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Published by TEXPERS, 2021-05-04 18:43:52

TEXPERS Pension Observer Vol. 2, 2021

The official membership magazine of the Texas Association of Public Employee Retirement Systems.

INSIDE UP-FRONT Q&A

The legislative landscape, Report helps investors
33 days to sine die understand risks

After a year of social
distancing, the Annual
Conference returns.

See our special coverage - pgs. 8-15

www.GarciaHamiltonAssociates.com

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For more information, please contact: Gilbert Andrew Garcia, CFA
Ruby Muñoz Dang [email protected]
713-853-2359 www.facebook.com/gilbert.andrew.garcia
[email protected]

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CONTENTS INDEX 3

» p.8 up-fRONT

» p.16 President’s Column: TEXPERS Board President Paul
» p.19 Brown is encouraging retirement system trustees and
administrators to speak out for secure retirements before
the legislation session ends. pg. 4

Blog In Brief: Summaries of posts plan administrators and
trustees might have missed on TEXPERS’ blog site. pg. 5

By the Numbers: See the latest stats and data behind
pension, public employee, and retirement studies. pg. 5

Legislative Landscape: The current legislative session
ends May 31. Here’s how pension-related bills are
progressing through the legislature. pgs. 6-7

COVER FEATURE

Back to Business: TEXPERS is hosting its Annual
Conference May 23-26 in Austin. Find out what is in store
for this year’s event. pgs. 8-9

Welcome to Austin: The Austin Marriott Downtown is the
venue of TEXPERS’ Annual Conference. Here’s what you
need to know about the hotel and booking a room. pg. 10

Preliminary Schedule: For a rundown of TEXPERS’ 2021
Annual Conference, check out our draft agenda. pgs. 11-13

Get the Most Out of Your Attendance: There is a lot to do
during TEXPERS’ Annual Conference. Follow these tips to
get the biggest bang out of your registration bucks. pg. 13

4 Presenters You Don’t Want to Miss: We’ve gathered
prominent pension and management industry experts to
share their insights during our upcoming event. Here are
some to add to your itinerary. pg. 14

Networking Tips: An Austin networking expert offers his
best tips to help you expand your contact base. pg. 14

The Sponsors: Here are the companies that helped fund
this year’s conference. pg. 15

q&a

The Risk Report: Quantitative strategist discusses
why institutional investors struggle with portfolio
underperformance and how they can readjust their
investment approaches. pgs. 16-17

Best practices

Legal Matters: Are your emails and texts opening your
fund up to potential lawsuits? pgs. 19-20

Strategic Management: Is your fund engaging all of its
members? Here’s how to do it. pgs. 21-22
www.texpers.org | TEXPERS Pension Observer

4 UP-FRONT

OFFICERS & BOARD OF DIRECTORS PRESIDENT’S COLUMN

President TEXPERS WORKS BEHIND
Paul R. Brown THE SCENES REPRESENTING
Big Spring Firemen’s Relief & Retirement Fund ITS MEMBER SYSTEMS

First Vice President by Paul Brown
Jim Smith
San Antonio Fire & Police Pension Fund President, TEXPERS Board of Directors

Second Vice President The Texas Legislature is in full swing retirement. A new national survey backs
John D. Jenkins
Dallas Employees’ Retirement Fund to address a record number of bills filed this ideal up.

Secretary this session. As the state’s 87th legis- According to a recent report by
Sherry Mose
Houston Municipal Employees Pension System lative session nears its end on May 31, National Institute on Retirement Security,

Treasurer TEXPERS’ Legislative Committee contin- 77 percent of Americans believe that all
Larry A. Reed
San Antonio Fire & Police Pension Fund ues to track bills that could, directly or indi- workers, not just those employed by state

BOARD OF DIRECTORS rectly, impact the management of public and local government, should receive a

• Terry Bratton pension plans and the retirement of public pension. The survey shows that 80% of
Houston Pollice Officers’ Pension System
employees. Democrats, 75% of Republicans, and 78%
• Carla Brewer
Dallas Employees Retirement System The deadline to file legislation was on of Independents agree that all workers

• Jose Cavazos March 12. Among this year’s proposed should have access to a pension.
Dallas Area Rapid Transit Retirement Plan and Trust
legislation, the TEXPERs committee While most Americans are not on
• Tyler Grossman
El Paso Firemen & Policemen’s Pension Fund closely monitors 25 House Bills, 1 House track for a secure retirement, one retire-

• Larry Knott Joint Resolution, 13 Senate Bills, and 1 ment bright spot is the benefits provided
Dallas Area Rapid Transit Retirement Plan and Trust
Senate Joint Resolution. June 20 is the to state and local employees. Most public
• David Stacy
Midland Firemen’s Relief and Retirement Fund deadline for the governor to sign or veto employees pay into a pension plan that

ADMINISTRATION any legislation coming out of the session. is their primary retirement benefit, which

• Art Alfaro The Legislative Committee has been often is supplemented by individual
Executive Director
meeting regularly to review and decide savings and Social Security. Employees
• Carolyn Butterworth, CMP
Director of Conferences & Member Relations what action TEXPERS will take on bills with these three sources of retirement

• Lena Terrell that concern public employee pensions. income have the best chance of having
Membership & Financial Supervisor, CAP
TEXPERS has and will continue to meet a secure retirement.
• Allen Jones
Communications & Public Relations Manager with the various elected officials and their These survey findings are useful to

• Samantha Polsgrove staff to discuss and make recommenda- convey to your legislators when discuss-
Membership Services Specialist
tions of those bills that will impact our ing the importance of secure retirement.
CONTACT INFORMATION
member systems. As your educational resource, TEXPERS
The TEXPERS Pension Observer
c/o Texas Association of Public Recently, I, along with a represen- strives to keep our members abreast of
Employee Retirement Systems
1504 San Antonio St, Suite 206 tative from TEXPERS’ lobbying firm, the latest industry trends and topics.
Austin, Texas 78701
Telephone (713) 622-8018 attended a video conference with the Before I go, TEXPERS’ Annual
E-Mail: [email protected]
staff/clerk for the House’s Committee on Conference is coming up May 23-26
Copyright ©2021. TEXPERS Pension Observer is the
official magazine of TEXPERS, published quarterly. Pensions, Investments, and Financial in Austin. The conference offers our
Contributions to TEXPERS Pension Observer are
welcome, but the right is reserved to select material to Services. TEXPERS submitted posi- members a mix of training, insider dis-
be edited and published. Publication of any article is not
to be deemed an endorsement of the views expressed tion papers to the Pension Review Board cussion, and networking.
therein, nor shall publication of any advertisement be
considered an endorsement of the product or service of Texas and the House PIFS commit- This year’s event takes place at the
involved.
tee. We are submitting additional posi- Austin Marriott Downtown, 304 E. Cesar

tion papers as requested by the House Chavez St. Please be aware that although

committee. COVID-19 vaccines are rolling out world-

I encourage all TEXPERS’ member wide, the conference venue follows national,

systems to get involved by contacting their state, and local health department guidelines

elected representatives on concerns they regarding face masks and the sanitization of

have regarding legislation. You can down- public spaces. Also, the hotel has trained food

load a document from TEXPERS’ website handlers on safe food preparation and service.

