August 2020 Board Meeting

• Board Materials

All or part of the August 19, 2020 meeting of the ERS Board of Trustees may be held by video conference call as authorized under Section 551.127 of the Texas Government Code. THIS MEETING WILL BE CONDUCTED BY VIDEOCONFERENCE IN ACCORDANCE WITH THE GOVERNOR’S AUTHORIZATION CONCERNING SUSPENSION OF CERTAIN OPEN MEETING LAW REQUIREMENTS IN RESPONSE TO THE COVID-19 (CORONAVIRUS) DISASTER. A quorum of members of the Board will participate in the meeting remotely and will be visible and/or audible to the public. Members of the public may access the meeting by clicking http://ers.texas.gov/about-ers/ers-board-of-trustees/2020-august-board-meeting

Members of the public may provide public comment on agenda items presented to the Board by registering first with ERS by submitting an email to Kelley.davenport@ers.texas.gov identifying the name of the speaker and agenda item no later than 7:30 a.m. on August 19, 2020. Further instructions will be provided to those that request to make a public comment no later than August 19, 2020.

Meeting of the ERS Board of Trustees' Audit Committee, Audit Committee presentation, Audit Committee minutes 

1.    Call Meeting of the ERS Board of Trustees Audit Committee to order, materials 1, video 1

2.    Review and Approval of the minutes to the May 20, 2020 ERS Audit Committee Meeting - (Action), materials 2, video 2

3.    *Review of External Audit, materials 3, video 3

• Financial Statement Auditor Presentation 

4.    Review of Internal Audit Reports, materials 4, video 4

• Private Equity Audit
• Status of Audit Recommendations

5.    Review and Consideration of Audit Administrative Items: Internal Audit’s Proposed Fiscal Year 2021 Audit Plan – (Action), materials 5, video 5

6.    Review of Audit Administrative Items: Annual Internal Audit Independence Assessment, materials 6, video 6

7.    Adjournment of the ERS Board of Trustees Audit Committee Meeting, materials 7, video 7

Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee, Joint Board of Trustees and IAC presentation, Joint Board of Trustees and IAC minutes 

8.    Call Meeting of the Board of Trustees to Order, materials 8, video 8

9.    Call Meeting of the Investment Advisory Committee to Order, materials 9, video 9  

10.    Review and Approval of the Minutes to the May 20, 2020 Joint Meeting of the Board of Trustees and Investment Advisory Committee – (Action), materials 10, video 10

11.    Review and Consideration of Reappointment of Investment Advisory Committee Member (Action – BOT only), materials 11, video 11

12.    Annual Review and Consideration of ERS’ Investment Policy – (Action), materials 12, video 12

13.    *Review of Investment Performance for 2nd Quarter of 2020 and Risk Update, materials 13, video 13

14.    *Hedge Fund Market Update and Program Overview, materials 14, video 14

15.    Review and Consideration of Proposed Hedge Fund Annual Tactical Plan for Fiscal Year 2021 – (Action), materials 15, video 15

16.    *Private Equity Market Update and Program Overview, materials 16, video 16

17.    Review and Consideration of Proposed Private Equity Annual Tactical Plan for Fiscal Year 2021 – (Action), materials 17, video 17

18.    Investment Advisory Committee Member Recognition, materials 18, video 18

19.    Reminder date for 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, materials 19, video 19

20.    Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee, materials 20, video 20

21.    Recess of the Board of Trustees. Following a temporary recess, the Board of Trustees will reconvene to take up the Board agenda items, materials 21, video 21

Meeting of the ERS Board of Trustees, Board of Trustees presentation, Board of Trustees minutes, Joint Board of Trustees and IAC minutes

22.    Call Meeting of the ERS Board of Trustees to Order, materials 22, video 22

23.    Review and Approval of the Minutes to the May 20, 2020 ERS Board of Trustees Meeting - (Action), materials 23,  video 23

24.    Review, Discussion and Consideration of the Proposed Amendments and Proposed New Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Chapter 75 (Hazardous Profession Death Benefits), Chapter 81 (Insurance) and Chapter 85 (Flexible Benefits); Statutory Rule Review for Chapters 75 and 85 - (Action), materials 24,  video 24

25.    Review, Discussion and Consideration of the CPI-U Adjustment for the Lump Sum Payment Under Tex. Gov’t Code §615.022 for FY 2021– (Action), materials 25, video 25

26.    Review, Discussion and Consideration of Proposed edits to ERS Pension Funding Priorities and Guidelines – (Action), materials 26, video 26

27.    Review, Discussion and Consideration of recommended updates to the Group Benefits Advisory Committee Charter – (Action), materials 27,  video 27

28.    Review and Discussion of the Texas Employees Group Benefits and Texa$aver Program update, materials 28,  video 28

29.    Review and Consideration of Proposed Rates for HealthSelect Medicare Advantage Preferred Provider Organization Plan for Calendar Year 2021 – (Action), materials 29,  video 29

30.    Review and Discussion of the future of the Medicare Advantage Health Maintenance Organization Plan, materials 30,  video 30

31.    Review and Discussion of Recommended updates to Texa$aver Product Review Committee Charter, materials 31,  video 31

32.    Review and Discussion of Recommended updates to Texa$aver 401(k)/457 Investment Policy  materials 32,  video 32

33.    Review, Discussion and Consideration of the ERS Incentive Compensation Plan for Fiscal Year 2021– (Action), materials 33,  video 33

34.    Review, Discussion and Approval of Fiscal Year 2021 Operating and Capital and Property Management Budgets – (Action), materials 34,  video 34

35.    Agency Update, materials 35,  video 35

• Legislative Update
• Legislative Appropriations Request for 2022-2023
• Summer Enrollment for Plan Year 2021
• 1836 San Jacinto building update

36.    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. 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. The entire quorum of the Board of Trustees will also be in attendance at the executive session via video conference call in accordance with Section 551.127 of the Texas Government Code as modified by Governor Abbott’s Emergency Order suspending certain provisions of the Texas Open Meetings Act on March 16, 2020. Thereafter, the Board may consider appropriate action in open session., materials 36,  video  36

37.    Election of Chair and Vice Chair of the ERS Board of Trustees for Fiscal Year 2021 – (Action), materials 37,  video 37

38.    Adjournment of the Board of Trustees Meeting, materials 38,  video 38

* 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 committee as a whole and the Joint Board of Trustees and Investment Advisory Committee intend to attend the August 19, 2020 ERS Board of Trustees Meeting via videoconference call in accordance with Section 552.127 of the Texas Government Code and with the Governor’s authorization concerning suspension of certain Open Meeting law requirements in response to the COVID-19 (Coronavirus) Disaster.

The Employees Retirement System of Texas Board of Trustees will convene as a committee of the whole on Wednesday, August 19, 2020 to take up Audit agenda items from 8 a.m. to approximately 9 a.m., Joint Board of Trustees and Investment Advisory Committee items from 9:10 a.m. to approximately 12:10 p.m., and the Board of Trustees meeting items from 12:40 p.m. to approximately 5:20 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.