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Published by TEXPERS, 2017-10-30 15:10:37

TEXPERS PO Vol 4 2017

TEXPERS PO Vol 4 2017

Kentucky report provides Funds maintain positive
Texas with talking points  trend performance



INDEX 3

DID
YOU

C O N T E N T SKNOW?
A few fun facts about New York
City's public pension systems:

up-fRONT

Column: Texans, take heed: Kentucky could make a big mistake.
Find out why what happens there is important to you. pg. 4

Column: No one said being a trustee would be easy. Just
remember, employees deserve sound retirement systems and
benefits. pg. 5

»»p.6 Column: New York City’s chief actuary offers advice to Texas funds.
Find out why what’s good for corporate isn’t good for public. pg. 6

spotlight

News: A new TEXPERS report indicates 93 state and local pension
funds are maintaining positive trend performance. pg. 7

»»p.7 Rise Up: The leadership gap between men and women hasn’t
closed. Two pension administrators share what it is like working in
a male-dominated industry. pg. 8

Best practices

Board Relations: It’s not a good idea to keep your fund’s actions a
secret. An open meetings expert explains why the Open Meetings
Act should matter to your board of trustees. pg. 10

'WHO
RUN THE
WORLD?

GIRLS'

»»p.8

www.texpers.org | TEXPERS Pension Observer

4 UP-FRONT

Board of directors D e fi ned contr i b ut ions
a ren ’t t h e r i g h t c u re
President for pens i on i lls
Paul R. Brown
Big Spring Firemen’s Relief & Retirement Fund by Paul R. Brown
President, TEXPERS
First Vice President
Sherry Mose     COLUMN                                   
Houston Municipal Employees Pension System
There has been much
Second Vice President
Tyler Grossman discussion on the Kentucky Compromise has become
El Paso Firemen & Policemen’s Pension Fund
pension problem, and how
Secretary
John D. Jenkins switching to 401(k)-like defined such a loaded word in American
Dallas Employees’ Retirement Fund
contribution plans would
Treasurer
Eyna Canales-Zarate reduce future costs to support politics. Given the partisan split in many state
City of Austin Employees’ Retirement System
retirement plans of public
BOARD MEMBERS
workers. It is just not true. governments, legislators in both parties have
• Jose Cavazos
Dallas Area Rapid Transit Retirement Plan and Trust Kentucky’s pension debt
• Mike Curran
MTA of Harris County Retirement Plan is roughly $33 billion, accord- to do things the old-fashioned way, working out
• Larry A. Reed
San Antonio Fire & Police Pension Fund ing to an Aug. 29 article in the
• Billy Samuel
Fort Worth Employees’ Retirement Fund Courier-Journal. Some public deals that leave both sides a little unsatisfied but
• Jim Smith
San Antonio Fire & Police Pension Fund officials anticipate the debt
• David Stacy
Midland Firemen’s Relief and Retirement Fund increasing to $43 billion by afforded victories.

Administration year’s end.

• Max Patterson Op-eds published in
Executive Director
• Carolyn Butterworth, CMP various newspapers and online word in American politics. Given the partisan
Director of Conferences & Member Relations
• Barbara Zlatnik, CAE sites state that the pension problem stems split in many state governments, legislators
Associate Director for Programs & Training
• Lena Terrell from the defined benefits system. These in both parties have to do things the old-fash-
Membership Manager & Bookkeeper
• Allen Jones op-eds are poorly researched and obviously ioned way, working out deals that leave both
Communications & Public Relations Manager
fail to examine the fiscal history and perfor- sides a little unsatisfied but afforded victories.
CONTACT INFORMATION
mance of the pension history. Keep in mind They have to reach informal agreements
The TEXPERS Pension Observer
c/o Texas Association of Public that Kentucky is listed as one of the 10 best to avoid the public and personal attacks. If
Employee Retirement Systems
performing public plans for 2017 by Pensions you want to be an effective legislator, you
13111 Northwest Freeway, Suite 100
Houston, Texas 77040 & Investments magazine. have to find people to work with on the other

