TEXPERS Pension Observer Vol. 3, 2020

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INDEX 3

CONTENTS

» p.6 up-fRONT
» p.8
Column: TEXPERS’ Annual Conference and Summer Educational
Forum are not taking place this year, but that doesn’t mean you
don’t have opportunities to learn. pg. 5

Pensions Buzz: The pension industry recently lost a supporter. Find
out who he was in our pensions briefs section. pg. 6

Pensions Buzz: There’s a new pension fund executive director in
town. Find out who it is. pg. 7

spotlight

Feature: The Pension Review Board thinks laws regulating fund
fiscal progress aren’t strict enough. TEXPERS’ leadership has
something to say about that. pg. 8

Feature: A new research paper suggests U.S. pension system
design needs to catch up with Canada’s model. pg. 12

Best practices

Personal Development: A new book could offer pension system
leaders tools to bridge divides with those who oppose defined-
benefit retirement plans. pg. 15

Strategic Management: 65% of an employment survey’s
respondents said career advancement is a sign of a good job.
Here are a few tips to help your fund’s staff move up the corporate
ladder. pg. 16

Tech Support: As a growing number of people work from home,
cybersecurity threats also increase. Learn how to protect your
home from cyber attacks. pg. 17

» p.12

www.texpers.org | TEXPERS Pension Observer

4 UP-FRONT

OFFICERS & 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 OF DIRECTORS

• 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

• Art Alfaro
Executive Director

• Carolyn Butterworth, CMP
Director of Conferences & Member Relations

• Lena Terrell
Membership & Financial Supervisor, CAP

• Allen Jones
Communications & Public Relations Manager

• Samantha Polsgrove
Membership 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 ©2020. 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

COLUMN

TEXPERS’ BOARD OF DIRECTORS

CANCEL ANNUAL CONFERENCE

by Art Alfaro
Execu ve Director, TEXPERS

As many of you probably already have Plus, due to social distancing requirements, to return to the Grand Hyatt San Antonio for our

read on TEXPERS’ social media pages, digital the conference venue is restricting the use of 2021 Summer Educational Forum. We will not

newsletter, and blog, the association’s board of concurrent educational sessions during con- forget about the Moody Gardens Hotel as we

directors decided to cancel this year’s Annual ferences to limit the movement of attendees. plan out future conferences, too.

Conference and trustee training that was to take The measure would have reduced the number If any of our members are traveling to

place Aug. 15-18 in San Antonio. of sessions our conference-goers could have Galveston or San Antonio, we ask that you con-

The board met June 22 to discuss the fea- attended. sider staying at the hotels. Both offer amenities

sibility of hosting the conference but decided As I write this, Texas remains under a and accommodations that are among the best

to cancel the event due to what has become a Disaster Declaration because of the spread of in their destination cities. Each is close to major

familiar refrain: the novel coronavirus pandemic. the respiratory disease. A phased economic attractions, too. Be sure and let them know that

TEXPERS certainly isn’t the only asso- reopening plan is in effect, but leaders halted you are a TEXPERS member and appreciate

ciation that has canceled events this year. aspects of it as the virus spread. Many areas the graciousness they showed your association.

The Texas Local Fire Fighters Retirement Act require the use of face coverings, and social We haven’t forgotten our mission to provide

recently announced it educational opportuni-

won’t be hosting its edu- Though our Annual Conference, Summer ties for our members.
cational conference in Educational Forum, and pre-event in-person Like other industries,
October. You’ve probably training sessions won’t take place this year, we TEXPERS is learning
read news of high-pro- will continue to ensure you are educated on to work in a socially dis-
file events that have the topics and issues relevant to the public pension industry. tanced society. We are
been called off this year. exploring options to offer
Industry, profession, and - Art Alfaro, TEXPERS Executive Director virtual sessions through-

fandom conferences of out the remainder of the

all types have been can- year. Many of the pro-

celed. However, being in good company isn’t distancing measures remain in place. grams would allow trustees to continue to

quite enough consolation because TEXPERS The tourism industry, especially its hotels earn continuing education credit hours. We’ve

staff work hard to produce our events to offer and convention centers, is taking a big financial recently hosted two and have more slated for

timely educational material for its members, hit due to the novel coronavirus. We appreciate August and September. As we schedule addi-

helping trustees and administrators become the graciousness and generosity of both Moody tional sessions, we will list them on our website,

more valuable to their funds and stakeholders. Gardens Hotel, Spa and Convention Center in blog, newsletters, and social media pages.

