December 2015 Board Meeting

JOINT MEETING OF THE BOARD OF TRUSTEES AND
INVESTMENT ADVISORY COMMITTEE

ERS Building – Board Room
200 E. 18th Street, Austin, Texas 78701
December 3 - 4, 2015

1. Energy Outlook Presentation by Dr. Michael Webber ( video 1 )

2. Review and Approval of the minutes to the August 18, 2015 Joint Meeting of the Board Trustees And Investment Advisory Committee ( video 2 )

3.* Review and Discussion of ERS Retirement Plans and Actuarial Valuation Reports for Funding as of August 31, 2015 ( video 3 )

4.* Review and Discussion of Investment Performance of the System’s Assets:

a. Fiscal Year 2015 Investment Performance ( video 4a )
b. Third Calendar Quarter of 2015 Investment Performance ( video 4b )

5.* Review and Discussion of Annual Analysis of Portfolio Liquidity as of September 30, 2015 ( video 5 )

6.* Investment Education: Liquidity in the Texas ERS Private Equity Portfolio ( video 6)

7. Annual Review and Consideration of ERS’ Investment Policy ( video 7)

8.* Discussion and Training Regarding Ethics and Fiduciary Responsibility

  • If it is Open it Must be Ethical
    Tim Sorrells, Attorney and Counselor at Law ( video 8a )
  • Private Fund Fees and Expenses - Best Practices and Compliance with Fiduciary Responsibilities
    John H. Kuhl and Amy H. Wells ( video 8b )

9.* Review and Discussion of the Risk Management and Applied Research Program ( video 9 )

10. Chief Investment Officer’s Report ( video 10 )

11. ADJOURNMENT OF THE JOINT MEETING OF THE BOARD OF TRUSTEES AND INVESTMENT ADVISORY COMMITTEE AND RECESS OF THE BOARD OF TRUSTEES – The Board of Trustees will reconvene as a Committee of the whole on Friday, December 4, 2015 at 8:30 a.m. to consider Audit and Board agenda items. Meeting of the ERS Board of Trustees Audit Committee ( video 11 )

12. Review and Approval of the minutes to the August 18, 2015 ERS Audit Committee Meeting ( video 12)

13. Presentation and Discussion of Audit Committee Agenda Items:

a. Internal Audit Reports ( video 13a )
b. Internal Audit Administrative Items ( video 13b)

14. ADJOURNMENT OF THE ERS BOARD OF TRUSTEES AUDIT COMMITTEE – Following adjournment of the Audit Committee, The Board of Trustees will take up the remaining agenda items. Meeting of the ERS Board of Trustees ( video 14)

15. Executive Session – In accordance with Section 551.074, Texas Government Code, The Board of Trustees will meet in executive session to evaluate the duties, performance and compensation of the Internal Auditor of the Employees Retirement System of Texas. In accordance with Section 551.071, Texas Government Code, the Board of Trustees will also meet in executive session to seek the advice of its attorneys about pending or contemplated litigation or on a matter in which the duty of the attorneys to the governmental body under the Disciplinary Rules of Professional Conduct of the State Bar of Texas clearly conflicts with Chapter 551. Thereafter the Board may consider appropriate action in open session. ( video 15 )

16. Review and approval of the minutes to the August 18, 2015 meeting of the Board of Trustees ( video 16 )

17.* Disability Retirement Review, Appeals Process and Statistical Information ( video 17 )

18. Review, Discussion and Consideration of the Rules of the Board of Trustees, 34 Texas Administrative Code, Part IV: Required Rule Review and Amendments to Chapter 67 (Hearings on Disputed Claims) and Amendments to Chapter 71 (Creditable Service) ( video 18 )

19. Review and Discussion of the Texa$aver 401 (k) and 457 Program and Monitoring Strategy Overview ( video 19 )

20. Review, Discussion and Consideration of the Texas Employees Group Benefits Program:

a. Health Insurance Financial Status update for Fiscal Year 2015 and Outlook for Fiscal Year 2016 ( video 20a)
b. Actuarial Valuation of Retiree Health Insurance Benefits as of August 31, 2015 ( video 20b )
c. HealthSelect Program and Monitoring Strategy Overview ( video 20c )
d. GBP Medicare Plans and Monitoring Strategy Overview ( video 20d )
e. Dental Insurance Programs and Monitoring Strategy Overview ( video 20e )
f. Basic and Optional Term Life, Accidental Death and Dismemberment Plans ( video 20f )
g. Disability Program and Monitoring Strategy Overview ( video 20g)

21. Review and Discussion of the TexFlex Program and Monitoring Strategy Overview ( video 21 )

22. Review and Discussion on the Group Benefits Program Procurement Process ( video 22 )

23. Executive Director’s Report ( video 23 )

24. Set 2016 Meeting Dates for the Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee, the Meeting of the Board of Trustees, and the Meeting of the Audit Committee ( video 24)

25. ADJOURNMENT OF THE BOARD OF TRUSTEES

*These agenda items may be considered in-house training provided by ERS to board trustees and the system administrator for purposes of fulfilling the Minimum Educational Training (MET) Program requirements of the Texas Pension Review Board. ERS is an accredited sponsor of MET for its system administrator and trustees.

NOTES:

1. Persons with disabilities who plan to attend this meeting and who may need special assistance are requested to contact Kelley Davenport at (512) 867-7772 three to five (3-5) working days prior to the meeting date so that appropriate arrangements can be made.

2. The Employees Retirement System of Texas Joint Meeting of the Board of Trustees and Investment Advisory Committee is scheduled to meet from 8:30 a.m. to approximately 4:45 p.m. on Thursday, December 3, 2015. The Board of Trustees will reconvene as a committee of the whole on Friday, December 4, 2015 to take up Audit and Board agenda items from approximately 8:30 a.m. to 3:15 p.m. Meetings are tentatively scheduled to follow each other consecutively, but they may start earlier or later than the posted time depending on the length of the discussions within each agenda item and meeting. Please note that the estimated times and sequence of agenda items are only approximate, and the time reflected in the posted agenda item, order of meetings or agenda items may be moved or adjusted as necessary.