2016 August Board Meeting

August 2016 Board Meeting

JOINT MEETING OF THE BOARD OF TRUSTEES AND
INVESTMENT ADVISORY COMMITTEE

ERS Building – Board Room
200 E. 18th Street, Austin, Texas 78701
August 16, 2016

> Meeting Materials

Meeting of the ERS Board of Trustees’ Audit Committee

1. Review and Approval of the Minutes to the May 17, 2016 ERS Audit Committee Meeting (video 1)

2. Presentation, Discussion and Consideration of Audit Committee Agenda Items:

a. External Audit Reports (video 2a)
b. Internal Audit Reports (video 2b)
c. Internal Audit Administrative Items (video 2c)

3. EXECUTIVE SESSION – In accordance with Section 551.076, Texas Government Code, the Audit Committee of the Board of Trustees, a committee of the whole of the Board, will meet in executive session to deliberate: (1) the deployment, or specific occasions for implementation, of security personnel or devices; and (2) a security audit. Thereafter, the Board may consider appropriate action in open session. (video 3)

4. ADJOURNMENT OF THE ERS BOARD OF TRUSTEES AUDIT COMMITTEE  AND RECESS OF THE BOARD OF TRUSTEES– Following a temporary recess, the Board of Trustees will reconvene with the Investment Advisory Committee to take up the following Joint Board of Trustees and Investment Advisory Committee agenda items. (video 4)

Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee

5. Review and Approval of the Minutes to the May 17, 2016 Joint Meeting of the Board of Trustees and Investment Advisory Committee (video 5)

6. *Review and Discussion of the Investment Performance for Second Calendar Quarter 2016 (video 6)
 
7. *Review, Discussion and Consideration of the ERS Private Equity Program:

a. *Market Update and Program Overview (video 7a)
b. Proposed Private Equity Annual Tactical Plan for Fiscal Year 2017 (video 7b)

8. *Review, Discussion and Consideration of the Hedge Fund Program:

a. *Market Update and Program Overview (video 8a)
b. Proposed Revisions to the ERS Investment Policy Addendum X: Hedge Fund Policies and Procedures (video 8b)
c. Proposed Hedge Fund Annual Tactical Plan for Fiscal Year 2017 (video 8c)

9. *Review and Discussion of the Asset Allocation Study (video9)

10. ADJOURNMENT OF THE INVESTMENT ADVISORY COMMITTEE AND RECESS OF THE BOARD OF TRUSTEES – Following a temporary recess, the Board of Trustees will reconvene to take up the remaining Board of Trustee agenda items. (video 10)

Meeting of the ERS Board of Trustees

11. Review and Approval of the Minutes to the May 17, 2016 Meeting of the Board of Trustees (video 11)

12. Review, Discussion and Consideration of Reappointment of the ERS Investment Advisory Committee Member (video 12)

13. Review, Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV: Required Rule Review and Amendments to Chapter 81 (Insurance) and Amendment to Chapter 85 (Flexible Benefits) (video 13)

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

a. HealthSelect of TexasSM Financial Status Update as of June 30, 2016 (video 14a)
b. Approval of Proposed Rates for Medicare Advantage Health Maintenance Organization Plans for Calendar Year 2017 (video 14b)
c. Approval of Proposed Rates for HealthSelect Medicare Advantage for Calendar Year 2017 (video 14c)

15. Review, Discussion and Selection of a Money Market Fund for the Texa$aver 401(k) and 457 Program (video 15)
 
16. Review, Discussion and Consideration of the ERS Fiscal Year 2017 Proposed Operating Budget (video 16)

17. Review, Discussion and Consideration of the ERS Incentive Compensation Plan (video 17)

18. Review, Discussion and Consideration of the 2017 ERS Trustee Election Calendar (video 18)

19. Elections of Chair and Vice-Chair of the ERS Board of Trustees for Fiscal Year 2017 (video 19)

20. Executive Director Agency Update (video 20)

  • Legislative Appropriations Request for Fiscal Years 2018-2019
  • Strategic Plan and FY17 Roadmaps
  • ERS Space Planning Study Update

21. 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 Executive Director of the Employees Retirement System of Texas; and to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of one or more public officers or employees. Thereafter, the Board may consider appropriate action in open session. (video 21)

22. Set Date for the Next Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee, the Next Meeting of the Board of Trustees, and the Next Meeting of the Audit Committee (video 22)

23. ADJOURNMENT OF THE ERS BOARD OF TRUSTEES

* We are accredited by the State Pension Review Board (PRB) as a Minimum Educational Training (MET) sponsor for Texas public retirement systems. This accreditation does not constitute an endorsement by the PRB as to the quality of our MET program. These agenda items may be considered in-house training provided by ERS to board trustees and the system administrator for purposes of fulfilling the MET program requirements. 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 Board of Trustees Audit Committee is scheduled to meet from 8:00 a.m. to approximately 9:05 a.m. on Tuesday, August 16, 2016.  The Board of Trustees and Investment Advisory Committee are scheduled to meet jointly from approximately 9:05 a.m. to 11:50 a.m. on Tuesday, August 16, 2016. The Board of Trustees may take up the remaining board agenda items from approximately 12:20 p.m. to 5:00 p.m. on Tuesday, August 16, 2016, but may hear those items before or after the anticipated time frame. 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 and other circumstances not presently anticipated.  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.