We’d already moved our Annual Conference Galveston and the Grand Hyatt Hotel in San We understand the gravity of the situa-

from its original date in May on Galveston Antonio. tion for our members who utilize TEXPERS’

Island to August in San Antonio because of the When we host our conferences and educa- Annual Conference and Summer Educational

spread of the virus and stay-at-home-orders tional forums, we generally have contracts with Forum to enhance their professional develop-

that had practically halted all travel by pension the venues for services. We also gain special ment. We will continue to work hard to bring you

systems, plan sponsors, and service providers. room rates for our members. The conference educational events online to help you manage

Moving the Annual Conference to August would sites become convenient hubs of activity for our a public pension system. Though our Annual

have replaced our regularly scheduled Summer association members. Conference, Summer Educational Forum, and

Educational Forum. The board made a tough TEXPERS held its Annual Conference in pre-event in-person training sessions won’t take

decision, but the right call as social distancing 2010 at Moody Gardens. The association has place this year, we will continue to ensure you

regulations and an uptick in the virus spread held events at the Grand Hyatt San Antonio are educated on the topics and issues relevant

would have put our members and staff at risk. each year between 2012 and 2018. to the public pension industry.

The world is a different place since the When we announced that hosting our Fingers crossed, we will be back hosting

arrival of the pandemic. TEXPERS’ board and events were no longer feasible, neither venue our in-person conference and forum in 2021.

staff had to account for the well-being of attend- hassled us. Instead, they recognized TEXPERS’ Until then, I hope each of you stays healthy

ees and their educational needs. Several pre- long working relationship with them and asked during this stressful time.

senters and members also conveyed to us that us to keep the hotels and their convention Art Alfaro
they remained under travel bans instituted by centers in mind for future conferences.

their workplaces. We certainly will. We are already scheduled [email protected]