(www.texpers.org/legislation) that lists the I look forward to seeing all of you at the

bills the association is tracking. The doc- conference.

ument is updated every week. Paul Brown
No matter what side of the political

aisle someone is from, we all can agree

that everyone deserves to have a secure

TEXPERS Pension Observer | www.texpers.org

UP-FRONT 5

TEXPERS regularly pub- TEXPERS’ Legislative Committee is tracking 98 bills pro-
lishes articles on its blog site, posed during Texas’ 87th legislative session that could pos-
www.texpers.org/pension-out- itively or negatively impact public employee retirement ben-
look, regarding the economy and efits or the management of public pension plans. TEXPERS
investment insights. Experts from keeps a list of the legislation the committee is tracking at www.
the association’s membership texpers.org/legislation.
often contribute the posts. Here
is a rundown of some of the most A new national survey finds that 77% of Americans
popular columns you might have agree that all workers, not just those working for state and
missed last quarter. local government, should have a pension. Despite deep divi-
sions as a nation on many other issues, support for pen-
The Sustainability Revolution sions is consistent across party lines, according to Americans’
The world is “aggressively” seeking sustainability, writes Brent Views of Sate & Local Employee Retirement Plans, a new
Newcomb, a sustainable investment manager with TortoiseEcofin, report from the National Institute on Retirement Security.
an Associate member of TEXPERS. In a blog post titled, What Eighty percent of Democrats, 75% of Republicans and 78%
Investors Should Know About the Sustainability Revolution, of Independents agree that all workers should have access
Newcomb says that while the topic has been around for quite a to a pension. Learn more at www.nirsonline.org.
while, the “awakening” really hit the public consciousness in 2020.
It has now become a mega-theme, he adds. According to The Center on Poverty and Social Policy
In the blog post, Newcombs says that sustainable investing at Columbia University, the monthly poverty rate for US
is “shepherding an era of conscious capitalism that’s playing out adults over 65 increased from 15.7% in January to 16%
across the investment landscape.” It is not the traditional socially in September in 2020. Learn more at www.povertycenter.
responsible movement that has historically involved divestment columbia.edu.
from tobacco, weapons and other so-called “sin” stocks, Newcomb
says. “This is about driving returns first, while providing social and A 2019 Congressional Research Service report found
environmental benefits,” he says. Sustainability topics that seem that the percentage of households led by people aged 65
to be at the forefront include climate change, water scarcity, ocean and older with any type of debt increased from 38% in
pollution, diversity gaps, health and safety, income equality, inclu- 1989 to 61% in 2016. The amount owed jumped from about
sion, and human rights. $7,500 to more than $31,000 in 2016. Learn more at www.
According to Newcomb, three converging forces are driving loc.gov/crsinfo.
the revolution:
• Technological innovation driving cost declines and effi- Share your expertise!

ciency improvements TEXPERS Pension Observer welcomes guest colum-
• Aggressive action by government and corporate leaders nists. For info, contact TEXPERS Communications
• Demand for positive societal changes from consumers
Manager Allen Jones at [email protected].
and corporates
www.texpers.org | TEXPERS Pension Observer
A Work-from-home World
Work-from-home will change the future of office space, write
Rod Cornish and David Roberts, global real estate strategists with
Macquarie Asset Management, in a TEXPERS blog post. The firm
is an Associate member of TEXPERS.
COVID-19 vaccines are being administered globally, according
to the strategists, providing hope that the pandemic may soon end.
However, they say, government-imposed lockdowns and social dis-
tancing in response to the pandemic have significantly impacted
office-based employees’ working lives.
“For much of 2020, many employees worked from home, and
survey-based data show that the appetite has grown for more per-
manent flexible working arrangements,” they write. “Many employ-
ers appear to be acknowledging this desire for more hybrid remote
work as they assess longer term office space requirements.”
Potential impacts on office space, commercial real estate, and
urban centers from this shift could result in a focus on shorter leases
as companies seek to maximize flexibility and delay committing to
long-term leasing obligations. Also likely, a hybrid working model
where the majority of white-collar employees continue to spend
most of their time in the office (3-4 days) and the remaining days
working remotely (1-2 days).

6 UP-FRONT

THE LEGISLATIVE LANDSCAPE,

33 DAYS TO SINE DIE

by Joe Gimenez, Guest Contributor

As this story goes to press, no legis- public employees will have a secure retire- committee members believed HB 4163
lation pertaining directly to Texas pension ment. “That’s because those investing in would significantly restrict boards’ abilities
funds has passed both chambers of the a defined contribution plan on their own to do their jobs in the fixed rate environ-
Legislature. With only 30ish-plus days often are not investing enough and do not ment under which TLFFRA plans operate.
remaining before sine die, the end of know how to invest their hard-earned money To-date, HB 4163 has not received hearing
session on May 31, the runway is getting properly.” in committee.
extremely short and it’s possible many pen-
sion-related bills will not take off. As alternative to SB 321/HB 2707, is HB 4566, sponsored by Rep. Rafael
House Bill 3397, sponsored by Rep. Jim Anchia, D-Dallas, who chairs the House
With that said, it is the Texas legislature, Murphy, R-Houston, which would retain the Pensions, Investments, & Financial
and anything can happen. The TEXPERS defined benefit plans for state workers, while Services Committee, is another PRB bill
Legislative Committee has been extremely shoring it up with changed benefit and con- which TEXPERS’ Legislative Committee
busy monitoring 98 House and Senate bills tribution formulas. The bill would increase has opposed. The bill would expand the
and joint resolutions. TEXPERs is keeping contributions by $450 million per year, but PRB’s legal powers to order pension funds’
close eye on 88 bills, supporting one, and also result in significant cost savings over compliance with state laws. The problem,
opposing 9 others. the long-term, according to the Legislative from TEXPERS’ point of view, is that the
Budget Board’s bill analysis. The bill, if state has already granted the PRB various
Let’s get the supported bill out of the passed, would reduce the system’s infinite legal enforcement mechanisms. The PRB
way. Senate Bill 61 has not been passed amortization period to 31 years. has never used them. The committee did
out of the Senate to-date, but its intent not understand why additional enforcement
was to form interagency groups to publish TEXPERS’ concern with SB 321 is powers would be needed. Rep. Anchia and
“advisory lists” of mandates which the leg- that it would set the stage for other pension PIFS committee staff has been very open
islature funded or did not fund. The inter- sponsors to back away from their employ- to TEXPERS’ concerns and the bill has not
agency group would not establish or evalu- ees’ defined benefit plans and set them on to-date been heard in the committee.
ate mandates affecting employee pensions course for financial disaster, as has hap-
and benefits. pened in other states that tried convert- SB 1372, sponsored by Sen. Joan
ing defind benefit plans to defined contri- Huffman, R-Houston, and Sen. Charles
TEXPERS’ opposition to other bills has bution plans. Given that HB 3397 passed Schwertner, R-Georgetown, took up PRB
taken its distinct policy positions, in support the House and was sent to the Senate, it recommendations to modify SB 322 from
of its mission to preserve defined benefit is unlikely SB 321’s companion, HB 2707, the 2019 session regarding third-party
plans, into account. will gain much traction in the House – but investment evaluations. In TEXPERS’
it could. view, the bill would impose additional costs
In late April, the Legislative Committee on systems without any financial support
moved to oppose Senate Bill 321 because The House, through HB 3397, seems from the plan sponsor or the state. As such
it would overhaul the Employees Retirement more focused on preserving ERS as a it would be an unfunded mandate. The
Plan for state workers from a traditional defined benefit plan. It should likely prevail TEXPERS Legislative Committee also
defined benefit plan to a cash balance in the Senate. It is the Texas Legislature opposed SB 1372 because of the likeli-
plan. In press reports, Sen. Joan Huffman, – anything can happen. Stay tuned for the hood of Monday morning quarterbacking.
R-Houston, said such a shift is necessary next issue’s legislative wrap-up. Boards could be caught in fake controver-
to ease the financial burden on the state sies regarding their investment choices. If
and create a sustainable retirement plan TEXPERS also opposed four bills – a third-party is critical of boards’ investment
for state employees. Her bill moved out of House Bills 4163, 4566, and 3898 as decisions, but boards feel comfortable with
the Senate Finance Committee on a 13-0 well as Senate Bill 1372 – which carried their decisions after the evaluation, who ulti-
vote and was headed to the Appropriations the Pension Review Board’s recommen- mately has the authority to determine which
committee in the House for consideration dations to the Legislature. HB 4163, spon- was right?
as House Bill 2707. The bill relates to ERS’ sored by Rep. Oscar Longoria, D-Harlingen,
request for additional state contributions to would affect plans under the Texas Local At press time, the bill had passed
shore up its funded status. Fire Firefighters Retirement Act (TLFRRA). through the Senate and was received by
Namely, through changes to triggers for the House, but did not have a companion
TEXPERS executive director Art Alfaro amortization periods and funded ratios, the bill, meaning that no House member has
quickly issued a statement on SB 321 noting bill would increase the number of TLFRRA as-of-yet agreed to sponsor the bill through
how cash-balance or defined contribution plans needing to submit FSRPs. TEXPERS
plans are not successful in ensuring that

