December 2018 Board Meeting

• Board materials
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Tuesday, December 11, 2018

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 - video 1.1.1

2. MINUTES  

2.1  Review and Approval of the minutes to the August 29, 2018 ERS Audit Committee Meeting –(ACTION) - video 1.2.1

3. AUDIT ITEMS  

3.1  Review of External Audit Reports - video 1.3.1  

• State Auditor’s Office, An Audit Report on Incentive Compensation at the Permanent School fund, General Land Office, Employees Retirement System, and Teacher Retirement System

3.2  Review of Internal Audit Reports - video 1.3.2

• Investment Management Fees
• Real Assets - Infrastructure

3.3  Review of Internal Audit Administrative Items - video 1.3.3

• Annual Audit Performance and Quality Review

4. ADJOURNMENT/RECESS    

4.1  Adjournment of the ERS Board of Trustees Audit Committee.  Following adjournment of the Audit 

       Committee, the Board of Trustees will take up the remaining Board agenda items. - video 1.4.1

2. 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 - video 2.1.1

2. MINUTES 

2.1 Review and Approval of the minutes to the August 29, 2018 meeting of the Board of Trustees – (ACTION) - video 2.2.1

3. EXECUTIVE SESSION  

3.1  Executive Session – In accordance with section 551.074, Texas Government Code, the ERS 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 2.3.1

4. SUNSET  

4.1 Review and Discussion of Sunset Implementation and Evaluation Project Updates- video 2.4.1

5. GROUP BENEFITS PROGRAM ADVISORY COMMITTEE  

5.1 Report of the Group Benefits Advisory Committee Activities - video 2.5.1

6. TEXAS EMPLOYEES GROUP BENEFITS PROGRAM  

6.1 Health Insurance Financial Status Update for Fiscal Year 2018 and Outlook for Fiscal Year 2019 - video 2.6.1

6.2 Group Health Benefits Update and Compliance Information - video 2.6.2

6.3 TexFlex, Texas Income Protection Plan (TIPP) and Texa$aver Update and Compliance Information - video 2.6.3

7. GROUP BENEFITS PROGRAM FUNDING      

7.1 Review and Discussion of the Texas Employees Group Benefits Program Funding Policy Document - video 2.7.1

8. ACTUARIAL VALUATION RETIREE HEALTH INSURANCE BENEFITS  

8.1 Review and Discussion of the Texas Employees Group Benefits Program: Actuarial Valuation of Retiree Health Insurance Benefits as of August 31, 2018 - video 2.8.1 

9. ERS’ ANNEX REDEVELOPMENT PROJECT (ACTION)

9.1 Discussion and Consideration of ERS Building - video 2.9.1 

9.2 Executive Session – In accordance with Section 551.072 Texas Government Code, the ERS 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 2.9.2 

10. EXECUTIVE DIRECTOR REPORT  

10.1 Executive Director Agency Update - video 2.10.1

• Legislative Updates 
• Benefits Administrative Services (BAS)
• Plan Year 2019 Fall Enrollment
• State Employee Charitable Campaign 

11. CALENDAR  

11.1 Set 2019 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 2.11.1 

12. RECESS  

12.1 Recess of the Board of Trustees – The Board of Trustees will reconvene as a committee of the whole on Wednesday, December 12, 2018 at 8:00 a.m. with the Investment Advisory Committee to take up the remaining agenda items. - video 2.12.1

Wednesday, December 12, 2018

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

1. CALL TO ORDER  

1.1 Call Meeting to Reconvene the Board of Trustees - video 3.1.1

1.2 Call Meeting of the Investment Advisory Committee to Order - video 3.1.2

2. MINUTES  

2.1 Review and Approval of the Minutes to the August 29, 2018 Joint Meeting of the Board of Trustees and  Investment Advisory Committee – (ACTION) -video 3.2.1

3. ACTUARIAL VALUATIONS  

*3.1 Review of Retirement Program Actuarial Valuations and Financial Status - video 3.3.1

4. ETHICS TRAINING 

*4.1 Discussion and Training Regarding Ethics -video  3.4.1

5.  EDUCATIONAL PRESENTATION 

*5.1 Educational Presentation on Benchmarking - video 3.5.1

6. INVESTMENT PERFORMANCE 

*6.1 Review of the Investment Performance for Third Calendar Quarter of 2018 - video 3.6.1

7. RISK MANAGEMENT  

*7.1 Discussion of the Risk Management Program - video 3.7.1

8. INVESTMENT POLICY  

*8.1 Review of ERS’ Investment Policy Draft - video 3.8.1

9. INVESTMENTS GENERAL CONSULTING SERVICES 

9.1 Contract Award Recommendation for Investments General Consulting Services – (ACTION) - video 3.9.1

10. INFRASTRUCTURE CONSULTING SERVICES  

10.1 Contract Award Recommendation for Infrastructure Consulting Services – (ACTION) - video 3.10.1

11. EMERGING MANAGER PROGRAM  

*11.1 Market Update and Program Overview - video 3.11.1

12. CHIEF INVESTMENT OFFICER’S REPORT  

12.1 Chief Investment Officer’s Report - video 3.12.1

13.  ADJOURNMENT  

13.1 Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee - 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 will convene as a committee of the whole on Tuesday, December 11, 2018 to take up Audit agenda items from 9:00 a.m. to approximately 10:40 a.m. and Board agenda items from 10:40 a.m. to approximately 4:30 p.m. The Joint Meeting of the Board of Trustees and Investment Advisory Committee is scheduled to meet from 8:00 a.m. to approximately 2:30 p.m. on Wednesday, December 12, 2018, 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.