www.texpers.org | TEXPERS Pension Observer

6 UP-FRONT

PENSIONS BUZZ

INDUSTRY VETERAN MILBREY TEXPERS MEMBER ASSISTS together spend about $7 billion per year in
‘CASEY’ JONES DIES AT 78 FIRST RESPONDERS THROUGH development subsidies and tax breaks for cor-
CHARITABLE FOUNDATION porations, more than double the states’ yearly
Milbrey “Casey” pension obligations.
Jones, a longtime A nonprofit co-founded by TEXPERS
institutional mar- member Gary Lawson, recently made dona- In Texas alone, 2019 Texas Public
keter in the invest- tions of gel and spray hand sanitizers to the Employee Pension Obligations totaled $2.2
ment industry, died New York City Fire Department in New York billion. The 2019 cost of subsidies and cor-
of cancer on June and the Irving Fire Department in Texas. A porate tax breaks in Texas amounted to $4.5
5, according to similar donation was given to police and fire billion.
news reports from departments in the City of El Paso.
P&IOnline.com and You can find the report at GoodJobsFirst.
Fin-News.com. He Independence Corps Foundation made org.
was 78 years old. the donations, Lawson says, to help those
Considered a pioneer in the institutional who are saving American lives. On May 8, TEXAS EMPLOYEES ALLOCATES
public fund and Taft-Hartley marketing space, Lawson delivered the donation to Irving Fire $125 MILLION TO REAL ESTATE
he was a co-founding senior partner at invest- Department’s chief, V.L. Conley (pictured AND PRIVATE EQUITY
ment consultant Maybridge partners. Jones below).
was also president emeritus of the State Texas Employees Retirement System
Association of County Retirement Systems in Lawson says the foundation will soon made three new commitments in June, totaling
California. provide a powered wheelchair called an iBOT $135 million, according to pension and invest-
He was well known to TEXPERS staff and Lisa Ramsey, a former narcotics police officer ment site pionline.com.
members as he frequently attended the asso- in Fort Worth who was paralyzed because of a
ciation’s conferences, says Paul Brown, the gunfight with drug dealers. The fund committed $55 million to
association’s president. Meridian Realty Partners IV, a value-ad-
TEXPERS members who would like to ded real estate fund manage by Meridian
learn more about the foundation’s work may Group; $50 million to K5 Private Investors, a
visit www.independencecorps.org. middle-market buyout fund managed by K1
Investment Management; and $30 million to
ACTUARIAL STANDARDS venture capital fund Industry Ventures Direct II,
BOARD ADOPTS REVISIONS a transaction report shows.
OF ASOP NOS. 27 AND 35
According to the pionline.com report, as of
The Actuarial Standards Board recently CORPORATE TAX GIVEAWAYS April 30, the actual allocations to private equity
adopted revisions of Actuarial Standard HARM STATE’S REVENUE were 16.5 percent and real estate were 11.5
of Practice (ASOP) Nos. 27, Selection of NEEDED FOR PENSION FUNDING: percent.
Economic Assumptions for Measuring Pension GOOD JOBS FIRST
Obligations, and 35, Selection of Demographic TLFFRA CANCELS EDU-
and Other Noneconomic Assumptions for Good Jobs Frist, a nonprofit, nonpartisan CATIONAL CONFERENCE
Measuring Pension Obligations. research center focusing on economic devel- THAT WAS TO BE HELD THIS
opment accountability, recently published a OCTOBER
ASOP No. 27 guides actuaries perform- two-part report, “Putting State Pension Costs
ing actuarial services that include selecting in Context.” The Texas Local Fire Fighters
(including giving advice on selecting) economic Retirement Act Educational Conference that
assumptions—primarily investment return, dis- In part two of its 13-state report, the center was set to take place in Corpus Christi this
count rate, post-retirement benefit increases, found that Colorado, Georgia, Louisiana, October has been canceled.
inflation, and compensation increases—for Missouri, South Carolina, Vermont and Texas
measuring obligations under defined benefit According to a TLFFRA email, the foun-
pension plans. ASOP No. 35 guides actuaries dation board canceled the conference due to
when performing actuarial services that include the ongoing “COVID-19 pandemic and guide-
selecting (including giving advice on selecting) lines and restrictions that go along with it. “In
demographic and other noneconomic assump- the meantime, TLFFRA continues to plan its
tions for measuring obligations under defined Fall 2021 conference in Denison, Texas.
benefit pension plans. ASOP Nos. 27 and 35
are effective for actuarial reports issued on or Let us know what your fund is up to. Have
after Aug. 1, 2021 and when the measurement a new board member? Did your fund allo-
date in the actuarial report is on or after Aug. cate funds to an investment you think your
1, 2021. peers would find interesting? Or, maybe one of
your board members, administrators or active
To learn more, visit actuarialStandards- and retired pensioners have made a special
Board.org. accomplishment. Email us at media@texpers.

TEXPERS Pension Observer | www.texpers.org

UP-FRONT 7

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8 SPOTLIGHT

FEATURES

TEXPERS Pension Observer | www.texpers.org

SPOTLIGHT 9

PENSION REVIEW BOARD
SIGNALS IMPATIENCE WITH

SYSTEMS’ PROGRESS

by Joe Gimenez, Guest Contributor

The Pension Review Board the current revision process as working to keep
wants to toughen two systems in perpetual FSRP cycles.
major Texas laws govern-
ing 80-plus pension funds Another problem the PRB has with HB
for public employees. 3310 is its slow-developing triggers. The 2015
law requires systems to develop FSRPs when

Their recommenda- their actuary calculates a 40-year amortization

tions will head to the Legislature via the mon- period for either two or three actuarial valua-

itoring agency’s bi-annual report, usually pub- tions (depending on the plan’s valuation sched-

lished in November. The report will provide a ule). Marcia Dush, the PRB’s actuarial member,

situation analysis on Texas pensions’ condition frequently remarks that systems could begin

and offer guidance for revisions in the 2021 seeing problems in one year but not become

Legislative session. subject to an FSRP for several years after. For

PRB’S ISSUES example, plans are given 10-year time hori-
zons to correct and reach a 40-year amortiza-

tion period. Dush views this as a 50-year plan.

