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Published by TEXPERS, 2019-04-07 11:30:43

TEXPERS PO Vol 2 2019 NEW

TEXPERS PO Vol 2 2019 NEW

Take pride in association's 3 elements your fund's
work for public employees website must feature

WEAR THE
CELEBRATION.

INDEX 3

CONTENTS
up-fRONT
» p.8
Column: TEXPERS President Paul Brown says the work TEXPERS
does always focuses on its members, and that is something to be
proud of. pg. 5

NEWS ROUNDUP: Galveston’s police fund and city officials have
come to an agreement. Read our news briefs. pg. 6

spotlight

Diverse perspectives: Some U.S.-based pension funds and their
consultants are doing more business with minority- and women-
owned investment management and brokerage firms. Here’s why
your fund might want to as well. pg. 8

Best practices

Board Relations: Board agenda packets can help ensure your
trustees come to meetings prepared. Find out how. pg. 12

Tech Support: There are three common pages most websites have.
Find out what they are and what they could do for your fund’s
website. pg. 14

» p.12
www.texpers.org | TEXPERS Pension Observer

4 UP-FRONT

BOARD OF DIRECTORS

President
Paul R. Brown
Big Spring Firemen’s Relief & Retirement Fund

First Vice President
Jim Smith
San Antonio Fire & Police Pension Fund

Second Vice President
John D. Jenkins
Dallas Employees’ Retirement Fund

Secretary
Sherry Mose
Houston Municipal Employees Pension System

Treasurer
Larry A. Reed
San Antonio Fire & Police Pension Fund

BOARD MEMBERS

• Carla Brewer
Dallas Employees Retirement System

• Jose Cavazos
Dallas Area Rapid Transit Retirement Plan and Trust

• Tyler Grossman
El Paso Firemen & Policemen’s Pension Fund

• Larry Knott
Dallas Area Rapid Transit Retirement Plan and Trust

• Billy Samuel
Fort Worth Employees’ Retirement Fund

• David Stacy
Midland Firemen’s Relief and Retirement Fund

ADMINISTRATION

• Carolyn Butterworth, CMP
Director of Conferences & Member Relations

• Barbara Zlatnik, CAE
Associate Director for Programs & Training

• Lena Terrell
Membership & Financial Supervisor, CAP

• 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 ©2019. 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

TAKE PRIDE IN WHAT ASSOCIATION
DOES FOR PUBLIC EMPLOYEES

by Paul Brown
Board President, TEXPERS

COLUMN

A s t h e Te x a s marked with many accomplishments for the highlights the organiza-
Association of Public association, which has become the leading tion and what we do. Also,
Employee Retirement pension education and advocacy organization take the time to be involved
Systems observes its for public employee pension funds in Texas with your respected caucus
30th anniversary, we can since its founding in 1989. and discuss issues that
take pride in all that this are important to you with
organization has done for Our annual conference and an educational your representative on the
public employee retire- forum held each summer, are a significant board of directors.
ment systems, the success component of how we work with our members.
we have achieved and the It isn’t all TEXPERS does. We also conduct During the confer-
political influence we have trustee training to help our trustees better ence, TEXPERS also
at the state Capitol. We serve their active and retired fund members. hosts its annual business
now have the challenge to meeting. The association’s
decide where we are going Our political and legislative work also is delegates will be asked to
forward, what we need to vital. The membership of TEXPERS is very consider adopting changes
do and how can we make diverse, and whether we like it or not, the polit- to the by-laws.
it better for our members. ical arena is where the rubber meets the road.
TEXPERS’ board
Many of you may If you are planning to be in Austin attend- of directors has a role in
receive this magazine ing the Annual Conference, please take the time moving the association into
before the association’s to visit with your elected officials at the Capitol. the future. During the con-
Annual Conference, April TEXPERS has a 2019 Legislative Agenda you ference, board members
7-10 in Austin. Pension can leave with your elected officials, which will be making decisions on
Observer is a quarterly pub- a new set of policies and
lication, so this edition may priorities.
be waiting on you when you
return. The by-laws of this
association require that an
TEXPERS conducts its executive director shall be
Annual Conference each employed by and directly
spring, offering workshops designed around responsible to the board of
current topics and trends focused on public directors. To help accomplish this task, the board
fund management and investment issues. Our has hired a professional search firm to provide
yearly conference is the perfect time for our candidates for the board’s consideration.
members to expand their knowledge and share If you received this after the Annual
ideas and best practices with their peers from Conference, or if you didn’t attend this year’s
across the state. event, please visit www.texpers.org to see
photos posted to our blog. While visiting our
Nothing is more important than our website, check out our calendar of events
members, and we all have the responsibility section to learn about our Summer Educational
to protect their pension benefits. At the upcom- Forum Aug. 18-20 in Frisco.
ing spring conference, in addition to invest- Finally, I want to say thank you to all who
ments and fund management, we discuss have supported this association since it first
post-traumatic stress and how it affects the formed. I look forward to visiting with you in
mental health of our members. We need to look Austin.
at ways to get our members help because this
is a crisis. We need to look at helping those Paul Brown has been on the board of
members who are dealing with emotional and the Texas Association of Public Employee
mental problems. Retirement Systems since 1996 and is cur-
rently president of the board.
I have served on the board of directors of
TEXPERS for 23 years. It has been an era