TEXPERS Pension Observer | www.texpers.org

UP-FRONT 7

House processes. about the stringency of the bill. He thought benefit plans and thereby endanger their
HB 3898 is a fourth PRB-recommended that the bill as written would require pension long-term viability, as has happened in other
fund forfeiture – wiping out decades of states. Pension funds rely on the continu-
bill which the TEXPERS’ legislative commit- career dedication – for minor offenses. ing contributions of all non-vested employ-
tee watched. Sponsored by Rep. Anchia, Rep. King responded to Smith and other ees for their investable assets. Shrinking
the bill seeks to correct and strengthen police opposition by vowing to remove pen- those assets in any way could pressure the
areas of the funding policy and Funding sion-related portions of the bill. The bill is still systems actuarial expectations and invest-
Soundness Restoration Plan laws (for the pending in committee. ment returns.
non-TLFFRA plans) that the PRB found to
be confusing or at cross-purposes. Again, As the first legislative session after the The 2021 lesgislative session has been
Anchia worked TEXPERS’ concerns into COVID-19 pandemic, several bills were unique and reflective of the COVID-19 era,
substitute bill language. The substitute lan- being watched for their impact on Board with vaccination wristbands and testing
guage has been reported favorably by the meetings. House Bills 2683, 3535, and tents, plexiglass, and facemasks. The
PIFS committee. Further action, as of late 2560, as well as Senate Bills 1885 and number and scope of pension-related bills
April, has not been taken. 1515 are all related to expanding open has kept the Legislative Committee busy
meeting laws for enabling video and tele- throughout. The last month of session could
House Bill 4286, a bill intended to phone conferencing. They all are at various still prove interesting, but the short runway
prevent the “gypsy cops” job-jumping was stages as of time of writing, but it seems may prevent many bills from final lift-off.
of critical concern at one point to TEXPERS, likely at least one will impact how pension
police departments, and the statewide fund boards may conduct their meetings. Contributor Joe Gimenez is a public
associations for law enforcement. The bill, relations professional who specializes in
sponsored by Rep. Ken King, R-Hemphill, Senate Bill 1619, sponsored by Sen. pension fund communications. He has
is aimed at preventing dishonorably dis- Paul Bettencourt, R-Houston, would give assisted TEXPERS and several Texas
charged police officers from bouncing municipalities the legislative authority to pension funds in crisis situations and
around Texas police departments, would enroll newly employed 2022 public servants public affairs.
have taken pension benefits away. in defined contribution plans. This bill was
refiled from the 2019 session but has not
In testimony before the Homeland had any movement in the Senate.
Security & Public Safety Committee, the
San Antonio Fire and Police Pension Fund TEXPERS’ opposes the bill because
Chairman Jim Smith expressed concerns it would siphon funds away from defined

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COVER FEATURE 9

EVENT OFFERS MEMBERS OPPORTUNITY

TO LEARN, NETWORK AND BE INSPIRED

by Allen Jones, TEXPERS Communica ons Manager

The Texas Association of Public Registration The last day of the conference,

Employee Retirement Systems’ 2021 Wednesday, May 26, features general

Annual Conference will be held May Visit www.texpers.org to register for sessions from 8:30 to 11:30 a.m.

23-26 in Austin, marking the organiza- the conference. The registrations of those Trustee Training

tion’s official return to operation after who paid for the canceled 2020 Annual

the worldwide novel coronavirus pan- Conference and kept their registration

demic halted large gatherings nearly active will not need to register again. Their TEXPERS members looking to fulfill

a year. registrations automatically roll over to this state-mandated Basic and Advanced

As the pandemic’s spread slows year’s event. training requirements may do so on

due to nationwide vaccine rollouts Schedule at a Glance Saturday, May 22, the day before the

and adherence to health protocols, Annual Conference starts.

TEXPERS’ staff and Board of Directors

decided to move this year’s confer- This year’s conference features a Basic Trustee Training is for new

ence from its customarily scheduled networking golf tournament, a pre-con- trustees and provides seven hours of train-

dates in April to late May. This year’s ference workshop, membership recep- ing over seven content areas. The regis-

theme: Back to Business. tions, keynote speakers, a motivational tration fee is $225 for TEXPERS member

“We are excited to gather as many speaker, breakout panel discussions, and retirement systems and employee group

of our members together as possible a members event. members and is $325 for non-member

for our Annual Conference this May,” retirement systems.

says Art Alfaro, TEXPERS’ execu- An early-morning golf tournament

tive director. “Just because we are kicks the conference off on Sunday, May Advanced Trustee Training is for

getting back to business; however, 23. Those who chose to skip golfing may more seasoned trustees who have taken

doesn’t mean we will be lax in follow- take part in a workshop at 10:30 a.m. Basic Trustee Training or another train-

ing safety protocols as the novel cor- TEXPERS’ pension funds may attend the ing program covering the same content.

onavirus is still among us. Although association’s Annual Business Meeting Advanced Trustee Training is different

many of our first-responder members at 3 p.m. However, the rest of the day is every time it is held and offers a deep

may have received their vaccine shots, free for everyone else until a 5:30 p.m. dive into various topics. Visit the associa-

not everyone will have. That means we welcome reception. tion’s website to learn more about trustee

must enforce masking and social dis- training and to register.