The PRB’s premise is that House Bill 3310 Adding fuel to the fire for legislative

and Senate Bill 2224 are out of touch with changes, the Pension Review Board in 2017

actuarial best practices and don’t mesh well in reduced its recommended guidelines for amor-

achieving cohesive policy objectives. tization periods from 40- to 30- years, whereas

For SB 2224, the 2019 law requiring HB 3310 specifies a 40-year trigger. The PRB

plans to submit policy plans that achieve 100 lowered the target in line with the organiza-

percent funding, the Board wants clarifications. tions like the Blue Ribbon Panel of the Society

Thirteen systems provided policies that have of Actuaries, the Government Finance Officers

open or rolling amortization periods. The Board Association, and others reducing their amor-

contends those don’t comply with the require- tization period guidelines for public pension

ment. The rolling method is like refinancing a systems.

home mortgage each year. The sponsor and PRB members seem well aware that low-

employee contributions are lower than what ering the trigger line from 40- to 30-years

they would be for a system with a closed amor- could have dramatic implications. At a May 7

tization, stay within recommended guidelines, meeting, PRB Vice Chair Keith Brainard said,

but never achieve full funding of retirement “If three-fourths of the plans in the state end

benefits. up on a funding soundness restoration plan,

For HB 3310, the law requiring Funding then so be it.”

Soundness Restoration Plans, PRB staff has “The consideration is not the number of

described several situations where they believe plans on the list,” he said. “The consideration

there is too much wiggle room in the law. PRB ought to be what is sound criteria for funding

staff wants legislative guidance and clarifica- a pension plan.”

tion about plans’ promises to make corrections.

For example, a system’s funding soundness TEXPERS’ POSITION

restoration plan might count on its members to

vote to approve benefit cuts or significant con- TEXPERS’ legislative committee met

tribution increases. If the votes don’t turn out in early June to discuss these PRB signals

according to plan, revisions are required. How about the 2021 Legislative session. Executive

do revised plans fit the timetable for implemen- Director Art Alfaro sent a letter to the PRB

tation? The PRB’s deputy director described describing the association’s concerns.

www.texpers.org | TEXPERS Pension Observer

10 S P O T L I G H T

“After careful review of the almost four-year may not be the right policy prescription. About the Author:
history of implementation of HB 3310, we are TEXPERS offered to work with the Pension Joe Gimenez is a public relations profes-
not in agreement that changes causing 3/4s of sional who specializes in pension fund com-
the plans to end up on an FSRP would be advis- Review Board in discussing the data sets it has munications. He has assisted TEXPERS and
able,” Alfaro wrote. He pointed to TEXPERS been reviewing and the problems it sees with several Texas pension funds in crisis situations
research, which shows that the law has worked rushing the intent of HB 3310.
for many of the first 14 systems first put on the
FSRP list. Six have achieved amortization
periods below 40 years. Three have achieved
lower amortization periods, but are not yet lower
than 40. Five systems have not yet achieved
lower amortization periods and do need more
work with their city sponsor.”

The legislative committee believes that
progress has come despite factors that might
normally work against pension systems. In
Alfaro’s letter, he demonstrated how some
Texas systems lowered their target rates
substantially.

Typically, lower target rates can increase
amortization periods. Most are below eight
percent, and more than half (54) are below
7.5 percent. Despite this dramatic ramp-down,
amortization periods for most systems have
steadily improved over the last eight years.
Today there are 47 systems in the PRB’s rec-
ommended condition of having an amortiza-
tion period of less than 25 years. In 2013, when
most systems had 8 percent target rates, there
were 29 systems at 25 years or less.

