2020 December Board Meeting

December 2020 Board Meeting

JOINT MEETING OF THE BOARD OF TRUSTEES AND
INVESTMENT ADVISORY COMMITTEE

ERS will conduct this meeting virtually; there is no in-person meeting.

Board Materials

All or part of the December 8-9, 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 https://ers.texas.gov/about-ers/ers-board-of-trustees/2020-december-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 person requesting to provide public comment and the agenda item no later than 8:30 a.m. on December 8, 2020 for agenda items posted for the December 8th meeting date, and no later than 7:30 a.m. on December 9, 2020 for agenda items posted for the December 9th meeting date. ERS will provide further instructions to those who timely request to make a public comment on an agenda item for either the December 8th or December 9th meeting in accordance with the above instructions.  

Tuesday, December 8

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

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

2.  Review and Approval of the Minutes to the August 19, 2020 ERS Audit Committee Meeting - (Action), agenda 2 materials, agenda 2 video

3.      Review of External Audit Report, agenda 3 materials, agenda  3 video
  • State Auditor’s Office Incentive Compensation Audit 
4. Review of Internal Audit Reports, agenda 4 materials, agenda 4 video
  • COVID IT Action Review (Consulting)
  • Survivor Benefits Audit
  • Texa$aver Audit
5. Review of Audit Administrative Items, agenda 5 materials, agenda 5 video
  • Annual Audit Performance and Quality Review
6. Adjournment of the ERS Board of Trustees Audit Committee Meeting, agenda 6 materials, agenda 6 video

Meeting of the ERS Board of Trustees, Board of Trustees presentation

7.  Call Meeting of the ERS Board of Trustees to Order, agenda 7 materials, agenda 7 video

8. Review and Approval of the Minutes to the August 19, 2020 ERS Board of Trustees Meeting - (Action), agenda 8 materials, agenda 8 video

9. Executive Session – In accordance with Section 815.3016, Texas Government Code, a quorum of the ERS Board of Trustees will meet in executive session to consider and discuss an alternative investment or a potential alternative investment in a private equity secondary overflow fund. Thereafter, the Board may consider appropriate action in open session. agenda9 materials, agenda 9 video

Following the conclusion of the Board’s consideration of the issues deliberated pursuant to Texas Government Code Section 815.3016, the Board of Trustees will meet in executive session in accordance with section 551.074, Texas Government Code, to deliberate the employment, evaluation and duties of the Internal Auditor of the Employees Retirement System of Texas. The entire quorum of the Board of Trustees will 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.   

 10. Review, Discussion and Consideration of Proposed Rules of the Board of Trustees, Texas Administrative Code, Title 34, Part IV, Chapter 63 (Board of Trustees) - (Action), agenda 10 materials, agenda 10 video   

11. Report of the Group Benefits Advisory Committee Activities, agenda 11 materials, agenda 11 video

12.  Appointment of Group Benefits Advisory Committee Members - (Action), agenda 12 materials, agenda 12 video  

13. Review and Discussion of Health Insurance Program for Fiscal Year 2020 and Outlook for Fiscal Year 2021, agenda 13 materials, agenda 13 video   

14. Review and Discussion of the Texas Employees Group Benefits Update: agenda 14 materials, agenda 14 video
  • COVID – 19 and Mental Health Telemedicine Update
15. Review and Discussion of the Group Benefits Plans Compliance and Operational Updates, agenda 15 materials, agenda 15 video

16. Review, Discussion and Consideration of Recommended updates to Texa$aver Product Review Committee Charter – (Action), agenda 16 materials, agenda 16 video  
 
17. Review, Discussion and Consideration of Recommended updates to Texa$aver 401(k)/457 Investment Policy – (Action), agenda 17 materials, agenda 17 video 

18. Review and Discussion of the Texas Employees Group Benefits Program: Actuarial Valuation of Retiree Health Insurance Benefits as of August 31, 2020, agenda 18 materials, agenda 18 video 
 
19. Review and Approve calendar for Board of Trustees Election – (Action), agenda 19 materials, agenda 19 video 
 
20. Review and Discussion of the 2020 Board of Trustees Self-Evaluation Report, agenda 20 materials, agenda 20 video 

21.  Agency Update, agenda 21 materials, agenda 21 video 
  • Legislative Update
  • Legislative Appropriations Request Update
  • Plan Year 2021 Fall Enrollment
  • RISE Project Update
  • Survey of Employee Engagement
  • State Employee Charitable Campaign update
  • 1836 San Jacinto building update
22. Set 2021 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. agenda 22 materials, agenda 22 video
 
23. Recess of the Board of Trustees – The Board of Trustees will reconvene on Wednesday, December 9, 2020 at 8:30 a.m. with the Investment Advisory Committee to take up the remaining agenda items.  agenda 23 materials, agenda 23 video

Wednesday, December 9

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

24. Call Meeting of the Board of Trustees to Order, agenda 24 materials, agenda 24 video  
 
25. Call Meeting of the Investment Advisory Committee to Order, agenda 25 materials, agenda 25 video 
 
26. Review and Approval of the Minutes to the August 19, 2020 Joint Meeting of the Board of Trustees and Investment Advisory Committee – (Action), agenda 26 materials, agenda 26 video     
 
27. *Discussion and Training regarding Ethics, agenda 27 materials, agenda 27 video 

28. *Review of Retirement Program Actuarial Valuations and Financial Status, agenda 28 materials, agenda 28 video

29. *Educational Presentation – Overview of Credit Rating Agency Metrics, Methodologies and Impact on State Ratings, agenda 29 materials, agenda 29 video
 
30. Review, Discussion and Consideration of the Texa$aver Program Updates: Texa$aver Product Review Committee Recommendations– (Action – Board Only Vote), agenda 30 materials, agenda 30 video 

31. *Educational Presentation – Environment, Social and Governance (ESG), agenda 31 materials, agenda 31 video

32. *Review of Investment Performance for 3rd Quarter of 2020, Risk Update, and Liquidity, agenda 32 materials, agenda 32 video 
       
33. *Global Public Equity Market Update and Program Overview, agenda 33 materials, agenda 33 video   
 
34. *Emerging Manager Market Update and Program Overview, agenda 34 materials, agenda 34 video   

35. Chief Investment Officer’s Report, agenda 35 materials, agenda 35 video   

36. Adjournment of the Joint Meeting of the Board of Trustees and Investment Advisory Committee, agenda 36 materials, agenda 36 video

* 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 December 8-9, 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 Tuesday, December 8, 2020 to take up Audit agenda items from 9:00 a.m. to approximately 10:10 a.m., and Board agenda items from 10:10 a.m. to approximately 3:10 p.m. The Joint meeting of the Board of Trustees and Investment Advisory Committee is scheduled to meet from 8:30 a.m. to approximately 3:45 p.m. on Wednesday, December 9, 2020, 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