2019 August 21 Board Meeting

August 2019 Board Meeting

JOINT MEETING OF THE BOARD OF TRUSTEES AND
INVESTMENT ADVISORY COMMITTEE

Teacher Retirement System Building – Board Room, E513
1000 Red River Street, Austin, Texas 78701

August 21, 2019

  • Board materials
    NOTE: This link redirects you to another website which hosts materials for ERS Board of Trustee meetings. 

1. Meeting of the ERS Board of Trustees Audit Committee, Audit Committee presentation

1. CALL TO ORDER

1.1 Call Meeting of the ERS Board of Trustees Audit Committee to Order - 1.1.1 video, 1.1.1 materials

2. MINUTES

2.1 Review and Approval of the Minutes to the May 22, 2019 ERS Audit Committee Meeting – (ACTION) - 1.2.1 video1.2.1 materials

3. AUDIT ITEMS

3.1 Review of External Audit Reports - 1.3.1 video1.3.1 materials
  • Schedule of Employer Allocations (FY18)
3.2 Review of Internal Audit Reports - 1.3.2 video1.3.2 materials
  • HealthSelect of Texas Contract Management Audit
  • Status of Audit Recommendations
3.3 Review and Consideration of Audit Administrative Items: Internal Audit’s Proposed Fiscal Year 2020 Annual Audit Plan – (ACTION) - 1.3.3 video1.3.3 materials

3.4 Review of Audit Administrative items: Annual Internal Audit Independence Assessment - 1.3.4 video1.3.4 materials

4. EXECUTIVE SESSION

4.1 Executive Session - In accordance with Section 551.089, Texas Government Code, Board of Trustees 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 and/or (4) a security audit. Thereafter, the Board may consider appropriate action in open session. - 1.4.1 video, 1.4.1 materials

5. ADJOURNMENT

5.1 Adjournment of the ERS Board of Trustees Audit Committee meeting - 1.5.1 materials

5.2 Recess of the ERS Board of Trustees. Following a temporary recess, the Board of Trustees will reconvene its meeting with the Investment Advisory Committee to take up the following Joint Board of Trustees and Investment Advisory Committee agenda items. - 1.5.2 materials
 

2. Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee, Joint Board of Trustee and IAC presentation

1. CALL TO ORDER

1.1 Call Meeting to Reconvene the Board of Trustees - 2.1.1 video, 2.1.1 materials

1.2 Call Meeting of the Investment Advisory Committee to Order - 2.1.2 video, 2.1.2 materials

2. MINUTES

2.1 Review and Approval of the Minutes to the May 22, 2019 Joint Meeting of the Board of Trustees and Investment Advisory Committee – (ACTION) - 2.2.1 video, 2.2.1 materials

3. ASSET CLASS INVESTMENT COMMITTEE CHARTER

*3.1 Annual Review and Consideration of the ERS Asset Class Investment Committee Charter – (ACTION) - 2.3.1 video, 2.3.1 materials

4. INVESTMENT PERFORMANCE

*4.1 Review of the Investment Performance for Second Calendar Quarter of 2019 and Risk Update -  2.4.1 video, 2.4.1 materials

PUBLIC COMMENT

2.4.2 video

5. HEDGE FUND PROGRAM

*5.1 Market Update and Program Overview - 2.5.1 video, 2.5.1 materials

5.2 Consideration of Proposed Hedge Fund Annual Tactical Plan for Fiscal Year 2020 – (ACTION) - 2.5.2 video, 2.5.2 materials

6. HEDGE FUND CONSULTING SERVICES

6.1 Consideration of Proposed Contract Award for Hedge Fund Consulting Services – (ACTION – BOT ONLY) - 2.6.1 video, 2.6.1 materials

7. TRUSTEE RECOGNITION 

7.1 Presentation of Board of Trustee Recognitions - 2.7.1 video, 2.7.1 materials

8. PRIVATE EQUITY PROGRAM

*8.1 Market Update and Program Overview - 2.8.1 video, 2.8.1 materials

8.2 Consideration of Proposed Private Equity Annual Tactical Plan for Fiscal Year 2020 – (ACTION) - 2.8.2 video, 2.8.2 materials