“We agree that more can be done by plan
sponsors to address chronic underfunding of
some systems,” Alfaro wrote. “But we also think
that adjusting HB 3310 so that more systems
must develop FSRPs is rushed. Pension
systems need time for their investment, con-
tribution, and workforce dynamics to show in
actuarial numbers. The 3- to 4- year implemen-
tation period, which has been granted by the
PRB for the 10-year time frame of HB 3310,
needs the opportunity to accomplish its origi-
nal intent. Waving a magic wand for intermedi-
ate term results is not realistic.”

TEXPERS is concerned that resetting the
bar for systems already with FSRPs will add
significant costs to the systems and sponsors,
even when their first plans seem to be working
in most cases. Adding a substantial number of
plans to the PRB’s FSRP list – even while many
seem to be making slow but steady progress
with their actuarial valuations – could create
unintended consequences.

Employees may have to contribute more
of their salary to their pension. Cities might
have to increase wages to compensate for the
increases. And cities might have to increase their
contributions. Even as cities face revenue short-
falls due to Covid-19 related recession, adding
more burdens to achieve minor improvements

TEXPERS Pension Observer | www.texpers.org



12 S P O T L I G H T

Anew research paper suggests design changes for U.S. and many of the provincial plans were funded through superannuation
public pension plans based on the Canadian system, accounts. They were not independent of government and invested largely
which is touted as a recognized “global gold standard” in Canadian sovereign and provincial debt.”
of pension management.
The paper, Public Pension Reform and the 49th Conducting a side-by-side analysis of primary data sources of key
Parallel: Lessons from Canada for the U.S., released July 8, traces the plan features in both countries, in their report, the researchers outline key
history of the “Canadian Model,” highlighting its reforms during the late changes undertaken in Canada in the late 1980s and during the 1990s.
1980s and the 1990s, and how it became well regarded in pension man- The changes resulted in positive reforms on Canadian public pension funds
agement. Researchers from the Stern School of Business at New York comparative to those in the U.S., write the researchers.
University then compare the Canadian Model with 25 of the largest public
pension systems in the U.S., including the Teacher Retirement System Their report compares data sourced directly from public filings of
of Texas. the 25 largest public pension systems in the U.S. and nine of the largest
The paper’s authors, Clive Lipshitz and Ingo Walter, say there is a public pension plans in Canada as well as the Canada Pension Plan.
growing attention on the long-term sustainability of many U.S. pension The paper’s dataset is sourced from 11 years of annual reports for the 35
funds along with concerns of equity between pension plan members, pension plans, ending in 2018.
retirees, taxpayers, bondholders, and public services consumers. The
ongoing COVID-19 pandemic is introducing “new fissures in state and According to the paper, global commodity markets had led to cyclical
local government finances, heightening the need to bolster long-term public pressures on the economy throughout the 1980s and 1990s. Debt among
pension fund robustness,” write the researchers. The Canadian public the federal and provincial Canadian pension systems grew, highlighting
pension system, they write, may hold the key to sound reform. key pension plan design flaws:
“It is widely accepted that the Canadian public pension system func-
tions well, with enviable funding levels,” write Lipshitz and Walter. “Indeed, • Plan funding was partially on a pay-as-you-go basis or through
the so-called ‘Canadian Model’ of pension management is often seen as superannuation accounts
a global gold standard in the realm of public finance.”
Even now, according to Fitch Ratings Inc., Canada’s 11 largest pension • Enhancement to benefit levels were retroactive and not matched
funds should maintain their current credit ratings despite the ongoing with higher contribution rates
market turmoil. The funds managed 1.7 trillion of net assets in Canadian
dollars at year-end 2019. In a July 7 report on its website, Fitch Ratings • Contributions were commingled with general government funds
indicates the Canadian plans are expected to “withstand market down- rather than funded into segregated accounts
turns within their respective ratings given their long-term investment hori-
zons, ability to adjust contribution rates and the captive nature of inflows.” • Active portfolio management was nonexistent
The Canadian Model wasn’t always seen in such favorable light. The • Plans were defined in law that determined contribution rates by
Stern School of Business researchers say that in the early 1990s, the political processes and required legislative action to modify
Canadian pension system’s various provincial public pension plans were • Because plans were sponsored by the government, beneficiaries
financially challenged. were unable to influence plan design and lacked responsibility for ensur-
“Their subsequent successes were hardly inevitable or predictable ing plan solvency.
at the time,” write the authors. “[The Canada Pension Plan – compara- Between the late 1980s and the late 1990s, a series of reforms
ble with U.S. Social Security] was structured as a pay-as-you-go system addressed these issues. Even though particulars of plans differ from prov-
ince to province, common features characterize the Canadian Model.
TEXPERS Pension Observer | www.texpers.org These include joint sponsorship – giving labor the ability to make deci-
sions – and independently governed and professionally managed orga-
nizations to invest pension reserves. According to the paper’s authors,
optimal governance prioritizes the interests of principals (active and annu-
itant plan members, taxpayers, municipal bondholders, and users of gov-
ernment services) over those of agents (trustees, government officials,

