August 2021 Board Meeting

Joint Meeting of the Board of Trustees and Investment Advisory Committee

1836 San Jacinto, Austin, Texas 78701
9th Floor Conference Center - Rio Grande Conference Room

Wednesday, August 25, 2021
8 a.m.  CT

Members of the public may provide public comment on agenda items presented to the Board by registering early with ERS. Please submit an email to Kelley.davenport@ers.texas.gov identifying the name of the speaker and agenda item no later than 5:00 p.m. on Tuesday, August 24, 2021.

Meeting of the ERS Board of Trustees' Audit Committee | presentation 

  1. Call Meeting of the ERS Board of Trustees Audit Committee to order, materials 1, video 1
  2. Consideration of the Minutes to the March 10, 2021 ERS Audit Committee Meeting - (Action) , materials 2, video 2
  3. Review of Internal Audit Reports, materials 3, video 3                                                                
    • Qualified Domestic Relations Orders Audit
    • Alternative Investments Funding Audit
    • Status of Audit Recommendations 
  4. Consideration of Internal Audit Administrative Items – (Action), materials 4, video 4 
    • Internal Audit’s Proposed Fiscal Year 2022 Audit Plan – (Action)
  5. Adjournment of the ERS Board of Trustees Audit Committee Meeting, materials 5, video 5 

Joint Meeting of the ERS Board of Trustees and Investment Advisory Committee | presentation

  1. Call Meeting of the Board of Trustees to Order, materials 6, video 6
  2. Call Meeting of the Investment Advisory Committee to Order, materials 7, video 7
  3. Consideration of the Minutes to the May 26, 2021 Joint Meeting of the Board of Trustees and Investment Advisory Committee – (Action), materials 8, video 8
  4. Introduction of Incoming Chief Investment Officer, materials 9, video 9
  5. Consideration of Opportunistic Credit Asset Allocation – (Action), materials 10, video 10  
  6. *Consideration of Asset Class Investment Committee Charter – (Action), materials 11, video 11  
  7. *Consideration of ERS’ Investment Policy – (Action), materials 12, video 12 
  8. Consideration of the ERS Incentive Compensation Plan for Investment Professionals and Leadership Employees – (Action – Board Only), materials 13, video 13
  9. Review of 87th Legislative Session, materials 14, video 14
  10. *Review of Investment Performance for the 2nd Quarter of 2021 and Risk Update, materials 15, video 15
  11. * Consideration of Hedge Funds - (Action), materials 16, video 16
    • Market Update and Program Overview   
    • Proposed Hedge Fund Annual Tactical Plan for Fiscal year 2022 – (Action) 
  12. * Consideration of Private Equity - (Action) , materials 17, video 17
    • Market Update and Program Overview 
    • Proposed Private Equity Annual Tactical Plan for Fiscal Year 2022 – (Action) 
  13. Consideration of Reappointment of Investment Advisory Committee Member (Action – Board Only), materials 18, video 18
  14. Election of Chair and Vice Chair of the ERS Investment Advisory Committee for Fiscal Year 2021 – 2023 – (Action – IAC Only), materials 19, video 19
  15. Chief Investment Officer Recognition, materials 20, video 20
  16. Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee, materials 21, video 21
  17. Recess of the Board of Trustees. Following a temporary recess, the Board of Trustees will reconvene to take up the Board agenda items. materials 22, video 22

Meeting of the ERS Board of Trustees | presentation 

  1. Call Meeting of the ERS Board of Trustees to Order, materials 23, video 23
  2. Consideration of the Minutes to the May 26, 2021 ERS Board of Trustees Meeting - (Action), materials 24, video 24  
  3. Consideration of Proposed Rates for HealthSelect Medicare Advantage Preferred Provider Organization Plan for Calendar Year 2022 - (Action), materials 25, video 25
  4. Consideration of Fiscal Year 2022 Operating Budget and Fiscal Year 2022 Capital and Property Management Budget – (Action), materials 26, video 26
  5. Agency Update, materials 27, video 27
    • CPI-U adjustment for Chapter 615 Benefits for Fiscal Year 2022
    • Summer Enrollment for Plan Year 2022
    • Recent Agency Developments
  6. Board Member Recognition, materials 28, video 28
  7. 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. materials 29, video 29
  8. Election of Chair and Vice Chair of the ERS Board of Trustees for Fiscal Year 2022 – (Action), materials 30, video 30
  9. Adjournment of the Board of Trustees Meeting, materials 31, video 31 

* 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 25, 2021 to take up Board of Trustees Audit Committee agenda items from 8:00 a.m. to approximately 9:15 a.m., Joint Board of Trustees and Investment Advisory Committee items from 9:30 a.m. to approximately 2:45 p.m., and the Board of Trustees items from 2:50 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 neces.