August 2017 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 23, 2017

> Board materials
NOTE: This link will redirect you to another website. The ERS page on the BoardDocs site includes the materials for the August 2017 ERS Board of Trustees meeting, as they become available.

1.  Meeting of the ERS Board of Trustees’ Audit Committee

1. CALL TO ORDER

1.1 Call Meeting of the ERS Board of Trustees’ Audit Committee to Order - video

2. MINUTES

2.1 Approval of the minutes to the May 17, 2017 ERS Audit Committee Meeting – (ACTION) - video

3. AUDIT ITEMS

3.1 Review of Internal Audit Reports - video

  • Revenue Processing
  • Procurement Cards
  • Investment Compliance AUP
  • Status of Audit Recommendations

3.2 Review of Internal Audit Administrative Items: Internal Audit Risk Assessment & Proposed Fiscal Year 2018 Annual Audit Plan – (ACTION) - video

3.3 Review of Internal Audit Administrative Items: Internal Audit Independence Affirmation – (ACTION) - video

4. EXECUTIVE SESSION

4.1 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

5.  ADJOURNMENT

5.1  Adjournment of the ERS Board of Trustees Audit Committee - video

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

1.  CALL TO ORDER

1.1  Call Meeting of the Board of Trustees to Order - video

2.  NEW APPOINTMENT

2.1  Consideration of Appointment to the Investment Advisory Committee – (ACTION) - video

2.2  Consideration of Reappointment of ERS Investment Advisory Committee members with terms expiring August 31, 2017 – (ACTION) - video

3. CALL TO ORDER

3.1  Call Meeting of the Investment Advisory Committee to Order - video

4.  MINUTES

4.1  Approval of the minutes to the May 17, 2017 Joint Meeting of the Board of Trustees and Investment Advisory Committee and July 10, 2017 Working Session of the Board of Trustees and Investment Advisory Committee– (ACTION) - video

5.  INVESTMENT PERFORMANCE

5.1  Review of the Investment Performance for Second Calendar Quarter 2017 - video

6.  Investment Committee Charter

6.1  Consideration of Internal Investment Committee Charter – (ACTION) - video

7. ASSET ALLOCATION

7.1  Consideration of the ERS’ Asset Allocation and Implementation with Related Proposed Changes to ERS’ Investment Policy – (ACTION) - video

8.  Experience Study

8.1  Consideration of ERS Pension Experience Study, Assumptions and Methods – (ACTION) - video

9. HEDGE FUND PROGRAM 

9.1  Market Update Overview of the Hedge Fund Progra - video

9.2  Proposed Revisions to the ERS Investment Policy Addendum X: Hedge Fund Policies and Procedures - (ACTION) - video

9.3  Consideration of Proposed Hedge Fund Annual Tactical Plan for Fiscal Year 2018 – (ACTION) - video

10.  Investment Advisory Committee Chair

10.1  Election of Chair and Vice Chair of the ERS Investment Advisory Committee for Fiscal Years 2018 and 2019 – (ACTION) - video

11.  ADJOURNMENT

11.1 Adjournment of the Joint Meeting 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

3.  Meeting of the ERS Board of Trustees

1.  CALL TO ORDER

1.1  Call Meeting to Reconvene the Board of Trustees - video

2.  MINUTES

2.1  Approval of the minutes to the May 17, 2017 and July 10, 2017 Meeting of the Board of Trustees –  (ACTION) - video

3.  BOARD RULES

3.1  Review and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Section 67.201 (Procedures Governing Bid Protests) – (ACTION) - video

4. GROUP BENEFITS PROGRAM UPDATE

4.1 Consideration of Proposed Rates for Medicare Advantage Health Maintenance Organization Plans for Calendar Year 2018 – (ACTION) - video

4.2 Consideration of Proposed Rates for HealthSelect Medicare Advantage for Calendar Year 2018 – (ACTION) - video

5.1  Review, Discussion and Consideration of the Texa$averSM 401(k) / 457 Program Investment Policy –  (ACTION) - video

5.2  Review, Discussion and Consideration of the Texa$averSM401(k) / 457 Program Product  Review Committee Governance Charter – (ACTION) - video

6.  INCENTIVE COMPENSATION PLAN

6.1  Consideration of the ERS Incentive Compensation Plan – (ACTION) - video

7.   ERS’ OPERATIONAL ITEMS

7.1  Consideration of the ERS Fiscal Year 2018 Proposed Operating Budget – (ACTION) - video

8.   GROUP BENEFITS ADVISORY COMMITTEE CHARTER

8.1  Consideration of the Group Benefits Advisory Committee Charter  - (ACTION) - video

9.  Self-Evaluation Report

9.1  Review and Discussion of the ERS Board of Trustees Self-Evaluation Report - video

10.  EXECUTIVE DIRECTOR REPORT

10.1 Executive Director Agency Update - video

  • Special Legislative Session
  • Appropriations Update – Senate Bill 1
  • Owner’s Representative Services
  • Redesigned Website and New Domain Name
  • Summer Enrollment for Plan Year 2018
  • Fall Enrollment for Plan Year 2018  

11.  CHAIR ELECTIONS

11.1  Election of Chair and Vice-Chair of the ERS Board of Trustees for Fiscal Year 2018 – (ACTION) - video

12.  TRUSTEE RECOGNITION

12.1  Board of Trustees Recognition - video

13.  EXECUTIVE SESSION   

13.1 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. Thereafter, the Board may consider appropriate action in open session. - video

14.  CALENDAR

14.1 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

15.  ADJOURNMENT

15.1  Adjournment of the ERS Board of Trustees Meeting - video

PUBLIC COMMENTS - video

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 9:40 a.m. on Wednesday, August 23,2017.  The Board of Trustees and Investment Advisory Committee are scheduled to meet jointly from approximately 9:40 a.m. to 2:10 p.m. on Wednesday, August 23, 2017. The Board of Trustees may take up the remaining board agenda items from approximately 2:15 p.m. to 5:35 p.m. on Wednesday, August 23, 2017, 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.