tancing rules outlined by the event’s The conference continues Monday,

hotel and conference center. We might May 24, with general sessions from 8 This is just a peek at what’s on the

be operating under safety precau- a.m. to 4:45 p.m. A member’s event at program for TEXPERS’ 2021 Annual

tions, but we still plan on offering our Zanzibar, the hotel’s rooftop pool deck, Conference. A more detailed schedule is

members access to the quality pro- will be held from 5 to 7 p.m. coming soon to the TEXPERS website.

gramming they have come to associ-

ate with TEXPERS.” General sessions continue from 8:30 “There’s no more affordable or con-

The Annual Conference offers a.m. to 4:30 p.m. on Tuesday, May 25, venient way to access education, training,

state-mandated training programs and day three of the conference. There will subject matter experts, and retirement

sessions regarding topics important be a reception at 5 p.m. system colleagues than the TEXPERS

to public employee retirement man- Annual Conference,” Alfaro says.

agement. During the four-day

event, attendees can learn

about industry trends, gain

new skills, and establish new

connections. Visit www.texpers.org to see a preliminary
“We want to help you reach schedule of the conference.

your goals,” Alfaro says. “Our

focus is helping members

become more valuable to their

funds and stakeholders.”

www.texpers.org | TEXPERS Pension Observer

10 C O V E R F E A T U R E

WELCOME TO THE TEXAS CAPITAL

This year, TEXPERS members will outside of conference hours are encour-
gather at the Austin Marriott Downtown, aged to head over to The Lobbyist, the
304 E. Cesar Chaves St. in Austin, hotel’s grand, two-story bar and lounge
Texas. for classic cocktails and bites.

The hotel is the hub of conference Looking to keep up with your fitness
activities. It’s a quick trip to get to ses- routines? In addition to the outdoor pool,
sions, provides opportunities for net- the Austin Marriott Downtown has a
working with conference attendees, fitness center that is open 24-hours a
makes it easy to return to your room, day, 7 days a week.
and is near pre- and post-conference
hour activities.” Those who need to do a little work
while enjoying the conference have
The 30-floor hotel features 588 access to a fully-staffed, full-service
rooms, 25 suites, several dining options, business center offering copy and
a rooftop pool, and a conference center faxing services, computers, printers,
offering plenty of room for TEXPERS and parcel services for overnight deliv-
members to gather safely. ery and pickups.

Pandemic Protocols Room Booking

The venue follows health guide- between TEXPERS’ food services? Check TEXPERS has worked to ensure its
lines from the U.S. Center for Disease out the Corinne, a contemporary restau- conference attendees have a simple,
Control and Prevention, the World rant serving American classics. Or, visit quick, and efficient way to book their
Health Organization, and state and local Zanzibar, a lush rooftop destination and hotel rooms at the conference. After
health departments. The hotel has com- poolside oasis serving up tiki cocktails and registering for the event, a confirmation
mitted to frequently treating surfaces in island-inspired bites. email will include a link allowing regis-
public spaces with hospital-grade disin- trants to make reservations at the Austin
fectants and has trained food handlers Loaf + Vine allows guests to quickly Marriott Downtown.
on safe food preparation and service. grab coffee, craft beer, wine, and tasty
treats. Those who reserve a room at the
Visit www.whattoexpect.marriott.com/ Austin Marriott Downtown by May 7
ausmd to read more about Marriott’s health Those looking for a fun place to network receive a reduced room rate. TEXPERS
protocols. has invested time and effort to negotiate
the best rate available throughout the con-
Dining & Services ference.

Everything you need for a multiday For additional details, visit
stay is available at the hotel. www.texpers.org.

Looking for something extra to eat in

TEXPERS Pension Observer | www.texpers.org

C O V E R F E A T U R E 11

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Saturday, May 22, 2021 0D\ ±

Back To Business

Preliminary Program

Cont. Monday, May 24, 2021

8:00 – 4:00 Basic Trustee Training 9:05 – 9:45 The Future of Texas
8:45 – 1:30 Advanced Trustee Training 9:45 – 10:10 Ari Rastegar, Rastegar Property Company
Ready for Reflation
Timothy Rudderow, CIO, Mount Lucas Management

Sunday, May 23, 2021 10:10 – 10:30 Networking Refreshment Break

7:00 – 1:30 Golf Tournament 10:30 – 10:55 While You Were Away…..
Grey Rock Golf Club 10:55 – 11:20 Bob Klausner, Klausner, Kaufman, Jensen & Levinson
Breakfast at 7:00am 11:20 – 12:00 ESG / Impact Investing
Bob Smith, Sage Advisory Services
10:00 – Pre – Conference Workshop 12:00 – 1:30 Keynote Speaker: Build Trust & Loyalty by
11:30 The Impact of Nominal & Real Interest Rates Outsmarting Your Erroneous Cognitive Impulses
1:30 – 3:00 on Investment Portfolio Decisions Steve Haffner
Mary Kathryn Campion, Champion Capital Networking Lunch
Research

Registration for Fund Delegates

3:00 Annual Members Business Meeting

3:00 – 5:30 Conference Registration 1:30 – 2:00 TEXPERS Asset Allocation Study
5:30 – 6:30 Welcome Reception James Perry, Maples Financial Services
(Immediately following Annual Business Meeting)
2:00 – 2:45 Equity Markets
Kevin Ross, Vaughan Nelson
Monday, May 24, 2021 TBD
TBD
Moderator: Kevin Vandolder, AndCo Consulting

7:00 – 4:30 Registration 2:45 – 3:25 Best Practices for Monitoring Your Securities
3:25 – 3:45 Portfolio as a Fiduciary Responsibility
7:00 – 7:45 Breakfast 3:45 – 4:20 Ed Korsinky, Levi & Korsinky
5:00 – 7:00
8:00 – 8:30 Opening Ceremony Refreshment Networking Break
8:30 – 9:05 Door Prize Drawing (System Members Only)
Pledge of Allegiance & Texas Pledge:
Dwight Walker, TEXPERS Presidential Advisor Commercial Real Estate Demand Drivers – Value
Creators
Singing of the National Anthem Steve Hagenbuckle, TerraCap Management
Max Patterson, BLBG
James Perry, Maples Financial Services Members Event (Name badge Required)
Introduction of TEXPERS Board of Directors Zanzibar Rooftop 7th Floor – Austin Marriott Downtown

Keynote Speaker: What is Next? The agenda is subject to change. Visit
Mike Levitt, Kayne Anderson Capital Advisors www.texpers.org to see the most recent

schedule as they become available.




www.texpers.org | TEXPERS Pension Observer

12 C O V E R F E A T U R E

VW $118$/ 7(;3(56 &21)(5(1&(
$XVWLQ 0DUULRWW 'RZQWRZQ ± $XVWLQ 7;

0D\ ±



Back To Business

Preliminary Program



Cont. Tuesday, May 25, 2021
Tuesday, May 25, 2021 Concurrent Breakout Sessions

7:30 – 5:00 Registration

7:30 – 8:30 Breakfast 3:15 – 4:00 Breakout A
3:15 – 4:00
8:40 – 9:25 Keynote Speaker: Private Credit - Title TBD Private Equity
Chris Gunther, HPS Investment Partners Neil Willis, Strattam Capital
Matthew Hansen, Financial Services Capital
9:25 – 9:55 Fireside Chat: Demographic shifts impacting Justin Ellsesser, AndCo Consulting
your Real Estate Portfolio? Moderator: TBD
Carly Tripp, Nuveen
Moderator: Jarvis Hollingsworth, Kayne Anderson Breakout B
Cryptocurrency
9:55 – 10:30 Emerging Markets- Is EM Asia on track to Kristin Boggiano, CrossTower
Dominate Global Consumption Lance Oliver, Motley Rice
Andrea Clark, GW&K Investment Management TBD,
Moderator: TBD
Networking Refreshment Break
10:30 – 10:50 Door Prize Drawing (System Members Only)

