December 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
December 12 and 13, 2017

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

Tuesday, December 12, 2017

1.  Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee - presentation

1. CALL TO ORDER

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

2. IAC APPOINTMENT

2.1 Review and Consideration of appointment of ERS Investment Advisory Committee Member - video

3. CALL TO ORDER

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

4. MINUTES

4.1 Review and Approval of the Minutes to the August 23, 2017 Joint Meeting of the Board of Trustees and and Investment Advisory Committee - video

5.  PRESENTATION

5.1*  Educational Presentation: A National Perspective of State and Local Pensions - video

6.  ACTUARIAL VALUATIONS

6.1  Review of Retirement Program Actuarial Valuations and Financial Status - video

7.  INVESTMENT PERFORMANCE

7.1  Review of the Investment Performance for Third Calendar Quarter of 2017 - video

8.  ETHICS TRAINING

8.1  Discussion and Training Regarding Ethics - video

9.  PRIVATE EQUITY

9.1  Private Equity Program Overview and Market Update - video
9.2  Proposed Revisions to the ERS Investment Policy: Private Equity Guidelines and Procedures - video
9.3  Consideration of Proposed Private Equity Annual Tactical Plan for Fiscal Year 2018 - video

10.  RISK MANAGEMENT

10.1  Discussion of the Risk Management Program - video

11.  EMERGING MANAGER PROGRAM

11.1  ERS’ Emerging Manager Program:  Market Update and Program Overview - video

12. OPPORTUNISTIC CREDIT PROGRAM

12.1  ERS Investment Policy: Proposed Opportunistic Credit Guidelines and Procedures - video
12.2  Proposed Opportunistic Credit Annual Tactical Plan for Fiscal Year 2018 - video

13.  REAL ESTATE

13.1  Contract Award Recommendation for Real Estate Consulting Services - video

14.  CHIEF INVESTMENT OFFICER’S REPORT

14.1  Chief Investment Officer’s Report - video

15.  ADJOURNMENT

15.1  Adjournment of the Joint Meeting of the Board of Trustees and the Investment Advisory Committee and Recess of the Board of Trustees – The Board of Trustees will reconvene as a Committee of the whole on Wednesday, December 13, 2017 at 8:00 a.m. to consider Audit and Board agenda items. - video

16.  TEXA$AVER

16.1  Texa$averSM 401(k)/457 Program Review and Consideration of the Target Date Fund Offering - video

17.  EXECUTIVE SESSION

17.1  Executive Session – In accordance with Section 551.072, Texas Government Code, the Board of Trustees will meet in executive session to deliberate the purchase, exchange, lease, or value of real property and the ERS building. Thereafter, the Board may consider appropriate action in open session. - video

18. 

18.1  Recess of the Board of Trustees – The Board of Trustees will reconvene as a Committee of the whole on Wednesday, December 13, 2017 at 8:00 a.m. to consider Audit and Board agenda items

Wednesday, December 13, 2017

2.  Meeting of the ERS Board of Trustees Audit Committee - presentation

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 August 23, 2017 ERS Audit Committee Meeting - video

3. AUDIT ITEMS

3.1  Review of External Audit Reports - video

  • Incentive Compensation Report
3.2  Review of Internal Audit Reports - video
  • Incentive Compensation Plan
  • Investment Compliance
3.3  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; or (2) a security audit.  Thereafter, the Board may consider appropriate action in open session. - video

3.4  Review of Internal Audit Administrative Items – Audit Charter – (ACTION) - video
  • Internal Audit Charter
3.5 Review of Audit Administrative Items – Annual Performance - video
  • Annual Internal Audit Report
  • Quality Assurance Improvement Program
  • EOY Performance Measures

4.  ADJOURNMENT

4.1  Adjournment of the ERS Board of Trustees Audit Committee – Following adjournment of the ERS Audit Committee, the Board of Trustees will take up the remaining agenda items. - video

3.  Meeting of the ERS Board of Trustees - presentation

1.  CALL TO ORDER

1.1  Call meeting of the ERS Board of Trustees to order

2.  MINUTES

2.1  Approval of the minutes to the August 23, 2017 meeting of the Board of Trustees - video

3.  EXECUTIVE SESSION

3.1  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 Internal Auditor of the Employees Retirement System of Texas.  Thereafter the Board may consider appropriate action in open session. - video

4.TRAINING

4.1 Training Regarding the Health Insurance Portability and Accountability Act of 1996 (HIPAA) - video

5.  RULES OF THE BOARD OF TRUSTEES

5.1  Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV Adoption of Amendments to Chapter 63 (Rule 63.17 GBAC) - video

5.2  Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Required Rule Review of Chapter 79 (Social Security) - video

6.  GROUP BENEFITS PROGRAM ADVISORY COMMITTEE

6.1  Discussion and Consideration of the Group Benefits Advisory Committee Appointments - video

7.   TEXAS EMPLOYEES GROUP BENEFITS PROGRAM

7.1  Health Insurance Financial Status Update for Fiscal Year 2017 and Outlook for Fiscal Year 2018, with Network Comment - video
7.2  Review and Discussion of Program Updates and Compliance Overview: HealthSelect Plans; Medicare Advantage Plans; Dental Plans; Vision Plan; Basic and Optional Term life, Accidental Death and Dismemberment Plans; Disability Plans - video

8.   TEXFLEX

8.1  TexFlexSM Review and Discussion of Plan Updates and Compliance Overview - video

9.  TEXA$AVER

9.1  Texa$averSM 401(k)/457 Program Review and Discussion of Program Updates and Compliance Overview - video

10.  ACTUARIAL VALUATION RETIREE HEALTH INSURANCE BENEFITS

10.1 Review and Discussion of the Texas Employees Group Benefits Program: Actuarial Valuation of Retiree Health Insurance Benefits as of August 31, 2017 - video

11.  EXECUTIVE DIRECTOR REPORT

11.1  Executive Director Agency Update - video

  • Sunset Implementation: Board Training Requirements
  • Plan Year 2018 Fall Enrollment
  • Customer Benefits FY2017 Summary
  • ERS Publications
  • State Employee Charitable Campaign (SECC)

12.  CALENDAR

12.1 Set 2018 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

13.  ADJOURNMENT

13.1 Adjournment of the ERS Board of Trustees Meeting

* 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 Joint Meeting of the Board of Trustees and Investment Advisory Committee is scheduled to meet from 8:00 a.m. to approximately 3:15 p.m. on Tuesday, December 12, 2017. The Board of Trustees will convene as a committee of the whole on Wednesday, December 13, 2017 to take up Audit and Board agenda items from approximately 8:00 a.m. to 2:55 p.m. 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.