Minnesota State Retirement System

The Board meeting included a presentation from the State Board of Investment (SBI) providing an overview of its mission, investment allocation, and fiscal year performance for the Combined Funds. The Disability Process Overview was postponed until January 2026. A significant item involved the Legislative Workgroup Update concerning Probation Officers and 911 Telecommunicators, where the Board adopted a staff recommendation to support a sub-plan for these employees, including provisions for an earlier retirement age and additional contributions, authorizing staff to negotiate final provisions. Updates were provided on the IAC/SBI regarding asset allocation and the adoption of a new Investment Policy Statement (IPS) by the SBI. Additionally, new members, Jacqueline Terry and Jason Bonnett, were appointed to the Audit Committee. The Board adopted proposed changes to the Board Governance Manual sections covering actuarial overview, contracts approval, fiduciary duty, and funding policy. Progress on the Recordkeeper Transition Update with Voya was discussed, noting heavy call volumes and temporary measures to manage workload. A Facilities Management Update covered ongoing projects like the window, chiller, and security assessment RFP. The fiscal year-to-date rate of return as of September 30, 2025, was reported as 6.4%.

The Board of Directors meeting included discussions and actions on several key items. An appeal regarding duty disability benefits was reviewed, with a decision made to affirm the executive director's determination. Estimated actuarial valuation results for 2025 were presented for all plans except Legislators, and a legislative update and planning for 2026 were discussed. The 2026 Board election process and materials were approved, and potential in-service training topics for Board members were considered. Updates were made to the Board Governance Manual. The Audit Committee's meeting was reported, including the extension of a contract for internal audit services. The Facilities Management Committee addressed issues related to the co-tenancy agreement and a security assessment of the Retirement Services building. The recordkeeper change was reported, along with challenges being worked through. The retirement of the Chief Financial Officer was announced, and a Board member's upcoming retirement was acknowledged.

The Board of Directors meeting included a presentation from Voya Financial regarding remediation plans for challenges faced by MSRS, focusing on website navigation, call volume, and hold times. The board discussed filling a State Patrol Plan member vacancy and selected a candidate. The development of the 2026 Administrative Bill was discussed, including updates to filing requirements for pension plan applications, clarification of language around Correctional Plan eligibility, and Fire Marshall Plan enrollment options. An update was provided on the Probation Officer Workgroup. The board voted to rescind an outdated Investment Resolution Policy and approved a Debt Write-Off and Compromise Policy draft. Modifications to the Board Election Process were discussed, including adding electronic credential services. Committee reports were given, including updates on the Facilities Management Committee's projects and the Secure Choice Board's progress. The fiscal year rate of return as of August 31, 2025, was reported.

The Board meeting included an update from the State Board of Investment on portfolio performance, which is designed to withstand market volatility. Changes to the Board Governance Manual were adopted to reduce redundancy and clarify information. Amendments to the Health Care Savings Plan and Minnesota Deferred Compensation Plan documents were approved, with an effective date of July 1, 2025, to accommodate the transition in recordkeeping providers. A legislative update was provided on MSRS bills adopted by the Legislative Commission on Pensions and Retirements. The 2024 Fiscal Year in Review was presented, covering plans administered by MSRS, plan assets, participant demographics, and strategic plan updates. The fiscal year 2026 Administrative and Recordkeeper Budget was approved. Board members were approved to attend one training or conference for fiscal year 2026.

The Board of Directors meeting included discussions and actions on several key items. The board approved updates to the Governance Manual, excluding a specific change to the Facilities Management Committee (FMC) language, and approved writing off uncollectable debts. Michael Roelofs was approved to join the Facilities Management Committee. Amanda Biggins was nominated to fill the Correctional Plan member position on the Board. The board also approved the adoption of Public Plan Portability Assumptions for upcoming actuarial valuations and received a legislative update, including progress on the 2025 Administrative Bill. An update was shared on in-progress audits related to fraud, and the fiscal year-to-date rate of return was reported.