www.texpers.org | TEXPERS Pension Observer

6 UP-FRONT

GALVESTON POLICEFUND REACHES
FUNDING AGREEMENT WITH CITY

NEWS ROUNDUP

A tentative agreement between the City of “The city continues to stand behind its rates will jointly eliminate current unfunded
Galveston and the Galveston Police Pension public safety employees and will always do liability, which the Houston Chronicle has
Board proposes changes in plan gover- all we can to make sure they are reasonably reported to be at more than $32 million.
nance and funding to resolve existing finan- compensated and equipped to do their jobs,”
cial problems. said Brian Maxwell, Galveston’s city manager, Also, city and plan members will equally
in a news release announcing the agreement. share in future increases or decreases in con-
The agreement was reached March 19 “Police officers will no longer need to worry tribution levels, which will be based on “actu-
during a meeting facilitated by state Reps. about their pension plan as it will be under the arial science,” according to the city. Actuarial
Dan Flynn, R-Canton, and Mayes Middleton, direction of a professional board.” science applies mathematical and statistical
R-Galveston. As of March 27, the offices of the methods to assess risk.
representatives were still drafting legislation According to the agreement, the city will
that would help the Galveston police pension increase its contribution to 18 percent of total The city’s police pension was 99 percent
fund achieve solvency. payroll from the current 14.83 percent. Police funded in 2000 and fell to 42 percent funded in
officers will continue to contribute at its current 2017. Spending cuts are offsetting the increase
The agreement ends months of level of 12 percent. According to the city, the in contributions. Despite not yet identifying the
negotiations. reductions, the city has indicated cut will not

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713-661-3500 | bridgeway.com