10:50 – 11:35 Credit Strategies in a Low Yield Environment 4:00 – 4:45 Breakout A
Ned Oakley, Shenkman Capital Partners 4:00 – 4:45 Real Assets
Mike Levitt, Kayne Anderson 5:00 – 6:00 John Morabito, Entrust Global
Keith Williams, Crestline Investors Mike Leifeste, Texas Treasury Safekeeping
Leighton Shantz, Texas Municipal Ret. System TBD
Moderator: Jeff MacLean, Verus Investments Moderator: Tony Kay, AndCo Consulting

11:35 – 12:00 Why and How to Invest in Real Estate Breakout B
Paul Nasser, Intercontinental Real Estate Private Credit
Thomas Hall, Capital Dynamics
12:00 – 1:00 Networking Lunch Zack Ellison, Applied Real Intelligence
Brett Hickey, Star Mountain Capital
1:00 – 2:00 Guest Speaker: “To Stop a Warlord” Moderator: Eileen Neill, Verus Investments
Shannon Sedgwick Davis, Bridgeway Foundation
Tammira Philippe, Bridgeway Capital Management Networking Reception

2:00 – 2:45 CIO Roundtable
2:45 – 3:15 David Veal, CIO, City of Austin Emp. Ret. System
Cary Hally, CIO, San Antonio Fire & Police Ret.
Moderator: Sam Austin, NEPC

Networking Refreshment Break

Visit our website’s blog to find notetaking and
networking tips to help you make the most out of your attendance.

www.texpers.org/pension-outlook
TEXPERS Pension Observer | www.texpers.org

C O V E R F E A T U R E 13

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Back To Business

Preliminary Program


Wednesday, May 26, 2021 9:45 – 10:05 Networking Refreshment Break
7:30 – 10:30 Registration 10:05 – 10:45 Pension Funding Strategies: Current Market
Trends and Considerations
7:30 – 8:15 Breakfast Jim Link, PFM Asset Management

8:15 – 8:25 Opening Recap 10:45 – 11:15 What to Expect from DB Opponents When
8:25 – 9:05 There’s a Downturn in the Economy
9:05 – 9:45 Consolidation of Pension Systems Eddie Solis, HillCo Partners
Dan Hopkins, IPPFA Joe Gimenez, G3 Public Relations
Chase Rankin, Executive Director, Oklahoma
Firefighters Pension & Ret. System
Tom Beyna, Policemen’s Annuity & Benefit Fund of
Chicago
Moderator: James Maloney, Beach Point Capital

Improving Fund Access through
Texas Feeder Funds
Will Harrell, Robert Harrell
Neal Golden, Rastegar Property Company
Moderator: James Perry, Maples Group

6 TIPS TO HELP YOU MAXIMIZE YOUR ATTENDANCE
As an administrator, trustee, or investment manager,
you can benefit from attending TEXPERS’ Annual TEXPERS conference or seminar. These could be peers,
Conference, May 23-26 in Austin. Learn about friends, clients, or vendors. Reach out to them weeks
industry trends, pick up some new skills, and build beforehand to make sure they’ll be there, and, if they will
be, schedule a time to meet during breaks or receptions.

all kinds of new connections by attending sessions, listening to • There are a lot of sessions to sit in, so you’ll want to keep

speakers, and interacting with your peers. notes. Write down three key takeaways and any fol-

low-up you want to do on the topic. Organize your notes

Many attendees may register for the conference in addi- so that they’re easy to find when you get home.

tion to attending pre-conference trustee training classes sched- • After the conference, implement at least one of your

uled for May 22 to fulfill state-mandated minimum education takeaways. Change how you’re doing something.

requirements. Follow these survival tips so that you don’t get Become more efficient. Establish a new policy or proce-

overwhelmed: dure. Whatever it is, make sure you put a new idea into

practice.

• Before the conference, figure out what you want to get • A speaker or panelist is an expert in their industry. Feel

out of the event. Do you want to expand your network of free to ask questions during the session. Or hang around

peers? Is there anything specific you want to learn? The afterward just to say how much you enjoyed their pre-

sessions you chose and the people you talk to all depend sentation and take their business card. Then you can

on your reason for attending the event. Make notes of the follow up with them by email, phone, or using their social

types of sessions and when there will be built-in times to media channel if you didn’t get the chance to ask them in

network. person.

• Don’t forget about your existing relationships. Yes, • If you are a trustee or fund administrator, share your

the conference is a great time to make new contacts, notes with staff and board members who didn’t have the

but it also is the optimum time to visit with those you chance to attend the conference. Or, request to present

already know and respect. Make a list of people you what you learned during the conference or focus on a

hope to meet again after having met them at a previous specific topic during a fund board meeting.

www.texpers.org | TEXPERS Pension Observer

14 C O V E R F E A T U R E CONFERENCE
NETWORKING
3 PRESENTERS ADVICE
YOU WON'T
WANT TO MISS As a member of
TEXPERS, you are part
MARY K. MIKE STEVE of an industry of peers
CAMPION LEVITT HAFFNER that have a common goal
- providing retirement ben-
Join Mary K. Mike Levitt, CEO Using psychology, efits to public employees.
Campion for a pre- of Kayne neuroscience, and TEXPERS’ unique posi-
conference Anderson Capital behavioral tioning as an association
workshop focusing Advisors, serves economics, enables us to help you
on the impact of as a keynote motivational connect and form profes-
nominal and real speaker from 8:30 speaker Steve sional relationships with
interest rates on to 9:05 a.m. on Haffner offers a your peers.
investment Monday, May 24. unique perspective
portfolio decisions. During his on how the TEXPERS reached out
Campion, presentation, subconscious mind to Jim McCullick, founder
president and Levitt will discuss influences of Networking Austin, to
founder of what pension personal and gain tips into successful
Champion Capital systems can professional networking.
Research, Inc., expect to see next success. Catch his
shares her insights in the capital talk from 11:20 a.m. “First and foremost,” he
from 10 to 11:30 investment to Noon on says, “networking is about
a.m. on Sunday, industry. Monday, May 24. forming relationships, not
May 23. making a sale or snagging
a new client.”
SEE A COMPLETE LIST OF SPEAKERS AT WWW.TEXPERS.ORG.
Here is his advice:
1. Introduce yourself.
Don’t lead with a business
request or discussion about
your plan’s portfolio.
2. Learn to listen.
Getting to know the person
you are conversing with is
crucial to forming a profes-
sional relationship. Try and
find information that isn’t
available on their business
card.
3. Follow up. You’ve
spent time getting to know
someone new. After the
conference, send your new
contact a text, an email, or
better yet, connect over the
phone.
If TEXPERS’ members
take anything from
McCullick’s expert advice,
it is that “people want to
do business with someone
they know and trust rather
than someone giving an
elevator pitch.”
For additional tips, visit
www.texpers.org.

