August 4th Board Mtg. Packet

Transcription

STATE PENSION REVIEW BOARD OF TEXAS
BOARD MEETING
AGENDA
Thursday, August 4, 2016 – 10:00 AM
Capitol Extension, Committee Room E1.012
1400 N. Congress Avenue, Austin, Texas 78701
The Board may deliberate and take action on any of the following items:
1. Meeting called to order
2. Roll call of Board members
3. Discuss and consider Board Administrative Matters, including the following items – Chair McGee
A. TAB 1 Consider approval of the May 5, 2016 Board meeting minutes
4. Education and Research Committee – Discuss and consider the Minimum Educational Training
(MET) Program for trustees and system administrators pursuant to Section 801.211 of the Texas
Government Code – Judge Cable
A. Receive report on the development of PRB online training – Christine Taylor
B. TAB 2 Receive update on final adoption notice of proposed rule amendments to 40 TAC
Part 17, Chapter 607, Public Retirement System Minimum Educational Training Program,
Subchapter B, Minimum Educational Training Requirements for Trustees and System
Administrators, §607.110 Minimum Educational Training Requirements; Subchapter C,
Minimum Educational Training Program Sponsors, §607.120 Program Standards for All
Sponsors; and Subchapter D, Compliance with the Minimum Training Requirements,
§607.140 PRS Reporting – Christine Taylor
C. Receive update on MET compliance reporting – Christine Taylor & Michelle Kranes
5. Actuarial Committee – Discuss and consider the following matters – Bob May
A. TAB 3 Actuarial Valuation Report – Kenny Herbold
B. Receive report from the Actuarial Committee on its June 20, 2016 and July 14, 2016
Committee meetings and consider related matters, including – Bob May
i.
TAB 4A Review proposed changes to the Actuarial Valuation Report, including
GASB 67 data and contribution information for public retirement systems
ii.
TAB 4B Review of PRB Guidelines for Actuarial Soundness
iii.
Rating system for pension plan health and annual funding adequacy
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iv.
Date and location of future Actuarial Committee meetings
C. TAB 5 Public retirement system reporting and compliance, including noncompliant retirement
systems under Section 801.209 of the Texas Government Code – Ashley Rendon
D. Update on Funding Soundness Restoration Plan (FSRP) requirement, including the following –
Ashley Rendon
i.
TAB 6A Retirement systems subject to the FSRP requirement
ii.
TAB 6B Final Policy for Determination of System Actuarial Review
6. Legislative Committee – Discuss and consider the following items – Robert Massengale
A. TAB 7A 2017–2021 Strategic Plan – Anumeha
B. TAB 7B Approval of 2018 – 2019 Legislative Appropriations Request and update on
September 20, 2016 Joint Budget Hearing – Anumeha
C. Update on June 13, 2016 House Pensions Committee Interim Hearing and upcoming
September 2016 Hearing – Anumeha
D. TAB 7C Update the Board by-laws to clarify the delegation of duties in the absence of
Executive Director – Anumeha
E. Update on the PRB List of Companies Engaged in Scrutinized Business Operations in Iran –
Anumeha
7. Review and discuss report from the Executive Director on the following matters – Anumeha
A. SAO Financial Processes Audit of the PRB
B. 2016 TLFFRA Trustee Training and Annual TLFFRA Conference
C. TEXPERS Summer Educational Forum
D. TAB 8A Report on end of Fiscal Year 2016 Budget
E. TAB 8B Approval of Fiscal Year 2017 Operating Budget
F. Staff and professional development
8. Call for future PRB agenda items – Chair McGee
9. Date and location of next PRB meeting–November 3, 2016, Austin, Texas – Chair McGee
10. Invitation for public comment
11. Adjournment
NOTE: Persons with disabilities who plan to attend this meeting and who may need special assistance are requested to contact Ms. Sheryl Perry
at (800) 213-9425/ (512) 463-1736 three to five (3-5) working days prior to the meeting date so that appropriate arrangements can be made.
The Board may go into executive/closed session regarding any item on the agenda if permitted under the Open Meetings Act, Texas
Government Code Annotated, Chapter 551.
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TAB 1 Texas Pension Review Board
Minutes
May 05, 2016
1. MEETING CALLED TO ORDER (0:05)
The second meeting of 2016 of the Texas Pension Review Board (PRB) was called to order by
Chair Josh McGee on Thursday, May 5, 2016 at 10:00 AM, at the Capitol Extension Building, Room
E1.012 in Austin, Texas.
2. ROLL CALL OF BOARD MEMBERS (0:07)
Board Members Present:
Chair Josh McGee
Keith Brainard
Andrew Cable
Stephanie Leibe
Robert May
J. Robert Massengale
Ernest Richards
A quorum being present, the meeting was called to order by Chair McGee.
3. DISCUSS AND CONSIDER BOARD ADMINISTRATIVE MATTERS, INCLUDING THE
FOLLOWING ITEMS – Chair McGee (0:40)
A. APPROVAL OF THE FEBRUARY 11, 2016 BOARD MEETING MINUTES (0:51)
Chair McGee entertained a motion to suspend the reading of the minutes of the PRB meeting
held February 11, 2016 and to approve them as circulated.
Motion made by Mr. Brainard and seconded by Mr. May.
MOTION CARRIED UNANIMOUSLY
B. EXCUSING THE ABSENCE OF BOARD MEMBERS FROM FEBRUARY 11, 2016 BOARD
MEETING (1:30)
Chair McGee entertained a motion to excuse Mr. J. Robert Massengale from the February 11,
2016 Board meeting.
Motion made by Judge Cable and seconded by Mr. Brainard.
4. EDUCATION AND RESEARCH COMMITTEE – DISCUSS AND CONSIDER THE MINIMUM
EDUCATIONAL TRAINING (MET) PROGRAM FOR TRUSTEES AND SYSTEM
ADMINISTRATORS PURSUANT TO SECTION 801.211 OF THE TEXAS GOVERNMENT CODE,
INCLUDING THE FOLLOWING –Judge Cable (2:29)
A. RECEIVE REPORT ON THE DEVELOPMENT OF PRB ONLINE TRAINING – Christine
Taylor (2:35)
Ms. Taylor provided an update on the PRB Online Training. She stated that Risk Management
became available this week and that staff is working to have all courses available by Fall 2016.
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Texas Pension Review Board
Minutes
May 05, 2016
B. RECEIVE UPDATE ON PREVIOUS TRAINING APPROVAL FORM, MET REGISTRATION
FORM (PRB-150) AND MET PROGRAM REPORT (PRB-2000) –Christine Taylor (3:12)
Ms. Taylor provided a brief explanation of the PRB-150 and PRB-2000 entry processes.
C. DISCUSS AND CONSIDER FINAL ADOPTION OF PROPOSED RULE AMENDMENTS TO
40 TAC PART 17, CHAPTER 607, PUBLIC RETIREMENT SYSTEM MINIMUM
EDUCATIONAL TRAINING PROGRAM, SUBCHAPTER B, MINIMUM EDUCATIONAL
TRAINING REQUIREMENTS FOR TRUSTEES AND SYSTEM ADMINISTRATORS, §607.110
MINIMUM EDUCATIONAL TRAINING REQUIREMENTS; SUBCHAPTER C, MINIMUM
EDUCATOINAL TRAINING PROGRAM SPONSORS, §607.120 PROGRAM STANDARDS
FOR ALL SPONSORS; AND SUBCHAPTER D, COMPLIANCE WITH THE MINIMUM
TRAINING REQUIREMENTS, §607.140 PRS REPORTING – Michelle Kranes (4:20)
Ms. Kranes reported that the proposed adoption of the rule amendments related to the
Minimum Educational Training Program were published in the Texas Register and the PRB
received no public comments. Ms. Kranes requested the final adoption of the proposed rule
amendments.
Chair McGee entertained a motion to adopt the rules (as presented) OR (with the changes
agreed to) in Texas Administrative Code, Title 40, Part 17, Chapter 607, relating to the Public
Retirement System Minimum Educational Training Program and authorized the staff to post the
rule adoption notice in the Texas Register with the preamble to be approved by the Assistant
Attorney General Counsel.
Motion made by Mr. Massengale and seconded by Mr. May.
5. RECEIVE PRESENTATION FROM THE DALLAS POLICE AND FIRE PENSION SYSTEM –
Chair McGee (7:16)
A. Dallas Police and Fire Pension System Executive Director – Kelly Gottschalk
Ms. Gottschalk provided an overview and challenges of the Dallas Police and Fire Pension
System (DPFP). Ms. Gottschalk advised that she will be concentrating on the Combined Plan.
Mr. Brainard requested Ms. Gottschalk to explain their system’s DROP. Ms. Gottschalk stated
that DPFP system does not put a time limit for the DROP and does not make members remove
their money when they retire. Mr. Brainard inquired if there were any legal rulings on their
DROP. Ms. Gottschalk stated that there was a plan amendment in 2014 and is currently in
litigation concerning the interest rate related to DROP. Mr. Brainard confirmed with DPFP
Legal Counsel that the litigation was in response to the reduction in interest rate of the DROP.
Chair McGee inquired if the interest rate change was built into the liability calculation or was it
something realized over time with real life returns or interest credit. Ms. Gottschalk confirmed
that the change reduction is built into the liability number currently presented.
Chair McGee requested that the PRB be kept up to date on the liquidity issue and investment
returns. He suggested preparing the plan members and sponsor for the potential that the
expectation is not realized and that adjustments may need to be made over the next 5 – 10
year period to make sure enough money is coming into the plan for promised benefits.
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Minutes
May 05, 2016
Mr. May inquired about plan change approvals for the system. Ms. Gottschalk stated that to
amend the plan requires a 65% vote of active members or the State Legislature which is
established in their plan document.
Chair McGee asked what it took to change the employer contribution rate cap at 28%. Ms.
Gottschalk stated that increasing the employee contribution rate from 8 1/2 to 9 % would
increase the employer rate by state law. There are proposed changes in our plan amendment
to request the employer contribution rate to increase.
Chair McGee inquired about what changes have been made around the investment function,
decision making and reporting to rectify this issue. Ms. Gottschalk stated that structurally things
are very different with the system now having an Executive Director and a Chief Investment
Officer to have checks and balances in place. They have created a new investment policy and
an investment advisory committee and a clear investment reporting system.
Chair McGee stated he remained concerned with the plan and recommended monitoring real
estate and private equity that are difficult to value on the investments. Ms. Gottschalk indicated
that she understood that completely and DPFP is looking to invest in other real estate funds
that are easier to value.
Mr. May questioned if there was a role for the state in key decisions in investment choices for
plans and who has a fiduciary responsibility. Sam Friar, DPFP Chairman, commented that their
new implementation of their advisory committee along with help from professionals in the Dallas
area will be a part of that process and with their help, DPFP should not repeat this.
Ms. Anumeha provided that the PRB can put together prudent investment practices for our
retirement systems as part of the PRB mandate. Chair McGee suggested the PRB might
consider as a board to put out best practice statements for public plans; statements and not
authority on best practices.
6. ACTUARIAL COMMITTEE – DISCUSS AND CONSIDER THE FOLLOWING MATTERS –
Anumeha (1:22:18)
A. UPDATE ON THE ENROLLED ACTUARIES CONFERENCE – Bob May
Mr. May provided information on the Actuary Conference.
B. PUBLIC RETIREMENTSYSTEM REPORTING AND COMPLIANCE, INCLUDING NON
COMPLAINT RETIREMENT SYSTEM UNDER SECTION 801.209 OF THE TEXAS
GOVERNMENT CODE – Ashley Rendon (1:24:00)
Ms. Rendon provided an update on non-compliant retirement system plans. She stated that
five plans are currently non-compliant over sixty days and that the PRB staff has been in
contact with the plans to complete their audits.
Ms. Anumeha stated that in 2013 the systems are now required to complete an annual,
standalone audit instead of filing their sponsor’s audit.
C. ACTUARIAL VALUATION REPORT – Kenny Herbold (1:33:02)
Mr. Herbold reported current Actuarial Valuation information by systems and noted that number
of plans with an infinite amortization period decreased from twelve plans to four. Mr. Herbold
pointed out that plans with a good range of fifteen to twenty-five years amortization has
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Minutes
May 05, 2016
increased from sixteen to twenty-three and those plans that are zero amortization or fully
funded have moved from two to four.
Chair McGee recommended that the PRB look at a way to find an accurate amortization
schedule for plans.
D. UPDATE ON CYPRESS-FAIRBANK’S ISD PENSION PLAN TERMINATION – Kenny
Herbold (1:47:46)
Mr. Herbold provided an update on the termination of Cypress-Fairbank’s ISD Pension Plan.
He stated that the plan was terminated on December 31, 2015; the plan was frozen and
replaced with a non-elective defined contribution plan. Cypress-Fairbanks ISD have committed
to fully funding their plan and paying out 100% of the accrued benefits. Distribution paperwork
has been sent out to all of the members and they expect to distribute all of the plan assets by
June of 2016.
E. UPDATE ON FUNDING SOUNDNESS RESTORATION PLAN (FSRP) REQUIREMENT,
INCLUDING THE FOLLOWING – Anumeha (1:50:14)
i.
RETIREMENT SYSTEMS SUBJECT TO THE FSRP REQUIREMENT (1:50:22)
Ms. Anumeha provided an updated report on the FSRP list of systems. Ms. Anumeha
stated that since the last Board meeting the PRB has added another system to the
immediate FSRP list and there are four systems on the at-risk list.
ii.
UPDATE TO POLICY FOR DETERMINATION OF SYSTEM ACTUARIAL REVIEW ,
INCLUDING PUBLIC COMMENT (1:52:04)
Ms. Anumeha explained the current Policy for Determination of System Actuarial Review.
The PRB received public comments from one system and included updates from the
PRB’s Attorney General Counsel for the Board to review.
Ms. Anumeha requested the Board to approve the policy and its proposed changes as
presented and will come back at a later date to place the policy into the PRB rules.
Ms. Leibe requested clarification on the provision to provide the entities with written notice,
twenty business days prior to the meeting.
Ms. Anumeha briefly explained the reasoning behind the change. Members discussed the
notice requirement and it was determined that ten business days would be sufficient.
Chair McGee entertained a motion to approve the updated Policy for Determination of
System Actuarial Review after incorporating comments from the Board (as presented) OR
(after incorporating comments from the Board) pending final approval by the Assistant
Attorney General Counsel.
Motion made by Mr. Brainard and seconded by Mr. Richards.
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Minutes
May 05, 2016
F. CONSIDER REVIEW OF PRB GUIDELINES FOR ACTUARIAL SOUNDNESS –Ashley
Rendon (2:07:11)
Ms. Rendon briefly explained the PRB Guidelines for Actuarial Soundness.
Chair McGee entertained a motion to charge the Actuarial Committee to review the PRB
Guidelines for Actuarial Soundness.
G. CONSIDER A RATING SYSTEM FOR PENSION PLAN FISCAL HEALTH AND ANNUAL
FUNDING ADEQUACY –Anumeha (2:10:34)
Ms. Anumeha explained the request to consider a rating system for pension plan fiscal health
and annual funding adequacy.
Ms. Leibe recommended the charge to the committee be broader to consider whether or not it
would be prudent to do something lesser than a rating system, but would still be a mechanism
to provide information to the public and provide some type of merit to a plan.
Chair McGee entertained a motion to charge the Actuarial Committee to research and consider
proposals for developing a rating system for pension plan fiscal health and annual finding
adequacy.
7. LEGISLATIVE COMMITTEE – DISCUSS AND CONSIDER THE FOLLOWING ITEMS – Robert
Massengale (2:17:46)
A. 84TH LEGISLATURE INTERM CHARGES AND COMMITTEE HEARING UPDATES –
Anumeha (2:17:55)
Ms. Anumeha stated that the House Pension Committee had hearings on March 30 and April 13
requesting the PRB to keep the committee informed of the current financial challenges of Dallas
Police and Fire Pension Plan.
B. UPDATE ON THE PRB LIST OF COMPANIES ENGAGED IN SCRUTINIZED BUSINESS
OPERATIONS IN IRAN – Anumeha (2:21:01)
Ms. Anumeha reported on the most current PRB List Of Companies Engaged In Scrutinized
Business Operations In Iran.
Chair McGee requested that the list be posted on the PRB website.
C. INTERNAL REVENUE SERVICE PROPOSED GUIDANCE ON APPLICABILITY OF THE
NORMAL RETIREMENT AGE RULES TO GOVERNMENTAL PLANS – Jamie Kings
(2:29:33)
Ms. Kings provided an overview of the normal retirement age rules to governmental plans. She
explained the safe harbor plans for normal retirement age for governmental pension plans and
referenced further information in the report.
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Minutes
May 05, 2016
D. RECEIVE UPDATE ON PUERTO RICO ASSISTANCE ACT OF 2015 (S.2381) AND THE
PUBLIC EMPLOYEE PENSION TRANSPARENCY ACT (PEPTA) – Jamie Kings (2:31:56)
Ms. Kings provided information on the Puerto Rico Assistance Act of 2015 to include reporting
requirements for state and local pension systems. Ms. Kings indicated that at this time there are
new bills introduced through Congress that have not contained any federal reporting
requirements for state and local pension systems.
Chair McGee summarized that the PEPTA bill was stripped from the Puerto Rico Assistance Act
of 2015 and is now a stand-alone bill. It would place a reporting burden on our plans, but is
unlikely to pass and impact Texas.
8. REVIEW AND DISCUSS REPORT FROM THE EXECUTIVE DIRECTOR ON THE FOLLOWING
MATTERS – Anumeha (2:33:47)
A. 2017 – 2021 STRATEGIC PLAN (2:33:57)
Ms. Anumeha reported on the agency’s 2017 – 2021 Strategic Plan due on June 24, 2016.
B. SAO FINANCIAL PROCESSES AUDIT OF THE PRB (2:34:38)
Ms. Anumeha stated that the agency is going through a financial processes audit. The State
Auditors have completed their preliminary interview of financial staff and the next step would be
to conduct an on-site audit which will begin this month. The final report is expected to be
released in August.
C. 2016 TLFFRA TRUSTEE TRAINING (2:35:47)
Ms. Anumeha reported that the 2016 TLFFRA Trustee Training will be on May 12 and 13 in
Irving.
D. TEXPERS SUMMER EDUCATIONAL FORUM (2:36:32)
Ms. Anumeha informed the Board of the upcoming TEXPERS Summer Educational Forum on
August 14 – 16, 2016, in San Antonio. Ms. Anumeha stated that those interested in attending
please let the PRB staff know and arrangements will be made for them to attend.
Chair McGee entertained a motion to approve the attendance of interested Board members at
the 2016 TEXPERS Summer Educational Forum.
Mr. May indicated that he would like to attend.
Motion made by Ms. Leibe and seconded by Judge Cable.
E. UPDATED FISCAL YEAR 2016 OPERATING BUDGET (2:37:54)
Ms. Anumeha provided an update on the PRB budget and stated that the PRB is within their
budget.
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Minutes
May 05, 2016
9. CALL FOR FUTURE AGENDA ITEMS AND FUTURE MEETING DATES – Chair McGee
(2:39:02)
Chair McGee inquired about future agenda items. The Board moved to the next item on the
agenda.
10. DATE AND LOCATION OF NEXT PRB MEETING – Chair McGee (2:39:22)
Chair McGee noted that the next meeting of the PRB will be held in late July or early August. Chair
McGee requested that Ms. Anumeha coordinate a date that works for the Board members.
11. INVITATION FOR PUBLIC COMMENT (2:39:55)
No public comment.
12. ADJOURNMENT (2:40:37)
With the business of the Board completed, Chair McGee entertained a motion to adjourn the
meeting at 12:40 p.m.
Motion made by Mr. Brainard and seconded by Mr. Richards.
In Attendance:
PRB Staff Present
Anumeha
Samantha Buckley
Bryan Burnham
Joey Evans
Reece Freeman
Jamie Kings
Michelle Kranes
Eloisa Mata
Shelley Murphy
Sheryl Perry
Ashley Rendon
Christine Taylor
Guests Present
Josh Mond, Dallas Police and Fire
Sam Friar, Dallas Police and Fire
Bob Nicks, Austin Firefighters Fund
John Riddle, Texas State Association of Firefighters
Glen Deshields, Fire Fighters
Ron Pinkston, Dallas Police Association
Michael Blynn, Fort Worth Firefighters Association, Local 440
Ryan Zelazny, Fort Worth Firefighters Association, Local 440
Eddie Solis, Texas Association of Public Employee Retirement Systems
William S. Nail, Employees Retirement System of Texas
Clint Smith, HILLCO
Tom Harrison, TCDRS
Michael Trainer, San Antonio Fire and Police Pensioners’ Association
Eloise Raphel, Houston Firefighters Relief & Retirement Fund
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Minutes
May 05, 2016
John Lawson, Houston Police Officer’s Pension System
Terry Bratton, Houston Police Officer’s Pension System
Alva Littlejohn, Lubbock Fire Pension
Nancy Fisher, Austin Fire Fighters
Warren Schott, San Antonio Fire and Police Pension
Andrew Clark, Speaker’s Office
Jason McElvaney, Texas County and District Retirement System
Kelly Gottschalk, Dallas Police and Fire Pension System
James Pernell, Dallas Police and Fire Pension System
Chair Josh B. McGee
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TAB 2 plan for health care information technology, including the use of
electronic medical records, computerized clinical support systems, computerized physician order entry, regional data sharing
interchanges for health care information, and other methods of
incorporating information technology in pursuit of greater cost-effectiveness and better patient outcomes in health care. The rules
proposed for repeal implemented the advisory committee.
SUBCHAPTER B. HEALTH INFORMATION
TECHNOLOGY ADVISORY COMMITTEE
25 TAC §§571.11 - 571.13
STATUTORY AUTHORITY
The amendment to §571.1 and the readoption of §571.2 are necessary to comply with Health and Safety Code, §104.012. Section 571.2 is readopted without changes to the rule.
The repeals are authorized by Health and Safety Code,
§104.012, which authorizes the council to adopt rules governing the development and implementation of the state health
plan. The review of the rules implements Government Code,
§2001.039.
The repeal of §§571.11 - 571.13 for the advisory committee is
necessary as the council's reasons for initially adopting the rules
no longer exist, given the completion of the long-range plan mandated by Health and Safety Code, §104.0156.
The agency certifies that legal counsel has reviewed the adoption and found it to be a valid exercise of the agency's legal authority.
Government Code, §2001.039, governs an agency's review of
rules, and generally requires that a state agency review a rule
no later than the fourth anniversary of the date on which the
rule takes effect and every four years after that date. A state
agency's review of a rule must include an assessment of whether
the reasons for adopting each rule continue to exist.
SECTION-BY-SECTION SUMMARY
The amendment to §571.1 replaces the "Texas Department of
Health" with the "Texas Department of State Health Services" to
reflect House Bill 2292, 78th Legislature, Regular Session, 2003,
which abolished the Texas Department of Health and created the
department.
COMMENTS
The council did not receive any comments regarding the proposed rules during the comment period.
LEGAL CERTIFICATION
The agency certifies that legal counsel has reviewed the proposal and found it to be within the state agency's legal authority
to adopt.
SUBCHAPTER A. STATEWIDE HEALTH
COORDINATING COUNCIL
25 TAC §571.1
STATUTORY AUTHORITY
The amendment will be adopted under Health and Safety Code,
§104.012, which authorizes the council to adopt rules governing the development and implementation of the state health
plan. The review of the rules implements Government Code,
§2001.039.
Filed with the Office of the Secretary of State on July 12, 2016.
TRD-201603476
Matt Turner, PhD, MPH
Health Professions Resource Center
Statewide Health Coordinating Council
Effective date: August 1, 2016
Proposal publication date: May 20, 2016
For further information, please call: (512) 776-6972
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TRD-201603478
Matt Turner, PhD, MPH
Health Professions Resource Center
Statewide Health Coordinating Council
Proposal publication date: May 20, 2016
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TITLE 40. SOCIAL SERVICES AND ASSISTANCE
PART 17. STATE PENSION REVIEW
BOARD
CHAPTER 607. PUBLIC RETIREMENT
SYSTEM MINIMUM EDUCATIONAL
TRAINING PROGRAM