Telephone (713) 622-8018 The op-eds continue to say that pension side. Legislators must relearn the old lesson
E-Mail: [email protected]
systems, by nature, are unsustainable. “Yet, that compromise can be more productive than
Copyright ©2017 by Texas Association of Public
Employee Retirement Systems. TEXPERS Pension for more than 60 years, Kentucky’s pen- posturing.
Observer is the official magazine of TEXPERS, published
quarterly for TEXPERS members. Contributions to sions were fully funded and fiscally healthy,” While Congress soaks up much atten-
TEXPERS Pension Observer are welcome, but the
right is reserved to select material to be edited and writes Tim Abrams of the Kentucky Retired tion, the federal government is, in fact, distant
published. Publication of any article is not to be deemed
an endorsement of the views expressed therein, nor Teachers Association in a letter published by from ordinary people. Much of our work is
shall publication of any advertisement be considered an
endorsement of the product or service involved. The Advocate-Messenger newspaper Sept. done at the state and local level. There seems

28. “A combination of poor actuarial assump- to be an ongoing political conflict that is never

tions and a lack of” requested contributions over.

by the “state government from 2007-2016 Within TEXPERS, we can proudly say

created this ‘mountain’ of unfunded pension that unity and solidarity in the toughest of

liabilities,” he says. times have strengthened the loyalty we have

Compromise has become such a loaded to one another.

What You Can Do

Report could provide TEXPERS members amunition to protect Texas Public Pensions

Members of Texas’ public pension systems Knowing what is happening to public pen-
may want to keep information handy regarding sions in other states can be useful to Texas
a new report coming out of Kentucky highlight- public pension supporters looking to advo-
ing the detrimental effects proposed changes cate for defined benefits in this state, says
to that state’s public pension systems would
have on its taxpayers and public employees. See KENTUCKY, pg. 5

TEXPERS Pension Observer | www.texpers.org

UP-FRONT 5

E mpl oyees deserve so und
reti rement systems, benef i ts

by Max Patterson

Executive Director, TEXPERS

    COLUMN                                   

The 85th legislative session Quinn, chairman of American was primarily a funding issue. A “fiduciary” – the responsibility of
is now behind us as we await the the board to hire the right person
start of the interim session and its Beacon Advisor; Kneeland decision by the city to repeatedly with the right competencies and
changes. So far, local public pen- to oversee that person to ensure
sions are not on the list. Youngblood with Pharos Group; underfund the police and munici- things are done properly. The board
is even given external resources to
Coming up in Houston is a Ray Nixon, portfolio manager at pal plans which in turn led to the do this. Things like external attor-
big bond election that will affect neys, auditors, consultants, man-
the city’s three pensions. There Barrow, Hanley, Mewhinney and unsustainability of the benefit struc- agers who report to the board, etc.
is Proposition A which calls for There are also limits on what staff
the issuance of pension bonds to Strauss, LLC.; Nicholas Merrick, ture in all three plans. It’s easy to should be allowed to do regarding
support the police and municipal the level of involvement in invest-
pension plans. The fire pension president of Vernon look back and deter- ments depending on the size of the
will not receive any of the bond fund. So how could something like
proceeds and is not supportive Investments LLC; mine what caused this happen? It remains to be seen,
of the measure even though they and only a detailed audit will ulti-
are not campaigning against the Fred (Shad) Rowe No one this problem but mately tell.
ballot measure. Also, the Greater
Houston Partnership along with (previous chair- said being it is more diffi- The bottom line is that the
several other strong advocates of man of the Pension a trustee is cult to prevent the employees are suffering for this. It
defined contribution plans have Review Board) with problem from reoc- can’t continue to happen, or even-
decided not to campaign against tually, there will not be any defined
the issue. Some of the organiza- Greenbrier Partners; easy. If you feel curring in the future. benefit plans left in Texas. No one
tions have even voiced support and Robert Walters, that the job is too People in key posi- said being a trustee is easy.
for the measure. The election is litigation and anti- tions change, and
Nov. 7. If you feel that the job is too
trust attorney with demanding, you our memories fade. demanding, you should step aside
Dallas Police and Fire now and allow someone else to take it.
has a new board of trustees con- Gibson Dunn. The should step aside But the employees Stepping aside is not giving up.
sisting primarily of investment fund is still in the deserve better. The Sometimes stepping aside is more
professionals, all appointed by and allow someone courageous than muddling your
the city’s mayor. They are William process of select- employees deserve way through.

