TEXPERS PO Vol 2 2018

Pension fund health relies Be a better leader, think
on employer contributions like a futurist

GET STRATEGIC

Your guide to setting goals for the year ahead. - pg. 8

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INDEX 3

CONTENTS
up-fRONT
Guest Column: New government employees should think for
themselves, say guest columnists Katherine Barrett and Richard
Green. pg. 4
Executive Director’s Column: Pension fund health relies on employer
contributions. Not everyone seems to think so, however. pg. 5
spotlight
Fund Tactics: A simple document could help fund trustees and
administrators track objectives and map the year ahead. pg. 8
Best practices
Board Relations: Imagining the future could help you become a
better pension system leader. Find out how.. pg. 11
Tech Support: A “freemium” web-based program helps small and
large pension plans cut expenses and paper waste. pg. 14

» p.11

» p.5

www.texpers.org | TEXPERS Pension Observer

4 UP-FRONT

BOARD OF DIRECTORS NEW PUBLIC EMPLOYEES
MUST START THINKING
President FOR THEMSELVES
Paul R. Brown
Big Spring Firemen’s Relief & Retirement Fund by Katherine Barrett & Richard Greene
Guest Columnists
First Vice President
Jim Smith GUEST COLUMN
San Antonio Fire & Police Pension Fund
When politicians talk about pensions, Urban Institute’s retirement policy program.
Second Vice President it’s usually about the enormous weight they “New hires may be lulled into a false sense
John D. Jenkins place on government budgets. According to that they are getting enough to tide them over
Dallas Employees’ Retirement Fund the Volcker Alliance, where we are consultants, when they retire, and often this might not be
state and local governments are on the hook the case.”
Secretary for $1 trillion in unfunded pension liabilities.
Sherry Mose According to a 2014 study of 24 states,
Houston Municipal Employees Pension System Lawmakers on both sides of the aisle pension reform has dropped new employ-
push for pension “reform,” a word often used ees’ average expected retirement amount
Treasurer in a positive sense, to rescue dollars that could by 7.5 percent. The impact varies tremen-
Eyna Canales-Zarate instead be used for other services. But what dously, but pension reform has been particu-
City of Austin Employees’ Retirement System about future retirees? Is pension reform pos- larly extreme in some states: Expected retire-
itive for them? ment benefits are 20 percent less in Alabama
BOARD MEMBERS and Pennsylvania, and 18.5 percent lower in
In many cases, not so much. Since the Maryland.
• Jose Cavazos Great Recession, every state except Idaho
Dallas Area Rapid Transit Retirement Plan and Trust has made changes to the pension benefits To reduce their pension costs, almost
they offer public employees, according to Luke half the states (19) have developed retire-
• Tyler Grossman Martel, director of the employment, labor and ment plans that are a hybrid of defined-ben-
El Paso Firemen & Policemen’s Pension Fund retirement program at the National Conference efit (DB) plans, in which employees are guar-
of State Legislatures. anteed an employer-funded pension based on
• Larry Knott their salary and years worked, and defined-
Dallas Area Rapid Transit Retirement Plan and Trust States have chipped away at pension contribution (DC) plans, in which employees
benefits in many different ways -- eliminat- and employers pay toward their retirement.
• Larry A. Reed ing cost-of-living increases, reducing employer But half of those states (9) give employees
San Antonio Fire & Police Pension Fund and hiking employee contributions, and raising the option of choosing a DC plan instead of a
the retirement age, to name a few. But because DB or hybrid plan. (That could be desirable for
• Billy Samuel of long-standing contracts, employees who are people who don’t plan on staying in the public
Fort Worth Employees’ Retirement Fund already on the payroll when reform takes place sector long because defined-contribution plans
are spared most of the cuts. It’s new employ- are portable from one employer to the next.)
• David Stacy ees who bear the biggest financial burden.
Midland Firemen’s Relief and Retirement Fund See GUESTS, pg. 6
“A lot of plans have become a lot less gen-
ADMINISTRATION erous,” says Richard Johnson, director of the