UP-FRONT 7

result in a decrease in staffing or services. comparative information on the state’s public resolutions recognizing TEXPERS for its 30
The pension fund’s projected rate of return retirement systems. The 309-page report years of educational and legislative advo-
includes current actuarial, financial, benefits cacy for the pension plans relied on by cities,
on investments also was lowered from 7.5 and governance data. counties and special districts for their public
percent to 7 percent to reflect economic and employees.
market volatility better. You can access the guide on the PRB’s
website at www.prb.state.tx.us. The trip to the Capitol was part of a
In addition to the funding changes, the two-day program hosted by TEXPERS that
plan and city agreed to reconfigure the struc- The PRB document provides multi- also included a workshop held the day before
ture of the board. Previously, the board con- year trends, analysis over time of retirement to teach TEXPERS members to communicate
sisted of seven trustees, four of which were systems’ funding progress, actuarial value of effectively with public officials. Joe Gagen,
members of the Galveston Municipal Police assets compared to actuarial accrued liabili- an Austin attorney and grassroots advocacy
Association. Under the new agreement, the ties, active to retiree members, and assumed expert, lead the workshop. Nearly 50 people,
board will be balanced with equal represen- rates of return. The document also includes including TEXPERS members and staff,
tation. The new board will be comprised of a summary of the Funding Soundness attended the training session to better under-
three trustees elected by the plan members, Restoration Plans submitted by retirement stand the public policy making process and
one appointed by the police union, two named systems to the state agency, data on deferred learn to communicate pension fund issues
by the city manager, and two appointed by the retirement plan balances as a percentage of more effectively with legislators.
city council. plan assets, and currently outstanding pension
obligation bonds. In addition to gaining new communication
According to the city’s news release, skills, TEXPERS’ legislative team discussed
current police officers continue to collect a TEXPERS celebrates 30th anniversary current issues facing defined benefit pensions
normal retirement after 20 years of service at with commemorative apparel in the state. TEXPERS gave workshop attend-
age 50. Newly hired officers are to receive an ees talking points that could be used during
average pension after 20 years of service at This year, the Texas Association of Public the Capitol visits on day two of the program.
age 55. Employee Retirement Systems is celebrating
three decades of working to educate adminis- After the workshop on day one of the asso-
In other pension related and association trators and trustees of police, firefighter, and ciation’s Austin legislative advocacy trip, 11
news: municipal pension systems across the state. legislators or their staff joined TEXPERS for
The association is selling commemorative a reception. TEXPERS thanks everyone who
Fort Worth pension fund saved by a apparel with a specially designed logo. attended, spoke, and volunteered their time
vote in support of a new plan for the two-day event, titled “Strategies for
TEXPERS 30th anniversary polos, T-shirts the 86th Legislative Session: Communicate
Fort Worth city employees voted Feb 25 in and jackets are available in a variety of sizes Effectively with Legislators.”
favor of a new contribution plan to keep their for men and women. Visit www.texpersapparel.
retirement plan funded. com to place an order. For those who missed the event, photos
are available for viewing on TEXPERS’
Employees will be paying more into the Firefighters lobby legislators at Capitol Facebook page.
fund and will receive less when they retire. The Texas State Association of Fire
Nearly 60 percent of employees who voted, Fighters held Fire Fighter Day at the Capitol New book serves as guide to actuarial
voted for the plan. March 26. valuations for public pension funds
TSAFF members gathered at the Capitol
Starting in July, employees will contribute for special recognition in the House and Senate A new book is aimed at helping pension
more to the fund. The city will provide more galleries. Following meetings with legislators, fund trustees and administrators better under-
as well. TSAFF members were guests of the Texas stand acuarial valuations.
Trial Lawyers Association for a reception on
No changes were made to the plan’s cost their rooftop patio that evening. According to its synopsis, “A Penchant for
of living adjustment given to retired workers. Pension provides a basic educational frame-
The fund was facing a $1.6 billion shortfall and TEXPERS members spend day at work for trustees and advisors who work with
would have run out of money by 2040, accord- Capitol advocating for secure retirement public sector defined benefit pension plans.
ing to the city.
Thirty-five Texas Association of Public Leslie L. Thompson and Pamela M. Feely
Because the city and fund were able to Employee Retirement Systems members met wrote the book. The publication outlines actu-
agree on the plan changes, the issue did not with legislators to discuss the benefits of pro- arial terminology, offers examples of the use
have to go to the Texas Legislature. viding secure retirements for public employees of actuarial information and outlines the def-
such as firefighters, police officers, and munic- ferent paths a future pension fund could take.
Pension Review Board publishes Guide ipal workers during the association’s Capitol
to Public Retirement Systems in Texas visit day Jan. 23 in Austin. In a news release, the authors say they
hope the book assists trustees in their deci-
The Texas Pension Review Board released TEXPERS members discussed the eco- sion making to balance short-term pressures
its Guide to Public Retirement Systems in nomic benefits defined-benefit pensions against the long-term needs of their benefi-
Texas, March 2019. provide local and state economies and shared ciearies. The book is available for purchase
personal accounts of why they value having the at www.campaignfinanceguides.com/book/a-
The state agency, mandated to oversee secure retirement benefits. During the Capitol penchant-for-pensions. The book costs $25.
all Texas public retirement systems regarding visit, the state House and Senate passed
their actuarial soundness, released the guide Funds wishing to purchase more than five
March 1 for the 86th Legislative Session. The books should contact Feely directly at 303-
PRB publishes the guide before each legis- 200-0584 or [email protected].
lative session to give lawmakers, the public,
retirement systems, and other stakeholders

www.texpers.org | TEXPERS Pension Observer

8 SPOTLIGHT

DIVERSE PERSPECTIVES

Image/ Mohamed Hassan from pixabay.com

Some U.S.-based public pension funds and their consultants are ensuring
they are doing business with more minority- and women-owned asset man-
agers and brokerage firms, and as a result, the funds are seeing increased in-
novation. Although there are no requirements that public pension systems in
Texas work with minority- and women-owned firms, there are some key prac-

tices institutional investors can use to diversify their knowledge base.

