December 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

Tuesday, December 7 – Wednesday, December 8, 2021

  • View the livestream
    • December 7 livestream
    • December 8 livestream
  • Board materials

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

Members of the public may provide public comment on agenda items presented to the Board by registering in advance 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 Monday, December 6, 2021

Tuesday, December 7, 2021,10:30 a.m.

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

  1. Call Meeting of the Audit Committee to Order, materials 1, video 1
  2.  Consideration of the Minutes to the August 25, 2021 Audit Committee Meeting - (Action), materials 2, video 2
  3. Review of Internal Audit Reports: materials 3, video 3
    • Private Real Estate Audit
    • Dental Insurance Audit   
    • Performance Measure Management Audit  
  4. Presentation of Internal Audit Administrative Items: materials 4, video 4
    • Annual Audit Performance and Quality Review
  5. Adjournment of the Audit Committee Meeting, materials 5, video 5

Meeting of the ERS Board of Trustees | Board presentation

  1. Call Meeting of the Board of Trustees to Order, materials 6, video 6
  2. Consideration of the Minutes to the August 25, 2021 ERS Board of Trustees Meeting - (Action), materials 7, video 7
  3. Executive Session: materials 8, video 8
    • In accordance with section 551.074, Texas Government Code, the Board of Trustees will meet in executive session to deliberate the employment, evaluation and duties of the Internal Auditor of ERS. Thereafter, the Board may consider appropriate action in open session. 
    • In accordance with section 551.071, Texas Government Code, the Board of Trustees will meet in executive session to consult with legal counsel regarding contemplated litigation. Thereafter, the Board may consider appropriate action in open session. 
  4. Consideration of Readoption of Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Chapter 61 (Terms and Phrases), Chapter 63 ( Board of Trustees), and Chapter 65 (Executive Director), with Proposed Amendments - (Action), materials 9video 9
  5. Consideration of Readoption of Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Chapter 69 (Membership and Refunds), with Proposed Amendments, Including New Provisions Regarding Pension Forfeiture Resulting from Criminal Convictions; and Consideration of Proposed Amendments to Chapter 85 (Flexible Benefits) - (Action), materials 10, video 10
  6. Report of the Group Benefits Advisory Committee, materials 11, video 11 
  7. Appointment of Group Benefits Advisory Committee Members - (Action), materials 12, video 12
  8. Health Insurance Financial   Update for Fiscal Year 2021 and Outlook for Fiscal Year 2022, materials 13, video 13
  9. Review of Compliance and Operational Updates Related to the Texas Employees Group Benefits Program, materials 14, video 14 
  10. Consideration of Contract Award Recommendation for Benefits Consultant Services for the Texas Employees Group Benefits Program - (Action), materials 15, video 15
  11. Review of the Texas Employees Group Benefits Program: Actuarial Valuation of Retiree Health Insurance Benefits as of August 31, 2021, materials 16, video 16
  12. *Training Regarding the Health Insurance Portability and Accountability Act (HIPAA), materials 17, video 17 
  13. Agency Update, materials 18, video 18
    • Cash Balance Retirement Benefit (Group 4) Implementation Status 
    • Plan Year 2022 Fall Enrollment
    • General Counsel Announcement
    • State Employee Charitable Campaign
    • Recent Agency Developments  
  14. Recess of the Board of Trustees – The Board of Trustees will reconvene on Wednesday, December 8, 2021, at 8:30 a.m. with the Investment Advisory Committee to take up the remaining agenda items. materials 19, video 19

Wednesday, December 8, 2021, 8:30 a.m.

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

  1. Call Meeting of the Board of Trustees to Order, materials 20, video 20
  2. Call Meeting of the Investment Advisory Committee to Order, materials 21, video 21 
  3. Consideration of the Minutes to the August 25, 2021 Joint Meeting of the Board of Trustees and Investment Advisory Committee - (Action), materials 22, video 22
  4. Consideration of the Texa$aver Program Updates: Texa$aver Product Review Committee Recommendations – (Action – Board Only Vote), materials 23, video 23
  5. Review of Texa$aver 401(k)/ 457 Program Compliance and Operational Updates, materials 24, video 24
  6. *Annual Ethics Training, materials 25, video 25
  7. Chief Investment Officer’s Report, materials 26, video 26
  8. *Review of Investment Performance for the 3nd Quarter of 2021 and Risk Update, materials 27, video 27
  9. *Annual Review of Retirement Program Actuarial Valuations and Financial Status, materials 28, video 28
  10. Annual Review and Discussion of Global Equity, materials 29, video 29
    • Market Update and Program Overview
  11. *Annual Review of ERS’ Emerging Manager Program, materials 30, video 30
    • Market Update and Program Overview 
  12. *Educational Presentation: Global Demographic Trends and their Implications for the ERS Investment Program, materials 31, video 31
  13. Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee and Reminder of Upcoming Meeting Dates, materials 32, video 32

* 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 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 7, 2021, to take up Audit agenda items from 10:30 a.m. to approximately 11:20 a.m. and Board agenda items from 11:20 a.m. to approximately 4:00p.m. The joint meeting of the Board of Trustees and Investment Advisory Committee is scheduled to take place from 8:30 a.m. to approximately 4:10 p.m. on Wednesday, December 8, 2021, but may include 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 discussion within each agenda item 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 and/or the sequence may be moved or adjusted as necessary.,