S P O T L I G H T 13

and union representatives) and agents of agents (actuaries, fund manag- implement reforms – Involve all parties in the reform process, including
ers, lawyers, and consultants). taxpayers, bondholders, and recipients of government services – not just
plan members and retirees.
“It is the principals who should determine plan features and play a
central role in plan governance,” write the researchers. “A new governance 5. Focus on holistic models for pension design and funding –
model was established in Canada, framed on joint sponsorship and gover- Restructure funding models to focus on solvency rather than have bene-
nance, independence form government, uniformity in legislation and reg- fits, contributions, and investing determined distinctly; remove plan terms
ulation, and minimum standards of professionalism on pension boards.” from collective bargaining

The 56-page report compares the largest pension plans in Canada 6. Share burden of funding contributions more equitably –
and the U.S., looking at demography; plan design; plan benefits and risk Understand pension funding within the framework of total compensation
sharing; discount rates; funded status; investment organization; primate and consider a more equitable share of funding from plan members
market and direct investing; size effects; the consortium model; invest-
ment strategy; asset allocation; portfolio leverage, derivatives and cur- 7. Mandate sponsor funding – Hold governments accountable for
rency hedging; and investment performance. funding of contributions

The lessons gained from Canada’s reform and comparison of the two 8. Align benefits and responsibilities through joint sponsorship –
countries, according to the researchers, address what is becoming a critical Construct a plan where members can make decisions and accept a shared
public finance challenge in the U.S. The report identifies 15 policy initiatives: risk for solvency

1. Recognize the need for change – Outside factors, such as the 9. Enhance governance – Enact high standards for trustees and
current economic environment, are a catalyst for change trustee education

2. Recognize that the solution needs to be at the appropriate level 10. Unify legislation – Utilize any existing tools for creating unified
of government – Change should occur at least at the state level pension legislation and reconsider the possibility of setting national
standards
3. Recognize that change requires strong leadership and effec-
tive civil service – Strong leaders must operate in each state, require the 11. Ensure viable model for funding accumulated deficits – Amortize
support of skilled professionals, and enable forums for sharing knowledge unfunded liabilities using combination of sponsor funding and plan member
between jurisdictions. contributions

4. Adopt a consultative stakeholder approach to develop and 12. Align investment strategies to liabilities and cash flows – Once
plans are better funded, match asset allocation to liability management

www.texpers.org | TEXPERS Pension Observer

14 S P O T L I G H T

13. Internalize investment management, expenses Allen Jones is the communications and
where appropriate – Evaluate ability to address 15. Enhance advisor standards – Enhance public relations manager at TEXPERS. He joined
governance and compensation constraints to the association in 2017. During his career, he
facilitate direct investing approach expectations for service providers as internal served as editor of two community newspapers,
resources and governance are improved managed nine community lifestyle magazines
14. Evaluate consortium model to achieve in the Houston area for Hibu, and worked as a
scale, where appropriate – Consider establishing To read the report in its entirety, visit https:// contract writer for the Hearst-owned Houston
consolidated investment management for groups ssrn.com/abstract=3646286. Chronicle.
of pension plans to achieve scale and reduce
About the Author:

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B E S T P R A C T I C E S 15

PERSONAL DEVELOPMENT

AUTHOR’S NEW BOOK OFFERS

TIPS TO BRIDGE DIVIDES

by Allen Jones
TEXPERS Communica ons Manager

Anew book may 1. Stand up to the Man. Stop
help public pension giving your money and attention to
system trustees and the outrage industrial complex.
administrators learn to bridge
divides with adversaries of 2. Escape the bubble. Go
defined benefits. where you’re not invited, seeking
Public retirement system out true ideological diversity.
leaders are often scrutinized for
their decisions in handling public 3. Say no to contempt. Treat
employees’ funds. Often, instead others with love and respect, even
of constructive criticism, public when it’s difficult.
inspection becomes downright
hateful. Retirement system 4. Disagree better, not less.
leaders face divisive politicians Be part of a healthy competition
and so-called pension indus- of ideas.
try experts who put out false
information aimed at disman- 5. Disconnect. Tune out unpro-
tling defined-benefit pension ductive national debates and make
systems. And social media com- a difference closer to home.
ments regarding public employ-
ees and their retirement bene- Published in March by
fits often seem filled with anger. Broadside Books, “Love Your
It appears that public pension Enemies” lays out a strategy to
advocates are in one corner of mend our fractions and work better
a boxing ring. Their enemies are together. The book isn’t a magic
gathering in the other corner, wand to wave away hatred and
ready to fight it out. division. However, the tools Brooks
There is an easier way to offers allow leaders to harness this
deal with the hateful pundits, disaffection and turn it into a force
politicians, and angry public for progress and unity. As a new
commentators, says Arthur legislative season approaches in
C. Brooks, leader of one of Texas, public retirement system
America’s top policy think tanks. leaders may want to include some
In his new book, “Love Your of Brooks’ instruments in their
Enemies: How Decent People advocacy toolboxes.
Can Save America from the
Culture of Contempt,” he uses “Love Your Enemies: How
social science, ancient wisdom, Decent People Can Save America
and his experience as presi- from the Culture of Contempt” is
dent of the American Enterprise available at most booksellers,
Institute to show that abuse and outrage are including online at Amazon.com
not the right routes to success. and Barnsandnoble.com. Audio
Brooks says there is an “outrage indus- and eBook formats are also avail-
trial complex” prospering in the United States. able from some online retailers.
Americans have created a habit of seeing
people who disagree with them as not merely Graphic/Broadside Books About the Author:
incorrect but worthless and defective, he writes.
What is the cure for the culture of contempt? “It’s not civility or tolerance, which are Allen Jones is the communications and

garbage standards,” he writes. “It is love for public relations manager at TEXPERS. He

each other and our country. Love is the ‘why’ joined the association in 2017. During his

of our leaders that can bring America back career, he served as editor of two community

together, and of all of us in our families and newspapers, managed nine community life-

communities.” style magazines in the Houston area for Hibu,

He offers five tools you can use to gain a and worked as a contract writer for the Hearst-

better working relationship with your enemy: owned Houston Chronicle.

www.texpers.org | TEXPERS Pension Observer

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

LEADERSHIP ADVICE

YOUR FUND’S EMPLOYEES WANT TO ADVANCE

Leaders of public retirement systems don’t departments and a larger pool of workers. doesn’t have openings to advance lower-level
just manage the investments of their fund’s As people retire or leave their positions, roles employees, find out what jobs are available at
membership. They also manage employees open, allowing employees to advance. It isn’t other retirement systems and let your employ-
who run the various day-to-day duties of the so easy for administrators of smaller pension ees know about them. You may lose a ded-
fund, and most likely, that staff is hoping they systems that may have one or two employees. icated employee, but they will be happier to
can advance within their career. But that doesn’t mean their hands are tied. know you care about their futures when they
land that higher-paying job.
In 2018, SurveyMonkey questioned more Here are three things bosses of small and
than 1,000 individuals on its website platform large funds can do to help their employees Pay Professional Memberships. There
to determine what they consider to be essen- advance: are professional membership organizations
tial components of a good job. Of those who for just about every profession. Make it an
responded, 65% view advancement opportuni- Get to Know their Goals. Ask your employment benefit. Professional groups allow
ties as a significant sign of a good job. employees where they see themselves in 5 them to network and learn, which also benefits
and 10 years. Use the information to provide the work they do for your fund. A professional
Helping an employee advance in their them with feedback and resources they need membership also could help them learn about
career is easier to do if you are the executive to continue learning. higher-level job opportunities.
director of a large pension fund with multiple
Keep up with Your Peers. If your fund

