2019 May 22 Board Meeting

May 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

May 22, 2019

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

1. Meeting of the ERS Board of Trustees Audit Committee - Audit Committee presentationMay 22 Audit Minutes

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 March 6, 2019 ERS Audit Committee Meeting – (ACTION) - video 1.2.1

3.          AUDIT ITEMS

3.1 Review of Internal Audit Reports - video 1.3.1
  • Client Reconciliation Consulting Engagement
  • Audit of Temporary Workers Contract Management

4.          ADJOURNMENT

4.1  Adjournment of the ERS Board of Trustees Audit Committee meeting - video 1.4.1
4.2  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. - video 1.4.2

2.  Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee - Joint Board of Trustee IAC presentation, May 22 Joint Minutes

1.    CALL TO ORDER  

1.1  Call Meeting to Reconvene the Board of Trustees  - video 2.1.1
1.2  Call Meeting of the Investment Advisory Committee to Order  - video 2.1.2

2.    MINUTES  

2.1  Review and Approval of the Minutes to the March 6, 2019 Joint Meeting of the Board of Trustees and Investment Advisory Committee – (ACTION)  - video 2.2.1,

3.        INVESTMENT PERFORMANCE 

*3.1 Review of the Investment Performance for First Calendar Quarter of 2019  - video 2.3.1

4.        FIXED INCOME PROGRAM

*4.1   Market Update and Program Overview  - video 2.4.1
  4.2  Review of Securities Lending  - video 2.4.2

5.        REAL ESTATE PROGRAM

*5.1  Market Update and Program Overview  - video 2.5.1
  5.2  Review and Approval of Proposed Revisions to the Real Estate Guidelines – (ACTION)   - video 2.5.2
  5.3  Review and Approval of Proposed Private Real Estate Annual Tactical Plan for Fiscal Year 2020 – (ACTION)  - video 2.5.3

6.        PRIVATE EQUITY PROGRAM

6.1 Review and Approval of Proposed Revisions to the Private Equity Annual Tactical Plan for Fiscal Year 2019 – (ACTION)  - video 2.6.1

7.        INFRASTRUCTURE 

*7.1  Market Update and Program Overview  - video 2.7.1
  7.2  Review and Approval of Proposed Revisions to the Infrastructure Guidelines – (ACTION)   - video 2.7.2
  7.3  Review and Approval of Proposed Infrastructure Annual Tactical Plan for Fiscal Year 2020 – (ACTION)  - video 2.7.3

8.        BENCHMARKS  

8.1  Review and Consideration of Investments Benchmarking – (ACTION)  - video 2.8.1

9.    LONG-TERM INVESTMENT RETURN PROJECTIONS

9.1  Review and Discussion of Long-term Investment Return Projections  - video 2.9.1

10.    TRUSTEE RECOGNITION

10.1 Presentation of Board of Trustee Recognition  - video 2.10.1

11.    CALENDAR

11.1 Reminder date for the next Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee, next meeting of the Board of Trustees and the next meeting of the Audit Committee  - video 2.11.1

12.    ADJOURNMENT  

12.1  Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee  - video 2.12.1
12.2  Recess of the Board of Trustees.  Following a temporary recess, the Board of Trustees will reconvene to take up the Board agenda items.  - video 2.12.2

3.   Meeting of the ERS Board of Trustees - Board of Trustees presentation, May 22 BoT Minutes

1.    CALL TO ORDER

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

2.    MINUTES

2.1    Review and Approval of the Minutes to the March 6, 2019 ERS Board of Trustees Meeting - (ACTION) - video 3.2.1, joint minutes
2.2    Review and Approval of the Minutes to the March 28, 2019 ERS Board of Trustees Meeting – (ACTION) - video 3.2.2, March 28

3.    RULES OF THE BOARD OF TRUSTEES

3.1 Review, Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Chapter 73 (Benefits) – (ACTION) - video 3.3.1
3.2 Review, Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code,  Title 34, Part IV, Chapter 74 (Qualified Domestic Relations Orders) and Chapter 77 (Judicial Retirement) – (ACTION) - video 3.3.2
3.3 Review, Discussion and Consideration of the Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Chapter 82 (Health Services in State Office Complexes)– (ACTION) - video 3.3.3

4.    CONTRACT AWARD RECOMMENDATION

4.1 Review, Discussion and Consideration of the Contract Award Recommendation for the Third Party Administrative and Investment Advisory Services for the Texa$aver Program – (ACTION) - video 3.4.1

5.    TEXAS EMLOYEES GROUP BENEFITS PROGRAM

5.1  Review, Discussion and Consideration of Group Benefits Program Update and Proposed Rates for HealthSelect of Texas and Consumer Directed HealthSelect Plans with rates inclusive of plan change – (ACTION) - video 3.5.1
5.2  Review, Discussion and Consideration of Proposed Rates for Health Maintenance Organization Plans – (ACTION) - video 3.5.2
5.3  Review, Discussion and Consideration of Proposed Fiscal Year 2020 Rates for State of Texas Dental  Choice Plan, Dental Health Maintenance Organization and State of Texas Dental Discount Plan – (ACTION)  - video 3.5.3
5.4  Review, Discussion and Consideration of Proposed Fiscal Year 2020 Rates for State of Texas Vision –  (ACTION) - video 3.5.4
5.5  Review, Discussion and Consideration of Proposed Fiscal Year 2020 Rates for Basic and Optional Term) Life, Accidental Death and Dismemberment Plans – (ACTION)  - video 3.5.5
5.6  Review, Discussion and Consideration of Proposed Fiscal Year 2020 Rates for Texas Income Protection Plan – (ACTION) - video 3.5.6
5.7  Review, Discussion and Consideration of Proposed Fiscal Year 2020 Fees for TexFlex Program – (ACTION) - video 3.5.7

6.    GROUP BENEFITS FUNDING POLICY

6.1 Review and Discussion of the Group Benefits Funding Policy Draft Document - video 3.6.1

7.    INCENTIVE COMPENSATION PLAN

7.1    Review and Discussion of the Incentive Compensation Plan for Fiscal Year 2020 - video 3.7.1

8.     EXECUTIVE DIRECTOR REPORT

8.1  Executive Director Agency Update - video 3.8.1
  • 86th Legislative Session 
  • ERS Board of Trustee Election 
  • Membership Benefits Survey
  • Summer Enrollment 
  • 2019 Get Fit Texas State Challenge  

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. - video 3.9.1

10.     ADJOURNMENT

10.1 Adjournment of the ERS Board of Trustees Meeting - video 3.10.1

* 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 will convene as a committee of the whole on Wednesday, May 22, 2019 to take up Audit agenda items from 8:00 a.m. to approximately 8:30 a.m., Joint Board of Trustees and Investment Advisory Committee items from 8:30 a.m. to approximately 12:15 p.m., and the Board of Trustees meeting items from 12:45 p.m. to approximately 4:30 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.