• Max Patterson
Executive Director

• Carolyn Butterworth, CMP
Director of Conferences & Member Relations

• Barbara Zlatnik, CAE
Associate Director for Programs & Training

• Lena Terrell
Membership Manager & Bookkeeper

• Allen Jones
Communications & Public Relations Manager

• Samantha Polsgrove
Member Services Specialist

CONTACT INFORMATION

The TEXPERS Pension Observer
c/o Texas Association of Public
Employee Retirement Systems

13111 Northwest Freeway, Suite 100
Houston, Texas 77040

Telephone (713) 622-8018
E-Mail: [email protected]

Copyright ©2018. TEXPERS Pension Observer is the
official magazine of TEXPERS, published quarterly.
Contributions to TEXPERS Pension Observer are
welcome, but the right is reserved to select material to
be edited and published. Publication of any article is not
to be deemed an endorsement of the views expressed
therein, nor shall publication of any advertisement be
considered an endorsement of the product or service
involved.

TEXPERS Pension Observer | www.texpers.org

UP-FRONT 5

PENSION FUND HEALTH RELIES
ON EMPLOYER CONTRIBUTIONS

by Max Patterson

Execu ve Director, TEXPERS

EXECUTIVE DIRECTOR’S COLUMN

Once again James Quintero at the Texas

Public Policy Foundation (TPPF) invited me to

take part in a panel discussing public pension

reform at the 16th Annual Policy Orientation for

the Texas Legislature 2018, hosted by the Texas

Public Policy Foundation in Austin.

The panel also included former Kemah

mayor William E. King; Rep. Dan Flynn,

R-Canton; Sen. Royce West, D-Dallas; and

Leonard Gilroy of the Reason Foundation.

Quintero served as the panel’s moderator.

The panel discussion was live-streamed

Feb. 9 from the Hilton Austin Hotel and recorded.

A video is posted to TEXPERS Facebook page

(www.facebook.com/texpers).

King was the most outspoken opponent

of defined-benefit plans. He suggests public

employees receive a 401(k) and Social Security

as most private-sector employees receive. Even

when it was pointed out how vulnerable workers Screenshot taken from Texas Public Policy Foundation video
would be in the later years to a volatile market, TEXPERS Executive Director Max Patterson, second from left, discusses pension reform during
he was not concerned. King has been very the 16th Annual Policy Orientation for the Texas Legislature 2018, hosted by the Texas Public
consistent in his position and will likely never Policy Foundation in Austin. James Quintero, director of the foundation’s Center for Local Gov-
change or compromise. It is also rumored that ernance, standing at podium, moderated the panel discussion. The panel featured, from left,
he will make another run for mayor of Houston. Patterson, former Kemah mayor William E. King; Sen. Royce West, D-Dalas; Rep. Dan Flynn,
R-Canton; and Leonard Gilroy of the REason Foundation.

Gilroy suggests public employers the county and district plans. Gilroy referenced to come down. The largest unfunded plans are

provide plan options for employees, includ- Arizona a lot; therefore, some research needs the state plans and the big city plans. That’s

ing defined-benefit plans that have automatic to be conducted to see how well the plans in where the risk sits. It will be interesting to see if

adjustment mechanisms, such as one that deals Arizona are doing. he chairs House Pensions if he wins his seat.

with improvements in life expectancy. Another Rep. Flynn said the current defined-benefit Sen. West played a crucial role in the

offer, Gilroy suggests, Dallas legislation and

is a defined-contribu- appeared to be supportive
tion, or 401(k)-like, plan
We have to work toward full funding from our of defined benefit plans. He

that would still require indicated that he is always
an employer to manage
cities. Benfits will have to take a backseat until open to talk and will con-

investments on behalf of this is achieved. sider all options but did not
employees. TPPF has commit to anything other

brought Gilroy into Texas than to meet and discuss.
to help out during the
- Max Patterson, TEXPERS Among all of the partici-
next legislative session pants, I would have to say

to convince elected offi- that West was the strongest

cials that change is necessary to the state plans, mechanism has problems but immediate prob- supporter of defined-benefit plans.

especially the Teacher Retirement System and lems must be fixed before switching the retire- The most critical input to pension fund

the Employee Retirement System. One needs ment plans for everyone. He said, however, it health is employer contributions. The failure of

to be careful in dealing with Gilroy. He is willing is time to consider new plan design options. the state and cities to fully fund their pension

to compromise and to take a piece at a time. Flynn has focused a great deal on the amount