by Allen Jones, TEXPERS Communications Manager

Last year, Chicago-based Northern Trust Asset process in place since 2007, and our CEO Action for Diversity and
Management expanded its use of minority-owned bro- Inclusion program started years before that in 1989,” says Bob Parise,
kerage firms. The firm is an Associate Advisor member practice lead for Public Funds and Taft-Hartley within the firm’s insti-
of the Texas Association of Public Employee Retirement tutional group.
Systems and works with several state and local funds in
Texas. Northern Trust “set a target to execute 10 percent of all equity The firm’s CEO Action for Diversity and Inclusion program is the
security trading commissions with minority brokers for approximately largest CEO-driven business commitment to advancing diversity and
120 common and collective investment trusts it manages,” according inclusion in the workplace. Northern Trust already directs one-third more
to a March 27, 2018 news release North Trust provided TEXPERS to trading volume to minority brokers than its peers, according to a 2016
explain its diversity program. third-party study commissioned by the firm.

“We have had a formal minority brokerage policy and selection “For more than a decade, as part of our overall commitment to
diversity, we have been developing relationships with minority-owned
TEXPERS Pension Observer | www.texpers.org

SPOTLIGHT 9

firms that provide brokerage services and leveraging their capabilities The GAO has been tracking the representation of minorities
across a number of portfolios,” Parise says. “As we have seen their and women in the financial services industry for the U.S. Congress.
practices develop over the course of time, it has been our intention to Representation increased only slightly for minorities and remained
explore ways to expand these relationships within the minority broker- unchanged for women between 2007 and 2015, according to a November
age community.” 2017 GAO report, which tracked changes in management-level diversity
and diversity practices in the financial services. The GAO reported a
Northern Trust implements its diversity program in other aspects similar trend at the senior-level management of these firms. During the
of the financial industry. In October, the firm announced its selection time frame, women represented about 29 percent of senior-level man-
of five firms owned by minorities, women, veterans or people with dis- agers and representation of minorities in senior management increased
abilities that offer equity research that advise Northern Trust’s invest- by less than 1 percentage point for each racial or ethnic group tracked.
ment decisions.
In the 2017 report, the GAO noted that minority- and women-owned
Economist William Michael Cunningham has been collecting finan- asset managers face challenges when contending for investment man-
cial and social data through his firm, Creative Investment Research, agement opportunities with institutional investors, such as retirement
since 1989. He tracks minority-owned financial firms and often speaks plans. Among the them, pension systems and their consultants often
about the importance of investing in minority and undeserved commu- contract with larger asset managers that have brand recognition. And,
nities. He says that although there are fewer minority-owned financial small firms were often unable to meet minimum requirements set by
firms operating in the U.S., there are more opportunities due to diver- institutional investors such as size of assets under management and
sity programs implemented by institutional investors and their consul- experience.
tants such as Northern Trust.
Diversity, according to the GAO, lends itself to increased innova-
Cunningham says there is a barbell effect, where investors split tion and better results. In 2017, the GAO identified four key practices
their investment portfolio between startup companies – many being public pension funds can use to increase opportunities for minority- and
women- and minority-owned – on one end and mature companies on women-owned asset managers:
the other. The goal is to balance the weight and risk on both ends.
1. Leadership must have a commitment to increasing opportuni-
“At the same time, focus on the minority firm sector has become ties for minority- and women-owned asset managers.
institutionalized, with firms like Exelon and Apple establishing ground
breaking efforts,” he says. “The problem is there are fewer and fewer 2. Leaders should review investment polices and practices to
firms to take advantage of these programs.” remove barriers that limit the participation of smaller, newer firms.

Workplace Diversity 3. Institutional investors should conduct outreach to inform minor-
ity- and women-owned asset managers about investment opportunities
Cunningham says the need for greater gender and racial makeup and selection processes.
within the U.S. workforce continues to be acknowledged by major cor-
porations. He points to several studies that demonstrate the benefits 4. Funds should clearly outline priorities and expectations about
private companies and public-sector institutions can gain when striv- inclusive practices to investment staff and consultants and ensure those
ing to bring more minorities and women into their fold. expectations are met.