The State Pension Review Board (the "Board"), adopts amendments to 40 TAC Chapter 607, Subchapter B, §607.110, concerning Minimum Educational Training Requirements; Subchapter C, §607.120, concerning Program Standards for All Sponsors; and Subchapter D, §607.140, concerning Public Retirement System Reporting, without changes to the proposed text
as published in the March 18, 2016, issue of the Texas Register
(41 TexReg 2146). The rules will not be republished.
BACKGROUND AND SUMMARY OF THE FACTUAL BASIS
FOR THE ADOPTED RULE AMENDMENTS
In accordance with Government Code, §801.211, the Board
established an educational training program for trustees and
system administrators of Texas public retirement systems under
Chapter 607. Since the original adoption of the rules, the Board
has received comments and questions from public retirement
systems and education providers (sponsors) regarding the applicability of certain requirements. The purpose of the adopted
amendments is to address the comments received by the Board.
The amendments to §§607.110, 607.120, and 607.140 are intended to make the following changes:
§607.110 allows flexibility for first year of service training
completed under the Minimum Educational Training (MET)
requirements. Under the prior rules, the Board received comments from public retirement systems citing scenarios in which
ADOPTED RULES
July 29, 2016
41 TexReg 5557
a trustee may want to attend an MET activity in core content
areas prior to officially assuming position on the system's board.
In response to these comments, the Board added the new
subsection §607.110(c), which allows the Board to accept a
trustee or system administrator's successfully completed MET
activity up to six months prior to beginning service on a system's
board or the system administrator's hiring date.
§607.120 lends clarity to program standards for sponsors providing online or electronically-delivered training. For MET activities
to be more accessible, MET rules allow for electronically-delivered training. Under previous rules, the Board received questions regarding standards for online training completion and attendance verification. To address the questions, and upon consideration of various options, the Board determined a completion
code would offer the best minimum standard for tracking attendance and completion of an electronically-delivered MET activity
without being onerous for program participants and educational
sponsors.
§607.140 updates and clarifies compliance reporting requirements. The PRB determined that the prior MET reporting
schedule would not allow sufficient time for public retirement
systems to submit the required training reports. The amended
rule extends the submission deadlines by one month.
SECTION-BY-SECTION SUMMARY
The adopted amendment to §607.110 allows flexibility for Minimum Educational Training (MET) completion by trustees and
system administrators prior to beginning the first year of service.
The adopted amendment to §607.120 clarifies online or electronically-delivered training standards for MET activities offered
by sponsors.
The adopted amendment to §607.140 cleans up outdated language and clarifies dates for the MET reporting periods.
PUBLIC COMMENTS
No comments were received on the rule proposal.
Anumeha
Executive Director
State Pension Review Board
Proposal publication date: March 18, 2016
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SUBCHAPTER C. MINIMUM EDUCATIONAL
TRAINING PROGRAM SPONSORS
40 TAC §607.120
STATUTORY AUTHORITY
The adopted amendments are authorized by the Texas Government Code, §801.201(a), which grants specific authority to
the Board to adopt rules for the conduct of its business; and
§801.211(e), which allows the Board to adopt rules to administer
and provide educational training programs under §801.211.
CROSS REFERENCE
The adopted amendments affect the Texas Government Code
Chapter 801.
TRD-201603479
Anumeha
Executive Director
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SUBCHAPTER B. MINIMUM EDUCATIONAL
TRAINING REQUIREMENTS FOR TRUSTEES
AND SYSTEM ADMINISTRATORS
SUBCHAPTER D. COMPLIANCE WITH THE
MINIMUM TRAINING REQUIREMENTS
40 TAC §607.110
40 TAC §607.140
STATUTORY AUTHORITY
STATUTORY AUTHORITY
CROSS REFERENCE
CROSS REFERENCE
Chapter 801.
Chapter 801.
TRD-201603477
TRD-201603480
41 TexReg 5558
July 29, 2016
Texas Register
Anumeha
Executive Director
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PART 20. TEXAS WORKFORCE
COMMISSION
CHAPTER 819. TEXAS WORKFORCE
COMMISSION CIVIL RIGHTS DIVISION
The Texas Workforce Commission (Commission) adopts the
following new section to Chapter 819, relating to the Texas
Workforce Commission Civil Rights Division, without changes,
as published in the May 6, 2016, issue of the Texas Register
(41 TexReg 3271):
Subchapter H. Discriminatory Housing Practices, §819.136
The Commission adopts amendments to the following sections
of Chapter 819, relating to the Texas Workforce Commission
Civil Rights Division, without changes, as published in the May
6, 2016, issue of the Texas Register (41 TexReg 3271):
Subchapter A. General Provisions, §§819.1 - 819.3
Subchapter B. Equal Employment Opportunity Provisions,
§819.11 and §819.12
Division, without changes, as published in the May 6, 2016, issue of the Texas Register (41 TexReg 3271):
Subchapter K. Fair Housing Administrative Hearings and Judicial Review, §§819.191 - 819.201
PART I. PURPOSE, BACKGROUND, AND AUTHORITY
PART II. EXPLANATION OF INDIVIDUAL PROVISIONS
PART I. PURPOSE, BACKGROUND, AND AUTHORITY
The 84th Texas Legislature, Regular Session (2015), enacted
the following changes, requiring amendments to Chapter 819,
the Texas Workforce Commission Civil Rights Division rules:
--Senate Bill (SB) 208, relating to the continuing functions of
the Texas Workforce Commission (Agency), which abolishes the
Commission on Human Rights and transfers its duties to the
Agency, in addition to streamlining and clarifying several CRD
functions, including review of other state agencies and reporting
requirements to the legislature.
--SB 1267, relating to contested cases conducted under the Administrative Procedure Act (APA);
--House Bill (HB) 2154, relating to the functions and operation of
the State Office of Administrative Hearings, resulting in changes
to Texas Government Code, Chapter 2001, APA;
--HB 577, relating to pay, benefits, and requirements for state
active duty service members; and
--SB 652, relating to excluding a franchisor as an employer of a
franchisee or a franchisee's employees, which impacts the definition of "Employer" in §819.11.
Subchapter C. Equal Employment Opportunity Reports, Training, and Reviews, §§819.23 - 819.25
PART II. EXPLANATION OF INDIVIDUAL PROVISIONS
Subchapter D. Equal Employment Opportunity Complaints and
Appeals Process, §§819.46, 819.47, 819.50, and 819.52
(Note: Minor editorial changes are made that do not change the
meaning of the rules and, therefore, are not discussed in the
Explanation of Individual Provisions.)
Subchapter E. Equal Employment Opportunity Deferrals,
§819.72
SUBCHAPTER A. GENERAL PROVISIONS
Subchapter G. Texas Fair Housing Act Provisions, §819.112
The Commission adopts the following amendments to Subchapter A:
Subchapter H. Discriminatory Housing Practices, §819.122
§819.1. Purpose
Subchapter I. Texas Fair Housing Act Complaints and Appeals
Process, §§819.151, 819.153, and 819.156
Section 819.1 adds a reference to Texas Government Code
§437.204 and Subchapter I and removes the reference to Texas
Government Code, Chapter 419, Subchapter F (relating to the
review of fire department tests) to clarify that the Agency enforces discrimination claims by state military members against
employers other than the Texas Military Forces due to deployment for training or active duty, and to implement SB 208 and
HB 577.
Subchapter J. Fair Housing Deferral to Municipalities, §819.171
Subchapter L. Fair Housing Fund, §819.221
The Commission adopts the repeal of the following sections of
Chapter 819, relating to the Texas Workforce Commission Civil
Rights Division, as published in the May 6, 2016, issue of the
Texas Register (41 TexReg 3271):
Subchapter C. Equal Employment Opportunity Reports, Training, and Reviews, §819.22
Subchapter J. Fair Housing Deferral to Municipalities, §819.172
§819.2. Definitions
Section 819.2(1) and (2) are amended to remove the definition
of "Commission on Human Rights" and add the definitions of
"Agency" and "Commission" to implement SB 208.
The Commission adopts the repeal of the following subchapter of
Chapter 819, relating to the Texas Workforce Commission Civil
Rights Division, in its entirety, as published in the May 6, 2016,
issue of the Texas Register (41 TexReg 3271):
Section 819.2(4), the definition of CRD director, is amended to
implement SB 208 by:
Subchapter K. Fair Housing Administrative Hearings and Judicial Review, §§819.191 - 819.201
--adding that the CRD director is the Agency's authorized designee to implement SB 208.
The Commission adopts the following new subchapter to Chapter 819, relating to the Texas Workforce Commission Civil Rights
Certain paragraphs have been renumbered to reflect additions.
--removing Texas Labor Code reference §301.154 and adding
the reference to §301.009(a); and
ADOPTED RULES
July 29, 2016
41 TexReg 5559
TAB 3 Actuarial Valuation Report
August 4, 2016
Current Actuarial Valuation
Plan Name
Plan Status
(1)
Effective
Date
Current
Amort
Period
Funded
Ratio
Prior Actuarial Valuation
Unfunded Actuarial
Accrued Liability
Prior Amort
(UAAL)
Effective Date
Period
Actuarial Value
of Assets
Funded
Ratio
Actuarial Value of
Assets
Unfunded Actuarial
Accrued Liability
(UAAL)
Dallas Police and Fire Pension System-Combined Plan
Active
1/1/2015
Infinite
63.80%
$
3,695,273,876
$
2,096,942,149
1/1/2014
26.0
75.59%
$
3,877,321,261
$
1,251,874,626
Law Enforcement and Custodial Officer Sup. Ret. Fund
Active
8/31/2015
Infinite
72.03%
$
909,249,614
$
353,061,775
8/31/2014
Infinite
73.22%
$
883,594,932
$
323,174,989
Judicial Retirement System of Texas Plan Two
Active
8/31/2015
Infinite
92.23%
$
372,615,005
$
31,395,567
8/31/2014
Infinite
90.20%
$
348,430,575
$
37,855,797
Odessa Firemen's Relief & Retirement Fund
Active
1/1/2015
Infinite
49.75%
$
48,590,592
$
49,086,550
1/1/2013
Infinite
48.82%
$
42,756,974
$
44,828,726
Wichita Falls Firemen's Relief and Retirement Fund
Active
1/1/2015
105.9
65.24%
$
47,133,894
$
25,117,876
12/31/2012
63.2
63.00%
$
41,964,674
$
24,641,489
Fort Worth Employees Retirement Fund
Active
12/31/2015
72.5
60.65%
$
2,154,874,311
$
1,398,326,670
12/31/2014
55.7
62.23%
$
2,094,381,418
$
1,271,153,104
Greenville Firemen's Relief and Retirement Fund
Active
12/31/2014
70.4
48.94%
$
13,440,264
$
14,021,709
12/31/2012
Infinite
47.44%
$
12,201,104
$
13,516,305
Harlingen Firemen's Relief and Retirement Fund
Active
12/31/2013
66.6
70.98%
$
28,343,328
$
11,586,999
12/31/2011
Infinite
65.07%
$
22,270,694
$
11,953,301
Irving Firemen's Relief and Retirement Fund (2)
Active
1/1/2014
63.4
73.10%
$
156,223,428
$
57,502,156
1/1/2012
Infinite
67.40%
$
134,886,668
$
65,253,147
Midland Firemen's Relief and Retirement Fund
Active
1/1/2014
59.1
66.82%
$
78,481,491
$
38,963,054
1/1/2012
86.3
72.23%
$
73,066,776
$
28,091,967
Sweetwater Firemen's Relief and Retirement Fund
Active
12/31/2014
58.8
69.01%
$
8,180,692
$
3,674,028
12/31/2012
Infinite
69.52%
$
7,217,289
$
3,163,694
Orange Firemen's Relief and Retirement Fund
Active
1/1/2015
58.2
57.41%
$
9,383,309
$
6,961,980
12/31/2012
82.3
57.25%
$
8,766,374
$
6,544,945
Galveston Employees Retirement Plan for Police
Active
1/1/2014
55.1
44.34%
$
22,028,282
$
27,657,453
1/1/2013
65.8
43.03%
$
21,472,997
$
28,426,840
University Park Firemen's Relief and Retirement Fund
Active
1/1/2015
53.7
45.83%
$
9,440,082
$
11,158,279
12/31/2012
81.3
44.26%
$
8,556,364
$
10,776,761
Galveston Firefighter's Relief & Retirement Fund
Active
1/1/2014
50.2
69.65%
$
39,591,204
$
17,248,638
1/1/2012
42.8
68.87%
$
37,288,602
$
16,858,357
Dallas Employees' Retirement Fund (3)
Active
12/31/2014
50.0
80.94%
$
3,241,053,000
$
763,002,000
12/31/2013
51.0
85.14%
$
3,074,284,000
$
536,561,000
Marshall Firemen's Relief and Retirement Fund
Active
12/31/2014
43.2
46.39%
$
8,003,545
$
9,249,845
12/31/2012
38.6
44.18%
$
6,990,904
$
8,832,086
Longview Firemen's Relief and Retirement Fund
Active
12/31/2014
41.4
53.73%
$
45,224,598
$
38,949,902
12/31/2013
63.3
56.22%
$
46,326,150
$
36,075,623
San Angelo Firemen's Relief and Retirement Fund
Active
12/31/2013
40.9
65.01%
$
54,227,452
$
29,189,521
12/31/2011
49.0
64.89%
$
49,895,449
$
26,994,448
Lufkin Firemen's Relief and Retirement Fund
Active
12/31/2014
40.6
43.51%
$
14,203,277
$
18,437,274
12/31/2012
89.6
38.81%
$
11,265,138
$
17,762,521
Beaumont Firemen's Relief and Retirement Fund
Active
12/31/2014
39.1
72.72%
$
105,072,038
$
39,407,909
12/31/2012
49.6
68.25%
$
92,033,413
$
42,804,466
Conroe Fire Fighters' Retirement Fund
Active
12/31/2013
37.4
61.77%
$
18,126,626
$
11,217,721
12/31/2011
38.2
60.58%
$
15,392,762
$
10,016,819
Brownwood Firemen's Relief and Retirement Fund
Active
12/31/2013
37.0
43.76%
$
3,292,135
$
4,230,639
12/31/2011
31.8
39.91%
$
2,848,174
$
4,289,003
Atlanta Firemen's Relief and Retirement Fund
Active
12/31/2014
36.2
81.87%
$
3,549,153
$
785,889
12/31/2012
Infinite
73.10%
$
2,988,348
$
1,099,539
Teacher Retirement System of Texas
Active
8/31/2015
33.3
80.19%
$
133,485,187,642
$
32,967,736,862
8/31/2014
29.8
80.23%
$
128,397,777,855
$
31,637,822,971
Employees Retirement System of Texas
Active
8/31/2015
33.0
76.33%
$
25,850,542,024
$
8,017,817,926
8/31/2014
Infinite
77.24%
$
25,431,922,496
$
7,492,814,715
Houston Municipal Employees Pension System (4)
Active
7/1/2015
32.0
54.19%
$
2,582,510,000
$
2,183,209,000
7/1/2014
33.0
58.07%
$
2,490,521,000
$
1,798,058,000
El Paso Police Pension Fund
Active
1/1/2014
32.0
78.23%
$
696,437,201
$
193,755,713
1/1/2012
Infinite
78.21%
$
626,346,104
$
174,514,074
Texas City Firemen's Relief and Retirement Fund
Active
12/31/2014
31.6
54.39%
$
16,274,374
$
13,646,051
12/31/2012
33.6
52.95%
$
14,859,762
$
13,203,613
Abilene Firemen's Relief and Retirement Fund
Active
10/1/2015
31.5
56.60%
$
56,624,807
$
43,412,430
10/1/2013
33.5
57.49%
$
52,920,100
$
39,134,330
Plainview Firemen's Relief and Retirement Fund
Active
12/31/2013
31.4
39.00%
$
5,262,382
$
8,230,821
12/31/2011
35.2
39.13%
$
4,969,795
$
7,729,513
Big Spring Firemen's Relief and Retirement Fund
Active
1/1/2013
30.8
56.73%
$
9,889,540
$
7,544,372
1/1/2012
27.0
61.35%
$
11,133,176
$
7,015,196
Houston Firefighter's Relief and Retirement Fund
Active
7/1/2013
30.0
86.56%
$
3,430,436,708
$
532,645,292
7/1/2012
30.0
86.95%
$
3,263,265,000
$
489,642,000
City Public Service of San Antonio Pension Plan
Active
1/1/2015
30.0
84.19%
$
1,403,534,394
$
263,610,957
1/1/2014
30.0
83.41%
$
1,318,882,760
$
262,309,746
University Health System Pension Plan
Active
1/1/2013
30.0
73.16%
$
205,905,204
$
75,528,555
1/1/2012
30.0
71.00%
$
183,349,789
$
74,903,587
Port of Houston Authority Retirement Plan
Closed
8/1/2015
30.0
97.45%
$
166,856,925
$
4,366,742
8/1/2014
0.0
104.44%
$
164,815,227
$
(7,001,367)
DART Employees' Defined Benefit Retirement Plan
Closed
10/1/2014
30.0
74.27%
$
150,995,597
$
52,316,186
10/1/2013
30.0
70.73%
$
142,663,799
$
59,041,946
Texas Emergency Services Retirement System
Active
8/31/2014
30.0
76.25%
$
83,761,038
$
26,093,761
8/31/2012
Infinite
66.75%
$
67,987,487
$
33,868,555
Galveston Wharves Pension Plan
Frozen
1/1/2015
30.0
82.91%
$
12,023,524
$
2,478,716
1/1/2014
30.0
81.85%
$
11,492,112
$
2,547,577
Judicial Retirement System of Texas Plan One (5)
Closed
8/31/2015
30.0
0.00%
$
$
223,170,656
8/31/2014
30.0
0.00%
$
$
245,474,274
Laredo Firefighters Retirement System
Active
9/30/2014
29.8
59.72%
$
116,056,855
$
78,288,944
9/30/2012
29.8
54.07%
$
95,140,202
$
80,817,630
Killeen Firemen's Relief and Retirement Fund
Active
9/30/2014
29.5
66.46%
$
32,604,554
$
16,451,960
9/30/2012
36.1
66.91%
$
27,528,834
$
13,613,668
Denison Firemen's Relief and Retirement Fund
Active
1/1/2014
29.1
71.60%
$
14,577,695
$
5,781,089
1/1/2012
23.9
71.13%
$
13,680,826
$
5,552,667
-
This report is a compilation of pension data reported by retirement systems in their most recent AVs, sorted by amortization period.
1
-
Actuarial Valuation Report
August 4, 2016
Plan Name
Plan Status
(1)
Effective
Date
Current
Amort
Period
Funded
Ratio
Actuarial Value
of Assets
Unfunded Actuarial
Accrued Liability
Prior Amort
(UAAL)
Effective Date
Period
Funded
Ratio
Actuarial Value of
Assets
Unfunded Actuarial
Accrued Liability
(UAAL)
Dallas Co. Hospital Dist. Retirement Income Plan
Active
1/1/2015
29.0
76.35%
$
749,980,945
$
232,292,503
1/1/2014
30.0
82.53%
$
670,795,379
$
141,985,488
McAllen Firemen's Relief and Retirement Fund
Active
10/1/2014
29.0
70.79%
$
44,684,917
$
18,439,743
9/30/2012
43.9
66.14%
$
37,841,858
$
19,360,417
Amarillo Firemen's Relief and Retirement Fund
Active
1/1/2014
28.8
82.98%
$
132,542,271
$
27,185,733
1/1/2012
41.0
78.19%
$
120,396,531
$
33,581,721
Austin Police Officers' Retirement Fund
Active
12/31/2014
28.6
67.45%
$
653,192,335
$
315,148,059
12/31/2013
28.9
66.39%
$
604,841,897
$
306,202,257
Houston MTA Workers Union Pension Plan
Closed
1/1/2015
28.0
63.70%
$
223,969,107
$
127,638,219
1/1/2014
29.0
73.60%
$
206,052,122
$
73,907,003
Houston MTA Non-Union Pension Plan
Active
1/1/2015
28.0
66.88%
$
142,619,248
$
70,631,029
1/1/2014
29.0
80.17%
$
129,398,834
$
31,999,600
Lubbock Fire Pension Fund
Active
1/1/2015
27.6
75.53%
$
186,077,176
$
60,285,672
1/1/2013
24.3
74.50%
$
161,745,303
$
55,358,443
Cleburne Firemen's Relief and Retirement Fund
Active
12/31/2014
27.3
65.30%
$
20,349,833
$
10,815,772
12/31/2012
34.1
57.36%
$
16,293,411
$
12,110,818
San Antonio Metro. Transit Retirement Plan (VIA)
Active
10/1/2014
27.0
59.22%
$
210,446,812
$
144,941,124
10/1/2013
28.0
56.97%
$
192,730,010
$
145,599,001
Paris Firefighters' Relief and Retirement Fund
Active
12/31/2014
26.1
42.74%
$
5,980,762
$
8,011,136
1/1/2013
29.2
44.94%
$
6,111,951
$
7,488,349
Irving Supplemental Benefit Plan
Active
1/1/2015
25.0
80.94%
$
51,244,241
$
12,069,248
1/1/2014
27.2
78.88%
$
47,689,367
$
12,768,984
Waxahachie Firemen's Relief and Retirement Fund
Active
10/1/2014
24.3
68.91%
$
13,717,245
$
6,189,974
10/1/2012
19.8
64.48%
$
10,462,784
$
5,763,840
Corsicana Firemen's Relief and Retirement Fund
Active
12/31/2014
24.2
53.54%
$
8,427,052
$
7,313,979
12/31/2012
28.6
47.90%
$
6,956,513
$
7,567,902
Austin Employees' Retirement Fund
Active
12/31/2014
24.0
70.91%
$
2,193,881,221
$
900,174,491
12/31/2013
26.0
70.38%
$
2,047,929,504
$
861,988,246
Denton Firemen's Relief and Retirement Fund
Active
12/31/2013
24.0
77.14%
$
62,089,743
$
18,400,951
12/31/2011
31.7
72.01%
$
54,169,459
$
21,059,268
Capital Metro Retirement Plan for Bargaining Units
Frozen
1/1/2015
24.0
46.62%
$
27,913,393
$
31,961,211
1/1/2014
25.0
44.08%
$
26,656,933
$
33,810,946
Corpus Christi Fire Fighters' Retirement System
Active
12/31/2014
23.1
61.36%
$
126,273,629
$
79,515,975
12/31/2012
26.7
55.00%
$
105,753,324
$
86,516,036
Houston Police Officers Pension System
Active
7/1/2015
23.0
79.75%
$
4,550,620,000
$
1,155,510,000
7/1/2014
23.0
80.96%
$
4,342,936,000
$
1,021,056,000
El Paso Firemen's Pension Fund
Active
1/1/2014
23.0
80.69%
$
479,228,995
$
114,707,333
1/1/2012
76.0
79.88%
$
431,209,946
$
108,582,531
Temple Firemen's Relief and Retirement Fund
Active
9/30/2014
23.0
77.17%
$
39,056,649
$
11,556,686
9/30/2012
30.8
76.19%
$
34,400,736
$
10,747,775
Tyler Firemen's Relief and Retirement Fund
Active
12/31/2013
22.9
73.61%
$
56,547,675
$
20,275,644
12/31/2011
34.0
69.85%
$
49,221,368
$
21,250,910
Lower Colorado River Auth. Retirement Plan and Trust
Closed
4/1/2015
22.0
79.49%
$
411,596,334
$
106,185,580
4/1/2014
23.0
74.69%
$
382,104,178
$
129,476,094
San Benito Firemen's Pension Fund
Active
12/31/2013
21.7
60.81%
$
3,216,957
$
2,072,788
12/31/2011
14.8
59.47%
$
2,523,198
$
1,719,561
Texas Municipal Retirement System (6)
Active
12/31/2015
20.6
85.79%
$
24,347,200,578
$
4,031,152,205
12/31/2014
20.9
85.79%
$
22,860,980,042
$
3,786,487,135
Nacogdoches County Hosp. District Retirement Plan
Active
7/1/2013
20.0
80.37%
$
37,500,063
$
9,158,453
7/1/2011
27.8
54.77%
$
28,293,893
$
23,368,461
Capital Metro Retirement Plan for Admin Employees
Active
1/1/2015
20.0
80.76%
$
19,247,210
$
4,584,331
1/1/2014
20.0
75.59%
$
16,883,852
$
5,450,798
Texarkana Firemen's Relief and Retirement Fund
Active
12/31/2013
19.6
84.62%
$
30,058,082
$
5,461,083
12/31/2011
20.0
82.87%
$
26,721,817
$
5,524,986
Harris County Hospital District Pension Plan (7)
Closed
1/1/2016
19.1
70.24%
$
579,800,249
$
245,665,910
1/1/2016
20.0
69.78%
$
549,765,739
$
238,108,304
Dallas/Ft. Worth Airport Board Retirement Plan
Active
1/1/2016
19.0
78.26%
$
422,736,569
$
117,433,754
1/1/2015
20.0
81.27%
$
401,624,341
$
92,547,970
Dallas/Ft. Worth Airport Board DPS Retirement Plan
Active
1/1/2016
19.0
74.83%
$
152,273,098
$
51,209,492
1/1/2015
20.0
76.12%
$
142,225,564
$
44,607,419
Port Arthur Firemen's Relief and Retirement Fund
Active
1/1/2014
17.0
77.40%
$
40,754,274
$
11,900,986
1/1/2012
22.5
72.76%
$
36,116,894
$
13,522,937
Brazos River Authority Retirement Plan
Frozen
3/1/2015
17.0
71.25%
$
21,358,481
$
8,618,040
3/1/2014
18.0
73.75%
$
20,626,849
$
7,343,589
Weslaco Firemen's Relief and Retirement Fund
Active
9/30/2014
15.9
69.23%
$
8,355,918
$
3,714,087
9/30/2012
26.8
63.33%
$
6,985,491
$
4,045,275
Physicians Referral Service Retirement Benefit Plan
Active
9/1/2015
15.0
70.45%
$
413,700,959
$
173,535,891
9/1/2014
15.0
69.56%
$
394,783,900
$
172,775,853
Galveston Employees' Retirement Fund
Active
12/31/2015
13.7
78.01%
$
45,784,122
$
12,905,194
1/1/2015
31.5
79.50%
$
46,071,101
$
11,881,160
San Antonio Fire and Police Pension Fund
Active
10/1/2015
11.1
88.82%
$
2,858,461,847
$
359,920,963
10/1/2014
6.2
92.91%
$
2,752,286,963
$
209,951,480
El Paso City Employees' Pension Fund
Active
9/1/2014
11.0
77.12%
$
663,063,411
$
196,681,524
9/1/2013
17.0
73.76%
$
608,509,997
$
216,517,008
Corpus Christi Regional Transportation Authority
Active
1/1/2013
11.0
91.49%
$
25,566,845
$
2,377,297
1/1/2012
12.0
85.20%
$
21,791,159
$
3,785,266
Austin Fire Fighters Relief and Retirement Fund
Active
12/31/2014
10.6
90.93%
$
789,433,224
$
78,713,151
12/31/2013
10.5
91.75%
$
742,073,494
$
66,697,659
Dallas Police and Fire Pension System-Supp
Active
1/1/2015
10.0
51.15%
$
21,438,870
$
20,471,488
1/1/2014
10.0
61.99%
$
24,036,845
$
14,740,169
Northeast Medical Center Hospital Retirement Plan
Frozen
7/1/2015
10.0
84.15%
$
9,853,521
$
1,855,814
7/1/2014
10.0
87.19%
$
10,250,508
$
1,505,421
Colorado River Municipal Water Dist. Pension Trust (7)
Active
1/1/2016
9.4
93.52%
$
9,173,226
$
635,852
1/1/2015
10.0
96.51%
$
10,285,251
$
371,497
Texas County & District Retirement System (8)
Active
12/31/2014
9.2
90.47%
$
23,751,821,185
$
2,501,030,760
12/31/2013
10.8
89.39%
$
21,912,711,318
$
2,602,095,366
2
Actuarial Valuation Report
August 4, 2016
Plan Status
(1)
Plan Name
Effective
Date
Current
Amort
Period
Funded
Ratio
Actuarial Value
of Assets
Unfunded Actuarial
Accrued Liability
Prior Amort
(UAAL)
Effective Date
Period
Funded
Ratio
Unfunded Actuarial
Accrued Liability
(UAAL)
Actuarial Value of
Assets
Guadalupe-Blanco River Authority
Closed
1/1/2015
7.9
86.34%
$
25,587,452
$
4,049,661
1/1/2014
9.6
83.41%
$
22,736,935
$
4,522,243
Northwest Texas Healthcare System Retirement Plan
Frozen
10/1/2013
7.4
61.40%
$
17,736,458
$
11,149,150
10/1/2012
9.2
58.50%
$
17,190,249
$
12,194,877
Travis Cty ESD #6 Firemen's Relief & Retirement Fund
Active
1/1/2014
7.3
62.98%
$
7,554,521
$
4,441,508
1/1/2012
14.9
36.75%
$
3,877,699
$
6,673,272
Plano Retirement Security Plan
Active
12/31/2013
0.0
100.27%
$
100,876,901
$
(271,930)
12/31/2011
23.0
97.15%
$
84,500,525
$
The Woodlands Firefighters' Retirement System
Active
1/1/2016
0.0
100.46%
$
22,184,111
$
(101,928)
N/A
N/A
N/A
N/A
2,478,252
N/A
Arlington Employees Deferred Income Plan
Active
7/1/2015
0.0
116.01%
$
2,681,047
$
(369,944)
7/1/2014
0.0
119.45%
$
2,668,525
$
Refugio Co. Memorial Hosp. Dist. Retirement Plan
Frozen
11/1/2015
0.0
102.18%
$
2,078,030
$
(44,315)
11/1/2014
1.0
99.94%
$
2,093,537
$
(434,495)
1,334
8,202,042,842
Subtotal: Plans with infinite amortization periods
4
$
5,025,729,087
$
2,530,486,041
11
$
27,580,602,671
$