He will promote hybrid plans like TMRS and of unfundedness, and he wants those numbers See PATTERSON, pg. 7

www.texpers.org | TEXPERS Pension Observer

6 UP-FRONT

GUESTS, from pg. 4

Up until this year, the nine states with options little homework and research,” says Matthew To increase the likelihood that employees
had all automatically enrolled new employees in Strom, vice president and actuary of the Segal will save, Ohio started auto-enrolling them in the
the DB or hybrid plan. But starting this year, new Group in Chicago, which works with state and supplemental savings program in 2013, forcing
state employees in Florida and new teachers in local governments to design and manage retire- them to opt out rather than in. This simple change
Michigan will now be automatically placed in the ment systems. Despite their push for pension has contributed to a dramatic increase in partic-
state’s investment plan that is similar to a 401(k). reform, states don’t want to leave their employ- ipation -- from about 10,000 employees in 2013
ees hanging. to about 32,000 in 2017, according to Ohio data.
“Previously, you defaulted into the
defined-benefit pension plan,” says Keith Many, including Ohio, have established sup- Overly believes strongly in the need for
Brainard, research director for the National plemental tax-deferred accounts to help employ- supplemental savings: “With or without pension
Association of State Retirement Administrators ees save for retirement. These are in addition reform, I don’t think there’s been adequate
(NASRA). “Michigan and Florida switched, and to the retirement plan offered by the state. savings for retirement.”
the default is now the defined-contribution plan.” According to the Bureau of Labor Statistics, 63
percent of state and local employees had access Columnists Barrett and Greene are gov-
But in both Florida and Michigan, new to these supplemental accounts in 2017 -- up ernment management experts who conduct
employees still have the option of making a con- from 54 percent in 2007. original research and write about state and
scious choice to be covered by the states’ tradi- local government for Governing magazine.,
tional retirement plan. Most, however, will likely “There is a greater need for supplemental which originally published this column. For
accept the choice the state makes for them. savings because of pension reform, and [states] more information, visit www.governing.com.
recognize that,” says Keith Overly, executive Email the columnists at greenebarrett@
“It’s hard for a young employee to think director of the Ohio Deferred Compensation gmail.com or visit their website, www.greene-
about something that’s 40 years down the road, Program and president of the NationalAssociation barrett.com.
but they shouldn’t assume that the default is of Defined Contribution Administrators.
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UP-FRONT 7

PATTERSON, from pg. 5

systems each year can cause downward spirals of various
pension fund metrics. A survey of TEXPERS’ members indi-
cated that 26 percent did not receive their actuarial required
contribution from their sponsor. This could hold back further
trend improvements. We have to work toward full funding
from our cities. Benefits will have to take a back seat until
this is achieved. Without this goal being met the sustain-
ability of defined benefit plans is questionable.

Patterson is executive director of the Texas
Association of Public Employee Pension Systems, which
provides state-mandated training for trustees and admin-
istrators of public pension systems. Email him at max@
texpers.org.

Screenshot of TEXPERS’ Max Patterson from Texas
Public Policy Foundation video taken during the 16th
Annual Policy Orientation for the Texas Legislature

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.

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www.texpers.org | TEXPERS Pension Observer

8 SPOTLIGHT

FUND TACTICS

illustration/PHOTO TECHNO

UNTANGLE YOUR PRIORITIES

Having a hard time keeping goals in order? A simple
document could help you track your fund’s objectives
and map the year ahead. byAllenJones

