John Gerding

The Board meeting included committee reports and updates on strategic and operational matters. The Investment Committee approved several fiscal year 2026 plans, including the Global Income Strategies Review Plan, the Private Debt & Private Credit Tactical Plan, and aspirational MWBE utilization goals. The Deferred Compensation Plan Committee approved revisions to the Investment Policy Statement for the 457(b) Supplemental Savings Plan. The Rules and Personnel Committee authorized staff to initiate amendments to TRS administrative rules. The Legislative Committee (reported under Claims Hearing Committee) adopted a Recommended Decision regarding an administrative review appeal. The Audit Committee approved the Internal Audit Charter. Updates were provided on the Strategic Plan, PAS Modernization, and a legislative review. The Board accepted the results of the preliminary June 30, 2025, actuarial valuation report, proposing a FY 2027 state funding amount, and certified the FY 2027 THIS Fund state contribution. Additionally, the Board adopted proposed revisions to the Board Policy Manual, including updates to the Code of Ethics and Conduct and Communications, Education, and Travel Policies. Updates to standing committees and working group assignments were approved following a Trustee resignation.

The Investment Committee meeting included the appointment of a Chairman Pro Tem for the session. Following public comment, the committee approved the minutes from the July 31, 2025, meeting. Discussions covered the preliminary September 30, 2025, investment manager charts, a cash flow summary, and an investment activity report for July 1, 2025, through September 30, 2025. An education session focused on artificial intelligence technology's impact on the investment industry. The committee reviewed the final June 30, 2025, investment performance report, noting a total fund return, net of fees, of 9.66% for the fiscal year to date. Key actions included recommending the approval of the fiscal year 2026 Global Income Strategies Review Plan and the fiscal year 2026 Private Debt & Private Credit Tactical Plan. Furthermore, the committee recommended approval for the fiscal year 2026 aspirational MWBE utilization goals for minority brokerage and investment management, which will be incorporated into the TRS Investment Policy.

The Audit Committee meeting involved discussions and reports on several internal audit functions. Key topics included summaries of internal audit reports concerning the Supplemental Savings Plan, Privacy, and Petty Cash. The Director of Internal Audit provided an update on TRS's conformance with essential conditions and presented a redline version of the Internal Audit Charter & Policy, recommending separation into three distinct documents for approval by the Board. Additionally, the Internal Audit Strategy plan and process were discussed. The committee entered into an executive session to discuss matters authorized under the Open Meetings Act exception pertaining to internal control weaknesses, potential fraud risk areas, known or suspected frauds, and fraud interviews, although no action was taken during that session.

The Teachers' Retirement System certified the required state contribution to the Teacher Health Insurance Security (THIS) Fund for FY 2027. The certification is based on the active member contribution rate and adjusted by the amount by which TRS underestimated actual active member contributions in FY 2025. The state contribution amount certified for FY 2027 is $141,801,757.

The meeting included committee reports from the Claims Hearing Committee, Legislative Committee, Rules and Personnel Committee, Investment Committee, and Audit Committee. Updates were provided from the Strategic Plan Working Group, Investment Working Group, and Technology Working Group. The Department of Human Resources presented an overview of current and projected plans. Revisions to the TRS Board of Trustees Manual were adopted. An update was given on the PAS Modernization program. The board authorized the President to extend the Executive Director & Chief Investment Officer's employment contract and deferred compensation agreement.