Subtotal: Plans with amortization periods > 40 years, but not infinite
16
$
5,929,832,157
$
2,471,047,384
15
$
6,148,749,690
$
2,208,216,190
Subtotal: Plans with amortization periods > 25 years < 40 years
34
$
170,870,608,063
$
45,799,186,429
36
$
144,197,408,578
$
37,820,624,064
23
$
34,045,554,374
$
7,116,298,844
16
$
30,053,668,611
$
5,802,571,295
12
$
28,225,474,682
$
3,194,232,362
12
$
25,521,857,156
$
2,924,258,145
Subtotal: Plans with amortization periods = 0 years
4
$
127,820,089
$
2
$
167,483,752
$
Grand Totals:
93
$
244,225,018,452
$
$
233,669,770,458
$
79.99%
(788,117)
61,110,462,943
92
80.40%
Notes:
(1) Plan status indicates whether plan is active (admitting new hires), closed to new hires (but still accruing benefits), or frozen (not accruing benefits).
(2) Amortization period calculated by the PRB in consultation with the plan actuary, reflecting a contribution rate increase of 0.65% effective January 1, 2015.
(3) Amortization period estimated by the PRB assuming the pension obligation bond is fully paid in 2035. The PRB actuary will revist this calculation in the near future.
(4) Amortization period as calculated by the system.The prior amortization period was calculated by the PRB in consultation with the system.
(5) JRS I is a pay-as-you go system with no assets devoted to the plan.
(6) Amortization period is calculated using system wide aggregate UAAL and payroll amounts.
(7) Amortization period is calculated by the PRB. These systems use layered, closed amrotization and do not report a single aggregate period.
(8) Amortization period is an unweighted average amortization period of member employers.
3
(7,435,862)
56,950,276,674
THIS PAGE INTENTIONALLY LEFT BLANK
Actuarial Valuation Supplemental Report
August 4, 2016
Plan Name
Plan
Status
(1)
Current
Amort
period
Dallas Police and Fire Pension System-Combined Plan
Active
Infinite
$
3,695,273,876
$
3,079,394,897
$
5,792,216,025
$
2,096,942,149
Law Enforcement and Custodial Officer Sup. Ret. Fund
Active
Infinite
$
909,249,614
$
844,145,332
$
1,262,311,389
$
353,061,775
Active
Infinite
$
372,615,005
$
364,510,248
$
404,010,572
$
Active
Infinite
$
48,590,592
$
47,455,341
$
97,677,142
Wichita Falls Firemen's Relief and Retirement Fund
Active
105.9
$
47,133,894
$
47,517,957
$
72,251,770
Fort Worth Employees Retirement Fund
Active
72.5
$
2,154,874,311
$
2,019,197,584
$
Greenville Firemen's Relief and Retirement Fund
Active
70.4
$
13,440,264
$
13,597,202
Harlingen Firemen's Relief and Retirement Fund
Active
66.6
$
28,343,328
$
Irving Firemen's Relief and Retirement Fund (2)
Active
63.4
$
156,223,428
Midland Firemen's Relief and Retirement Fund
Active
59.1
$
Sweetwater Firemen's Relief and Retirement Fund
Active
58.8
Orange Firemen's Relief and Retirement Fund
Active
Galveston Employees Retirement Plan for Police
Actuarial Value
of Assets
Market Value
of Assets
Actuarial Accrued
Liabilities
Unfunded Actuarial
Accrued Liability
(UAAL)
Covered
Payroll
Active
members
(9)
UAAL Per
Active
Member (10)
383,006,330
547.50%
5,487 $
$ 1,750,709,090
20.17%
38,526 $
9,164
31,395,567
$
80,352,000
39.07%
563 $
55,765
$
49,086,550
$
10,683,114
459.48%
163 $
301,144
$
25,117,876
$
9,629,250
260.85%
156 $
161,012
3,553,200,981
$
1,398,326,670
$
404,303,585
345.86%
6,280 $
222,663
$
27,461,973
$
14,021,709
$
3,805,174
368.49%
60 $
233,695
28,343,328
$
39,930,327
$
11,586,999
$
5,912,428
195.98%
108 $
107,287
$
171,294,299
$
213,725,584
$
57,502,156
$
25,482,413
225.65%
314 $
183,128
78,481,491
$
80,950,814
$
117,444,545
$
38,963,054
$
14,597,213
266.92%
178 $
218,894
$
8,180,692
$
8,264,183
$
11,854,720
$
3,674,028
$
1,491,809
246.28%
25 $
146,961
58.2
$
9,383,309
$
9,309,315
$
16,345,289
$
6,961,980
$
2,292,120
303.74%
37 $
188,162
Active
55.1
$
22,028,282
$
23,015,770
$
49,685,735
$
27,657,453
$
9,310,513
297.06%
141 $
196,152
University Park Firemen's Relief and Retirement Fund
Active
53.7
$
9,440,082
$
9,515,461
$
20,598,361
$
11,158,279
$
3,112,702
358.48%
35 $
318,808
Active
50.2
$
39,591,204
$
41,038,374
$
56,839,842
$
17,248,638
$
6,542,789
263.63%
106 $
162,723
Dallas Employees' Retirement Fund (3)
Active
50.0
$
3,241,053,000
$
3,390,579,000
$
4,004,055,000
$
763,002,000
$
363,109,000
210.13%
7,180 $
106,268
Marshall Firemen's Relief and Retirement Fund
Active
43.2
$
8,003,545
$
8,003,545
$
17,253,390
$
9,249,845
$
2,466,068
375.08%
47 $
196,805
Longview Firemen's Relief and Retirement Fund
Active
41.4
$
45,224,598
$
45,224,598
$
84,174,500
$
38,949,902
$
11,141,833
349.58%
175 $
222,571
San Angelo Firemen's Relief and Retirement Fund
Active
40.9
$
54,227,452
$
58,441,691
$
83,416,973
$
29,189,521
$
10,412,929
280.32%
177 $
164,913
Lufkin Firemen's Relief and Retirement Fund
Active
40.6
$
14,203,277
$
14,264,481
$
32,640,551
$
18,437,274
$
4,966,395
371.24%
79 $
233,383
Beaumont Firemen's Relief and Retirement Fund
Active
39.1
$
105,072,038
$
102,800,572
$
144,479,947
$
39,407,909
$
18,408,996
214.07%
231 $
170,597
Active
37.4
$
18,126,626
$
18,207,825
$
29,344,347
$
11,217,721
$
5,660,398
198.18%
81 $
138,490
Brownwood Firemen's Relief and Retirement Fund
Active
37.0
$
3,292,135
$
3,426,410
$
7,522,774
$
4,230,639
$
1,628,544
259.78%
32 $
132,207
Atlanta Firemen's Relief and Retirement Fund
Active
36.2
$
3,549,153
$
3,614,929
$
4,335,042
$
785,889
$
602,486
130.44%
25 $
31,436
Active
33.3
$
133,485,187,642
$
128,538,706,212
$
166,452,924,504
$
32,967,736,862
$ 39,620,491,179
83.21%
828,945 $
39,771
Active
33.0
$
25,850,542,024
$
23,998,481,161
$
33,868,359,950
$
8,017,817,926
$ 6,659,646,892
120.39%
142,409 $
56,301
Houston Municipal Employees Pension System (4)
Active
32.0
$
2,582,510,000
$
2,456,544,000
$
4,765,719,000
$
2,183,209,000
$
584,025,000
373.82%
11,827 $
184,595
Active
32.0
$
696,437,201
$
736,491,378
$
890,192,914
$
193,755,713
$
70,817,206
273.60%
1,052 $
184,178
Texas City Firemen's Relief and Retirement Fund
Active
31.6
$
16,274,374
$
15,837,081
$
29,920,425
$
13,646,051
$
4,716,136
289.35%
68 $
200,677
Abilene Firemen's Relief and Retirement Fund
Active
31.5
$
56,624,807
$
52,343,510
$
100,037,237
$
43,412,430
$
13,729,802
316.19%
178 $
243,890
Plainview Firemen's Relief and Retirement Fund
Active
31.4
$
5,262,382
$
5,469,458
$
13,493,203
$
8,230,821
$
1,781,664
461.97%
36 $
228,634
Big Spring Firemen's Relief and Retirement Fund
Active
30.8
$
9,889,540
$
9,991,843
$
17,433,912
$
7,544,372
$
3,173,050
237.76%
52 $
145,084
Houston Firefighter's Relief and Retirement Fund
Active
30.0
$
3,430,436,708
$
3,430,436,708
$
3,963,082,000
$
532,645,292
$
271,828,000
195.95%
3,745 $
142,228
Active
30.0
$
1,403,534,394
$
1,403,119,018
$
1,667,145,351
$
263,610,957
$
235,359,933
112.00%
2,830 $
93,149
Active
30.0
$
205,905,204
$
190,905,204
$
281,433,759
$
75,528,555
$
239,317,254
31.56%
4,605 $
16,401
Closed
30.0
$
166,856,925
$
166,856,925
$
171,223,667
$
4,366,742
$
30,412,207
14.36%
403 $
10,836
DART Employees' Defined Benefit Retirement Plan
Closed
30.0
$
150,995,597
$
156,829,423
$
203,311,783
$
52,316,186
$
19,129,074
273.49%
311 $
168,219
Active
30.0
$
83,761,038
$
91,683,156
$
109,854,799
$
26,093,761
Frozen
30.0
$
12,023,524
$
12,023,524
$
14,502,240
$
2,478,716
$
Judicial Retirement System of Texas Plan One (5)
Closed
30.0
$
$
223,170,656
$
223,170,656
Active
29.8
$
116,056,855
$
118,339,638
$
194,345,799
$
78,288,944
Killeen Firemen's Relief and Retirement Fund
Active
29.5
$
32,604,554
$
31,844,201
$
49,056,514
$
Denison Firemen's Relief and Retirement Fund
Active
29.1
$
14,577,695
$
15,713,372
$
20,358,784
Dallas Co. Hospital Dist. Retirement Income Plan
Active
29.0
$
749,980,945
$
766,804,138
$
982,273,448
-
$
-
$
UAAL as % of
Payroll
N/A
N/A
382,166
4,036 $
6,465
59 $
42,012
3,289,226
75.36%
$
1,470,000
15181.68%
$
31,185,860
251.04%
373 $
16,451,960
$
12,457,025
132.07%
202 $
81,445
$
5,781,089
$
3,093,843
186.86%
57 $
101,423
$
232,292,503
$
554,120,446
41.92%
9,936 $
23,379
1
10 $ 22,317,066
209,890
August 4, 2016
Plan Name
Plan
Status
(1)
Current
Amort
period
McAllen Firemen's Relief and Retirement Fund
Active
29.0
$
44,684,917
$
42,720,352
$
63,124,660
$
18,439,743
$
11,162,603
165.19%
162 $
113,826
Amarillo Firemen's Relief and Retirement Fund
Active
28.8
$
132,542,271
$
148,585,336
$
159,728,004
$
27,185,733
$
16,649,231
163.29%
242 $
112,338
Austin Police Officers' Retirement Fund
Active
28.6
$
653,192,335
$
638,019,067
$
968,340,394
$
315,148,059
$
150,574,998
209.30%
1,777 $
177,348
Closed
28.0
$
223,969,107
$
229,990,069
$
351,607,326
$
127,638,219
$
93,228,000
136.91%
2,108 $
60,549
Houston MTA Non-Union Pension Plan
Active
28.0
$
142,619,248
$
146,207,172
$
213,250,277
$
70,631,029
$
44,838,000
157.52%
620 $
113,921
Active
27.6
$
186,077,176
$
185,255,012
$
246,362,848
$
60,285,672
$
28,340,148
212.72%
407 $
148,122
Cleburne Firemen's Relief and Retirement Fund
Active
27.3
$
20,349,833
$
20,983,672
$
31,165,605
$
10,815,772
$
4,017,037
269.25%
53 $
204,071
San Antonio Metro. Transit Retirement Plan (VIA)
Active
27.0
$
210,446,812
$
227,517,860
$
355,387,936
$
144,941,124
$
83,962,108
172.63%
1,353 $
107,126
Paris Firefighters' Relief and Retirement Fund
Active
26.1
$
5,980,762
$
5,461,733
$
13,991,898
$
8,011,136
$
2,575,856
311.01%
50 $
160,223
Active
25.0
$
51,244,241
$
50,860,876
$
63,313,489
$
12,069,248
$
93,918,844
12.85%
1,378 $
8,759
Waxahachie Firemen's Relief and Retirement Fund
Active
24.3
$
13,717,245
$
13,717,245
$
19,907,219
$
6,189,974
$
3,688,860
167.80%
54 $
114,629
Corsicana Firemen's Relief and Retirement Fund
Active
24.2
$
8,427,052
$
8,161,618
$
15,741,031
$
7,313,979
$
3,761,184
194.46%
60 $
121,900
Austin Employees' Retirement Fund
Active
24.0
$
2,193,881,221
$
2,209,799,679
$
3,094,055,712
$
900,174,491
$
539,158,693
166.96%
9,028 $
99,709
Denton Firemen's Relief and Retirement Fund
Active
24.0
$
62,089,743
$
66,412,172
$
80,490,694
$
18,400,951
$
13,790,301
133.43%
169 $
108,881
Capital Metro Retirement Plan for Bargaining Units
Frozen
24.0
$
27,913,393
$
29,608,577
$
59,874,604
$
31,961,211
N/A
274 $
116,647
Active
23.1
$
126,273,629
$
130,814,419
$
205,789,604
$
79,515,975
$
29,484,531
269.69%
408 $
194,892
Houston Police Officers Pension System
Active
23.0
$
4,550,620,000
$
4,304,521,000
$
5,706,130,000
$
1,155,510,000
$
406,233,000
284.45%
5,261 $
219,637
Active
23.0
$
479,228,995
$
506,891,867
$
593,936,328
$
114,707,333
$
53,872,177
212.93%
871 $
131,696
Temple Firemen's Relief and Retirement Fund
Active
23.0
$
39,056,649
$
39,633,562
$
50,613,335
$
11,556,686
$
7,446,056
155.21%
119 $
97,115
Tyler Firemen's Relief and Retirement Fund
Active
22.9
$
56,547,675
$
61,495,625
$
76,823,319
$
20,275,644
$
10,937,907
185.37%
155 $
130,811
Lower Colorado River Auth. Retirement Plan and Trust
Closed
22.0
$
411,596,334
$
414,053,424
$
517,781,914
$
106,185,580
$
114,721,000
92.56%
1,413 $
75,149
Active
21.7
$
3,216,957
$
3,216,957
$
5,289,745
$
2,072,788
$
1,220,173
169.88%
25 $
82,912
Texas Municipal Retirement System (6)
Active
20.6
$
24,347,200,578
$
23,708,162,580
$
28,378,352,783
$
4,031,152,205
$ 5,851,000,000
68.90%
106,894 $
37,712
Nacogdoches County Hosp. District Retirement Plan
Active
20.0
$
37,500,063
$
38,372,816
$
46,658,516
$
9,158,453
$
30,781,975
29.75%
625 $
14,654
Capital Metro Retirement Plan for Admin Employees
Active
20.0
$
19,247,210
$
20,069,580
$
23,831,541
$
4,584,331
$
16,958,402
27.03%
264 $
17,365
Texarkana Firemen's Relief and Retirement Fund
Active
19.6
$
30,058,082
$
32,142,725
$
35,519,165
$
5,461,083
$
4,019,902
135.85%
78 $
70,014
Harris County Hospital District Pension Plan (7)
Closed
19.1
$
579,800,249
$
565,273,878
$
825,466,159
$
245,665,910
$
194,918,223
126.04%
2,668 $
92,079
Dallas/Ft. Worth Airport Board Retirement Plan
Active
19.0
$
422,736,569
$
406,504,303
$
540,170,323
$
117,433,754
$
59,466,874
197.48%
866 $
135,605
Dallas/Ft. Worth Airport Board DPS Retirement Plan
Active
19.0
$
152,273,098
$
146,297,465
$
203,482,590
$
51,209,492
$
26,882,864
190.49%
348 $
147,154
Port Arthur Firemen's Relief and Retirement Fund
Active
17.0
$
40,754,274
$
42,934,035
$
52,655,260
$
11,900,986
$
7,423,270
160.32%
105 $
113,343
Frozen
17.0
$
21,358,481
$
21,895,301
$
29,976,521
$
8,618,040
$
9,941,752
86.69%
120 $
71,817
Weslaco Firemen's Relief and Retirement Fund
Active
15.9
$
8,355,918
$
8,510,261
$
12,070,005
$
3,714,087
$
3,043,816
122.02%
66 $
56,274
Active
15.0
$
413,700,959
$
395,465,796
$
587,236,850
$
173,535,891
$
405,332,200
42.81%
1,435 $
120,931
Active
13.7
$
45,784,122
$
42,942,347
$
58,689,316
$
12,905,194
$
21,506,648
60.01%
459 $
28,116
San Antonio Fire and Police Pension Fund
Active
11.1
$
2,858,461,847
$
2,595,910,683
$
3,218,382,810
$
359,920,963
$
310,809,257
115.80%
3,815 $
94,344
Active
11.0
$
663,063,411
$
732,528,317
$
859,744,935
$
196,681,524
$
153,613,608
128.04%
4,149 $
47,405
Active
11.0
$
25,566,845
$
25,566,845
$
27,944,142
$
2,377,297
$
7,474,445
31.81%
205 $
11,597
Austin Fire Fighters Relief and Retirement Fund
Active
10.6
$
789,433,224
$
789,433,224
$
868,146,375
$
78,713,151
$
82,450,505
95.47%
1,025 $
76,793
Dallas Police and Fire Pension System-Supp
Active
10.0
$
21,438,870
$
21,438,870
$
41,910,358
$
20,471,488
$
556,725
39 $
524,910
Frozen
10.0
$
9,853,521
$
9,853,521
$
11,709,335
$
1,855,814
Colorado River Municipal Water Dist. Pension Trust (7)
Active
9.4
$
9,173,226
$
9,173,226
$
9,809,078
$
635,852
Texas County & District Retirement System (8)
Active
9.2
$
23,751,821,185
$
24,715,158,467
$
26,252,851,945
$
2,501,030,760
Guadalupe-Blanco River Authority
Closed
7.9
$
25,587,452
$
25,316,487
$
29,637,113
$
4,049,661
Frozen
7.4
$
17,736,458
$
18,439,946
$
28,885,608
$
11,149,150
Actuarial Value
of Assets
Market Value
of Assets
Actuarial Accrued
Liabilities
Unfunded Actuarial
Accrued Liability
(UAAL)
Covered
Payroll
N/A
N/A
$
UAAL as % of
Payroll
3677.13%
N/A
Active
members
(9)
UAAL Per
Active
Member (10)
0
-
2,851,589
22.30%
55 $
11,561
$ 5,779,000,000
43.28%
125,860 $
19,872
$
53.53%
111 $
36,483
N/A
169 $
65,971
7,565,168
N/A
2
August 4, 2016
Plan Name
Plan
Status
(1)
Current
Amort
period
Travis Cty ESD #6 Firemen's Relief & Retirement Fund
Active
7.3
$
7,554,521
$
8,007,889
$
11,996,029
$
$
4,278,012
Active
0.0
$
100,876,901
$
110,804,917
$
100,604,971
$
(271,930) $
117,023,684
-0.23%
1,988 $
(137)
Active
0.0
$
22,184,111
$
22,184,111
$
22,082,183
$
(101,928) $
10,625,420
-0.96%
136 $
(749)
Active
0.0
$
2,681,047
$
2,681,047
$
2,311,103
$
(369,944) $
2,590,679
-14.28%
666 $
(555)
Refugio Co. Memorial Hosp. Dist. Retirement Plan
Frozen
0.0
$
2,078,030
$
2,078,030
$
2,033,715
$
N/A
66 $
(671)
$
244,225,018,452
$
236,631,607,067
$
305,335,481,395
$
Actuarial Value
of Assets
Market Value
of Assets
Unfunded Actuarial
Accrued Liability
(UAAL)
Actuarial Accrued
Liabilities
4,441,508
(44,315)
Covered
Payroll
N/A
Counts:
4
16
34
23
12
4
Grand Totals:
93
61,110,462,943
Notes:
(1) Plan status indicates whether plan is active (admitting new hires), closed to new hires (but still accruing benefits), or frozen (not accruing benefits).
(2) Amortization period calculated by the PRB in consultation with the plan actuary, reflecting a contribution rate increase of 0.65% effective January 1, 2015.
(3) Amortization period estimated by the PRB assuming the pension obligation bond is fully paid in 2035. The PRB actuary will revist this calculation in the near future.
(4) Amortization period as calculated by the system.The prior amortization period was calculated by the PRB in consultation with the system.
(5) JRS I is a pay-as-you go system with no assets devoted to the plan.
(6) Amortization period is calculated using system wide aggregate UAAL and payroll amounts.
(7) Amortization period is calculated by the PRB. These systems use layered, closed amrotization and do not report a single aggregate period.
(8) Amortization period is an unweighted average amortization period of member employers.
(9) Active member information taken from current actuarial valuation; may not represent most current membership report.
(10) UAAL can be amortized by either employer or employee contributions.
3
UAAL as % of
Payroll
103.82%
Active
members
(9)
UAAL Per
Active
Member (10)
68 $
65,316
TAB 4A Actuarial Valuation Report
[DATE]
Plan
Status1
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
Discount
Rate
7.50%
8.50%
8.00%
8.25%
6.50%
5.00%
7.50%
7.50%
7.50%
7.50%
Current
Amort
Period
Infinite
105.9
45.0
32.0
25.0
21.0
15.0
9.0
4.0
0.0
Funded
Ratio %
66.7
69.2
93.0
50.0
62.5
50.0
75.0
76.9
66.7
66.7
$
$
$
$
$
$
$
$
$
$
Market Value
of Assets
(MVA)
3,000,000,000
800,000,000
400,000,000
50,000,000
50,000,000
10,000,000
30,000,000
200,000,000
80,000,000
8,000,000
Actuarial Value
of Assets
(AVA)
$
4,000,000,000
$
900,000,000
$
400,000,000
$
50,000,000
$
50,000,000
$
10,000,000
$
30,000,000
$
200,000,000
$
80,000,000
$
8,000,000
UAAL
as % of
Payroll
547.50%
20.17%
39.07%
459.48%
260.85%
368.49%
195.98%
225.65%
266.92%
246.28%
Effective
Date
1/1/2014
8/31/2014
8/31/2014
1/1/2013
12/31/2012
12/31/2012
12/31/2011
1/1/2012
1/1/2012
12/31/2012
Prior
Amort
Period
26.0
Infinite
24.0
63.2
0.0
32.0
0.0
Infinite
86.3
12.0
Funded
Ratio %
75.6
73.2
90.2
48.8
63.0
47.4
65.1
67.4
72.2
69.5
DR
AF
T
Plan Name
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
Plan 6
Plan 7
Plan 8
Plan 9
Plan 10
Effective
Date
1/1/2015
8/31/2015
8/31/2015
1/1/2015
1/1/2015
12/31/2014
12/31/2013
1/1/2014
1/1/2014
12/31/2014
Unfunded
Actuarial Accrued
Liability
(UAAL =
AAL - AVA)
$ 2,000,000,000
$
400,000,000
$
30,000,000
$
50,000,000
$
30,000,000
$
10,000,000
$
10,000,000
$
60,000,000
$
40,000,000
$
4,000,000
1
2
2
2
2
2
2
1
2
1
1
Grand Totals:
10
2
68.5%
$4,628,000,000
$5,728,000,000
$2,634,000,000
Notes:
1 Plan status indicates whether plan is active (admitting new hires), closed to new hires (but still accruing benefits), or frozen (not accruing benefits).
This report is a compilation of pension data reported by retirement systems in their most recent Actuarial Valuations, sorted by amortization period.
1
10
68.5%
Supplemental Report
[DATE]
(a)
(b)
Total Pension
Fiduciary
(a) - (b)
Net Pension
Fiscal Year
End
Discount
Rate
Plan 1
12/31/2014
8.00%
$
100,000,000
$
50,000,000
$
50,000,000
50.0
$
Plan 2
8/31/2015
8.25%
$
200,000,000
$
180,000,000
$
20,000,000
90.4
$
Plan 3
8/31/2015
5.50%
$
2,000,000
$
1,500,000
$
500,000
75.0
Plan 4
12/31/2015
7.50%
$
4,000,000
$
3,500,000
$
500,000
87.5
Plan 5
12/31/2014
7.75%
$ 3,000,000,000
$ 2,000,000,000
$ 1,000,000,000
Plan 6
12/31/2014
7.70%
$
$
800,000,000
$
100,000,000
Plan 7
9/30/2014
7.90%
$ 1,000,000,000
$
600,000,000
$
400,000,000
Plan 8
12/31/2014
8.00%
$
100,000,000
$
90,000,000
$
10,000,000
Plan 9
12/31/2014
8.00%
$
20,000,000
$
10,000,000
$
Plan 10
12/31/2014
6.50%
$
30,000,000
$
20,000,000
$
Liability (TPL)1
Net Return5
60,000,000
45.5
2.67%
30,000,000
85.7
5.45%
$
550,000
73.2
4.21%
$
1,000,000
77.8
N/A
71.4
$ 1,000,000,000
66.7
5.19%
91.6
$
200,000,000
80.0
6.60%
65.7
$
400,000,000
60.0
6.71%
68.8
$
60,000,000
60.0
6.85%
10,000,000
50.0
$
10,000,000
50.0
4.54%
10,000,000
66.7
$
10,000,000
66.7
5.80%
Rate -1%4
AF
R
D
Grand Totals:
$ 5,356,000,000
$ 3,755,000,000
$ 1,601,000,000
70.1%
$ 1,771,550,000
67.9%
Notes:
1 Total Pension Liability is the actuarial accrued liability calculated in accordance with GASB 67, as reported in the system's Annual Financial Report.
2
Fiduciary Net Position is the market value of assets as of the Fiscal Year End, as reported in the system's Annual Finaicial Report.
3
Net Pension Liability is measured as the Total Pension Liability less the amount of the pension plan’s Fiduciary Net Position
4
Net Pension Liability measured using a discount rate 1% lower than the stated discount rate.
5
10 Year Net Return data from the corresponding PRB-1000 Investment Returns and Assumptions Report
10 Year
Funded
Ratio %
Liability (NPL)3
T
900,000,000
Net Position2
Funded
Ratio %
NPL at Discount
Plan Name
This report is a compilation of pension data reported by retirement systems to the PRB in their most recently published Annual Financial Report and PRB-1000.
1
Contribution Report
[DATE]
(b)
(c) = (a) - (b)
(d)
(e) = (c) + (d)
(f)
Status1
Fiscal Year
End
Covered
Payroll
Total NC
(% of Pay)
EE Cont
(% of Pay)
ER Normal
Cost
(% of Pay)
Amort Pmt
(% of Pay)
ER Rec Cont
(% of Pay)2
Actual
ER Cont
(% of Pay)
Actual ER
Cont Type
Percent of
Rec Cont
Paid
Active
Active
Active
Active
Active
Active
Active
Active
Active
Active
12/31/2014
8/31/2015
8/31/2015
12/31/2015
12/31/2014
12/31/2014
9/30/2014
12/31/2014
12/31/2014
12/31/2014
$
400,000,000
$ 2,000,000,000
$
80,000,000
$
10,000,000
$
10,000,000
$
4,000,000
$
6,000,000
$
30,000,000
$
10,000,000
$
1,000,000
25.61%
1.77%
21.40%
18.73%
15.80%
15.74%
18.06%
18.44%
24.81%
21.93%
8.50%
0.50%
7.16%
15.00%
12.00%
15.30%
13.00%
12.00%
13.20%
16.00%
17.11%
1.27%
14.24%
3.73%
3.80%
0.44%
5.06%
6.44%
11.61%
5.93%
16.40%
0.74%
1.42%
10.37%
1.47%
6.46%
0.94%
1.44%
0.57%
0.00%
42.01%
2.51%
22.82%
29.10%
17.27%
22.20%
19.00%
19.88%
25.38%
21.93%
27.50%
1.70%
15.66%
16.00%
12.52%
16.30%
13.00%
15.65%
21.70%
16.00%
Actuarial
Fixed
Actuarial
Fixed
Fixed
Fixed
Other
Actuarial
Fixed
Fixed
65%
68%
69%
55%
72%
73%
68%
79%
86%
73%
AF
DR
Notes:
1 Plan status indicates whether plan is active (admitting new hires), closed to new hires (but still accruing benefits), or frozen (not accruing benefits).
2
(f) / (e)
Plan
T
Plan Name
Plan 1
Plan 2
Plan 3
Plan 4
Plan 5
Plan 6
Plan 7
Plan 8
Plan 9
Plan 10
(a)
Recommended Contribution needed for the system to achieve and maintain an amoritization period that does not exceed 30 years, in accordance with Texas Code §802.101(a)
This report is a compilation of pension data reported by retirement systems to the PRB in their most recently published Annual Financial Report and Actuarial Valuations.
1
TAB 4B PRB Guidelines for Actuarial Soundness
(Adopted September 28, 2011)
1. The funding of a pension plan should reflect all plan obligations and assets.
2. The allocation of the normal cost portion of the contributions should be level or declining as a
percent of payroll over all generations of taxpayers, and should be calculated under applicable
actuarial standards.
3. Funding of the unfunded actuarial accrued liability should be level or declining as a percent of
payroll over the amortization period.
4. Funding should be adequate to amortize the unfunded actuarial accrued liability over a period
not to exceed 40 years, with 15 - 25 years being a more preferable target. Benefit increases
should not be adopted if all plan changes being considered cause a material increase in the
amortization period and if the resulting amortization period exceeds 25 years.
5. The choice of assumptions should be reasonable, and should comply with applicable actuarial
standards.
BEST PRACTICE
Core Elements of a Pension Funding Policy (CORBA) (2013)
Background. The Government Finance Officers Association (GFOA) has recommended that
every state and local government that offers defined benefit pensions formally adopt a funding
policy that provides reasonable assurance that the cost of those benefits will be funded in an
equitable and sustainable manner.1 To provide the desired degree of assurance, a pension funding
policy would need to incorporate the following principles and objectives:
1. Every government employer that offers defined benefit pensions should obtain no less than
biennially an actuarially determined contribution (ADC) to serve as the basis for its
contributions;
2. The ADC should be calculated in a manner that fully funds the long-term costs of promised
benefits, while balancing the goals of 1) keeping contributions relatively stable and 2)
equitably allocating the costs over the employees’ period of active service;
3. Every government employer that offers defined benefit pensions should make a commitment
to fund the full amount of the ADC each period. (For some government employers, a
reasonable transition period will be necessary before this objective can be
accomplished);
4. Every government employer that offers defined benefit pensions should demonstrate
accountability and transparency by communicating all of the information necessary for
assessing the government’s progress toward meeting its pension funding objectives.
These principles and objectives necessarily will affect decisions related to the treatment of three
core elements of a comprehensive pension funding policy:



Actuarial cost method - the technique used to allocate the total present value of future
benefits over an employee’s working career (normal cost/service cost).
Asset smoothing method - the technique used to recognize gains or losses in pension assets
over some period of time so as to reduce the effects of market volatility and stabilize
contributions.
Amortization policy - The length of time and the structure selected for increasing or
decreasing contributions to systematically eliminate any unfunded actuarial accrued liability
or surplus.
Recommendations. To ensure consistency with the principles and objectives described above,
the GFOA recommends that a pension funding policy treat each of its core elements as follows:
1
“Guidelines for Funding Defined Benefit Pensions” (2013) (CORBA).
Actuarial cost method. The actuarial cost method selected for funding purposes should conform
to actuarial standards of practice and allocate normal costs over a period beginning no earlier
than the date of employment and should not exceed the last assumed retirement age. Moreover,
the selected actuarial cost method should be designed to fully fund the long-term costs of
promised benefits, consistent with the objective of keeping contributions relatively stable and
equitably allocating the costs over the employees’ period of active service.2 While not the only
method that would satisfy this criterion, the entry age method—level percentage of pay normal
cost—is especially well suited to achieving this purpose.
Asset smoothing. The method used for asset smoothing should:


Be unbiased relative to market. Thus, for example:
o The same smoothing period should be used for both gains and losses, and
o Market corridors (a range beyond which deviations are not smoothed), if used, should
be symmetrical3, and
Provide for smoothing to occur over fixed periods (the use of rolling periods normally should
be avoided), ideally of five years or less, but never longer than ten years.
o Provide for a market corridor if smoothing is to occur over a period longer than five
years.
Amortization. Amortization of the unfunded actuarial accrued liability4 should:


Use fixed (closed) periods that
o Are selected so as to balance the twin goals of demographic matching (equitable
allocation of cost among generations) and volatility management (funding at a level
percentage of payroll) and
o Never exceed 25 years, but ideally fall in the 15-20 year range;
Use a layered approach for the various components to be amortized (that is, an approach that
separately tracks the different components to be amortized); and emerge as a level percentage
of member compensation or as a level dollar amount.
Additional considerations for plans closed to new entrants. When a plan is closed to new
participants, the aggregate actuarial cost method – level percentage of pay normal cost – is
especially well suited for funding.
For closed plans with no remaining active members:


2
Special attention needs to be given to the mix of investments (given the shorter time
horizon); and
In comparison to open plans:
Employers using some other actuarial cost method should carefully monitor demographic changes and trends in
the covered workforce inasmuch as such changes could result in increased employer contributions as a percentage
of payroll.
3
Generally, the appropriate corridor will depend upon the length of the smoothing period, with longer smoothing
periods requiring narrower corridors.
4
Special considerations may apply to the amortization of a surplus (e.g., use of a longer amortization period).
o Asset smoothing periods should be shorter (typically no longer than three years);
 Corridors, if used, should be narrower; and
o Amortization periods should be shorter (typically no longer than 10 years for gains
and losses).
For closed plans that still have active members:


The continued use of level percent of member compensation amortization remains
appropriate, but not for a long period (i.e., as the number of active members decreases); and
In comparison to open plans:
o Asset smoothing periods should be shorter;
 For asset smoothing periods that exceed five years, a corridor (not to exceed
20 percent) should be used; and
o Amortization periods should be shorter.
References.