On a computer at the Dallas agreement around intended outcomes, and not a statistically significant difference by ‘size’ of
Employees’ Retirement Fund assesses and adjusts the organization’s direc- a nonprofit,” according to the study. Essentially,
is a 10-page document that tion in response to a changing environment. small nonprofits can conduct successful stra-
serves as a roadmap for the tegic plan development and ongoing manage-
plan’s administrators, trustees, and stakehold- “Every year, I review the strategic plan with ment and find that it significantly impacts their
ers to navigate a course of business objectives to the board and also review it with managers and overall success.
be achieved by the year’s end. Consider the doc- staff,” she says.
ument a Google map for planners and thinkers. The Dallas fund’s document includes a set
The strategic plan is a document used by Strategic plans are shared among large of guiding principles and core values, a list of
the fund’s management to communicate priori- public pension plans, Alston says. But, she adds, business objectives for the year and delves into
ties and outline actions needed to achieve those it is crucial for smaller funds to adopt a plan, too. projects that need to be accomplished in areas
goals. It is a document that the Dallas Employees’ Statistics back up her assumption. such as customer service, membership educa-
Retirement Fund’s executive director, Cheryl tion, benefits administration, investment man-
Alston, suggests other pension systems consider A study presented at the annual meeting agement, financial management, operations
putting together to ensure administrators, trust- of the Association for Strategic Planning, a management, and staff management.
ees and other stakeholders are working toward professional membership organization based
common goals. in Canada, indicates there is substantial evi- Alston says it takes a bit of development
Alston has been with the Dallas Employees’ dence that strategic planning results in higher but a strategic plan can coordinate and align
Retirement Fund since 2004. She established performance for nonprofits. Conducted by the resources and actions with a fund’s mission.
the fund’s first strategic plan about a year after University of Arkansas Department of Political Before each new year, she hosts individual
she was hired. The plan is updated every year to Science, according to the national survey of meetings with the plan’s various stakeholders –
account for new priorities. A good strategic plan, 20,000 nonprofit organizations, 93 percent of active and retired members, staff, trustees and
Alston says, strengthens operations, establishes successful organizations report that strategic city officials. The meetings let the stakeholders
planning has “some to critical impact” on their
overall success. And, “although there is a statisti- See PRIORITIES, pg. 9
cally significant difference by ‘success,’” there “is

TEXPERS Pension Observer | www.texpers.org

SPOTLIGHT 9

PRIORITIES, from pg. 8

know where the fund stands, allows Alston to

get an idea of what the stakeholders would like

to see improved, and outlines objectives the

fund would like to achieve during the next year.

The fund’s plan lists each initiative along with

assigned project managers, timelines of when

each project should be complete, and the cost

estimate of each objective.

For example, in the Dallas fund’s 2018 stra-

tegic plan, there are three initiatives to improve

customer service for members: improve office

experience for members, improve retiree expe-

rience, and improve members experience at the

point of retirement. A staff member is listed to

manage each project, a timeline and cost esti-

mate is provided for each item, and a metric is

recorded to gauge the intended results. Under

the “improve retiree experience” initiative, for

example, the intended outcome is to “partner

with entities that provide retiree job and educa-

tional opportunities.” The fund expects to have

the initiative completed within the second quarter

of the year and estimates the cost to be low, less

than $1,000, to achieve the desired results. A page in the Dallas Employees’ Retirement Fund strategic plan outlines guiding principles
It is a simple system Alston says that other and core values that trustees and administrators strive to uphold. The principles guide the fund
throughout its life in all circumstances irrespective of changes in its goals and management. The
funds looking to establish their own strategic fund’s core values consist of the organization’s fundamental beliefs that help determine if its
plans can easily copy. trustees and management are on the right path to fulfilling the plan’s goals.

“For small plans, start by taking seven busi-

ness objectives and sit down one-on-one with the

board of directors,” she says. “Tell them what is plan to fail – that about sums up why we need a unexpected situations that come up.”

important to you and ask them what is important plan, especially these days.” There are more “black swan” events than

to them. What does your organization do well? Celly says we live in a more turbulent and ever before, Celly says. The term is a meta-

Listen to them. What are you hearing? Then sit fast-paced time than ever before. So, there is phor characterizing rare incidents that come as

down with staff and a surprise, such as natural

then talk to city man- disasters, political turmoil,

agement. Open lines Every year, I review the strategic rebellion, new technol-
of communication. ogies and other disrup-

You will be surprised plan with the board and also review tions. Preparation helps to
how the plan comes it with managers and staff. manage them.
together.”
In drafting a strategic

A strategic plan - Cheryl Alston plan, there are two parts:
starts with a mission Executive Director Analysis and implemen-
statement and iden- tation. Strategic analysis

tifies what an orga- Dallas Employees’ Retirement Fund comprises of a mission
nization wants to statement; a vision state-

be or what it wants ment; stakeholder iden-

to achieve. Start by tification (employers,

asking, “Where is the fund today and where does less certainty in finances, health, and energy. members, employees, board or directors, plus

it want to go tomorrow?” “Take any field; there’s change,” he says. active and retired members); an internal anal-