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B E S T P R A C T I C E S 17

TECH SUPPORT

5 WAYS TO HELP PREVENT HOME CYBERATTACKS

There’s been a surge in remote Photo/BPT
work since the novel coronavirus
hit the world. Places of business, (BPT) - Being home 100% of the time has become the new norm for many Americans,
as social distancing is implemented in communities across the country to slow the rapidly
including many public pension spreading COVID-19 pandemic. Connected devices are being used virtually nonstop, as
funds and their investment firm the homebound stream shows to binge watch and video chat with friends to help pass the
time. Unfortunately, most residential computing networks aren’t regularly maintained and
advisors, have established monitored to protect against security breaches. This presents hackers with a virtual play-
remote work policies. Law firm ground of which to take advantage.
Seyfarth surveyed its clients and
collected responses from 550 “Cybercriminals are continuously looking for ways to exploit computer system vulner-
U.S. employers between March abilities and home networks are popular targets because so many of our devices - phones,
12 and 16. The results showed TVs, computers, even appliances - are connected to them,” says Jane Li, Mercury Insurance
director of product management. “Insurance companies provide solutions to help finan-
that 67% of employers were cially protect homeowners and renters if they fall victim to a cyberattack. There are also
taking steps to allow employees steps they can take ahead of time to help prevent one from happening in the first place.”

to work from home who don’t Following are five tips to protect your home network - and the devices connected to
usually do so. it - from hackers.

1. Power down your devices. This disables the internet connection, cutting off access
to any personal information stored on your computer, tablet or phone. Unattended machines
are easy targets for hackers, especially if you’re asleep.

2. Secure your wireless network. Information accessed on an open network, including
email passwords and sensitive bank information, is fair game for hackers. Don’t make their

www.texpers.org | TEXPERS Pension Observer

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

jobs easier - protect your Wi-Fi network with a strong password that’s offer periodic software updates to protect against potential security
difficult to guess. Wireless routers that are issued by cable providers are breaches. Chances are, if an update is recommended, hackers have
typically assigned a network name and password that’s easily located already discovered a way to access your personal property and infor-
on a label on the device itself. These can be changed using your online mation, so keep your software up to date. Set your devices to install
account, so do this as soon as possible for added security. auto-updates when possible.

3. Invest in anti-malware software. Malware - or malicious software 5. Beware of phishing scams. Phishing scams aren’t new, but hackers
- can be installed on your computer without your knowledge so hackers continually use more sophisticated email - and even text messages - to
can damage your system, steal personal information or restrict your trick people into providing their personal information. Once again, do not
access to extort money from you. Anti-malware software helps protect click on the links or attachments in messages from unknown senders.
against, detect and remove malware, stopping cybercriminals from doing
further damage. Also, avoid downloading music or video files from sus- Li suggests homeowners and renters consider adding Home Cyber
picious websites, and clicking on links or email attachments in mes- Protection to their existing policies as an additional way to protect against
sages sent from unknown senders to help prevent malware from infil- hackers.
trating your system.
“Even the most vigilant individuals can experience a cybersecurity
4. Install recommended updates. Smartphone, computer, tablet and breach,” says Li. “Having coverage to help recoup financial losses that
smart TV manufacturers, among other providers of connected devices, are brought on by cyberextortion or stolen personal information can offer
peace of mind during an otherwise stressful time.”

Interested in sharing your expertise? TEXPERS Pension Observer welcomes guest columnists. For info, contact Allen Jones at [email protected].

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