California Actuarial Advisory Panel, Actuarial Funding Policies and Practices for Public
Pension and OPEB Plans, February 2013 at:
http://www.sco.ca.gov/Files-ARD/BudLeg/CAAP_Funding_Policies_w_letter.pdf
Pension Review Board
Actuarial Committee Meeting
June 20, 2016
Summary Recommendations of Society of Actuaries’ (SOA) Blue Ribbon Panel
on Public Pension Plan Funding, February 2014
The Panel recommended that an effective funding program should follow the following three principles:
·
·
·
Adequacy – Strive to fund 100% of obligations using assumptions consistent with median
expectations about future economic conditions (i.e. assumptions are estimate to be realizable
50% of the time). Assets and future contributions should be able to fund benefits over a broad
range of possible economic outcomes.
Intergenerational equity – The full cost of public services should be paid by those receiving the
benefits of those services.
Cost stability and predictability – Cost stability and predictability should level or nearly level
costs over an intermediate period. The panel recognizes this practice is at odds with the
previous two and the other two should take precedence over cost stability and predictability.
The Panel made the following specific recommendations on methods and assumptions used by public
pension plans for the purposes of funding calculations:
·
·
·
·
Discount Rate – the Panel believed that the rate of return assumption should be based primarily
on the current risk-free rate plus explicit risk premia or on other similar forward-looking
techniques.
Amortization Periods – Amortization of gains/losses should be completed over a period of no
more than 15 to 20 years.
Asset Smoothing – Asset smoothing periods should be limited to five years or less.
Direct rate smoothing methods – The panel encourages consideration of direct rate smoothing
and other asset and liability cash flow modeling techniques.
REPORT OF THE BLUE RIBBON PANEL ON
PUBLIC PENSION PLAN FUNDING
SUMMARY OF RECOMMENDATIONS
Letter From The Panel Chair
To the Society of Actuaries’ (SOA’s) Board of Directors and Members:
On behalf of the Blue Ribbon Panel on Public Pension Plan Funding (“the Panel”), I am pleased to submit
the attached report of our findings and recommendations. Consistent with our charter, the Panel focused
on the development of recommendations for strengthening public plan funding. From my perspective, the
Panel’s principal objective was to identify effective and practical recommendations for enhancing the ability
of plan sponsors to keep the contractual benefit promises that they negotiated with plan participants.
The timing of this undertaking was appropriate as the information considered by the Panel suggests that
the financial condition of public pension trusts has weakened during the last 15 years, while its exposure
to future financial and other risks has increased, possibly materially. Self-reported funded ratios, the history
of sponsors’ payment of recommended contributions, greater levels of investment risk taking, and funding
analyses that may not have adequately captured the changing economic outlook support this view and have
been noted in the Panel’s report. The Panel’s deliberations were also informed by the challenges facing
selected pension systems and the fiscal pressures facing many sponsors. These challenges are significant
and if not resolved will impact not only the strength of public pension trusts, but will affect sponsors’ ability
to provide the broad range of public services that citizens are expecting. In this context, I believe that the
failure to adopt these or other recommendations for improving plan funding will exacerbate an already
fragile situation. I am optimistic that the Panel’s recommendations will be seriously considered by the
actuarial profession and other parties interested in assuring the future health of public pension programs.
I would like to thank the many people that responded to our survey and to those that took the time to
discuss their views with the Panel. Your input was greatly appreciated. Panel members, I have immense
respect for your expertise and energy and I would like to thank each of you for your true passion and
commitment to this effort, your hard work, and the spirited debate that shaped our recommendations.
I believe that, together, we have made an important contribution to the public dialogue over how to
strengthen the public pension plan system.
Bob Stein, FSA, MAAA, CPA
1
REPORT OF THE BLUE RIBBON PANEL ON
PUBLIC PENSION PLAN FUNDING
Summary of Recommendations
The funding of U.S. public sector pension plans
has received heightened attention in recent years
as states and local government entities have
responded to the effects of the 2008 financial
crisis and several cities have faced high-profile
financial challenges. Some observers react
with alarm to the current situation, noting the
downward trend of reported funded ratios, the
increased propensity of sponsors to not pay all
of the recommended contribution, growing risk
levels in asset portfolios, and the increased risk
that funding assumptions will not be achieved.
Others note that today’s funded levels are similar
to funded levels in 1990 and that sponsors and
trustees have taken action to respond to the
recent turmoil. Nonetheless, these trends raise
a fundamental question: What changes in plan
funding practices, governance and other matters
help ensure that public plans can deliver on the
benefit promises their sponsors have made to
public employees?
The report does not address the appropriateness
of current financial reporting for public plans nor
whether those requirements should be re-examined.
The report does not address the most appropriate
means of assessing the economic value of pension
benefits. The report recommends actions to
strengthen financial and risk management practices
by providing new information to trustees, funding
entities and their elected officials, employees and
their unions, taxpayers and other stakeholders. This
information will help stakeholders better understand
the risks being taken and borne by plans and how
best to develop a long-term funding program.
In addition, the Panel makes recommendations
about the actuary’s role in developing funding
recommendations and calls for improvements in
plan governance, both of which can foster more
effective decision making.
Funding Principles
In April 2013, the Society of Actuaries
commissioned the SOA Blue Ribbon Panel (“the
Panel”) to address these questions. This paper
reports on the results of the Panel’s work.
The Panel believes that pension obligations should
be pre-funded in a rational and sustainable manner
by funding benefits for employees over their public
service career. An effective funding program should
follow three principles:
Plan trustees and those responsible for funding
pension plans (funding entities) face many
challenges in managing the current and future
financial health of pension plans. This report
provides a set of principles to help guide sponsors
and trustees in their plan funding decisions and
to ensure that other stakeholders are informed of
those decisions and how they have been made.
•Adequacy. Funding entities and plan trustees
should strive to fund 100 percent of the
obligation for benefits using assumptions
that are consistent with median expectations
about future economic conditions, i.e., the
assumptions are estimated to be realizable
50 percent of the time. Financial resources,
including both current assets and future
2
contributions, should be adequate to fund
benefits over a broad range of expected
future economic outcomes. Programs should
be funded at levels that will enable them to
respond to changing conditions and maintain
a high degree of resilience in order to cope
with uncertain future conditions. The stress
testing recommended herein will provide
information that will help to develop the
requisite financial flexibility.
•Intergenerational equity. Intergenerational
equity refers to the desire for the full cost of
public services, including pensions earned
by public employees, to be paid by those
receiving the benefits of those services. The
Panel believes that fully funding pension
benefits over the average future service
period of public employees reasonably aligns
the cost of today’s public services with the
taxpayers who benefit from those services.
•Cost stability and predictability. The Panel
believes that cost stability (i.e., level or nearly
level costs over an intermediate period) is
often at odds with the goals of adequacy
and intergenerational equity. The Panel also
recognizes that predictability of costs in the
short-term is important for public budgeting
processes. Allocating a significant portion
of investments to higher-risk, more volatile
assets will tend to undermine the goal of
cost stability, especially for plans with a
rising retiree population compared to active
employees. To support the objective of
“keeping the pension promise,” the Panel
believes that adequacy and intergenerational
equity should take precedence over the goal
of cost stability and predictability.
Recommended Risk Measures, Analyses
And Disclosures
The Panel believes that the risk management
practices of public pension plans should be
strengthened to provide stakeholders with the
information they need to make more informed and
effective decisions about plan funding, including
more comprehensive information about the current
and expected future financial position of the trust
and of the nature and extent of risks facing public
pension plans. The Panel recommends that the
following information be disclosed:
•Trends in financial and demographic
measures. To support an assessment of the
implications of trends in the plan’s financial
position and participant profile, actuarial
funding reports should contain, for the past 10
years, information presenting the relationship
of benefit payments, funding liabilities, and
assets to payroll; the relationship between
the recommended contribution to payroll and
to the sponsor’s budget or revenue source;
and the ratio of contributions made to the
recommended contribution.
•Measures of risk to the plan’s financial
position. To understand current risk levels,
three benchmarks should be disclosed: 1) the
expected standard deviation of investment
returns of the asset portfolio on the report
date; 2) the plan liability and normal cost
calculated at the risk-free rate, which
estimates the investment risk being taken in
the investment earnings assumption; and 3) a
standardized plan contribution for assessing
the aggregate risks to the adequacy of the
recommended contribution.
3
•Stress testing. Stress tests of future financial
positions should be disclosed in an effort to
measure investment and contribution risks.
Such tests, constituting 30-year financial
projections, should be conducted using
the following assumptions: 1) returns at
a standardized baseline and at returns of
3 percentage points more and less than
the baseline assumption and 2) funding
entities making 80 percent of recommended
contributions.
•Undiscounted cash flows. Users of plans’ and
funding entities’ financial statements should be
able to develop their own calculation of plan
obligations. Therefore, the Panel recommends
that two sets of benefit payment projections
be provided for current employees, one on an
accrued (earned-to-date) basis and one on a
projected benefits basis.
Recommendations Regarding The Role
Of The Actuary
The Panel urges the Actuarial Standards Board (ASB)
to require the financial and risk measures outlined
above be disclosed in actuarial reports. It also
urges the ASB to require actuaries to include in their
actuarial reports an opinion on the reasonableness
of funding methods and assumptions. Finally, the
Panel makes specific recommendations on methods
and assumptions used by plans for the purposes
of funding calculations; specifically, discount rates,
amortization periods, asset smoothing, and the
use of direct rate smoothing or alternative funding
methods:
•Discount rates. The Panel recognizes that
historical returns, adjusted for expected
changes in future conditions, are a common
reference point. However, the Panel believes
that the rate of return assumption should be
based primarily on the current risk-free rate
plus explicit risk premia or on other similar
forward-looking techniques.
•
Amortization periods. Amortization of gains/
losses should be completed over a period of
no more than 15 to 20 years.
•Asset smoothing. Asset smoothing periods
should be limited to five years or less
•Direct rate smoothing methods. The Panel
encourages the consideration of direct rate
smoothing and other asset and liability cash
flow modeling techniques. Such approaches
can provide greater transparency into the
current financial position of the trust, the level
of risk in funding assumptions, and enhanced
flexibility to sponsors in the development
of sustainable funding programs. The Panel
notes that care must be exercised in the
use of such approaches to avoid deferring
contributions that would reduce the ability of
the funding program to meet adequacy and
intergenerational equity goals.
Recommendations Regarding Plan
Governance
The Panel considered governance in its broadest
definition: how stakeholders responsible for plan
funding make and implement funding decisions.
Each pension system structure is unique and the
Panel makes no specific recommendations on
the best governance structure. However, several
characteristics of good governance that all systems
4
should adopt are recommended, including:
•Maximizing the likelihood that funding
objectives outlined by the Panel will be
achieved. This includes ensuring that
recommended contributions are paid,
disclosing complete information about the
plan’s finances to all stakeholders, and not
using funding instruments and other financial
instruments that delay cash contributions.
and deliberations, but concluded that he could
not fully support this report’s findings and
recommendations.
•Ensuring trustees have sufficient information
and institutional structures to analyze
risk, including establishing guidelines for
the amount of risk that can be appropriately
assumed.
•Providing proper and timely training of
trustees.
•Carefully considering of plan changes,
such as requiring that consideration and
adoption of plan changes be completed
over two legislative sessions (or their
equivalent), adopting a formal process for
evaluating the emerging cost and participant
implications of adopted plan changes and
avoiding certain high-risk plan features
while actively considering plan features that
enhance plans’ flexibility for responding to
unexpected experience.
The Panel’s recommendations were developed
following an extensive information gathering and
analysis process. The Panel’s recommendations
are those of the Panel and are consensus
recommendations, with the exception of Mr.
Musuraca. Mr. Musuraca was an active and
valuable participant in the Panel’s discussions
5
TAB 5 Pension Review Board
August 4, 2016
Public Retirement System Compliance and Reporting
As of July 28, 2016
Compliance
Non-Compliant Plans
Compliant Plans
Total Plans Registered
May Board Meeting
Current Board Meeting
6
87
93
4
89
93
Summary of Plans Non-Compliant over 60 Days
Plan Type
Defined Benefit
May Board Meeting
5
4
Total Net Assets – Based on most recent financial reports
May Board Meeting
$237,181,250,971.99
Total Net Assets
$236,846,764,052.99
Amortization Periods
Plan Amortization Periods
Infinite
> 40 years, but not infinite
> 25 years < 40 years
0 years
Total Plans Registered
May Board Meeting
4
16
35
23
10
4
92
4
16
34
23
12
4
93
1
August 4, 2016
Plans Non-Compliant over 60 Days
August 4, 2016
In accordance with 801.209(b) of the Texas Government Code, this list includes all plans who have not
submitted one or more of the following reports to the State Pension Review Board by the 60th day
after the date the reports are due: annual financial, membership, and/or investment returns and
assumptions report.
Fiscal Year
2014
2014
Retirement System
Due Date
1
4/29/2015
2
Brownwood Firemen’s Relief & Retirement Fund
7/30/2015
2
2014/2015 Northeast Medical Center Hospital Retirement Plan
1/27/2016
1
3/29/2016
2015
1
This plan informed the PRB that they are working to submit their annual reports as soon as the reports become
available.
2
This plan has informed the PRB that they will be conducting an audit for fiscal year 2015.
STATE PENSION REVIEW BOARD OF TEXAS
Total Net Assets
List of the total net assets of all active plans based on the most recent financial report received.
Plan Name
Report Date
Net Assets
8/31/2015
$128,538,706,212.00
Texas County & District Retirement System
12/31/2015
$24,529,677,668.00
8/31/2015
$23,998,481,161.00
Texas Municipal Retirement System
12/31/2015
$23,708,162,580.00
Houston Police Officer's Pension System
6/30/2015
$4,304,523,000.00
Houston Firefighters' Relief & Retirement Fund
6/30/2015
$3,877,650,516.00
Dallas Employees' Retirement Fund
12/31/2014
$3,398,485,000.00
Dallas Police & Fire Pension System‐Combined Plan
12/31/2014
$3,074,195,466.00
San Antonio Fire & Police Pension Fund
9/30/2015
$2,595,911,000.00
Houston Municipal Employees Pension System
6/30/2015
$2,456,543,559.00
Austin Employees' Retirement System
12/31/2015
$2,144,824,122.00
Fort Worth Employees' Retirement Fund
9/30/2015
$2,006,357,783.00
12/31/2015
$1,349,599,260.00
Law Enforcement & Custodial Officer Supplemental Retirement Fund 8/31/2015
$844,145,332.00
Austin Fire Fighters Relief & Retirement Fund
12/31/2014
$789,433,225.00
Dallas County Hospital District Retirement Income Plan
12/31/2014
$767,580,000.00
12/31/2014
$753,637,428.00
8/31/2015
$700,388,169.00
Austin Police Retirement System
12/31/2014
$638,019,069.00
Harris County Hospital District Pension Plan
12/31/2015
$564,716,739.00
12/31/2014
$517,224,488.00
Lower Colorado River Authority Retirement Plan
3/31/2015
$415,017,657.00
Dallas/Fort Worth Airport Board Retirement Plan
12/31/2015
$406,504,000.00
8/31/2015
$395,465,796.00
Tuesday, July 26, 2016
Page 1 of 4
Plan Name
Report Date
Net Assets
8/31/2015
$364,510,248.00
12/31/2014
$270,861,557.00
12/31/2014
$229,990,069.00
San Antonio Metropolitan Transit Retirement Plan
9/30/2015
$227,114,300.00
Irving Firemen's Relief & Retirement Fund
12/31/2014
$178,839,832.00
12/31/2015
$172,836,186.00
7/31/2015
$166,856,925.00
DART Employees' Defined Benefit Retirement Plan & Trust
9/30/2015
$154,468,000.00
Dallas/Fort Worth Airport Board DPS Retirement Plan
12/31/2015
$146,298,000.00
Houston MTA Non‐Union Pension Plan
12/31/2014
$146,207,172.00
Amarillo Firemen's Relief & Retirement Fund
12/31/2015
$144,657,881.00
12/31/2015
$130,013,803.00
12/31/2015
$120,921,693.00
9/30/2015
$114,438,391.00
Beaumont Firemen's Relief & Retirement Fund
12/31/2014
$102,800,571.00
8/31/2015
$88,828,460.00
Midland Firemen's Relief & Retirement Fund
12/31/2014
$82,552,420.00
Denton Firemen's Relief & Retirement Fund
12/31/2014
$71,018,518.00
Tyler Fire Department Relief & Retirement Fund
12/31/2014
$64,362,549.00
San Angelo Firemen's Relief & Retirement Fund
12/31/2014
$62,680,087.00
Abilene Firemen's Relief & Retirement Fund
9/30/2015
$52,343,510.00
Wichita Falls Firemen's Relief & Retirement Fund
12/31/2015
$46,396,915.00
9/30/2013
$45,689,379.00
Nacogdoches County Hospital District Retirement Plan
6/30/2015
$45,368,346.00
Port Arthur Firemen's Relief & Retirement Fund
12/31/2014
$45,086,187.00
12/31/2014
$44,745,232.00
12/31/2015
$43,671,645.00
McAllen Firemen's Relief & Retirement Fund
9/30/2015
$42,300,964.00
Longview Firemen's Relief & Retirement Fund
12/31/2015
$41,812,699.00
12/31/2014
$41,354,649.00
Temple Firemen's Relief & Retirement Fund
9/30/2015
$37,387,617.00
Texarkana Firemen's Relief & Retirement Fund
12/31/2014
$33,244,477.00
Page 2 of 4
Plan Name
Report Date
Net Assets
12/31/2014
$31,162,434.00
Killeen Firemen's Relief & Retirement Fund
9/30/2015
$31,072,702.00
Capital MTA Retirement Plan for Bargaining Unit Employees
12/31/2014
$29,608,577.00
Harlingen Firemen's Relief & Retirement Fund
9/30/2015
$26,905,417.00
Guadalupe‐Blanco River Authority
12/31/2014
$25,316,487.00
Galveston Employees' Retirement Plan for Police
12/31/2014
$22,403,026.00
12/31/2015
$22,184,111.00
2/28/2015
$21,895,301.00
Dallas Police & Fire Pension System‐Supplemental
12/31/2014
$21,404,576.00
Capital MTA Retirement Plan for Administrative Employees
12/31/2014
$20,019,209.00
12/31/2014
$19,942,947.00
Cleburne Firemen's Relief & Retirement Fund
12/31/2015
$19,745,465.00
9/30/2015
$18,948,023.00
Denison Firemen's Relief & Retirement Fund
12/31/2014
$16,398,506.00
Texas City Firemen's Relief & Retirement Fund
12/31/2014
$15,892,475.00
Lufkin Firemen's Relief & Retirement Fund
12/31/2015
$13,723,044.00
Greenville Firemen's Relief & Retirement Fund
12/31/2014
$13,597,202.00
Waxahachie Firemen's Relief & Retirement Fund
9/30/2015
$13,580,201.00
12/31/2014
$12,078,636.00
Big Spring Firemen's Relief & Retirement Fund
12/31/2015
$10,699,507.00
Travis County ESD # 6 Firefighter's Relief & Retirement Fund
12/31/2014
$10,298,645.00
University Park Firemen's Relief & Retirement Fund
12/31/2014
$9,515,461.00
7/1/2013
$9,321,452.00
Colorado River Municipal Water District Defined Benefit Retirement P 12/31/2015
$9,173,226.00
Orange Firemen's Relief & Retirement Fund
12/31/2015
$8,313,179.00
Sweetwater Firemen's Relief & Retirement Fund
12/31/2014
$8,301,477.00
Weslaco Firemen's Relief & Retirement Fund
9/30/2015
$8,255,209.00
Corsicana Firemen's Relief & Retirement Fund
12/31/2015
$8,121,618.00
Marshall Firemen's Relief & Retirement Fund
12/31/2014
$8,003,545.00
Plainview Firemen's Relief & Retirement Fund
12/31/2014
$5,476,842.00
Paris Firefighters' Relief & Retirement Fund
12/31/2014
$5,461,733.00
Atlanta Firemen's Relief & Retirement Fund
12/31/2014
$3,628,834.00
Page 3 of 4
Plan Name
Report Date
Net Assets
Brownwood Firemen's Relief & Retirement Fund
12/31/2014
$3,404,508.99
9/30/2014
$3,243,888.00
6/30/2015
$2,681,047.00
Refugio County Memorial Hospital District Retirement Plan
10/31/2015
$2,078,030.00
Judicial Retirement System of Texas Plan One
8/31/2015
$0.00
TOTAL
$236,846,764,052.99
Page 4 of 4
TAB 6A Pension Review Board
August 4, 2016
Systems Immediately Subject to FSRP Formulation Requirement
This is a list of retirement systems that have had amortization periods over 40 years for three
consecutive annual actuarial valuations, or two consecutive actuarial valuations if the systems conduct
the valuations every two or three years. The first Funding Soundness Restoration Plan (FSRP) must be
formulated by November 1, 2016.
Plan Name
Amort
Period
Date of
AV
Amort
Period
Date of
AV
Amort
Period
Date of
AV
Inf
1/1/2015
Inf
1/1/2013
N/A
N/A
1
Odessa Firemen's Relief &
Retirement Fund
2
Wichita Falls Firemen’s Relief &
Retirement Fund
105.9
1/1/2015
63.2
12/31/2012
N/A
N/A
3
Fort Worth Employees'
Retirement Fund
72.5
12/31/2015
55.7
12/31/2014
49.3
1/1/2014
4
Greenville Firemen's Relief &
Retirement Fund
70.4
12/31/2014
Inf
12/31/2012
N/A
N/A
5
Harlingen Firemen’s Relief &
Retirement Fund
66.6
12/31/2013
Inf
12/31/2011
N/A
N/A
6
Irving Firemen's Relief &
1
Retirement Fund
63.4
1/1/2014
Inf
1/1/2012
N/A
N/A
7
Midland Firemen's Relief &
Retirement Fund
59.1
1/1/2014
86.3
1/1/2012
N/A
N/A
8
Sweetwater Firemen’s Relief &
Retirement Fund
58.8
12/31/2014
Inf
12/31/2012
N/A
N/A
9
Orange Firemen's Relief &
Retirement Fund
58.2
1/1/2015
82.3
12/31/2012
N/A
N/A
10
Galveston Employees’ Retirement
Plan for Police
55.1
1/1/2014
65.8
1/1/2013
53.5
1/1/2012
11
University Park Firemen's Relief &
Retirement Fund
53.7
1/1/2015
81.3
12/31/2012
N/A
N/A
12
Galveston Firefighter's Relief &
Retirement Fund
50.2
1/1/2014
42.8
1/1/2012
N/A
N/A
13
Longview Firemen's Relief &
Retirement Fund
41.4
12/31/2014
63.3
12/31/2013
Inf
12/31/2011
14
San Angelo Firemen's Relief &
Retirement Fund
40.9
12/31/2013
49
12/31/2011
N/A
N/A
15
Lufkin Firemen's Relief &
Retirement Fund
40.6
12/31/2014
89.6
12/31/2012
N/A
N/A
1
Amortization period calculated by the PRB in consultation with the plan actuary, reflecting a contribution
increase.
1
August 4, 2016
Systems at Risk of FSRP Formulation Requirement
This is a list of retirement systems that have had an amortization period that exceeds 40 years as of their
most recent actuarial valuation. These systems are not immediately subject to the FSRP.
Plan Name
1
Dallas Police & Fire Pension System-Combined
Plan
2
Dallas Employees’ Retirement Fund2
3
Marshall Firemen's Relief & Retirement Fund
2
Amort Period
Date of AV
Infinite
1/1/2015
50
12/31/2014
43.2
12/31/2014
Amortization period estimated by the PRB assuming a total contribution rate of 27.15% of payroll, and projecting
the contribution rate at the pension obligation bond payoff in 2035. The PRB actuary will revisit this calculation in
the near future.
2
TAB 6B Policy for Determination of System Actuarial Review
(Adopted May 5, 2016)
1. In accordance with Government Code, Section 801.202, the Pension Review Board (PRB or
Board) staff will review all actuarial reports submitted by public retirement systems. Staff will
determine whether or not the public retirement system’s actuarial valuation (“Valuation”)
shows that the system’s actual contributions are sufficient to amortize the unfunded actuarial
accrued liability within 40 years, as specified in Texas Government Code, Sections 802.2015 and
802.2016. As part of its review of a system's actuarial reports, the PRB staff may calculate an
amortization period that is different from what is reported in the Valuation.
2. If the staff determines a system’s actual contributions are not sufficient to amortize the
unfunded
actuarial
accrued
liability
within
40
years
(“Over-40-Year-Amortization-
Determination”), the executive director will notify the Board.
3. If the Board actuary concurs with the Over-40-Year-Amortization-Determination, the executive
director will notify the system of this determination in writing and provide the system a 30-day
period in which to voluntarily respond to staff. If the PRB does not receive any response from
the system within the designated time period, the system’s Over-40-Year-AmortizationDetermination will be confirmed. The system will also be informed of the requirement that the
system provide its associated governmental entity the notice required under Sections
802.2015(c) and 802.2016(c) of the Texas Government Code.
4. If the system in its response, if any, does not agree with staff’s Over-40-Year-AmortizationDetermination, the staff will present staff’s review and the system’s response to the Board’s
actuarial committee. The actuarial committee will confirm, deny, or amend the staff’s Over-40Year-Amortization-Determination and will recommend its findings to the Board. The Board will
make the final decision regarding the Over-40-Year-Amortization-Determination. The Board’s
decision and the system’s disagreement, if any, will be included in the PRB’s actuarial and
financial reports and in the funding soundness restoration plan (FSRP) lists staff presents at each
PRB meeting.
5. A system with a confirmed Over-40-Year-Amortization-Determination will be placed under staff
review for further risk assessment. The staff will notify the system and the Board in advance of
the review to provide the system with details of the review, including the scope and time period
1
of the review. The executive director will report preliminary findings to the Board’s actuarial
committee.
6. If a system receives a confirmed Over-40-Year-Amortization-Determination based on three
consecutive annual Valuations, or two consecutive Valuations for a system that conducts the
Valuations every two or three years, the executive director will notify the system and its
associated governmental entity regarding the statutory requirement to formulate an FSRP in
accordance with Texas Government Code Section 802.2015.1
7. At each PRB meeting, staff will provide a list of systems subject to the FSRP formulation
requirement. The staff will also provide a list of systems that are at risk of becoming subject to
the requirement because the system has a confirmed Over-40-Year-AmortizationDetermination, based on the most recent Valuation.
8. The Board may refer a system that is subject to the FSRP formulation requirement to be placed
under the review of the Board’s actuarial committee. If a system is referred as such, the findings
and recommendations of the staff review will be presented at the next meeting of the
committee. The system and its associated governmental entity will be notified in writing no later
than seven (7) days prior to the committee meeting and may be asked to appear before the
committee.
9. Upon the recommendation of the committee, the Board may ask a system and its associated
governmental entity to appear at a regularly scheduled meeting of the PRB. If such
recommendation is made, the entities will be notified in writing no later than ten (10) business
days prior to such meeting.
1
Texas Government Code Section 802.2016, concerning the Funding Soundness Restoration Plan for Certain Public
Retirement Systems, has similar requirements to Section 802.2015 and applies only to a public retirement system
that is governed by Article 6243i, Revised Statutes.
2
TAB 7A STATE PENSION
REVIEW BOARD
STRATEGIC PLAN
2017-2021
PENSION REVIEW BOARD
P.O. BOX 13498
AUSTIN, TX 78711-3498
(512) 463-1736
(800) 213-9425
TABLE OF CONTENTS
Agency Mission ............................................................................................................................................. 1
Agency Operational Goals and Action Plans ............................................................................................... 2
Redundancies and Impediments ................................................................................................................. 7
Supplemental Elements ............................................................................................................................... 8
Budget Structure .............................................................................................................................. 9
Performance Measure Definitions ................................................................................................. 11
Historically Underutilized Business Plan ........................................................................................ 22
Agency Workforce Plan .................................................................................................................. 24
AGENCY MISSION
The Pension Review Board (PRB) is mandated to oversee all Texas public retirement systems, both state
and local, in regard to their actuarial soundness and compliance with state law. The mission of the PRB is
to provide the State of Texas with the necessary information and recommendations to help ensure that
our public retirement systems, whose combined assets total in the multi-billions, are actuarially sound;
benefits are equitable; the systems are properly managed; tax expenditures for employee benefits are
kept to a minimum while still providing for those employees; and to expand the knowledge and
education of administrators, trustees, and members of Texas public retirement systems.
Main Functions
The PRB acts in accordance with the highest standards of ethics, accountability, efficiency, and
openness. The main functions of the PRB are to:
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Conduct a continuing review of all public retirement systems;
Conduct intensive studies of potential or existing problems that threaten the actuarial
soundness of public retirement systems;
Provide educational services to the trustees and system administrators of Texas public
retirement systems;
Provide information and technical assistance;
Recommend policies, practices, and legislation to public retirement systems and appropriate
governmental entities; and
Prepare actuarial impact studies on proposed legislation.
Organizational and Fiscal Aspects
Board and Staff
The Board is composed of seven members appointed by the Governor with the advice and consent of
the Senate. The PRB members are experts in areas relating to public pensions and governmental
finance.
The PRB is a small agency with limited number of employees. The agency currently has 12 employees
including the executive director with two vacant positions. The agency is authorized for 15 total full
time equivalents (FTEs), but funding is available for only 14. Due to the technical nature of public
pensions, qualified and well-trained staff is paramount to fulfilling the agency’s mission. Given the PRB’s
limited resources, staff recruitment and retention is the agency’s greatest challenge.
Budget
Fiscal years 2016-2017 appropriations for the PRB totaled $1,867,315. The funding source for the
appropriations was the General Revenue Fund. Of the agency’s appropriations for FY 2016-2017, nearly
90% was dedicated to salaries and wages.
1
AGENCY OPERATIONAL GOALS AND ACTION PLANS
Goal 1. Provide information, analysis, comparative data, technical assistance, and
recommendations to help public retirement systems achieve and maintain actuarial soundness
and be well-managed in their administration and investments, so that members receive their
entitled benefits with a minimum expenditure of taxpayer dollars.
SPECIFIC ACTION ITEMS TO ACHIEVE GOAL
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Review all required reports from systems, including Annual Financial Reports, Investment
Returns and Assumptions Reports, Actuarial Valuations, Actuarial Audits, Experience Studies,
Summary Plan Descriptions, and Investment Policies.
Revise the PRB Guidelines for Actuarial Soundness to provide up-to-date funding standards to
help ensure continued financial health of public retirement systems.
Issue regular actuarial and financial reports to provide updates on the funding progress and
financial health of public retirement systems.
Provide technical assistance to the systems and their members, the Legislature, other agencies,
and the public upon request.
Promote transparency and public knowledge of Texas public retirement systems’ long-term
fiscal health, benefit structures, governance and other components by developing an interactive
online dashboard for public pension data.
Publish data-intensive reports such as the Guide to Public Retirement Systems in Texas. This is a
compendium of general and comparative information on all actuarially funded systems and is
published biennially. Similarly, the annual Texas Local Fire Fighters Retirement Act (TLFFRA)
Pension Report includes actuarial, financial, and benefit information specifically for plans
established under the Act.
Prepare actuarial impact statements for legislation that would affect the benefits or liabilities of
a public retirement system.
Provide analysis and updates on public retirement systems to the Legislature.
Create, maintain, and distribute the List of Scrutinized Companies doing Business in Iran.
HOW GOALS AND ACTION ITEMS SUPPORT EACH STATEWIDE OBJECTIVE
1. Accountable to tax and fee payers of Texas.
The agency provides up-to-date information and recommendations to help public retirement systems
achieve and maintain actuarial soundness so that members receive their entitled benefits with a
minimum expenditure of taxpayer dollars.
2. Efficient such that maximum results are produced with a minimum waste of taxpayer funds,