“It is called strategic because it’s usually “In such an environment, having a clear goal and ysis of the pension fund’s resources, capabili-

long term, requires deep commitment, involves plan to get there is very helpful. A strategist main- ties, and competencies; and an external analy-

tradeoffs and decisions that generally require tains the perspective that luck sometimes does sis of the political, economic, social, technolog-

significant resources and are not easily revers- play a role in how you end up. But can you be ical and environmental trends in the organiza-

ible,” says Nikhil Celly, a competitive strategy consistently lucky? No. So having a strategy and tion’s general environment. A statement of any

and internal business professor with the Bauer a strategic plan can help to maximize the oppor- gaps that may exist, including how and why a

College of Business at the University of Houston. tunities for success – achieving your goals and

“There is an old saying that if you fail to plan, you mitigate or reduce the potential downsides or See PRIORITIES, pg. 10

www.texpers.org | TEXPERS Pension Observer

10 S P O T L I G H T

PRIORITIES, from pg. 9

fund is in the business it is in and an example A page in the Dallas Employees’ Retirement Fund strategic plan outlines guiding principles
for the pension plan – what is unique and differ- and core values that trustees and administrators strive to uphold. The principles guide the fund
ent to other plans - is also essential to include throughout its life in all circumstances irrespective of changes in its goals and management.
in the document. The fund’s core values consist of the organization’s fundamental beliefs that help determine if
its trustees and management are on the right path to fulfilling the plan’s goals.
Then, there is the strategic implementation
of the plan. That usually includes organization An example of a strategic goal from the Dallas Employees’ Retirement Fund strategic plan. The
structure, governance and leadership, systems, plan has three initiatives to improve its customer service. Each initiative lists a project manager,
and processes. How far in advance a strategic a project completion and cost estimate, and the end results the iniatives should achieve.
plan should focus depends on each individual Strategic Planning Tip: When starting your fund’s strategic plan, begin with an analysis to
plan. Some strategic plans are short-term – six identify the plan’s strengths, weaknesses, opportunities and threats (SWOT). Select a fund staff
months to a year. Longer-term plans project three member, board member or establish a committee to facilitate the SWOT analysis. Begin by con-
to five years. The Dallas fund focuses on objec- sidering the strength of the fund’s leadership and decision-making abilities, innovation, produc-
tives a year in advance. However, the fund is tivity, quality, service, efficiency, and technological processes. Consolidate the list and select
in the process of establishing a five-year stra- three strengths to summarize. Do the same for the fund’s weaknesses, opportunities and threats.
tegic plan.

Celly suggests pension funds set up a small
task force that comprises representatives from
the various stakeholders. Refer to a similar but
larger pension plan’s strategic plan document
that can be obtained from a fund’s website or
annual reports to serve as a starting point. Then
customize needs and requirements.

Celly says it may be a good idea to invest in
training for a senior person on the team to ensure
a fund conducts a strategic plan correctly. There
are various certificate or short courses available
on strategic planning.

Also, attend an annual conference on
pension plans, such as the Texas Association
of Public Employee Retirement Systems’ train-
ing conferences and forums, to compare the
current state of the pension industry. It is also
a good idea to seek out advice from an experi-
enced consulting organization that may special-
ize in pension plans.

“But, be careful to approach an unbiased
professional,” Celly says.

Those funds that cannot afford training
courses or to pay a consulting organization can
still put a strategic plan together. It does not hurt
to also talk to large plan administrators for per-
spective and advice on setting up a strategic
plan.

Setting up a strategic plan does take time
and resources, but they can serve as a guide
to being prepared for the coming year or years,
depending on how far in advance a fund decides
to plan out.

Putting plans together also allow pension
funds to be active rather than passive and proac-
tive in addressing investment, operations, edu-
cation and other system needs.

Basically, Celly says, the delivery of secure,
sustainable and affordable benefits that address
the needs of both members and employers
should be the goal of pension plans large and
small.