TEXPERS Pension Observer | www.texpers.org

C O V E R F E A T U R E 15

Sponsors

May 23-26, 2021 @ Austin Marriott Downtown, Austin, Texas

Gold Sponsors

Silver Sponsors

GW&K Investment Management

Levi & Korsinsky, LLP

Bronze Sponsors

CrossTower

Financial Services
Capital Partners

www.texpers.org | TEXPERS Pension Observer

16 Q & A

A NEW REPORT HELPS INSTITUTIONAL
INVESTORS UNDERSTAND THE RISKS THEY TAKE

Illustration/TCMAKE_PHOTO

Pensions and other institutional investors are struggling with portfolio underperformance and outcomes that
differ from intended results. If they understand why this happens, they can adapt their investment approaches
to improve risk-adjusted performance. The Risk Report from Northern Trust Asset Management offers insights
into this challenge. Michael Hunstad, Ph.D., head of quantitative strategies, answers some questions about the
findings from his team’s research.

Q: Can you describe what The Hunstad: They are largely around the
Risk Report is and why you pro- idea of compensated risk versus uncom-
duced it? pensated risk. What are compensated
risks? Broadly, they mean investments in
Hunstad: Institutional investors some- stocks with value, low volatility, small cap,
time come to us because their portfolios quality, high dividend and momentum char-
don’t perform as expected. We help them acteristics. Stocks with these character-
by analyzing their portfolios to better under- istics historically have outperformed the
stand the risks they take. More importantly, market over decades, based on academic,
we check whether they are getting com- industry, and our own research. Of all those
pensated for those risks with the appro- factors, quality may have the widest range
priate amount of return. After analyzing of definitions. We focus on profitability, cash
a number of portfolios, we’ve discovered flow, and management efficiency measures
some common systematic issues. such as balance sheet growth.

We also realized that our clients aren’t So after compensated risks, what’s left
the only investors who are interested in this over are uncompensated risks. This basi-
topic. So we compiled our findings into this cally is everything else including bets on
report, based on more than $200 billion in sectors, currencies and regions. In other
in more than 200 equity portfolios from words, we don’t think that overweights or
64 institutional investors over a four-year underweights versus benchmarks in these
period. areas pay off over time. Overweighting
or underweighting individual stocks often
Q: What are some of the key doesn’t pay off over time either, though
findings?

TEXPERS Pension Observer | www.texpers.org

Q & A 17

sometimes there are exceptions with a back to the 1990s. A lot of our clients are often overweight sectors such as utilities
small number of managers who are con- moving away from that and moving into and real estate, which are also very interest
sistently good at it. But they’re hard to find. more direct factor exposures. That’s what rate sensitive and are bond proxy sectors
The Risk Report suggests is a more effi- with embedded duration. You might think
With these ideas about compensated cient way to seek exposure to compen- you’re lowering the risk of your portfolio.
and uncompensated risks in mind, we sated risks. However, you actually amplified the mac-
found that institutional investors took nearly roeconomic volatility and that is transmitted
twice as much uncompensated risk than Q: Regarding over-diversifica- into your portfolio. That’s the kind of hidden
compensated risk. Such a large amount tion, doesn’t that go against risk that can come back to bite investors,
of uncompensated risk damages a port- what pensions and other investors have and it’s why we need precision in portfolio
folio’s ability to outperform the bench- always been told about diversification construction.
mark. We also found that underlying port- being a good thing?
folios sometimes canceled out one another, Q: Is this a fundamental vs. quant
hurting returns. We call this the cancellation Hunstad: Diversification is good. But thing? In other words, are you
effect. For example, one manager may take imperfectly implemented diversification taking issue with fundamental active
a 3% overweight in a stock while another boosts the impact of uncompensated risks. management?
manager takes a 3% underweight in that Unfortunately, institutional portfolios tend to
stock. unintentionally diversify away the risks they Hunstad: We believe in active man-
actually want. Our research showed that agement, but not all forms of fundamental
We also discovered some issues portfolios with 10 or more managers gen- investing. Our philosophy is rooted in the
with investors who used conventional erated 52% of their active risk from uncom- core belief that investors should get com-
style investing, like the style box matrix pensated sources. pensated for the risks they take — in all
with small-to-large cap or value-to- market environments and in any investment
growth ranges. Conventional style invest- Q: If sponsors were to take away strategy. At the heart of our philosophy is
ing created a mix of managers that when one overriding message from how we think about, view and analyze risk
combined closely mimicked the bench- The Risk Report, what would you want to reach clients’ investment objectives.
mark, leaving little opportunity to outper- it to be?
form. Because of the cancellation effect I Q: How does an asset owner start
mentioned earlier, investors captured just Hunstad: Examine what’s happen- thinking about or analyzing their
50% of targeted active risk, while paying ing to your portfolio’s compensated versus own portfolio for these kinds of issues?
100% of the manager fees. This effectively uncompensated risks and consider direct
translated into paying twice as much for factor exposures as a more efficient Hunstad: Asset owners can start with
each realized basis point of active risk than approach to portfolio construction. the analytical tools that they and their con-
investors realized. sultants can access. Such analysis is a
Q: Exactly how are investors lim- first pass at understanding the sources
Also, investors need to be careful of iting the amount of uncompen- of risk in their portfolios, and the extent to
over-diversification, which is particularly sated risk, while maintaining a high level which those risks are compensated. But
difficult for large institutional asset owners of compensated risk through portfolio that might not be enough. That’s why pen-
to avoid. It’s done with good intention and construction? sions and other institutional investors turn
investors might even be targeting the right to us to understand more precisely the
risks, the right investments. However, Hunstad: They are focusing on man- risks their portfolios are taking. It’s like a
sometimes institutional investors hire too agers that deliver risk efficiently: a high health checkup to establish a starting point.
many managers or build equity portfolios amount of compensated risk but low With this information, it’s possible to con-
with thousands of securities. Cancellation amounts of uncompensated risk. It’s all struct portfolios that are better positioned to
is inevitable and that hurts performance. about precision targeting of what you really achieve intended outcomes.
want.
Q: Are you suggesting style A free copy of The Risk Report is
boxes have outlived their use- Q: How do you think the recent available to download at www.tiny.cc/
fulness and plan sponsors shouldn’t extreme volatility events TheRiskReport. This report is provided
consider them? affected portfolios with these issues? for informational purposes only and is
not intended to be, and should not be
Hunstad: Achieving exposure to differ- Hunstad: When portfolios are exposed construed as, an offer, solicitation or
ent compensated risks, which is what the to unintended risks, they perform in unin- recommendation with respect to any
style boxes attempt to do, remains impor- tended ways. This can be painful during transaction and should not be treated
tant. That’s probably why 50% of institu- times of extreme volatility. as legal advice, investment advice or
tional portfolios in our research showed tax advice. For full disclosure, visit
signs of conventional “style box” investing. One example is when institutional www.northerntrust.com/united-states/
However, the style box is an antiquated investors want to ratchet down the risk with privacy/disclosure.
form of portfolio construction that dates low volatility strategies. In doing so they

www.texpers.org | TEXPERS Pension Observer

We won’t stop
because you can’t.

Your resilience fuels our creativity, and
together we will face the challenges

ahead. The world may be changing, but
our commitment to you never will.