It is well established that racially diverse companies financially out- Texas Statutes
perform industry norms by at least 35 percent and companies in the top
quartile for gender diversity are 15 percent more likely to have financial Although there are no state statutes relating to minority- and wom-
returns above their national industry peers, according to a 2015 report en-owned financial firms applicable to all pension funds in Texas, there
by McKinsey and Company. Diversity is seen as necessary within the are emerging manager requirements applicable to the Employees
financial services industry, too. Asset management firms and brokerages Retirement System of Texas and Teacher Retirement System of Texas.
are recognizing the importance of recruiting and retaining minorities and The programs generally focus on newer firms entering the industry,
women in crucial positions to improve business and meet the needs of which may overlap with minority- and women-owned firms.
their diverse customer bases. However, workplace diversity within the
financial services industry is not occurring at great rates, according to ERS statute mentions emerging managers in Government Code
Feb. 27 report of the U.S. Government Accountability Office. Sec. 815.301(g), stating that “the board of trustees shall make a good
faith effort to award contracts to or acquire services from qualified
emerging fund managers.” Government Code Sec. 815.301(h) defines

The Chicago Teachers’ Pension Fund has
history, a long experience with minority
firms, along with a strong set of
Chicago-based institutions.

- William Michael Cunningham, Economist

www.texpers.org | TEXPERS Pension Observer

10 S P O T L I G H T

emerging fund manager as “a private professional investment manager percent of total assets must be invested with MWDBE investment
that manages assets of not more than $2 billion.” ERS’s Emerging managers. Of the fund’s active assets, 25 percent are to be invested
Manager Program is described in the ERS Investment Policy. with MWDBE investment managers. That rule is further broken down
between asset classes – 30 percent equity assets, 15 percent fixed
TRS statute mentions external investment managers in Government income assets, and 10 percent alternative assets.
Code Sec. 825.301 but does not specifically mention emerging or minor-
ity-owned brokers. However, TRS’s investment policy describes its As for the fund’s Brokerage Utilization Rule, investment manag-
program and states that emerging managers may include women- and ers must work with fund-approved brokers. The rule also establishes
minority-owned organizations but may not, since that’s not explicitly minimum commission requirements each calendar year.
how it is defined it in its IPS.
Parise of Northern Trust is familiar with the Chicago Teachers’
Anumeh Kumar, executive director of the Texas Pension Review Pension Fund. The firm works with the fund, he says. Because of
Board, the state’s public retirement system oversight agency, says Northern Trust’s own diversity program, its approach is the same when
general contracting requirements might apply to investment manage- working with the Chicago fund or any other fund in various states. He
ment services, which she believes directly address minority ownership. says small funds in Texas should examine the diversity programs their
consultants utilize to make sure management and trading activities are
Industry Examples focused on meeting portfolio investment objectives.