including through the elimination of redundant and non-core functions.
The PRB performs continual reviews to help ensure that public retirement systems are actuarially sound
and well-managed. The agency also provides the Legislature with current pension information as an aid
during the Legislative Session.
2
3. Effective in successfully fulfilling core functions, measuring success in achieving performance
measures and implementing plans to continuously improve.
The agency reviews reports as they are submitted, ensuring that the information is kept current.
Technical assistance is provided by answering all inquiries from public retirement systems, the
Legislature, other agencies, and the public. The PRB also produces actuarial impact statements during
the Legislative Session to assess the financial impact of pension-related bills.
4. Providing excellent customer service.
The agency's strong emphasis on technical assistance and education supports this statewide objective
through the prompt response to inquiries and complaints.
5. Transparent such that agency actions can be understood by any Texan.
The PRB responds to all requests made by its service population and makes certain to provide any and
all information requested. The agency utilizes its website to provide a large amount of data concerning
Texas public retirement systems, including its actuarial reports in an Excel format, which allows the enduser to fully utilize the data. The PRB is also considering developing an interactive online dashboard to
provide public pension data in a searchable, user friendly format. Also, to allow for optimal availability of
the information discussed during PRB meetings, the agency live streams and archives board meetings.
3
Goal 2. Conduct intensive studies of potential or existing problems that threaten the financial
or actuarial condition of Texas public retirement systems.
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Conduct intensive staff reviews of systems that may have problems threatening their financial or
actuarial health by analyzing their current actuarial and financial data; historical trends in
contribution sufficiency, cash flow, and investment returns; benefit structure; membership; and
plan sponsors’ fiscal health.
Report the results of intensive system reviews to the Board through the implementation of the
Board's Policy for Determination of System Actuarial Review.
Provide plan-specific reports, presentations, and analyses to the Board and the Legislature.
Publish agency white papers regarding current issues in public pensions.
Agency staff carefully reviews retirement system and other relevant information, and utilizes the
Board's Policy for Determination of System Actuarial Review, to raise warning flags regarding potential
problems before they escalate.
The PRB staff collaborates with public retirement systems during their review process to provide
valuable research and analysis that helps systems accurately assess and address funding issues.
The PRB continuously calculates the percent of actuarially funded defined benefit public retirement
systems that are actuarially sound through the review of actuarial valuations. The PRB’s policies are
updated appropriately in conjunction with revised state laws or other regulations to meet current
industry best practices to help ensure long-term financial health of public retirement systems.
The agency provides accurate information relating to its intensive studies to the systems, Legislature,
and the general public. The PRB makes every effort to keep systems informed of each step during the
staff review process.
Following scrutiny of systems placed under review, the PRB prepares a list of systems subject to the
formulation of the funding soundness restoration plan, as well as a list of systems that are at risk of
becoming subject to the formulation of the plan. Reports provided to the Legislature and the agency’s
Board are accessible on the PRB website for all interested parties.
4
Goal 3. Educate public retirement system trustees, administrators, members, the public, and
the Legislature on public pension concepts, topics, trends, and issues.
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Provide free online courses in core pension topics including Actuarial Matters, Fiduciary Matters,
Ethics, and Investments and accredit sponsors of external training courses to assist system
administrators and trustees with required training hours and educate system members, the
Legislature, as well as the general public.
Research important pension-related topics and publish white papers to educate stakeholders on
those issues.
Provide current pension-related resources through the agency website including best practices
such as the Model Ethics Policy, investment policy guidance, and the Guidelines for Actuarial
Soundness for all systems.
Review and revise Minimum Education Training (MET) program rules through a transparent
process involving stakeholder input.
The agency empowers retirement system trustees and administrators to make fully informed decisions
as fiduciaries through high quality education. The agency also publishes links to industry best practices
and other helpful resources on the PRB website.
The agency ensures access to high-quality education free of charge for trustees and administrators
through the development of MET courses and the course and sponsor accreditation process. Staff
processes course approval and sponsor accreditation requests in a timely manner.
The agency constantly works to improve the quality and accessibility of its educational offerings, and
provides opportunities for feedback to facilitate high overall satisfaction with educational services.
The agency provides free online education in public pensions topics through the agency’s website. The
PRB also responds to numerous inquiries relating to education program requirements and offerings.
All MET program-related material is readily available on the agency website, including a curriculum
guide, forms, flowcharts, brochures, and memorandums sent to systems. The PRB provides consistent
updates to potential course sponsors of accreditation status.
5
Goal 4. Monitor and ensure public retirement system compliance with laws and regulations.
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Track financial compliance reporting through the agency’s financial and actuarial database.
Track completion of MET courses by trustees and system administrators.
Work with non-compliant retirement systems by providing one-on-one assistance, deadline
reminders, and other resources to bring them into compliance with state reporting
requirements.
Monitor changes to federal law and regulations and communicate updates to the public
retirement systems via the PRB website, memorandums, and online courses.
Publish updated Government Code and TLFFRA statute to provide public retirement systems
with current state laws.
Provide guidance and clarification on state law to public retirement systems.
The PRB reports retirement system compliance with financial and actuarial requirements to the
Legislature. The agency will also report retirement system compliance with training beginning November
2016.
The agency monitors processing times of financial, actuarial, and training reports to ensure maximum
efficiency. The PRB uses a centralized database to minimize errors and decrease report generation time.
Internal procedures are periodically reviewed and streamlined to eliminate unnecessary tasks and
redundancies.
The PRB works with the retirement systems to ensure a substantial number of systems are in
compliance with state reporting requirements.
The agency clearly communicates with systems to provide updates on laws and regulations. The PRB
provides reminders and enforcement notices regarding reporting and training compliance due dates.
Agency staff provides specialized assistance in the form of research, comparative data, and other
information to help systems accurately and promptly report required information.
Compliance reports are published and placed on the PRB website quarterly; the Calendar of Reporting
Due Dates, which outlines all financial and actuarial reporting deadlines, is also posted on the website
for systems’ convenience. The agency consistently communicates compliance status with plan sponsors
and maintains a regularly updated list of Plans Non-Compliant Over 60 Days. The agency will report MET
compliance to the Legislature beginning November 2016.
6
REDUNDANCIES AND IMPEDIMENTS
The PRB successfully completed the Sunset review process during the 83rd Legislative Session and was
continued for another 12 years until September 1, 2025. Senate Bill 200, the PRB’s Sunset legislation,
also reduced the members of the Board from nine to seven by eliminating the two legislative member
positions. Additionally, the bill amended Chapter 802 to update outdated reporting requirements for
retirement systems which significantly improved the quality of information received by the agency and
the timeliness of that information. S.B. 200 also exempted defined contribution and volunteer TLFFRA
systems from unnecessary reporting requirements, allowing the agency to focus its resources on the
systems that pose the greatest risk to retirees and taxpayers. The bill directed the agency to provide
more specific training and to deliver its training through the Internet, making it more accessible.
The agency’s Sunset review, and resulting legislation, removed the existing redundancies and
impediments faced by the agency and greatly improved the PRB’s ability to focus on its core mission and
functions of conducting a continuing review of public retirement systems, including compiling and
comparing information about benefits, creditable service, financing and administration of systems;
conducting intensive studies of potential or existing problems that threaten the actuarial soundness of
one or more public retirement systems; providing education, information and technical assistance on
pension planning to public retirement systems; and recommending policies, practices, and legislation to
public retirement systems and appropriate governmental entities.
7
SUPPLEMENTAL ELEMENTS
8
BUDGET STRUCTURE
Goal 01: Provide information and recommendations to help ensure that actuarially funded defined
benefit Texas public retirement systems are actuarially sound and well managed in their administration
and investments, so that members receive their entitled benefits with a minimum expenditure of
taxpayer dollars.
Objective
01-01
Determine
Actuarial Strategy 01-01-01 Conduct Reviews of Texas
Condition of Defined Benefit Public Public Retirement Systems
Retirement Systems
Output Measures
To determine the actuarial and/or financial 01-01-01.01 Number of Compliance Actions
condition of all actuarially funded defined benefit Initiated
Texas public retirement systems registered with
the State Pension Review Board such that 95 01-01-01.02 Number of Reviews Completed
percent of these systems are actuarially or
financially sound by the end of fiscal year 2025; Efficiency Measure
and to monitor reporting requirements so that 85 01-01-01.01 Percent of Reports Filed Within Time
percent of these systems are in compliance each Frames After Non-compliance Notice
year.
Explanatory/Input Measures
01-01-01.01 Number of Public Retirement Systems
Outcome Measures
01-01.01 Percent of Actuarially Funded Defined Registered with the State Pension Review Board
Benefit Texas Public Retirement Systems That Are
01-01-01.02 Estimated Value of Net Investments
Actuarially Sound
Owned by Texas Public Retirement Systems
01-01.02 Percent of Public Retirement Systems in (Billions)
Compliance with Reporting Requirements
9
Objective 01-02 Respond to Requests from Strategy
01-02-01
Provide
Technical
Legislature and Public Retirement Systems
Assistance; Issue Impact Statements; Educate
Each year through 2025, respond to 100 percent of
requests by providing the information required
and services needed by PRB's service population to
make informed decisions. Educate public
employee retirement systems (PERS) and their
members, the Legislature, and general public
regarding public pension matters, including
pension law and current issues such that 90
percent express satisfaction with educational
services. Examine legislation for potential impact
on Texas PERS and ensure that 100 percent of all
actuarial impact statements are delivered prior to
legislative hearings. Provide electronic access to
public pension data.
Provide technical assistance and educational
services to public retirement systems, including
retirement systems that are organized under the
Texas Local Fire Fighters Retirement Act (Article
6243e, Vernon's Texas civil statutes); examine
legislation for potential impact on Texas' public
retirement systems; and provide electronic access
to public pension data.
Output Measures
01-02-01.01 Number of Impact Statements Issued
01-02-01.02 Number of Persons Participating In
Training Sessions
Outcome Measures
01-02-01.03 Number of Technical Assistance
01-02.01 Percent of Legislative and Public Reports Provided By Staff
Retirement System Requests For Technical
Assistance Answered
01-02-01.04 Number of Responses To Requests
For Technical Assistance
01-02.02 Percent of Training Session Participants
Satisfied
01-02.03 Percent of All Constituents Satisfied With
PRB Educational Services
01-02.04 Percent of Public Retirement System
Trustees and System Administrators in Compliance
with Minimum Training Requirements
10
PERFORMANCE MEASURE DEFINITIONS
GOAL
Provide information and recommendations to help ensure that actuarially funded defined benefit Texas
public retirement systems are actuarially sound and well managed in their administration and
investments, so that members receive their entitled benefits with a minimum expenditure of taxpayer
dollars.
Objective
To determine the actuarial and/or financial condition of all actuarially funded defined benefit Texas
public retirement systems registered with the State Pension Review Board such that 95 percent of these
systems are actuarially or financially sound by the end of fiscal year 2025; and to monitor reporting
requirements so that 85 percent of these systems are in compliance each year.
Strategy
Conduct reviews of Texas Public Retirement Systems.
Objective
Each year through 2025, respond to 100 percent of requests by providing the information required and
services needed by PRB's service population to make informed decisions. Educate public employee
retirement systems (PERS) and their members, the Legislature, and general public regarding public
pension matters, including pension law and current issues such that 90 percent express satisfaction with
educational services. Examine legislation for potential impact on Texas PERS and ensure that 100
percent of all actuarial impact statements are delivered prior to legislative hearings. Provide electronic
access to public pension data.
Strategy
Provide technical assistance and educational services to public retirement systems, including retirement
systems that are organized under the Texas Local Fire Fighters Retirement Act (Article 6243e, Vernon's
Texas civil statutes); examine legislation for potential impact on Texas' public retirement systems; and
provide electronic access to public pension data.
OUTCOME MEASURES
Percent of Systems that are Actuarially Sound
Definition
An actuarially funded defined benefit public retirement system is considered actuarially sound if
the plan is in accordance with the most current Guidelines for Actuarial Soundness as adopted
by the State Pension Review Board.
Purpose/Importance
The purpose of this measure is to ensure that the actuarially funded defined benefit plans
registered with the PRB are actuarially sound and the benefits are equitably distributed with
11
minimum expenditure of taxpayer dollars. This measure is important because it determines the
potential number of actuarially funded defined benefit plans that may be facing existing or
imminent problems that could threaten the actuarial soundness of such plans.
Source/Collection of Data
Actuarial valuations of active defined benefit plans are the source of this data and the agency's
actuarial and financial database tracks this number. Each actuarial valuation that is submitted to
the PRB is reviewed by the PRB staff to determine the actuarial soundness of a public retirement
system.
Method of Calculation
The number of actuarially funded defined benefit plans considered to be actuarially sound
under the PRB's Guidelines for Actuarial Soundness divided by the total number of actuarially
funded defined benefit plans. Non-cumulative.
Data Limitations
This number does not take into account the
different actuarial valuation methodologies
employed by actuaries.
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
Percent of Systems in Compliance with Reporting Requirements
Definition
A public retirement system is considered to be in compliance with state reporting requirements
when all reports, required under Chapter 802 of Government Code, are received by the PRB in
the time required under Chapter 802.
Purpose/Importance
The purpose of this measure is to determine the percentage of public retirement systems
meeting their statutory reporting requirement. This measure is important because the PRB
requires the reports submitted by the public retirement systems to fulfill its statutory
obligations.
The agency's actuarial and financial database is the source for this data.
This is the number of compliant active systems divided by the total number of active systems.
Non-cumulative.
Data Limitations
The agency depends on the retirement systems for
12
Calculation Type
Noncumulative
timely filing of changes to investment policies, plan
designs and board composition as the agency
would otherwise be unaware of such changes.
New Measure: No
Target Attainment: Higher than target
Percent of Legislative and System Requests Answered
Definition
This is the percentage of legislative and system requests that are answered. This includes
written replies to requests for technical assistance, and includes requests for information on
pension issues, investments, laws, and reporting requirements.
Purpose/Importance
The purpose of this measure is to provide an indication of the responsiveness of the PRB staff to
technical assistance requests. This measure is important because one of the charges of the PRB
under its enabling statute is to provide technical assistance to its service population.
Technical assistance summary sheets are the source of this data. The information is entered into
the technical assistance database including the type of assistance, identifying the number of
legislative and system requests. This statistic is compiled into a spreadsheet.
The number of legislative and system requests completed divided by the total number of
legislative and system requests. Non-cumulative.
Data Limitations
The data is limited to requests that can be
documented on paper. This excludes requests for
information taken and answered over the phone.
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
Percent of Training Session Participants Satisfied
Definition
The percentage of participants that express satisfaction with the training sessions.
Purpose/Importance
This measure is important because it is one of the indicators of the level of satisfaction with the
training session's content provided by the PRB to its participants.
13
Participants who have registered and completed training sessions, either online or in person, are
provided optional surveys to comment on various categories, including content and delivery.
The staff of the PRB compiles and tabulates the results of the surveys in a spreadsheet.
This is the number of surveyed training session participants that expressed satisfaction with the
PRB's training sessions' content divided by the total number of surveyed training session
participants.
Data Limitations
Some training session participants do not
complete the survey.
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
Percent of All Constituents Satisfied w/ Educational Services
Definition
The percentage of plan administrators, trustees, members of Texas public pension funds, and
other constituents satisfied with PRB educational services.
Purpose/Importance
The purpose of this measure is to determine the quality of educational services provided by the
PRB to the administrators, trustees, and members of Texas public pension funds. This measure is
important because it is a statutory duty of the PRB.
Plan administrators, trustees, members of Texas public pension funds, and other constituents
receive an evaluation form annually to assess the performance of PRB educational services. The
results from survey evaluations are compiled and tabulated in a spreadsheet.
This is the number of surveyed plan administrators, trustees, members of Texas public
retirement systems, and other constituents that expressed satisfaction with the PRB programs
divided by the total number of surveyed plan administrators, trustees, members of Texas public
retirement systems, and other constituents that expressed an opinion with the PRB programs.
Data Limitations
Some plan administrators, trustees, members of
Texas public pension funds, and other constituents
do not complete an evaluation form.
14
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
Percent of Trustees, Administrators Complying W/ Minimum Training Requirements
Definition
This is the percentage of trustees and system administrators who meet the minimum training
requirements as established by the State Pension Review Board rules and/or policies.
Purpose/Importance
Public retirement system trustees and system administrators are required to meet the minimum
training requirements under Section 801.211 of the Government Code. Minimum training
requirements are intended to help ensure that trustees and system administrators receive the
necessary training to successfully discharge their duties. This measure is important because the
PRB is required to track and report the level of compliance with the minimum training
requirements by trustees and system administrators to the Legislature.
The agency's educational training program database is the source for this data.
The measure is calculated by dividing the number of individual trustees and system
administrators meeting the minimum training requirements, as established by PRB rules, by the
total number of trustees and system administrators, as reported to PRB.
Data Limitations
The agency depends on the public retirement
systems to timely report compliance with the
minimum training requirements by their trustees
and system administrators. The number of
trustees may vary by plan, but the statute defines
the system administrator as one person who
oversees the plan, typically the Executive Director.
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
15
EFFICIENCY MEASURES
Percent of Reports Filed within Time Frames After Non-compliance Notice
Definition
This is the percentage of pension systems that submit reports required under Chapter 802
within the established time period, as determined by PRB rules and/or policies, after notification
of the system's non-compliant status.
Purpose/Importance
The purpose of this measure is to determine the effectiveness of the non-compliant notification
process and in turn the PRB's efficient utilization of the said process to bring the public
retirement systems in compliance with their statutory reporting requirements. This measure is
important because the PRB requires the reports submitted by the public retirement systems to
fulfill its statutory obligations.
The agency's actuarial and financial database is the source of the data.
This is the total number of systems that submitted reports required under Chapter 802 within
the prescribed time period, as determined by PRB rules and/or policies, after notification of the
system's non-compliant status divided by the total number of systems that received a
notification of the system's non-compliant status. Non-cumulative.
Data Limitations
N/A
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
EXPLANATORY MEASURES
Number of Systems Registered with SPRB
Definition
This is the total number of active public retirement systems that are registered with the PRB.
Purpose/Importance
The purpose of this measure is to provide perspective on the number of constituents served by
the PRB.
The agency's actuarial and financial database is the source of data.
16
The total number of systems registered with the PRB. Non-cumulative.
Data Limitations
NA
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
Estimated Value of Investments Owned by Texas Retirement Systems (Billions)
Definition
The total estimated value of net assets of all actuarially funded defined benefit Texas public
pension funds registered with the PRB.
Purpose/Importance
The purpose of this measure is to provide the total estimated value of net assets of all
actuarially funded defined benefit Texas public retirement systems registered with the PRB.
The annual financial reports submitted by the plans registered with the PRB in accordance with
the statutory requirements are the source of this data. The information is entered into the
agency's actuarial and financial database.
This is the sum of total net assets of the actuarially funded defined benefit Texas pension funds
registered with the PRB.
Data Limitations
The data limitation is twofold. First, the financial
data required to calculate the net assets is at least
7 months old (could be more) at any given time
because as per the statute the pension funds have
7 months after the close of their fiscal year to
report the data. Second, some plans do not
comply with the statutory requirement of
submitting their financial report within 7 months
after the close of the plan's fiscal year. Hence, the
most current data available on file for the pension
fund is used for reporting purposes.
17
Calculation Type
Noncumulative
New Measure
No
Target Attainment
Higher than target
OUTPUT MEASURES
Number of Compliance Actions Initiated
Definition
All actuarially funded defined benefit Texas public pension plans are required by state law to
submit certain annual reports to the PRB within 211 days of the end of their fiscal years. Using
the agency's actuarial and financial database as the source of data, this is the number of written
enforcement notifications to systems of their failure to report in accordance with state law.
Purpose/Importance
The purpose of this measure is to determine agency's efforts in keeping the public retirement
systems in compliance with the state law. This measure is important because the PRB is charged
under the state law to oversee the Texas public retirement systems by conducting reviews and
compiling and comparing information based on the reports submitted by public retirement
systems.
The agency's actuarial and financial database is the source of the data.
The total number of written enforcement notifications to systems. Cumulative.
Data Limitations
NA
Calculation Type
Cumulative
New Measure
No
Target Attainment
Higher than target
Number of Reviews Completed
Definition
A review of a public retirement system includes the review of the plan design, financial report,
investment returns and assumptions report, investment policy, actuarial valuation, actuarial
experience study, or actuarial audit.
Purpose/Importance
The purpose of this measure is to conduct a continuing review of public retirement systems and
compile and compare information about benefits, creditable services, and financing, and
administration of system. This measure is important because it is a statutory duty of the PRB.
The agency's actuarial and financial database, as well as the internal review tracking
spreadsheet, is the source of data.
18
The total number of reviews. Cumulative.
Data Limitations
N/A
Calculation Type
Cumulative
New Measure
No
Target Attainment
Higher than target
Number of Impact Statements Issued
Definition
Each bill or resolution that proposes to change the amount or number of benefits or
participation in benefits of a public retirement system or that proposes to change a fund liability
of a public retirement system is required to have attached to it an actuarial impact statement as
provided by this section. An actuarial impact statement contains a summary of the legislation,
actuarial analysis, and actuarial review.
Purpose/Importance
The purpose of this section is to determine if the PRB is fulfilling its statutory obligation of
providing the impact statements. This measure is important because the PRB is charged under
the state law to prepare and provide the actuarial impact statements.
The Legislative Budget Board's Fiscal Notes System is the source for this number.
The total number of actuarial impact statements issued on legislation. The PRB may issue
several actuarial impact statements on a single bill as a result of amendments and companion
legislation. Cumulative.
Data Limitations
N/A
Calculation Type
Cumulative
New Measure
No
Target Attainment
Higher than target
Number of Persons Participating in Training Sessions
Definition
The number of people who register for and complete, either online or in-person, PRB training
sessions. A PRB training session may include an individual online course or an in-person seminar.
19
Purpose/Importance
The purpose of this measure is to determine the number of constituents, including the
administrators, trustees, and members of Texas public retirement systems served by the PRB
with regard to expanding their knowledge base and education. This measure is important
because the PRB is charged under the state law to provide educational services to its
constituents.
Lists of persons registering and completing, either online or in-person, PRB training sessions.
The total number of people who register for and complete, either online or in-person, PRB
training sessions.
Data Limitations
NA
Calculation Type
Cumulative
New Measure
No
Target Attainment
Higher than target
Number of Technical Assistance Reports Provided by Staff
Definition
The number of unique technical assistance reports produced by staff of the PRB. This includes
written responses to requests for technical assistance, but not limited to requests for
information on pension issues, investments, laws and reporting requirements.
Purpose/Importance
This measure is important because it determines the effectiveness of the agency in serving its
constituents.
Technical assistance summary sheets are the source. The information is entered into the
technical assistance database and tallied in a spreadsheet.
The total number of unique technical assistance reports produced by the PRB. One report
distributed to multiple recipients is counted as one. Cumulative.
Data Limitations
documented on paper. This excludes requests for
information taken and answered over the phone.
20
Calculation Type
Cumulative
New Measure
No
Target Attainment
Higher than target.
Number of Responses to Requests for Technical Assistance
Definition
The number of requests for technical assistance responded to by the agency.
Purpose/Importance
The purpose of this measure is to determine the amount of requests for technical assistance
received by the agency. This measure is important because the agency is required under state
law to provide technical assistance upon request.
Technical assistance summary sheets are the source of this data. The information is entered into
the technical assistance database and tallied in a spreadsheet.
The total number of responses to requests for technical assistance produced by the PRB staff.
Cumulative.
Data Limitations
documented on paper. This would exclude
requests for information taken and answered over
the phone.
Calculation Type
Cumulative
New Measure
No
Target Attainment
Higher than target
21
HISTORICALLY UNDERUTILIZED BUSINESS PLAN
The agency’s Board has adopted Rule §604.1 under 40 TAC Part 17 establishing the agency’s Historically
Underutilized Business (HUB) Policy. The policy adopts by reference the HUB rules promulgated by the
Comptroller of Public Accounts under 34 TAC Part 1, Chapter 20, Subchapter B. The PRB makes a good
faith effort to utilize HUBs in the procurement process of all goods and services whenever applicable for
any dollar amount.
PRB’s HUB Assessment Report
The following assessment report complies with the requirement of Section 7.06 to submit an internal
assessment evaluating the agency’s efforts during the previous two fiscal years to increase the
participation of HUBs in purchasing and public works contracting.
In fiscal year 2014, the PRB exceeded its goal of 24.60% for “Other services contracts” by 58.65%,
spending 83.25% of its total expenditures in the category with HUBs. The agency also exceeded its fiscal
year 2014 goal for “Commodities contracts,” spending 49.96% of total expenditures with HUBs. This is
28.96% over the agency’s goal of 21.00%.
FISCAL YEAR 2014
Total Dollars
Spent
Total Dollars
Spent w/ HUBs
% of Dollars
Spent w/HUBS
Statewide HUB
Goal
$0.00
$0.00
0.00%
11.20%
$0.00
$0.00
0.00%
21.10%
Special trade construction contracts
$0.00
$0.00
0.00%
32.70%
Professional services contacts
$0.00
$0.00
0.00%
23.60%
Other services contracts
$78,232
$65,125
83.25%
24.60%
Commodities contracts
$39,338
$19,651
49.96%
21.00%
HUB Report Procurement Categories
Heavy construction other than
building contracts
Building construction, including
general contractors and operative
builders contracts
For fiscal year 2015, the PRB spent 27.22% of its expenditures with HUBs for “Other services contracts,”
exceeding the 26.00% goal by 1.22%. For “Commodities contracts,” the PRB did not meet its goal of
21.10%, having spent 13.58% of its expenditures with HUBs. In fiscal year 2015, the agency’s
commodities requirements differed from fiscal year 2014, including several cyclical expenses, such as
multi-year software license renewals and office supply purchases from TIBH Industries.
22
FISCAL YEAR 2015
HUB Report Procurement Categories
Heavy construction other than
building contracts
Building construction, including
general contractors and operative
builders contracts
Total Dollars
Spent w/ HUBs
Total Dollars
Spent
% of Dollars
Spent w/HUBS
Statewide HUB
Goal
$0.00
$0.00
0.00%
11.20%
$0.00
$0.00
0.00%
21.10%
Special trade construction contracts
$0.00
$0.00
0.00%
32.90%
Professional services contacts
$0.00
$0.00
0.00%
23.70%
Other services contracts
$37,085
$10,093
27.22%
26.00%
Commodities contracts
$35,938
$4,878
13.58%
21.10%
The following report addresses the requirement in Section 7.07 to describe plans to maintain
compliance with Government Code Section 2161.123. The PRB will continue good faith efforts to meet
HUB goals for purchasing and contracting in fiscal years 2016 and 2017 by following its HUB Plan, as
outlined below.
HUB Goal
The PRB’s HUB goal is to establish procurement and contracting practices that support the promotion
and utilization of qualified HUBs in all applicable procurements, contracts, and subcontracts made by
the agency by an increase of at least 10% above the statewide average.
HUB Objective
To increase the PRB’s use of HUBs in purchasing and public works contracting, the agency will make a
good faith effort to utilize HUBs in the procurement process of all goods and services; whenever
applicable for any dollar amount. The PRB will always strive to achieve and exceed the HUB Statewide
goals whenever possible.
HUB Strategy