9. IAC CHAIR ELECTIONS

9.1 Election of Chair and Vice Chair of the ERS Investment Advisory Committee for Fiscal Year 2020 - 2021 – (ACTION – IAC ONLY) - 2.9.1 video, 2.9.1 materials

10. CALENDAR

10.1 Reminder 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. - 2.10.1 video, 2.10.1 materials

11. ADJOURNMENT

11.1 Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee. - 2.11.1 video, 2.11.1 materials

11.2 Recess of the Board of Trustees. Following a temporary recess, the Board of Trustees will reconvene to take up the Board agenda items. 2.11.2 materials

3. Meeting of the ERS Board of Trustees, Board of Trustees presentation

1. CALL TO ORDER

1.1 Call Meeting of the ERS Board of Trustees to Order 3.1.1 video, 3.1.1 materials

2. MINUTES

2.1 Review and Approval of the Minutes to the May 22, 2019 ERS Board of Trustees Meeting - (ACTION) - 3.2.1 video, 3.2.1 materials

3. TEXAS EMLOYEES GROUP BENEFITS PROGRAM

3.1 Texas Employees Group Benefits Program update - 3.3.1 video, 3.3.1 materials

3.2 Review and Consideration of Proposed rates for HealthSelectSM Medicare Advantage PPO Plan for Calendar Year 2020 – (ACTION)- 3.3.2 video, 3.3.2 materials

3.3 Review and Consideration of Proposed rates for Medicare Advantage Health Maintenance Organization Plan for Calendar Year 2020 – (ACTION)- 3.3.3 video, 3.3.3 materials

4. GROUP BENEFITS FUNDING POLICY

4.1 Review and Consideration of the Group Benefits Funding Policy Document – (ACTION)- 3.4.1 video, 3.4.1 materials

5. TEXA$AVER PROGRAM

5.1 Review and Consideration of Proposed Texa$averSM 401(k)/457 Program Plan Rates – (ACTION)- 3.5.1 video, 3.5.1 materials

6. INCENTIVE COMPENSATION PLAN

6.1 Review and Consideration of the ERS Incentive Compensation Plan for Fiscal Year 2020 – (ACTION) - 3.6.1 video, 3.6.1 materials

7. ERS’ OPERATIONAL ITEMS

7.1 Review of 2019 ERS Accomplishments - 3.7.1 video, 3.7.1 materials

7.2 Consideration and Approval of the ERS Fiscal Year 2020 Proposed Operating Budget – (ACTION) - 3.7.2 video, 3.7.2 materials

8. EXECUTIVE DIRECTOR REPORT

8.1 Executive Director Agency Update - 3.8.1 video, 3.8.1 materials
  • 86th Legislative Session Update (Legislation, HB1)
  • Federal Issues
  • New Trustee Elected to the Board
  • ERS Pension Funds Experience Study Timeline
  • Summer Enrollment for Plan Year 2020
  • Staying Connected Fairs

9. EXECUTIVE SESSION

9.1 Executive Session – In accordance with Section 551.074, Texas Government Code, the ERS Board of Trustees will meet in executive session to deliberate the employment, evaluation and duties of the Executive Director of the Employees Retirement System of Texas. Thereafter, the Board may consider appropriate action in open session. - 3.9.1 video, 3.9.1 materials

10. BOARD CHAIR ELECTIONS

10.1 Election of Chair and Vice Chair of the ERS Board of Trustees for Fiscal Year 2020 – (ACTION)- 3.10.1 video, 3.10.1 materials

11. ADJOURNMENT

11.1 Adjournment of the ERS Board of Trustees Meeting - 3.11.1 video, 3.11.1 materials

* 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 will convene as a committee of the whole on Wednesday, August 21, 2019 to take up Audit agenda items from 8:00 a.m. to approximately 9:30 a.m., Joint Board of Trustees and Investment Advisory Committee items from 9:40 a.m. to approximately 1:45 p.m., and the Board of Trustees meeting items from 1:50 p.m. to approximately 4:35 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.