KENTUCKY, from pg. 4 ing the remaining else to take it. a sound retirement
five trustees from system with good

the police and fire, benefits that are

which may or may sustainable by both

not be members of the two depart- the employer and the employee

ments. This will be an interesting from their contributions.

board to watch going forward, and The cause in Dallas is far

a lot of eyes will be on them. more complicated. More complex

The circumstances that led to in the sense that for a pension plan

the changes in Dallas were very to function correctly the board has

different from Houston. Houston a crucial role to play. We call it

Max Patterson, executive director of TEXPERS. empty out the retirement fund while many of pen- Group’s findings are faulty in that changing to
The recommended changes would cost sioners are still alive. 401(k) accounts would cost the state more than
maintaining the current retirement plan model it
Kentucky taxpayers and public employees The PTA group was hired to examine the has used since January 2014, a hybrid cash-bal-
money and would discourage future generations recommendations of PFM Group, a firm engaged ance plan. Also, according to the PTA report, the
from seeking public employment, according to a in August by advisers to the state’s governor. PFM Group’s recommendations would require
report released Oct. 16. PFM is proposing the change from the more Kentucky to pay off billions of dollars in unfunded
secure DB plan to the 401(k)-like program. pension liability from past years in addition to
Republican Gov. Matt Bevin’s administration According to the PTA group, even using PFM’s higher administrative costs and investment fees
is considering drawing up a bill for a special leg- optimistic return assumptions, more than half of associated with defined-contribution plans.
islative session that could include recommenda- those in the suggested defined contribution plan
tions to switch its public pension systems from would run out of retirement funds. The PTA group points to states such
a defined-benefits pension for state employees as South Dakota, Oregon, Wisconsin, North
and educators to a defined-contribution 401(k)- The PFM Group is suggesting that it is Carolina, Tennessee and New York that are suc-
like account. cheaper to provide public employees with cessfully funding defined-benefits pensions by
DC plans, which are generally self-financed. paying bills on time.
Doing so, according to Colorado-based con- However, the PTA group asserts the PFM
sultant group Pension Trustee Advisors, might

www.texpers.org | TEXPERS Pension Observer

6 UP-FRONT

N e w Yor k C i t y ’s C h i e f Act u a ry
o f f ers a d v i ce to T ex a s F u nds

by Sherry S. Chan
Chief Actuary, New York City Office of the Actuary

  column                                  

Financial Economics and its a discount rate that
application in valuing public pension
plan liabilities have been a much reflects what the plan’s DID A few fun facts about New York
-debated topic in the pension world assets are actually YOU City's public pension systems:
for some time now. Therefore, I expected to earn. KNOW?
appreciate this opportunity to share
my concerns in applying this theory Accrued Benefit
to the stewardship of public pension The accrued
funds. benefit cost method

When measuring actuarial produces an annual
liabilities in defined benefit public
pension plans, two tools are used: a funding cost based
discount rate and a cost (or funding)
method that determines how much on the benefit that
the plan should fund each year
so that over time, there’s enough accrues each year
money to pay out benefits when
they are due. The differences in the for the pension plan
discount rate and the cost method
are at the center of the Financial member. Generally
Economics debate in determining
what is most appropriate in valuing speaking, retirement
public pension liabilities.
benefits in the public
Current Market Discount
Proponents of Financial sector are based on a
Economics believe that the best
measure of a public pension plan’s member’s final pay.
actuarial liabilities is through the
use of current market bond rates as A member’s pay
the discount rate and the accrued
benefit cost method. The current typically increases as
market rate reflects whatever return
the market is producing on bonds, they progress through
which in today’s market is lower
than the expected rate of return on their career, so if a
the average public pension plan’s
asset portfolio. plan is funded under
A lower discount rate pro-
duces higher actuarial liabilities. an accrued benefit cost method, components are why the level cost liabilities in a comparable manner.
The higher the liabilities, the more
that is needed to be put in the plan. the annual cost amount would approach provides an appropriate Public plans, however, are
So, by using an artificially lower dis-
count rate to calculate the accrued increase year after year, yielding a measure to determine the actuarial financed by a government entity
liabilities, you would be putting an
unnecessary burden on the tax- back-loaded funding pattern. liabilities of public pension plans. that operates in perpetuity, and they
payers by having them overfund
the plan when compared to using These two components, the Also, different purposes call do not exist solely to maximize their

current market discount rate plus for different measures of liability. market price.

