 were committed to Y2K issues, almost double the average amount spent by all other responding companies.
In March 1999, CalPERS issued the survey to the chairmen of 2,469 non- U.S. corporations in its investment portfolio questioning them about their preparedness for the coming millennium bug. Specifically, CalPERS asked corporations to provide information on a number of different areas related to the Year 2000, including:
The company's willingness to certify Year 2000 compliance;
The status of renovating and testing the company's mission critical systems and programs for Y2K;
The company's contingency plans;
The risks to the company's from Year 2000 issues; and
The costs to address the company's Year 2000 issues. The System expects to post additional responses from corporations as they are received. Results of the survey are provided for informational purposes only and do not constitute investment advice. CalPERS has not independently verified the information provided by the companies.
CalPERS is the nation's largest pension fund with assets totaling more than $150 billion. The System provides retirement and health benefits to more than 1 million state and local public employees and their families.
-- y2k dave (email@example.com), June 17, 1999.
Here's a link to the search page: search on Y2K:
-- lisa (firstname.lastname@example.org), June 17, 1999.
Thanks iben, putting it in further perspective only 3.3% of the total companys surveyed elected to respond in a meaningfull way.
-- Ray (email@example.com), June 17, 1999.
Check out the survey information. It great. This is the first question on the survey and why am I not very surprised by these answers. This could go on forever or at least until the end of the year.
1)Company: Ind Bank Japan Country: Japan Does the company certify that it will be Year 2000 compliant on or before December 31, 1999? If yes, who provides certification? No
2)Company: Bank Of Yokohama Country: Japan Does the company certify that it will be Year 2000 compliant on or before December 31, 1999? If yes, who provides certification? No
3) Company: Ind Bank Japan Country: Japan Does the company certify that it will be Year 2000 compliant on or before December 31, 1999? If yes, who provides certification? No
4)Company: Joyo Bank Country: Japan Does the company certify that it will be Year 2000 compliant on or before December 31, 1999? If yes, who provides certification? No
5)Company: Sakura Bank Country: Japan Does the company certify that it will be Year 2000 compliant on or before December 31, 1999? If yes, who provides certification? Yes Depending where system is developed
6)Company: Seven Eleven Japan Country: Japan Does the company certify that it will be Year 2000 compliant on or before December 31, 1999? If yes, who provides certification? No
-- y2k dave (firstname.lastname@example.org), June 17, 1999.
Low response rate - just how are they counting non responders? Many outfits, including GE, have just flat quit answering anything relating to Y2K. Someone here locally says they had gotten more than 1600 Y2K related questionaires. After the first 50 or so, they quit answering any not from govt. or regulatory agencies.
-- Paul Davis (email@example.com), June 17, 1999.
Should I be happy that the org. that manages my Calif. retirement fund has uncovered this problem PRIOR to Y2k???
Is disclosure always good?
-- Greg (firstname.lastname@example.org), June 18, 1999.
This outfit has over $35 billion invested in 2,469 companies; that works out to an average of over $14 million invested in each company. Now, when such a big-time investor comes asking about the Y2K status of your company, I don't think failure to respond can be explained away as just not having the time or wanting to bother. Sorry, Mr. Davis.
-- Don Florence (email@example.com), June 18, 1999.