Advice for people transforming their world
pfm.com

Financial Advisory | Asset Management | Consulting
Financial Modeling | Specialized Services | Alternative Finance

For important disclosures please go to pfm.com/disclosures

B E S T P R A C T I C E S 19

LEGAL MATTERS

YOUR EMAILS AND TEXTS CAN BE BINDING

CONTRACTS. HERE’S HOW NOT TO BE SUED.

by Gary B. Lawson
Guest Contributor

Since almost everyone uses
email and text messaging to com-
municate about almost every
topic under the sun, an important
question is, do people really want
to be sued because they created
a legally binding contract with an
email or text message?

For most people, the answer might be,
“No, it probably would be a (very) bad idea
to be creating some binding agreement that
I can be sued over in some email or text I
wrote.” But, for some people, the answer
might be just the opposite, “Yes, at the end
of a particular email string I want to have a
binding contractual agreement.”

First Things First

So, how do you avoid getting yourself Photo/anyaberkut from iStock
into the hot water of a “mistaken” contract or,
for those of you who intend your emails to In a January 31, 2021 the Texas mineral interests, are generally not enforce-
become a contract, how do you make sure Supreme Court case, Copano Energy, LLC able unless the promise or agreement,
your emails do in fact turn into a binding v. Bujnoch 593 S.W. 3d 721, examined a or a memorandum of it is in writing and
contract? series back and forth emails about an oil “signed” by the person to be charged with
and gas easement. As most of you know, an the promise or agreement or by someone
A contract is an agreement between easement is a right for someone to come on legally authorized to sign for him.”
two or more parties where they agree to someone’s land and do something, in this
do something. Maybe it is to build a house, case, drill for oil or gas. The court in Copano There are almost always exceptions to
replace a roof, hire a software developer, or decided that the parties had not created a every rule, like here, if one party started per-
invest in a oil lease, anything. binding legal agreement to buy and sell an forming under an unwritten agreement…
easement. But exceptions are not in the scope of this
What does it take to have a binding con- basic article. This is simply a warning about
tract, that is an agreement that parties must In Copano it was the landowner who the risk of getting stuck with a contract claim
perform, or else they can be sued in court was trying to enforce the alleged agree- because of some email you wrote.
to force them to perform or to pay damages ment, not the pipeline company, but that
for not performing as promised? factor had no bearing on the important legal Keep reading below because “signed”
question. or “executed” does not mean your handwrit-
Contracts generally must cover certain ten signature must be on the document, it
basics, specifically: Rules and Exceptions could just be the fact that you sent that email
or text from your computer, tablet or phone!
• Who is to do What? Certain agreements of any kind, if the
• What are they to do? price exceeds some statutory minimum This written signed agreement require-
• When are they to do it? Is there a ($500 for sales of goods), and certain types ment, which is found in almost all states’
of agreements regardless of how small a laws, is commonly called a “statute of
start date and a finish date? price, including a contract for the sale of or frauds”. Because an easement is an interest
• How much will someone pay for relating to real estate, or oil and gas and in real estate, a contract for the sale of any
easement, or other interest in real estate, is
whatever it is the agreement calls subject to the statute of frauds.
for?
• When are they to do it?
• Where is it to be done?
• Sometimes How is it to be done?
• How much is the price?

www.texpers.org | TEXPERS Pension Observer

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

To satisfy the statute of frauds, the terms to be discussed at a future email me back and confirm that you agree
Supreme Court in Copano noted, “there meeting, rather than any party’s that we have a binding agreement to do x.”
must be a written memorandum which is “agreement” to be bound by a
complete within itself in every … detail, and “contract.”(emphasis added). The Thing About Signatures
which contains all of the essential elements
of the agreement, so that the contract can Prevent A Binding Contract What about that “executed” or “signa-
be ascertained from the writings without ture” requirement mentioned above? Does
resorting to oral testimony.” The required Ok, what can you do when you are it take a pen and ink signature to make a
written memorandum need not be set out emailing about a possible business matter, contract binding? The simple answer is
in a single document, sometimes, the and you don’t want by accident to make No. You can be considered to have “exe-
agreement can be pieced together from a contract? cuted” or “signed” an agreement merely
two or more emails or other documents, by having written and sent an email or
maybe even text exchanges, even if the Maybe you are emailing and asking, text. There are also some court deci-
parties “executed” the instruments at dif- “Hey, do you have a carton of those sions holding that when someone sent
ferent times and even if the documents roofing shingles in stock?” or you start off, an unsigned letter on their letterhead,
do not expressly refer to each other. But, “Would you like me to come over paint that is the equivalent of a signature. The
the rule is that the “essential elements of that garage?” And then there are a string not so simple answer to this question
the agreement” must be evident “from the of follow-up emails. Maybe you emailed would take many pages to explain and is
writings” themselves, “without resorting to a plumber discussing the need to reno- way beyond the scope of this article, but
oral testimony.” vate that bathroom? One possible way to because so much business is done using
try and protect yourself from unintention- electronic or “e-mail” let me also mention
E-mails and now text messages are ally creating a contract when you did not that there are both statutory and case
an everyday feature of modern life. They intend one is to create and use a special laws that expressly authorize the “execu-
are used by nearly everyone for nearly “signature block” in each and every email tion” of agreements/contracts by merely
every type of communication, the Court that has anything to do with a possible sending a document or email. Uniform
in Copano noting: business matter. Many email programs Electronic Transactions Act, and 15 U.S.
have the option of having more than one Code, Chapter 96, the Federal Electronic
• “from the flippantly inconse- alternative “signature block”. Records and Signatures in Commerce
quential to the bindingly formal. Act.
When it is alleged that an e-mail An alternative handy “we’re not cre-
amounts to a contract binding on ating a contract” signature block, might Don’t Do Business Via Text
the sender, the e-mail’s context read something like, “No email from me
must be carefully examined to or between us can create a binding legal I suggest you save text messages
determine whether it truly evi- contract unless we have both expressly for messages like “we’re here now, you
dences the grave intent to be say it’s our mutual intention and agree- can drop off the sandwiches” or “pick me
legally bound. Here, neither the ment that we are creating such a con- up, I ran out of gas”, or “we’re in the gym
context of Sanford’s December 7 tract.” Or, “While we may want to discuss waiting on you”. For many reasons too
e-mails nor their verbiage reflects in an email exchange the possibility of many for this short article, I suggest you
an intent to bind Copano to the doing business together, nothing in this not use text messages for any meaning-
easement terms stated in those or any subsequent email is intended to ful business negotiations.
e-mails.” create a legally binding contract. In order
for us to create a binding contract, we will Oh, and remember, even texts are
• “… a fundamentally ‘essential need to create and sign a formal written subject to Texas Public Information Act
element of the contract,’ without agreement between us that we both intend (§552.002(c) Gov’t Code).
which no contract can exist, is to be a binding contract. Unless we sign
the parties’ intent to be legally such a formal agreement, we don’t have This article and the ideas mentioned
bound to the contract’s terms…. a binding contract.” are only intended to give you some “food
(“Our primary concern in contract for thought.” This is not individual legal
interpretation is to ‘ascertain the Create A Binding Contract advice to any reader. This article does
true intentions of the parties as not create an attorney-client relationship.
expressed in the instrument.”)” While the best thing probably would
be to put all the deal terms into one final Before starting his own law firm,
• “To satisfy the statute of frauds, email, or better still one PDF document, Gary B. Lawson was a partner for eight
it is not enough that the writings and ask the other side to sign it and then years at the law firm of Strasburger &
state potential contract terms, as you sign it and send it back fully executed, Price LLP. He is a pension, executive
Sanford’s December 7 e-mails but alternatively, you could send a final compensation. and transactional lawyer
perhaps do. The writings must evi- email telling the other party something who regularly represents government
dence the “agreement ... so that like, “Hey, Jenny, I think we have covered retirement plans in pension and tax law
the contract can be ascertained” all the important points in our back-and- matters. Lawson is a frequent speaker
from the writing. … Standing forth emails here that we need to have an before groups such as TEXPERS.
alone, the December 7 e-mails agreement here on x. If you agree, please
fail this standard because they
reflect one party’s description of

