2016 May Board Meeting

May 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
May 17, 2016

> Meeting Materials

Meeting of the ERS Board of Trustees Audit Committee

1. Review and Approval of the minutes to the February 23, 2016 ERS Audit Committee Meeting (video 1)

2. Presentation, Discussion and Consideration of Internal Audit Reports (video 2)

3. 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 3)

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

4. Review and Approval of the Minutes to the February 23, 2016 Joint Meeting of the Board of Trustees and Investment Advisory Committee (video 4)

5.* Review and Discussion of the Investment Performance for First Calendar Quarter 2016 (video 5)

6. Review and Discussion of the Fiscal Year 2015 Global Investment Performance Standards Compliance Performance Report (video 6)

7. Review, Discussion and Consideration of the ERS Investment Policy (video 7)

8.* Review, Discussion and Consideration of the Fixed Income Program: 

a. Market Update and Program Overview (video 8a)

b. Review of Securities Lending Program (video 8b)

9.* Review, Discussion and Consideration of Real Estate Program:

a. Market Update and Program Overview  (video 9a)

b. Proposed Private Real Estate Annual Tactical Plan for Fiscal Year 2017 (video 9b)

10. Recognition of Investment Advisory Committee Members (video 10)

11. ADJOURNMENT OF THE JOINT MEETING OF THE BOARD OF TRUSTEES AND 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 11)

Meeting of the ERS Board of Trustees

12. Review and Approval of the minutes to the February 23, 2016 Meeting of the Board of Trustees (video 12)

13. Review, Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Required Rule Reviews and Amendments to

a. Chapter 71 (Creditable Service) (video 13a)

b. Chapter 85 (Flexible Benefits) (video 13b)

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

a. Selection of the Pharmacy Benefit Managers for the HealthSelectSM of Texas Prescription Drug Plan and the HealthSelectSM of Texas Medicare Pharmacy Plan beginning January 1, 2017 (video 14a)

b. Selection and Contract Award Recommendation for Vision Care Services Administration beginning September 1, 2016 (video 14b

15. Review, Discussion and Consideration of the Texas Employees Group Benefits Program for Fiscal Year 2017

a. Basic and Optional Term Life, Accidental Death and Dismemberment Proposed Rates (video 15a)

b. Texas Income Protection Plan Proposed Rates  (video 15b)

c. State of Texas Dental Discount Plan, Dental Choice and Dental Health Maintenance Organization Proposed Rates (video 15c)

d. Health Maintenance Organizations Proposed Rates (video 15d)

e. GBP Financial Status Update and Rate Proposals for HealthSelect of TexasSM and Consumer Directed HealthSelect (video 15e)

f. TexFlex Program Proposed Fees and Rates (video 15f)

16.  Review, Discussion and Selection of Contract Award Recommendation for Actuarial Services for Insurance (video 16)

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

18. Review and Discussion of Sunset Commission Report Findings (video 18)

19.* Review and Discussion of Board Policy on Pension Funding Priorities and Guidelines (video 19)

20. Executive Director Agency Update (video 20)

21. 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 21)

22. ADJOURNMENT OF THE 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 8:15 a.m. to approximately 8:50 a.m. on Tuesday, May 17, 2016.  The Board of Trustees and Investment Advisory Committee are scheduled to meet jointly from approximately 8:50 a.m. to 11:45 a.m. on Tuesday, May 17, 2016. The Board of Trustees may take up the remaining board agenda items from approximately 12:15 p.m. to 5:25 pm on Tuesday, May 17, 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.