the accrued benefit cost method, As discussed above, the market Those key differences are

comprise the market pricing pricing approach does not align why Financial Economics is more

approach and determine the with measuring liabilities for public useful in the corporate world where

measure that Financial Economists plans. -- unlike governmental agencies --

advocate for use when determining The Financial Economics an employer may be withdrawing

actuarial liabilities of public pension model is more applicable and or terminating and even an ongoing

plans, even though they have these useful to entities, such as corpora- employer is defined by a market

major drawbacks as measures of tions, that are essentially defined price.

pension cost. by their market price. As New York City’s chief

It is legitimate in the corporate actuary serving the city’s five

Level cost arena because the worth of a cor- major actuarially-funded retire-

In contrast, under the level cost porate pension plan or company ment systems as their technical

approach, the discount rate used is has to be valued to meet settle- advisor, I know first-hand the practi-

the rate that reflects the expected ment or solvency obligations, if the cal value of the level cost method in

investment returns over a period need arises. Furthermore, even for delivering much deserved pension

of time and the cost method is a an ongoing company, because the checks to those who work in gov-

level cost method where the cost to company’s value is determined by ernment. It performs well, as it does

fund the plan is spread evenly over the market price of its stock, it is for so many retirement systems and

the workers’ careers. These two appropriate to value its pension pension funds nationwide.

TEXPERS Pension Observer | www.texpers.org

SPOTLIGHT 7

rEPORT: tEXAS’ S TATE AND LOC AL PENSIO N
FUND S C ONTINUE S TEADY TREND PERFO RMANCE

TEXPERS Staff Report

   NEWS                                    

A new report from the Texas Association of the >40<infinite category, into the >25<40 year in calculating the contribution rate needed from
Public Employee Retirement Systems demon- category. In addition, two more systems now are employees and their city sponsor.
strates how 93 state and local pension funds com- in the PRB’s recommended category, the greater
bined in 2016-2017 to maintain positive trend per- than zero, less than 15-year category. “The Pension Review Board recognizes
formance in the key metric recommended by the that amortization period trends matter more
Texas Pension Review Board. TEXPERS’ report shows that a significant than accountants’ moment-in-time snapshots of
number of systems dropped the rate of return unfunded liabilities when assessing pension fund
The steady trend data comes despite numer- which they seek. Only 24 systems now target health,” says TEXPERS Executive Director Max
ous systems reducing their target rate below eight average rates of return of 8 percent or more, Patterson. “This high-level overview of pension
percent, a conservative move which, mathemati- compared to 35 systems which did so in the last systems’ health continues to warrant the trust
cally, could have moved pension systems in unde- PRB report. Most systems (42) aim for a 7.50-7.99 which lawmakers place in local pension boards
sirable directions but did not. TEXPERS based its percent average yearly return, as compared to 31 to deliver reasonable earned benefits to police,
assessment on the PRB’s year-over-year com- in the prior report. The targets are a major factor firefighters and municipal employees at minimal
parisons of pension funds’ amortization periods. contribution from taxpayers.”
An amortization period indicates the number of
years needed to pay off all present and future “Our report would be incomplete if we did not
projected benefits to employees. It is similar to a note the intrinsic value of all our cities’ police, fire-
home mortgage in terms of years needed to pay fighters and municipal employees to the citizens
off interest and principal owed. The PRB says that they served in the wake of Hurricane Harvey,”
amortization periods are the single “most appro- Patterson adds. “We’ve noted for years the
priate” measure of public retirement systems’ unmeasurable contributions these fine people
health. make to civic society. We saw that dynamic on
display across most of the southern half of Texas.
The most substantial improvements in the It’s hard to assign mathematical values to their
2016-17 period occurred in the two pension actions, but it is the reason why strong pension
systems moving out of the infinite category, and funds exist and ought to be maintained.”