TEXPERS Pension Observer | www.texpers.org

B E S T P R A C T I C E S 21

STRATEGIC MANAGEMENT

A GUIDE TO ENGAGING DIFFERENT
GENERATIONS OF YOUR FUND’S MEMBERS

by Melissa Harris
Chief of Communica ons, Employees’ Re rement Fund of the City of Dallas

Competition for Illustration/Designer from iStock
attention is fierce now-
adays. With the fast bedrock of a pension fund, we they have a question. web collaboration tools may be
pace of instant messag- don’t want to talk to employees Baby Boomers may have more effective at keeping this
ing, social media, and about smoothing methods, actu- group productive and engaged
an endless variety of arial science, or bond rankings. had the same job or been with than in-person meetings. Many
news sources, we can What members want to know is the same company for most of Gen X-ers have jumped right
learn about events hap- what their pension benefits are their careers and are reach- into social media; however, it is
pening on another con- and when they can get them. ing retirement age. They need not as popular with this group as
tinent within minutes. help developing a clear suc- it is with the Millennials.
Communicating our Most of us must communi- cession plan to determine the
message to those who cate with at least four genera- “Next Steps” they should take. Millennials grew up with
are used to instanta- tions daily. Sharing information Baby Boomers work best when cell phones, texting, and mes-
neous information is with this diverse group, not to presented with detailed, com- saging apps. That is just a part
challenging. mention engaging them, can be prehensive plans. Most Baby of who they are and how they
daunting. Let’s look at how their Boomers have adopted some communicate. Many millennials
To add to the complexity, a communication styles compare technology, but they may be prefer texting to calling friends
dwindling sector of the popula- and how we might best reach less proficient in its use. This and family, as they can send
tion still reads printed publica- them. generation may engage with and receive short messages
tions like a newspaper, a mag- digital media, but they gener- that get to the point. Millennials
azine, or a pension newsletter. The Silent Generation, ally prefer communications in appreciate authentic and fast
According to a July 2018 AARP now mostly retired, is comfort- person. communication with a prefer-
article, half of Americans get able with formal communica- ence for using text, chat, email,
their news via Facebook, the tion. These are the children of Members of Generation and Instagram. They value
world’s largest social media parents who suffered through X are usually comfortable efficiency and a digital-first
site. To be competitive, pension the Great Depression. One-on- with web-based communica- approach.
funds must use more than the one or written communication tions like email and the inter-
printed word to communicate is their preference. Expect a net and enjoy having options. Below are the communica-
with our members. phone call from them anytime Conference calls, video, and tion tools that our organization

It helps to know our audi-
ence’s needs and prefer-
ences. To do this, we must first
Invest in surveying our mem-
bership. It will give us insight
into who we are communicat-
ing with and how and what
they use to consume infor-
mation. It is essential to learn
things like educational level,
how members access websites,
the percentage of skilled labor-
ers vs. office workers, and the
number of employees we serve
from each generation. If we
don’t know these things upfront,
we run the risk of crafting com-
munications only those in the
pension office will understand.

Although investment is the

www.texpers.org | TEXPERS Pension Observer

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

utilizes. Each has a target audi- to mail anything to employees letter, they can use the link to A few years ago, we had
ence. While these methods physically, we reinforce the go directly to our website. to convince our bosses that we
should be available to all message using email and social needed a social media pres-
members, we must always keep media. Social Media – Millennials ence. Now we have so many
the target audience in mind. – The target audience for social communications tools at our
The website –All Members media wants their information fingertip’s: social media, video
In-Person Meetings – – Our website is a repository for in short chunks. The last thing teleconference, our websites,
GenXers & Baby Boomers - everything that members need they want to see on Facebook, and of course, the old stand-
In our office, we offer in-person to know about their pension: the Instagram, or Twitter is a letter. bys of in-person meetings and
pension education seminars plan summary, contact informa- Again, we headline that letter printed newsletters and letters.
and pre-retirement counseling. tion, forms, archives, and more. and provide a link to the entire Now we must learn to lever-
This requires extensive time We ensure that our website is letter on our website. What gets age our resources and reach
and resources, but the outcome working for our members by the most engagement on social our targets without missing
is worth the effort. reviewing the website analytics. media? Videos! We take a few the mark. We do that best by
minutes, usually less than five, knowing our audience.
Newsletters & Letters – Email – Retirees - If some- from an informative part of our
Retirees - These are gener- thing is new on our website, last training session and post Melissa Harris is chief
ally used to relay more detailed we will send an email to alert that video. Try this, and you’ll of communications for the
information or a call to action. our membership. Although we be surprised how much engage- Employees’ Retirement Fund
The pitfall with this communica- have seen some organizations ment (Likes) you’ll get. of the City of Dallas. In her
tion style is that most employ- paste letters in emails, we have role, she leads a team of indi-
ees do not pay attention to found that official-looking docu- Virtual Meeting – GenXers viduals by creating commu-
newsletters or letters. Many ments are not engaging reading – This can be the most efficient nications strategies that sim-
people don’t even check their material. We prefer to headline means of getting information plify employee pensions for
mail regularly anymore. Those the letter and provide the entire out. We often record our ses- members.
that can be counted on to read letter on our website, putting a sions so that our audiences
printed material are most often link in the email. If members can listen to it later at their
our retirees. If we find the need are interested in reading the convenience.

TEXAS FOCUSED
AUSTIN BASED

Delivering customized, purpose-driven
investment solutions for Public
Retirement Plans since 1996

Institutional Asset Management
Plan Asset/Liability Modeling
Sustainable Investment Management
Fiduciary Management Services

Fixed Income| Equities| Multi-Asset

Sean Krasan, Principal Michael Walton, Principal Sean McShea, EVP

[email protected] [email protected] [email protected]
(512) 895-4152 (512) 895-4107 (512) 895-4138

5900 Southwest Parkway, Building 1, Austin, TX 78735 | sageadvisory.com



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HOUSTON, TX
PERMIT NO. 6716

The TEXPERS Pension Observer
c/o Texas Association of Public Employee
Retirement Systems
1504 San Antonio Street, Suite 206
Austin, Texas 78701
Telephone (713) 622-8018

E-Mail: [email protected]

Upcoming Conferences & Training

MARK
YOUR

CALENDARS

2021 Annual Conference Summer Educational Forum
Austin Marriott Downtown Grand Hyatt

Austin, TX San Antonio, TX
May 23-26, 2021 August 29-31, 2021


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