August 2018 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 29, 2018

Board materials
NOTE: This link will redirect you to another website. The ERS page on the BoardDocs site includes the materials for the August 2018 ERS Board of Trustees meeting. 

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 1.1.1
 
2.  MINUTES
2.1 Review and Approval of the minutes to the May 23, 2018 ERS Audit Committee Meeting – (Action) - video 1.2.1
 
3.  AUDIT ITEMS
3.1 Review of Internal Audit Reports:  - video 1.3.1
  • Status of Audit Recommendations
3.2 Review of Internal Audit Administrative Items: Internal Audit Assessment and Proposed FY2019 Annual Audit Plan – (Action) - video 1.3.2
3.3 Review of Internal Audit Administrative Items: Annual Internal Audit Independence Assessment - video 1.3.3
 
4.  INVESTMENT COMPLIANCE 
4.1 Review of Investment Compliance - video 1.4.1
 
5.  EXECUTIVE SESSION     
5.1 Executive Session – In accordance with Section 551.089, 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 discuss: (1) security assessments or deployments relating to information resources technology; (2) network security information as described by Section 2059.055(b); or (3) the deployment, or specific occasions for implementation, of security personnel, critical infrastructure, or security devices.  Thereafter, the Board may consider appropriate action in open session. - video 1.5.1  
 
6.  ADJOURNMENT
6.1 Adjournment of the ERS Board of Trustees Audit Committee Meeting
6.2 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 1.6.2
 

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

1. CALL TO ORDER  
1.1 Call Meeting to Reconvene the Board of Trustees
1.2 Call Meeting of the Investment Advisory Committee to order - videos 2.1.1 and 2.1.2
 
2. MINUTES
2.1 Review and Approval of the minutes to the May 23, 2018 Joint Meeting of the Board of Trustees and Investment Advisory Committee – (Action) - video 2.2.1
 
3.  INVESTMENT ADVISORY COMMITTEE APPOINTMENT   
3.1 Consideration of Reappointment of ERS Investment Advisory Committee members with terms expiring August 31, 2018 – (Action) - video 2.3.1
 
4.  ERS INVESTMENT POLICY
4.1 Review of the ERS’ Investment Policy - video 2.4.1
 
5.  INVESTMENT PERFORMANCE
5.1 Review of the Investment Performance for the Second Calendar Quarter of 2018 - video 2.5.1
 
6.  HEDGE FUND PROGRAM 
6.1 Market Update and Program overview - video 2.6.1
6.2 Consideration of Proposed Hedge Fund Annual Tactical Plan for Fiscal Year 2019 – (Action) - video 2.6.2
 
7.  PRIVATE EQUITY PROGRAM 
7.1 Market Update and Program overview - video 2.7.1
7.2 Consideration of Proposed Private Equity Annual Tactical Plan for Fiscal Year 2019 – (Action) - video 2.7.2
 
8.  ADJOURNMENT/RECESS
8.1 Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee - video 2.8.1
8.2 Recess of the Board of Trustees. Following a temporary recess, the Board of Trustees will reconvene to take up the remaining Board agenda items
 

3. Meeting of the ERS Board of Trustees

1.  CALL TO ORDER
1.1 Call Meeting to Reconvene the ERS Board of Trustees - video 3.1.1
 
2.  MINUTES 
2.1 Review and Approval of the minutes to the May 23, 2018 meeting of the Board of Trustees – (Action) - video 3.2.1
 
3.  BOARD RULES
3.1 Review and Consideration of Proposed New Rule related to Mediation for Chapter 67 (Hearings on Disputed Claims) – (Action) - video 3.3.1
3.2 Review and Consideration of Proposed Rule Amendments for Chapter 81 (Insurance) – (Action) - video 3.3.2
 
4. TEXAS EMPLOYEES GROUP BENEFITS PROGRAM UPDATE
4.1 Texas Employees Group Benefits Program update - video 3.4.1
4.2 Consideration of Proposed rates for HealthSelectSM Medicare Advantage PPO Plan for Calendar Year 2019 – (Action) - video 3.4.2
4.3 Consideration of Proposed rates for Medicare Advantage Health Maintenance Organization Plan for Calendar Year 2019 – (Action) - video 3.4.3
4.4 Review and Consideration of Proposed Texa$averSM 401(k)/457 Program Roth Fees – (Action) - video 3.4.4
 
5.  BOARD OF TRUSTEES ELECTION
5.1 Review and Consideration of the 2019 Board of Trustees Election Calendar – (Action) - video 3.5.1
 
6.  COMPENSATION STUDY REVIEW
6.1 Review and Discussion of the 2018 Compensation Study for ERS’ Investments Professionals - video 3.6.1
 
7.  INCENTIVE COMPENSATION PLAN
7.1 Review and Consideration of the ERS Incentive Compensation Plan – (Action) - video 3.7.1
 
8.  ERS’ OPERATIONAL ITEMS
8.1 Review of 2018 ERS Accomplishments - video 3.8.1
8.2 Review of Building Development Project - video 3.8.2
8.3 Consideration and Approval of the ERS Fiscal Year 2019 Proposed Operating and Capital Budgets – (Action) - video 3.8.3
  
9.  EXECUTIVE DIRECTOR REPORT   
9.1 Executive Director Agency Update - video 3.9.1
  • Fiscal Year 2019-2023 Strategic Plan
  • Legislative Appropriation Request for Fiscal Year 2020-2021 
  • Survey of Employee Engagement Results
  • Summer Enrollment for Plan Year 2019
  • Fall Enrollment for Plan Year 2019
10.  EXECUTIVE SESSION 
10.1 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 3.10.1
      
11.  BOARD CHAIR ELECTIONS 
11.1 Election of Chair and Vice-Chair of the ERS Board of Trustees for Fiscal Year 2019 – (Action) - video 3.11.1
 
12.  CALENDAR 
12.1 Confirm 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 3.12.1
 
13.  ADJOURNMENT
13.1 Adjournment of the ERS Board of Trustees meeting - video 3.13.1

* 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 meeting is scheduled to meet from 8:00 a.m. to approximately 4:35 p.m. on Wednesday, August 29, 2018. During this time frame, it is anticipated that the Board of Trustees Audit Committee, a committee of the whole, will meet from approximately 8:00 a.m. until 9:20 a.m., and then briefly recess before reconvening for a joint meeting with the Investment Advisory Committee until approximately 12:05 p.m. Following adjournment of the Investment Advisory Committee and a temporary recess of the Board of Trustees, the Board will reconvene to take up the remaining Board agenda items until approximately 5:00 p.m. Meetings and agenda items 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.