TEXPERS Pension Observer | www.texpers.org

B E S T P R A C T I C E S 11

WANT TO BE A BETTER LEADER?
THINK LIKE A FUTURIST.

by Stephen Dupont
President/CEO, OneStar Founda on

BOARD RELATIONS

The year 2030 is just a short 12 years illustration/SARA5
away. Seems hard to believe, doesn’t it.

Today’s millennials, those born two gener-
ations after the baby-boom generation, will be
squarely in their 40s, and today’s Generation
Z (those born from 1996 to the present, 2018)
will be entering their early 30s. And Gen Xers?
They will be tomorrow’s 60-year-olds.

Aging statistics aside, the next decade
will bring a myriad of change that will dramat-
ically affect a wide range of professions that
rely upon public pensions for their retirements.
Driverless vehicles, robots in the workplace,
artificial intelligence, drones, genetic engi-
neering, and new technology such as virtual
reality are just some of the changes that will
affect how firefighters, police officers, teachers,
nurses and many others will do their jobs and
live their day-to-day lives. As a board member
for one of Texas’ public pensions, are you pre-
pared to start thinking like a futurist to enhance
your ability to manage the pension funds of
those who will rely upon these technological
advancements for years or decades to come?

The reality, according to numerous futur-
ists with whom I have interviewed for my blog,
StephenDupont.co, is that the pace of change
is not only increasing, it is colliding against
other factors such as globalization, changes
to our climate, and life-altering medical break-
throughs. These disruptive changes may result
in:

• Large portions of our population easily
living active lives well into their 100s;

• Growing numbers of Americans who will
need career re-training as robots and artifi-
cial intelligence do their jobs at a fraction of
the cost;

• Large coastal populations around the
world and in the U.S. (Florida, the Gulf Coast
of Texas, New York City, Boston, etc.) being
displaced by rising seas;

• New cryptocurrencies (Bitcoin, Ether,
Litecoin) being used alongside U.S. dollars to
purchase products and services.

With change comes uncertainty, but also

See FUTURE, pg. 12

www.texpers.org | TEXPERS Pension Observer

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

FUTURE, from pg. 11

tremendous excitement for advancements that offering differing views about the future and new thoughts with your smart phone (audio notes).
could make life better. Imagine: technology. Imagine how this problem or opportunity will
have evolved in five, 10 or 20 years. How will it
• Police officers trained in using drones to Read about how Texas has changed over look? Who will work on it? How it will be solved
spot illegal drug trafficking activity in the streets the past 300 years. Look for information about or improved? Think colors, sounds, words, and
of Dallas or Houston; how Texas and the United States is expected to images.
change demographically. Read science fiction
• The use of robots to help firefighters to imagine possible futures for Texans. For Remember, there’s no right or wrong solu-
detect the presence of harmful chemicals during example, what if life in Texas resembled life tion. There are just many possibilities (just as
a fire; as depicted in the sci-fi thriller “Ready Player there is not one future, but many futures), which
One”? What if Texan firefighters, police offi- you should record and then analyze.
• Teachers using virtual reality headsets cers and nurses are needed to build colonies
to have their students experience what life in on Mars? Reading can help you imagine the Learn how to ask relevant questions –
Texas was like back in 1800; and possibilities. Looking for some suggestions? Whether it’s 2018 or 2118, the skill and art of
Go to stephendupont.co/reading-list. powerful and relevant questions will never go
• New jobs being created in Texas’ space out of style. The key is to ask questions that
industry to support the new colonies on the Practice visualization – What separates others have overlooked, or are afraid to ask.
Moon and Mars, as well as the robotic mining a futurist from someone who makes predic-
of nearby asteroids. tions? It’s the ability to visualize future scenar- Start by doing your homework to deter-
ios. Practice this on your own at first; then, invite mine what needs to be asked. And then, prac-
So what can you do now to start develop- work colleagues to start building their visual- tice the art of asking. Search for and study
ing a futurist mindset? Here are six tips to start ization skills. great interviews conducted by broadcast and
acting on now: print journalists. Read books about how to
Start with this: Take a problem or opportu- ask questions as part of the sale process. For
Read – Reading has never been more nity and take 10 to 15 minutes to think about it.
important to learn new perspectives, study the Take notes on a piece of paper, or record your See FUTURE, pg. 13
past, and understand new systems and technol-
ogies. What should you read? Focus on books