1401 McKinney, Suite 1600
Houston, TX 77010-4035

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Contact: Ruby Muñoz Dang
Phone: (713) 853-2359

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www.texpers.org | TEXPERS Pension Observer

8 SPOTLIGHT

RISE UP by Allen Jones
TEXPERS Communications Manager

p U B LI C P E N S I O N S Y S T E M S A R E
N O T IMMU N E T O T H E g E N D E R g AP

   LEADERSHIP                                    

“Who run the world? Girls,” according to were listed as a system’s executive director, When she started working for the Corpus
Houston native and singer Beyoncé Knowles.
Although women do make up a majority of the so calculations are not exact. Still, the picture Christi fund, one of her goals was to improve
world’s population, earn a majority of undergrad-
uate and graduate degrees as well as obtain painted gives you an idea of how male domi- the services the system provides active and
nearly half of all law and medical degrees and
a large percentage of MBAs and other special- nated the public pension system leadership is retired firefighters as well as the board of trust-
ized master’s degrees, you wouldn’t necessar-
ily see their dominance when it comes to their in the state. ees. It’s a goal she believes she has accom-
representation in leadership positions.
TEXPERS spoke to two system leaders plished and one that she continues to improve.
Considerable strides in women’s profes-
sional advancement in the United States have to find out how they got where they are, the For example, the fund now has a computer
been made since the last decades of the 20th
century, according to the Center for American gender discrimination they faced, their accom- program where the active membership can
Progress. The independent nonpartisan policy
institute, keeps a list of gender-related workforce plishments and advice they have for their male login and calculate their potential retirement
statistics based on the U.S. population. Despite
women’s progress, a gender gap in their suc- counterparts. benefit based on various scenarios.
cession into top-level jobs continues to fall short
of their male counterparts. The leadership gap Throughout her career, she continued her
between men and women in the U.S. may have
narrowed, but the fissure’s branches continue Gracie Flores education, improved her communication skills
to run into various industries, including Texas’
public pension systems. Gracie Flores is the pension plan admin- and welcomed challenges. In 2004, former

According to statistics gathered by the istrator of the Corpus Christi Firefighters’ Texas governor Rick Perry appointed Flores
Center for American Progress, in the United
States, women make up 50.8 percent of the pop- Retirement System. The plan has 412 active to serve on the Texas Emergency Services
ulation. They earn almost 60 percent of under-
graduate degrees and 60 percent of all master’s members and 320 retired firefighters. The fund Retirement System’s board. The state agency
degrees. Women earn 47 of all law degrees and
48 percent of all medical degrees. They obtain is a member of the Texas Local Firefighter administers a pension system for volunteer
38 percent of MBAs and 48 percent of special-
ized master’s degrees. Women also account Retirement Act systems. fire and emergency
for 47 percent of the U.S. labor force and 49
percent of the college-educated workforce. And Flores has served as departments across the
even though they hold nearly 52 percent of all
professional-level jobs, women in the U.S. lag the Corpus Christi plan’s state. At the time of her
substantially behind men when it comes to their
representation in leadership positions. administrator for more appointment, she was

Among TEXPERS’ retirement system than 18 years. When the only female on the
members, approximately 27 women were listed
in the association’s membership directory with she was hired in 1999, board. A few years later,
the title executive director, administrator or chair.
Their systems account for nearly 37 percent of the board was comprised a second woman was
TEXPERS’ system membership. Not all contacts
of mostly males. She isn’t appointed to the sys-

aware of anyone on the tem’s board of trustees.

fund’s board that may Flores has been on

have objected to hiring the board for almost 13

her because of her years and has lead two

gender. committeees. Because

“They all agreed that the fund is partially

I was the best fit for the funded by the state, she

position because of my says budget cuts were

education and experi- always a challenge.

ence,” she says. Gracie Flores The biggest lesson
Before taking the job she has learned since

as the plan’s administra- taking the job in Corpus

tor, Flores worked in Frost Bank’s trust depart- Christi is that as long as an administrator accu-

ment for about 12 years. The Corpus Christi rately understands the function or purpose of

Firefighters’ Retirement System was an account a particular plan, policy or procedure, they can

Flores handled. confidently offer their advice or opinion. And, if

“Fortunately, my education, experience and their audience disagrees with them, don’t take

competence in the administration of the retire- it personal.

ment system was enough to gain my board of “Be open minded and listen,” Flores says.

trustees’ support and respect,” she says. “There is probably more than one way to get

TEXPERS Pension Observer | www.texpers.org

SPOTLIGHT 9

'WHO Let’s consider some national
RUN THE statistics to get a better picture
WORLD? of the leadership gender gap.
According to the Center for
GIRLS' American Progress:

• In the United States, women
make up 50.8 percent of the
population.

