CVS wins $1B in Texas pension fund contract

New York City CVS Caremark Corp. has won an extension on its contract with the Teacher Retirement System of Texas (TRS), worth about $1 billion, to provide pharmacy benefits for two years, according to a Reuters report.

The contract, which begins Sept. 1, 2010 is valued at $480 million in 2011 and $518 million in 2012. It allows for as many as four optional one-year renewals, the report said.

TRS said it selected CVS Caremark as the pharmacy benefit manager from among five bidders, based on what was determined "to best serve TRS members."

More than 202,000 retirees and their dependents participate in the TRS-Care plan or the group retiree health-benefits program administered by TRS. While Aetna takes care of the medical benefits, CVS administers the pharmacy benefits.