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B E S T P R A C T I C E S 13

FUTURE, from pg. 12

more tips, go to stephendupont.co/ a video made with a drone. Create a podcast. are ethically bound to advocate
powerful-relevant-questions. Start a blog. for better, more positive futures for
humans. As you think about the future,
Travel more – The future you Give yourself permission to try new things, what would a better future look like
experience in 2030 will be different and the permission to fail. It’s through using for Texas police officers or govern-
than, say, the future that someone new technology that we learn how others may ment employees helping Texas resi-
in South Africa may experience. It’s harness those technologies and how they may dents obtain the licenses and permits
in traveling to such places as South be affected by those technologies, as well. to access the state’s resources? What
Africa that you will gain a better concrete action could you take today
understanding about how people in Advocate for better futures – Futurists to start advocating for a better future
other parts of the world, including in for those who rely upon you to manage
Texas, view the future. their pensions?

In the process, you’ll also gain a Dupont is vice president of public
sense of empathy that will be needed relations and branded content for
to make future decisions. World travel Pocket Hercules, a marketing firm based in
is important, but don’t forget to travel Minneapolis. Dupont blogs about topics such
throughout Texas, from the big cities to the small as creativity, marketing, futurism and careers
towns, to gain a better understanding of the on his blog, StephenDupont.co. Contact him
inter-connection between all Texas residents. at [email protected].

Embrace new technology – Learn to illustration/GUSTAVOFRAZAO
experiment with new technology to prepare you
for a world that will only become more and more
tech driven. Go have a virtual reality experience.
Buy and sell a cryptocurrency. Shoot and post

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At T. Rowe Price, it’s been our mission since 1937 to always act in the
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Intended for Investment Professionals only. The value of an investment and any income from it can go down as well as up. Investors may get back less than the amount invested.
Issued in the USA by T. Rowe Price Associates, Inc., 100 East Pratt Street, Baltimore, MD, 21202, which is regulated by the U.S. Securities and Exchange Commission.
T. ROWE PRICE, INVEST WITH CONFIDENCE and the Bighorn Sheep design are collectively and/or apart, trademarks of T. Rowe Price Group, Inc. ©2018 T. Rowe Price. All rights reserved.

www.texpers.org | TEXPERS Pension Observer

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

WEB-BASED PROGRAM CUTS
EXPENSES AND PAPER WASTE

by Allen Jones
TEXPERS Communica ons Manager

TECH SUPPORT

Worldwide, 7 million hectares of forests store documents. The program is provided as example.
are cut down each year, according to Food and a “freemium,” meaning users can create a free Google Drive also offers users access to a
Agriculture Organization’s 2016 State of the account with set storage size. Paid subscriptions
Forests report. The creation of paper products offer more storage capacity. Google offers users suite of word document programs: Google Docs,
is one of the biggest threats to the earth’s shrink- 15 gigabytes of free storage, which is probably Google Sheets and Google Slides. The web-
ing forest lands. Americans alone use about 69 more than enough space for small public pension based word processing software is compatible
million tons of paper and paperboard each year, systems. To gain more storage, accounts can be with Microsoft Office, Excel and PowerPoint file
according to the U.S. Environmental Protection upgraded through paid subscription plans. formats, and allows users to create and edit files
Agency’s website. online while collaborating with other users in real-
Individual board members and adminis- time. The programs may not have the exact func-
Boards and administrators overseeing trators can set up accounts to store fund doc- tionality of Microsoft programs, but they are rela-
public pension systems in Texas can do their uments such as board meeting packets, vote tively simple to use and will handle most common
part to reduce paper consumption by transition- tracking, strategic plans, and other vital records needs for project collaboration. Plus, they allow
ing from a paper system of document distribution required to manage a fund. Group access to doc- public pension funds to do their part and save
to a digital system. Google Drive is a program uments reduces the need to print multiple reports money on printing services and supplies such
that offers online, digital means to create and that can often consist of dozens of pages, for as ink and paper.

Connections At BMO Global Asset Management,
matter our mission is to exceed your
expectations with innovative,
Connecting you to relevant investment solutions
solutions, innovations that help you achieve your goals
and expertise with refreshing clarity.

