Educational Employees' Supplementary Retirement System of Fairfax County

The board addressed the preliminary actuarial valuation, funding policies, and the proposal to transition actuarial reporting from a calendar year to a fiscal year cycle. The agenda also included a review of investment consultant performance, an overview of international equity portfolios, and a private market performance update. Staff provided reports on retirement communications, internship programs, and the status of the Pension Administration System RFP. In closed session, the board discussed the award of a public contract for the retirement and payroll system, personnel re-appointments, and legal matters regarding service providers.

The Board of Trustees discussed and approved the proposed Fiscal Year 2027 meeting dates. Investment staff provided updates on the ongoing review of investment consultants and managers, as well as the status of the emerging markets manager search. Educational presentations were delivered regarding the balance between active and passive investment strategies, portfolio performance metrics, and the complexities of evaluating private market performance, including a review of recent commitments. Additionally, the Board reviewed administrative staff reports covering member communications, retirement projections, financial expenses for the current fiscal year, and updates on the upcoming Request for Proposal for a new Pension Administration System and internal AI policy implementation.

The Board of Trustees discussed proposed regulation changes to update mortality assumptions and revised the Guidelines for the Independent Actuarial Review. The Board approved a change to the upcoming retreat dates and received updates on investment operations, including the search for emerging market managers, portfolio performance, and the 2026 Private Markets Commitment Pacing Plan. Additionally, the Board received reports on real estate redemption modifications, fiscal year expenses, and staff initiatives related to member education and information technology system enhancements. A closed session was held to address the investment consultant agreement and personnel matters, resulting in the authorization of a contract extension.

The Board of Trustees meeting included a resolution to honor the memory of long-time trustee Michael Burke. The board received a presentation from investment consultants regarding the impact of an executive order on Chinese companies within the portfolio and the status of divestment actions taken by managers. Additionally, the consultants presented a 2021 roadmap outlining upcoming agenda items, including custody RFPs, governance and fiduciary training, and asset allocation reviews, followed by a performance and market update on equity indices.

The meeting featured an investment consultant update regarding a $90 million allocation to a government-sponsored term asset lending fund, which was not called by the manager due to shifting market conditions and narrowing spreads. The board reviewed the current financial market environment, noting a rebound in equities, differences in performance between growth and value stocks, and the status of the fixed income market. Additionally, the board received a portfolio performance report evaluating various active and index managers, including discussions on rebalancing the portfolio and the impact of the current economic cycle on investment returns.