Cunningham says Texas-based funds, especially smaller retire- Expert Advice
ment systems, do not have to wait for a state mandate to institute
diversity rules to work with women- and minority-owned financial insti- Gilbert Garcia is a managing partner at Garcia Hamilton &
tutions. He suggests looking at what bigger funds in the U.S. are doing Associates LP in Houston. It is the largest Hispanic-owned financial
to find ways to establish a local “win-win situation” by using minority- firm in the U.S. Garcia says his firm works with many minority-owned
and women-owned firms. money management and brokerage firms, such as Cabrera Capital,
Luke Capital Management, CastleOak Securities, and The Williams
He says the Chicago Teachers’ Pension Fund is at the forefront of Capital Group, and Academy Investment Management. Many of the
public retirement systems in the U.S. that provide minority-owned firms firms are owned by minorities, women, veterans, and persons with
opportunities. The state of Illinois has regulations requiring pension disabilities.
funds to diversify investment managers and work with minority- and
women-owned brokerages. “We manage about $13.2 billion and do about 70 percent trades
with those class of brokers,” he says.
“The Chicago Teachers’ Pension Fund has history, a long expe-
rience with minority firms, along with a strong set of Chicago-based Garcia says pension funds serve a diverse group of people and
institutions,” he says. “You have Ariel Capital, Loop Capital and several they want to see their funds do business with people that look like them.
others that form an impressive ecosystem of minority firms. Chicago He provides some tips small pension funds can utilize to diversify their
also used to have more black banks than anyone else, a legacy of single investment managers and the brokers they work with:
branch banking and a group of hard-working black folks from the South.”
1. To insure your consultant casts a broad net when hiring man-
Minority-, women- and persons with disabilities-owned firms have agers, consider the “Garcia Rule,” which is policy at Houston metro and
opportunities to provide goods and services, including asset manage- the Illinois State Treasurer. It requires their consultants to bring one
ment and brokerage services, to the approximately $10 billion Chicago diverse firm for consideration to the finals in every manager search. The
Teachers’ Pension Fund. consultant opens their process to new, good performing diverse man-
agers. The trustees might find an incredible manager. And the minori-
The fund began investing in women- and minority-owned firms ty-owned firm gets great exposure. The real question is “why wouldn’t
during the early 1990s. According to the fund’s 2018 Annual Diversity everybody adopt it.”
and Inclusion Report, on June 30 that year, the fund invested $4.5
billion, or 42 percent, of total fund assets with firms owned by minor- 2. Eliminate conflicts by making your consultant disclose the
ities, women and disabled persons. Since 1994, that percentage has amount if they (or any affiliated companies) receive revenue or eco-
increased from 6.7 percent. nomic benefit from any manager brought before the board. This should
include fees for education seminars, product placement studies, systems
Angela Miller-May, chief investment officer of the Chicago Teachers’ licensing, speaking engagement or any other form of benefit paid by
Pension Fund, says a section of Illinois’ pension code outlines diversity the manager. If they won’t disclose this information, then assume the
requirements that the Chicago teachers’ fund has implemented. The worst.
fund’s investment manager diversity and brokerage utilization rules spell
out per asset class the minimum standards and goals that must be met 3. Diversity is a strength that leads to better decision making. And,
in providing opportunities for emerging and other firms owned by minor- the work force/beneficiaries are becoming increasingly more diverse.
ity, women, and persons with disabilities, also known as MWDBE firms. It is proper to ask your consultants and managers their diversity stats.
What is their diversity in partners, consultants, portfolio managers,
“The fund is committed to providing opportunities for emerging and research analysts, etc. and what steps are they doing to be good citi-
other minority-, women- and persons-with-disabilities-owned investment zens in their communities?
manager and brokerage firms,” Miller-May says. “The CTPF board of
trustees adopted the Investment Manager Diversity Policy to set goals 4. Likewise, make sure your managers are achieving best exe-
for increasing the fund’s utilization of MWDBE investment manage- cution. One good sign is if their brokerage activity is across many firms.
ment firms. Policy also sets forth goals for increasing the utilization of Ask the ownership diversity of the brokers they utilize. Again, best exe-
the fund’s approved MWDBE brokerage firms.” cution may come from the largest brokers, but it might also come from
smaller boutique brokers like some of the minority-owned brokers.
According to the fund’s Investment Manager Diversity Rule, 20

TEXPERS Pension Observer | www.texpers.org

5 Houston Center www.GarciaHamiltonAssociates.com

1401 McKinney, Suite 1600 Houston,Texas 77010

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www.facebook/gilbert.Andrew.garcia

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Go to www.garciahamiltonassociates.com/awards/ for additional information on each award.

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

BOARD AGENDA PACKET CAN SET
STAGE FOR FRUITFUL MEETINGS

by Allen Jones
TEXPERS Communica ons Manager

BOARD RELATIONS

Board meetings begin long before trustees gather around a confer- which are mailed a week before the meeting,” Flores says.
ence table. Whether it is a private corporation, nonprofit, or public institu- She’s right. Board packets should be sent out to trustees at least
tion, such as an employee pension fund, meetings start with the prepara-
tion of a board packet. seven days before a scheduled meeting. Doing this ensures your plan’s
board members have time to review the information provided. The more
The document is an outline of an upcoming meeting that not only prepared members are for board discussions, the less time they will waste
provides an agenda but relevant data and supporting information for the during a meeting.
discussion topics. A board packet shouldn’t just serve as a governance
checklist. They should also propose solutions to problems to spark ideas The board packet should go not only to the trustees but to the plan’s
and debate among trustees. administrative department heads. This ensures everyone has the same
information.
Gracie Flores is the plan administrator of the Corpus Christi Firefighters’
Retirement System. She says packets prepared for her fund’s board So, now that we know the importance of a board packet, how do you
members helps trustees have time to prepare for meetings. know what to include? Here are some tips:

“To give the board of trustees sufficient time to review the items on the 1. Meeting time and location. You might think this info is pretty much
agenda, we provide as much information as possible in the board packets, a given, but you might be surprised to know how often the basics are over-
looked. It is a critical bit of detail for board engagement and governance. It

