Chuck Turner

The joint meeting covered several key agenda items including the annual review of Investment Advisory Committee membership and appointments, recommendations from the Texa$aver Product Review Committee regarding retirement investment options, and the annual review of the Incentive Compensation Plan. Additionally, the Board reviewed investment performance metrics, heard the quarterly report from the Chief Investment Officer, and discussed performance benchmarking frameworks. The agenda also included reviews of the Private Equity and Real Assets programs and a look ahead at future committee meetings.

The board meeting focused on several key items including the recommendation to change the officer structure for the Board of Trustees, an update on the Retirement Insurance System Enhancement (RISE) project, and proposed amendments to Flexible Spending Account rules to comply with federal limits. The board also discussed the contract award for the HealthSelect Medicare Advantage Plan, a stakeholder panel discussion with primary care physicians, and proposed 2027 plan year rates for the Group Benefits Program, including dental, vision, and life insurance. Additionally, the meeting covered agency updates regarding leasing, the Office of General Counsel's division performance, the trustee self-evaluation process, upcoming legislative appropriations requests, and the success of the 2026 Get Fit Texas! challenge.

The Board meeting included a stakeholder panel discussion with law enforcement and custodial officers and considered proposed CY 2025 rates for HealthSelect Medicare Advantage plans, including new coverage for Wegovy. The Board also reviewed the proposed Fiscal Year 2025 Operating, Capital, and Property Management budgets, discussed the Board of Trustees self-evaluation report, and received an agency update which included an overview of the Survey of Employee Engagement results, updates on legislative appropriations, retirement self-funded increase options, and cost-of-living adjustments for retirees. Additionally, the Board evaluated and considered a contract award for actuarial services.

The Audit Committee meeting focused on two primary agenda items: the presentation of the 2023 financial statement audit results and the findings of an internal ethics audit. The external audit report highlighted an unmodified opinion on the financial statements, while noting material weaknesses in investment accounting and a significant deficiency regarding defined benefit plan contributions. The ethics audit evaluated the organization's current ethics program, identifying the need for better formalization of roles and responsibilities, improved policy clarity, and expanded content regarding investigations and board reporting. Management response indicated that policy revisions are underway.

The board and Investment Advisory Committee conducted a joint meeting covering several key agenda items. Topics included annual ethics training, a review of retirement program actuarial valuations and financial status, and policy guidance related to the pension funding policy. Furthermore, the meeting involved a review of the investment governance report, consideration of a recommendation for the Texa$aver target date fund series, and a quarterly review of investment performance.