• They earn almost 60 percent of
undergraduate degrees and 60
percent of all master’s degrees.

• They earn 47 of all law degrees
and 48 percent of all medical
degrees.

• Women obtain 38 percent of
MBAs and 48 percent of special-
ized master’s degrees.

• They also account for 47 per-
cent of the U.S. labor force.

to the answer or at least to the best answer for head portfolio manager that’s a woman. she says. “They surprisingly, sometimes, are
women. My experience here and in New Mexico
your situation.” It is an industry of men, she says. However, is women trustees just do not support a female
executive. For some reason, they can have
Mevi says it has been men that have been open a weak male executive and support him but
a strong female – it’s just the dichotomy that
Joelle Mevi minded and saw the benefit of diversity on their exists of expectations of a male in an execu-
tive role. You want them to be strong and per-
Joelle Mevi has lead the Fort Worth teams that have given her the career opportu- suasive and somewhat assertive. But if you’ve
got those same characteristics in a women, that
Employees’ Retirement Fund as its executive nities she has had. When Mevi came to work would be overbearing and threatening.”

director for nearly four for the Fort Worth fund, In general, Mevi says her board is
supportive.
years. She has a dual one of her goals was to
“We accomplish things, so the majority of
role as the fund’s chief reduce asset manage- my trustees understand and agree to what I’m
trying to do in serving them and the trust fund
investment officer. ment fees the fund was and the membership,” she says.

The fund has paying. Women, Mevi says, have certain leader-
ship characteristics that are proven to be ben-
approximately 10,000 “Asset fees had eficial in supervisory capacities. Women are
more compassionate, more intuitive, they tend
members. A little more been a hot-button topic to listen better and by their nature are more
reserved and thoughtful in their approach, she
than 4,000 are retirees. It in New Mexico,” she says. For women looking to take on leadership
roles, Mevi says they need to be persistent, be
is the only fund in Texas says. “It was hard to get prepared and have resiliency.

that includes public away from it. I was a little “You have to have those qualities,” she
says. “A lot of times, when you have 13 bosses,
safety and general gov- surprised that when I you are going to have to understand that some
are not going to like you or anything you do.
ernmental employees in came to Fort Worth, this You have to exercise judgement and reason-
ableness that isn’t the judgment of the entire
a single system. board was not all that board. You have to be persistent in understand-
ing that if at first you don’t succeed, you have
Mevi was recruited concerned about fees. I to keep trying.”

by the fund’s board out of made it pretty clear that

New Mexico where she was something I wanted

served as the investment to work on and address.

officer for that state’s joelle mevi The funny thing is, that
retirement system. She discussion about fees

held that job for four being the hot-button

years and had been working in government for item has then come up over the three years

20 years before moving to Texas. I’ve been here.”

The Fort Worth fund’s board was looking In terms of gender discrimination, she says

for someone with administrative capabilities but the majority of her current board are support-

also investment knowledge. Mevi fit the bill. ive. They understand what she’s thinking and

Throughout her career, Mevi says she has trying to accomplish. But, Mevi says, “let’s face

noticed a gender gap in leadership roles, espe- it, boards are strange animals.”

cially in the investment industry. It is rare that “You are going to end up with one or two

she comes across a chief investment officer or that are, quite candidly, going to be haters,”

www.texpers.org | TEXPERS Pension Observer

10 B E S T P R A C T I C E S

Public pension boards should take
note of open meeting requirements

by Jennie Hoelscher
Opinions Division Chief, Office of the Attorney General of Texas