TEXPERS Pension Observer | www.texpers.org

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

Photo/MAGICDESK FROM PIXABAY

is often said that successful boards are engaged boards. In-person atten- of the fund’s bylaws, etc.
dance enables active participation. 7. Financial statements: This is key among pension fund board

2. Names of attendees. The attendance list shouldn’t just include meetings. Without the reports, trustees cannot make informed, thoughtful
the names of trustees. Make sure the names of vendors and meeting pre- decisions as fiduciaries.
senters are included.
Now that you know what to include in a board packet be careful not
3. Minutes. Including the meeting minutes from the last gathering is to add too much data. Trustees may feel overwhelmed with all the docu-
essential. It’s part of good governance and resolves any ambiguity before ments that need to be reviewed. Only include the most necessary, time-
moving on to new discussions. sensitive and relevant documents. Attempt to provide summaries so board
members do not have to consider every single page of a report but are
4. Agenda. Agendas list items to discuss and the order they are to free to do so if they would like.
be presented. Flores suggests placing essential issues first. Doing this for
her trustees addresses the needs of any board members that might have Sometimes printing out so much documentation for a board packet
to leave before a meeting adjourns. Another tip, schedule breaks into your can be time-consuming. Shipping the documents to trustees can become
agendas to help members stay focused and productive. Include time for costly, too. Consider distributing digital packets electronically via email.
the public to address the board before the trustees discuss the agenda
topics. Also, include consent agenda items, a section of routine actions Also, consider paying for the use of a digital board portal, collaborative
that can be enacted by one motion. software that allows boards of directors to access documents and work with
other board members electronically and securely. The software can help
5. Narrative. A departmental summary explains an issue, gives back- streamline communications and allow for the addition of updated materials.
ground, and offers options available. Also consider including the risks of Programs often include project management systems and shared calen-
action or inaction, listing disagreements between staff and consultants, and dars and allow for the creation of digital board packets and other meeting
a possible list of frequently asked questions in anticipation of discussion. documents. You can do an online search for “board portals” to try and find
the best product for your fund. Consider products by Diligent, Directorpoint,
6. Documentation: This is the information that guides board discus- Pervasent, and Passageways.
sion and decision-making. Documentation can include fund strategy; per-
formance information via financial, human resources and management Allen Jones joined TEXPERS as the association’s communi-
reports; approved budgets; fund committee reports; status of action items; cations manager in 2017. He can be reached at [email protected].
quarterly and year-to-date highlights; board roles and responsibilities; copy

www.texpers.org | TEXPERS Pension Observer

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

TECH SUPPORT

3 Common Pages on
Any Website

Most likely, your fund has a website. If you are a small fund, you might not be able to
afford to employ a web designer. Not to worry. Here is a guide to the most common

pages you should have on your fund's site.

HOME PAGE ABOUT PAGE CONTACT PAGE

Often, the first page on a This is probably the most This is where you will
website that visitors see. visited page on any website. include the various means
The home page tells people
what you do and why. You It includes background of contacting your fund.
could include links to any information about your Include the fund's main
documents the fund is phone number, email
required to provide the fund. This page often
public such as meeting include pictures of board address, and mailing
members and staff. It is a address. If you'd like, you
notices and reports. good place the tell the story could include the physical
address of where the fund
of your pension fund. hosts its board meetings.

ALSO CONSIDER

If you are with a small fund looking for an easy way to design a website without hiring an expert, consider
using a drag-and-drop website builder such as Wix.com or WordPress.com. The website builders offer free
and low-cost options for those having to do it themselves. The sites offer inspiration and often explain the
basics to help you improve your site's accessibility. You might also consider contacting a local community
college or university to see if there are any students interested in building a website for your fund that will be
easy to maintain by a staff or board member. Some students may take on the project for free in exchange for
the opportunity to include the project in a portfolio of their work.

AUG. 18-20, 2019 IN FRISCO, TEXAS

Celebrating 30 years of educating trustees and
administrators of public employee public pension systems

and advocating for the secure retirement of police
officers, firefighters, educators and municipal employees.

OMNI HOTEL, 11 COWBOYS WAY, FRISCO, TEXAS

Registration opens in May.
Visit www.texpers.org for details.

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HOUSTON, TX
PERMIT NO. 6716

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]

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