BMO Global Asset Management is the brand name for various affiliated entities of BMO Financial To learn more about connecting
Group that provide investment management and trust and custody services. Certain products with us, contact:
and services are offered in different countries and regions and may not be available to all
investors. © 2018 BMO Financial Corp. 6595418 (1/18) Brian S. Engel, CAIA

TEXPERS Pension Observer | www.texpers.org Director – Institutional Business Development

312-461-7848

[email protected]

bmo.com/gam

The Teacher Retirement System of Texas delivers retirement and health benefits to more than 1.5 million retirees and active public Texas edu-
cators. Strategically communicating with our retirees and active members across Texas in the most transparent way possible is among the agency’s
top priorities.

We use a variety of channels to achieve our communication goals—publications, videos, email campaigns, social media, webcasts, meetings,
and, perhaps most important, the TRS website. It’s the “face” of TRS and the primary place for critical information. TRS recently conducted a redesign
of its website. The website had numerous issues: Appearance was an obvious problem. Before redesign, the site had a drab palette, no widespread
use of dynamic photos, too much repetitive information, and was very difficult to navigate.

Here are a few essential design and navigational elements your board might consider adopting.

Plan Ahead
Over 3,500 hours were logged and many months went into researching public pension, private sector and Texas state agency websites, in addi-
tion to planning, design discussions, and development of the TRS website. Equally important, before starting a redesign, we had members, retirees
and other external user focus groups assess the former website. We incorporated valuable stakeholder and internal input, performed repetitive, suc-

Aug. 12 - 14 @ Grand Hyatt in San Antoniocessful user-testing and only then was the new www.trs.texas.gov website launched in September 2016, on time and on budget.

Appearance Featuring:

The new website features a TRS-branded, colorful, and inviting design with lots of white space, a “carousel” (a rotating display of up to five timely

Preconference Advanced Trusteefeature stories) and three additional feature sections including dynamic photos and stories about “real” members, retirees and employees as well as
Traininga special video series. Photos, easy-to-recognize icons for phone numbers and email addresses, and prominent “calls to action” are used throughout.
Search/Navigation/Easy-to-use Design:
Golf TournamentThe primary organizational method is the drop down “Mega Menu” which guides users by their relationship with TRS, such as whether they are

Active Members, Retirees and Beneficiaries or Reporting Entities also referred to as TRS Employers. The Mega Menu also sorts by topics areas such

as “About TRS,”“Investments,” “Pension Benefits” and “Health Care Benefits.” The top right section of the page, above the Mega Menu includes quick

Popular Roundtable Discussions andlinks to some of the most frequently visited areas such as the secure, member self-service application, “MyTRS,” the “RE Portal” for reporting member

moresalaries and other information required by TRS, the “Careers” section and “Contact Us.” Social media icons are also featured prominently.
In addition, there’s a robust search input box as well as an “I want to” drop down menu with some of the most frequent inquiries our telephone

counseling center receives, e.g., I want to change my beneficiary or change my address. These “I want to” menus are customized for Mega Menu

Save the Datetopics and audiences and can be changed as needs arise.

Accessibility
One of the areas we focused on extensively was improving our website’s accessibility for persons with visual and hearing disabilities. For example,
when a visually impaired person is using the new website with a screen reader comes to a photograph, we add a “ALT Tag” to provide a clear text alter-
native of the image for screen reader users. For those with hearing disabilities, we provide closed captioning for videos.

Responsive Design
With research clearly showing our active members especially, as well as many of our retirees often prefer to get their information “on the go,”
we felt responsive design was essential. This simply means the website is customized to adjust screen view depending on type of device used, for
example, smart phone or tablet.

Readability
Website content should be written in “plain English.” In addition, because it’s online, text on the website may be viewed on mobile devices and
therefore, needs to be shorter and to the point and needs to hold the reader’s attention. TRS hired a consultant to review new website content and
recommend changes.
Creating an excellent website is really only a first step. An agency must constantly provide fresh content and take down outdated information. At
TRS, we receive web updates almost daily and are constantly looking for new content ideas. That’s why part of the website redesign process included
the establishment of a Website Governance Committee. The committee considers major changes proposed by members to decide whether that

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