    Board relations                                     

The Open Meetings Act Did You Know? Meeting in closed sessions
requires governmental bodies, The general rule of the Act
including the governing bodies of The Open Meetings Act was requires governmental bodies to
public pension funds, to operate adopted to help make conduct their meetings in the open;
transparently and make govern- governmental decision-making - however, the Act provides limited
mental decision-making accessible including that of public pension exceptions authorizing closed
to the public. boards -accessible to the public. meetings without public access.
A public pension must hold a For example, a governmental body
The provisions of the Act are meeting to exercise its powers. may meet in closed session to
mandatory, and violations could A public pension cannot take seek advice from its attorney about
result in significant civil, and some- action without a quorum of its pending or contemplated litigation
times criminal, penalties for govern- members. That means a pension or a settlement offer, or to deliber-
mental bodies and their members. board must have a majority of ate about the employment of a spe-
Members of public pension funds its trustees present to conduct a cific employee.
should therefore ensure that their meeting.  Subchapter D, chapter 551, of
boards comply with the Act’s -TEXPERS the Government Code provides a
provisions. list of instances when closed ses-
jurisdiction, meeting notices must bodies to post notice on the Internet. sions are allowed. Before meeting
Writing the meeting agenda be posted for at least 72 hours Governmental bodies should in closed session, the governmental
The Act requires a governmen- before the scheduled time of the consult sections 551.049–551.056 body should identify and announce
tal body to give written notice of the meeting. of the Government Code for accu- the specific authority that allows it
date, time, and place of its meet- rate posting requirements specific to meet in closed session. And even
ings, as well as the subject matter Regarding the location for to their type of entity. when the Act allows a body to delib-
the governmental body plans to posting, the Act establishes differ- erate in closed session about a spe-
consider. ent requirements depending on the Making documents available cific topic, any vote or final action on
Regarding the subject matter, type of governmental body. All gov- the topic must be conducted in an
the level of detail of each notice ernmental bodies must post their to the public open session.
item must be sufficient to apprise notices in a place readily acces- The Act does not require a gov-
the general public of the specific sible to the general public at all Advice is available
topics that will be covered at the times during the posting period. ernmental body to make documents If TEXPERS members have
meeting. Any action taken on items Depending on the type of govern- available to the public at its open additional questions related to
not properly posted on the agenda mental body, the location could be meetings. However, any documents open meetings, they may contact
are voidable. on a bulletin board at city hall, at the discussed at a meeting may be the Office of the Attorney General’s
Thus, governmental bodies county courthouse, or at the main subject to an open records request Open Government Hotline at 512-
should err on the side of providing administrative office of the gov- under the Public Information Act. 478-6736 or 877-673-6839. Leave
more detail rather than less when ernmental body. Posting notice in Some entities choose to make a message on the hotline, and an
preparing their meeting agendas to a location that the public is unable documents discussed at their open attorney well-versed in open meet-
ensure that the public has a general to view outside of normal business meetings available to the public ings issues will promptly return
idea of each subject the govern- hours would normally not satisfy this either by providing electronic links the call. In addition, more informa-
mental body plans to discuss at a requirement. to the documents on their meeting tion is available through the Open
meeting. agendas posted on the Internet or Meetings Act Handbook. A digital
In addition to a physical posting, distributing hard copies of the doc- copy is available on the Texas
Posting the meeting agenda the Act requires most governmental uments at their meetings. Attorney General’s website at www.
With an exception for gov- texasattorneygeneral.gov.
ernmental bodies with statewide

Is your pension celebrating a milestone? Have members elected new board trustees? Do you have a member that you think would make for an
interesting profile? Send story ideas to TEXPERS Communications Manager Allen Jones at [email protected] or call 713-622-8010, ext. 114.

TEXPERS Pension Observer | www.texpers.org

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As a TEXPERS Associate Advisor, Invesco is committed to the
Lone Star State, with more than:
– 1,600 employees in Dallas, Houston and Austin
– 70 Texas pension, foundation and endowment clients
– 20 years of being entrusted with Texas retirement portfolios

Delia Roges, Managing Director
Public Funds Sales & Service Team
Phone: 415 445 3388
[email protected]
Max Swango, Managing Director
Invesco Real Estate
Phone: 972 715 7431
[email protected]

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