To implement good faith efforts to identify, solicit, and utilize qualified HUBs in all applicable
procurement opportunities;
To use the Centralized Master Bidders List (CMBL) to determine the availability of HUBs; and
To utilize statewide contracts, which are generated by the Comptroller of Public Accounts and
Department of Information Resources when available.
23
AGENCY WORKFORCE PLAN
A. Overview
To comply with regulations required by Section 2056.002 of the Government Code, the PRB has
conducted a staffing analysis, which includes the following:
 A systematic process for workforce planning, which is integrated, methodical and ongoing;
 identification of the human capital necessary to meet agency goals; and
 development of a strategy to meet agency staffing requirements.
Update Agency Workforce Snapshot: The PRB currently has 12 staff including the executive director. The
agency is authorized for 15.0 full-time equivalents (FTEs) with funding available for 14.0 FTEs.
Agency Mission: The mission of the PRB is to provide the State of Texas with the necessary information
and recommendations to help ensure that our public retirement systems, whose combined assets total
in the multi-billions, are actuarially sound; benefits are equitable; the systems are properly managed;
tax expenditures for employee benefits are kept to a minimum while still providing for those employees;
and to expand the knowledge and education of administrators, trustees, and members of Texas public
retirement systems.
Agency Scope and Key Functions: The PRB was established by H.B.1506, 66th Legislature, R.S. (V.T.C.A.,
Title 8, Chapter 801, Government Code), effective September 1, 1979, as an oversight agency for Texas
public pension systems. The general duties of the PRB outlined in Chapter 801 of the Government Code
are to (1) conduct a continuing review of public retirement systems, compiling and comparing
information about benefits, creditable service, financing and administration of systems; (2) conduct
intensive studies of potential or existing problems that threaten the actuarial soundness of or inhibit an
equitable distribution of benefits in one or more public retirement systems; (3) provide information and
technical assistance on pension planning to public retirement systems on request; and (4) recommend
policies, practices, and legislation to public retirement systems and appropriate governmental entities.
The agency is also charged with preparing and providing an actuarial impact statement for a bill or
resolution that proposes to change the amount or number of benefits or participation in benefits of a
public retirement system or that proposes to change a fund liability of a public retirement system.
Additionally, the board is charged to develop and administer an educational training program for
trustees and system administrators of Texas public retirement systems. The Board is also authorized to
develop and conduct training sessions, schools, or other educational activities. The Board can furnish
other appropriate services such as actuarial studies or other requirements of systems and can establish
appropriate fees for these activities and services.
The PRB service population consists of the current and future members, administrators, and trustees of
approximately 330 individual public retirement systems, as well as state and local government officials,
and taxpayers.
Agency Strategic Goals and Objectives:
Goal
Provide information and recommendations to help ensure that actuarially funded defined
benefit Texas public retirement systems are actuarially sound and well managed in their
administration and investments, so that members receive their entitled benefits with a
minimum expenditure of taxpayer dollars.
24
Objective
Strategy
Objective
Strategy
To determine the actuarial and/or financial condition of all actuarially funded defined
benefit Texas public retirement systems registered with the State Pension Review Board
such that 95 percent of these systems are actuarially or financially sound by the end of
fiscal year 2025; and to monitor reporting requirements so that 85 percent of these
systems are in compliance each year.
Conduct reviews of Texas Public Retirement Systems.
Each year through 2025, respond to 100 percent of requests by providing the information
required and services needed by PRB's service population to make informed decisions.
Educate public employee retirement systems (PERS) and their members, the Legislature,
and general public regarding public pension matters, including pension law and current
issues such that 90 percent express satisfaction with educational services. Examine
legislation for potential impact on Texas PERS and ensure that 100 percent of all actuarial
impact statements are delivered prior to legislative hearings. Provide electronic access to
Provide technical assistance and educational services to public retirement systems,
including retirement systems that are organized under the Texas Local Fire Fighters
Retirement Act (Article 6243e, Vernon's Texas civil statutes); examine legislation for
potential impact on Texas' public retirement systems; and provide electronic access to
B. Current Workforce Profile (Supply Analysis)
Workforce Demographics: As of June 2016, the agency’s workforce of 12 FTEs was comprised of 67
percent females and 33 percent males. Overall, 25 percent of the agency’s employees had more than 5
years’ service, and 42 percent had less than 2 years’ service. The average age of agency employees is
33.75. The staff is comprised of program specialists, financial analysts, research specialists, accountants,
other professional and support personnel. Lastly, the agency’s racial composition is as follows: 75
percent White; 17 percent Hispanic; and 8 percent Asian.
Employee Turnover: Turnover continues to be a critical issue. In fiscal year 2015 alone, the PRB's
turnover rate was 35.7 percent, with 5 employees leaving, including 3 senior-level positions and both of
the agency's accounting positions. One of the senior-level positions was the agency's actuary, which is
an extremely technical specialization and very difficult to fill.
A major strength of the PRB is its staff. When a position becomes vacant within the agency, the
turnover rate will appear much higher than the state-wide average because the agency only has 14
budgeted FTEs. Recent years have seen the departure of senior staff whose expertise is not easily
replaced.
The PRB is making serious efforts to reduce turnover. In the next five years, the agency expects a
reduced employee turnover rate due to those efforts.
Critical Workforce Skills: There are numerous skills that are critical to the agency's ability to successfully
meet objectives. The PRB could not fulfill its mission without knowledgeable people with the following
skills:
25


















Accounting/Budgeting
Actuarial
Administrative
Auditing
Computer Research Skills
Database Administration
Data Analysis
Education and Training Delivery
Financial Analysis
Policy Analysis
Investment Analysis
Forecasting
Human Resources
Mathematical Modeling
Office Management
Political/Legislative Experience
Risk Analysis
Writing, Editing, and Research
C. Future Workforce Profile (Demand Analysis)
Expected Workforce Changes: As a small state agency, recruitment and retention of staff is an ongoing
challenge, especially due to lack of competitive salary levels. Due to budget constraints, it is difficult for
the agency to retain staff with pension-related expertise and problem-solving skills. If the labor market
remains strong, it is likely that the agency may lose more talented staff to higher paying jobs in the
future.
Future Workforce Skills Needed: The PRB will continue to need the critical workforce skills listed above.
In addition, the agency may need more specialized investment analysis skills to conduct increased
review of investment practices and data reported by public retirement systems.
Critical Functions That Must Be Performed to Achieve Strategic Plan:

Provide accurate information and analysis regarding public retirement systems

Conduct research into potential and existing pension issues

Educate public retirement systems, the public, and the Legislature

Monitor compliance with laws and regulations

Continued collaboration with industry stakeholders
D. Gap Analysis
A slight gap exists in the PRB's workforce due to two positions (research specialist and accounting
technician) that are currently vacant. Also, due to the agency's small size, substantial gaps might
emerge rapidly in the future, with the departure of even one or two key employees. Due to the highly
specialized nature of pension and actuarial expertise, the labor market may not be as well suited to
providing qualified replacements for the most senior positions in the agency. Successfully replacing key
positions with new employees with specialized pension/actuarial expertise has proven to be very
difficult and the agency is often challenged with lack of qualified applicant pool. While pension/actuarial
26
skills are scarce, they can be effectively developed within candidates with strong backgrounds in general
financial analysis, but this takes time and resources. Additionally, the agency continues to experience
increased workload demand in conjunction with lack of competitive pay for staff.
E. Strategy Development
Skill Development: While the agency will continue to recruit future personnel to fill vacant positions, the
agency is simultaneously focused on developing the requisite pension, actuarial and investment
expertise of current staff. Development will help the agency overcome the scarcity of those specialized
skills in the labor market. Another focus for skill development is the encouragement of staff to use
training opportunities to further already existing skill sets or to develop new skill sets.
Development Time: Due to the complexities of actuarial science found in pension review, development
may require longer periods of training, perhaps exposure to many months of on-the-job experience.
Understanding how to navigate the political and legislative environment is also experience-driven, and
will often take months or years to gain experience in those areas. The same is true of the agency's
accounting and budget functions, which require knowledge of state systems and requirements.
Succession Planning: The agency has increased its ongoing efforts of succession planning for key
positions through cross training to ensure continuity of functions, encouraging professional
development of staff, and creating detailed written procedures for important agency programs. There is
a committed focus on improving documentation of strategic job descriptions for all agency positions,
including the accountant and actuary positions. Specialized knowledge, including financial and actuarial,
has been captured and translated into a procedural manual. This will leave an informational reference
and knowledge base for future administrators in the agency. The same is being done for the accounting
functions of the agency.
Retention Strategy and Leadership Development: Due to agency’s budgetary limitations, there is a lack
of competitive salary structure. The agency continues to lose qualified employees to better paying jobs
and faces difficulty in filling those positions. Serious efforts are being made to retain staff but additional
funding to offer competitive salaries is required to successfully retain and attract qualified personnel.
The agency will continue to relay its budgetary challenges to the Legislature and request additional
funds for the agency to attract and retain talented staff.
The agency is focused on retaining its qualified staff. Given the budgetary limitation of the agency, three
key policies are in place to retain valuable personnel.

First, the flexibility of assignments allows staff members to pursue areas of interest to them
while working within the needs of the agency. With staff able to match agency goals with their
own professional goals, the ability to retain valuable personnel will be strong.

Second, to empower staff to step up into roles of higher responsibility and prepare qualified and
experienced staff to move into leadership and management roles, which helps create a career
ladder within the agency. To accomplish this, the agency has made professional development
training to staff a high priority item by making available to staff professional development
training in the area of leadership development. Also, to prepare qualified staff to carry out roles
of management and leadership, senior staff provides mentoring opportunities.

The third policy is the flexibility of schedules which allows staff to maintain a firm work-life
balance essential for retaining valuable personnel.
27
Survey of Employee Engagement
The PRB participated in the Survey of Employee Engagement in the 2016 fiscal year. Out of 13
employees who were invited to take the survey, 9 responded resulting in a 69.2% response rate for the
agency. Scores above 350 are considered desirable. The overall score for the agency was 397 with the
majority of constructs being above 360. The survey found that the agency’s areas of substantial
strength include constructs such as Strategic, Workplace, and Workgroup.
The survey found that the agency’s primary concern was the Pay construct. The Pay construct reflects
the employees’ perceptions about how well the compensation package offered by the organization
holds up when compared to similar jobs in other organizations. Survey suggests that pay is a central
concern or reason for discontent. In some situations pay does not meet comparable salaries in similar
organizations. In other cases individuals may feel that pay levels are not appropriately set to work
demands, experience and ability. Cost of living increases may cause sharp drops in purchasing power,
and as a result, employees will view pay levels as unfair.
These areas of concern are being addressed as employees have been encouraged to speak freely about
their concerns and to make suggestions to improve the agency operations at any time. During an
individual’s performance review, employees are also given an opportunity to discuss the overall work
situation and evaluate ways to improve their personal development within the agency budget
constraints. All employees are afforded the opportunity to participate regularly in training classes
offered by the Comptroller’s Office, the Governor’s Center for Management Development, and other
avenues identified by staff.
28
TAB 7B INTRODUCTION
FIGURE 1
TEXAS BUDGET CYCLE, AS OF OCTOBER 2015
6285&(/HJLVODWLYH%XGJHW%RDUG
STRATEGIC PLANNING AND BUDGETING SYSTEM (SPB)
The Strategic Planning and Budgeting system (SPB) utilized by the state to allocate state government resources recognizes
relationships between funding and performance, between accountability and resource allocation, and most importantly, between
spending and results. The goal of SPB is to focus on the quality of services that state agencies provide and to emphasize
accountability for expenditure of state resources. Major elements of the system include strategic planning, performance-based
budgeting, budget implementation, and budget monitoring. A more detailed description of the SPB system is in the Instructions
for Preparing and Submitting Agency Strategic Plans for Fiscal Years 2017 to 2021 (April 2016), which are available on the LBB
website (www.lbb.state.tx.us/AgenciesPortal.aspx ĺ Instructions ĺ Strategic Plan Instructions).
STRATEGIC PLANNING AND BUDGETING STRUCTURES
Although the strategic planning and budgeting structure serves as the starting point for developing an agency’s biennial budget
request, the approved budget structure may differ from the strategic planning structure. Changes to existing budget structures
must be approved by the Governor’s office and the LBB. Requested changes are reviewed by both the Governor’s office and the
LBB to ensure that the structure will provide an appropriate basis for budgetary analysis. Please note that the budget structure
approved in the Strategic Plan may be altered as the appropriations bill moves through the legislative budget process. Any changes
to budget structures should allow comparison to previous structures. In addition, to allow comparison of performance between
2
JUNE 2016
LEGISLATIVE BUDGET BOARD ID: 3060 — LEGISLATIVE APPROPRIATION REQUEST INSTRUCTIONS
INTRODUCTION
fiscal years, historical data must be maintained and available for any measures that are changed. Agencies wanting to modify
previously approved structures and measure definitions should have submitted a written request to both the Governor’s office and
the LBB by the May 20, 2016, deadline.
If revisions are not requested or approved, the budget structure previously approved for use in preparing an agency’s appropriation
request for the 2016–17 biennium, as modified by House Bill 1, Eighty-fourth Legislature, 2015 (published version of 2016–17
GAA), is the approved structure for the 2018–19 biennium. When budget structures are finalized, the LBB will send each agency
a set of reports to serve as the framework for entering the budget request into ABEST.
PERFORMANCE MEASURES
Developing and maintaining an effective performance accountability system is critical to the SPB system. The overall value of the
measurement system is dependent upon the quality of the individual measures. A sound measurement system requires measures
that are relevant, reliable, and valid, and that provide sufficient coverage of agency activities in a cost-effective manner.
Measures developed and approved for an agency’s strategic plan are used in its budget request. The agency should show the actual
fiscal year 2015 performance for each measure, as reported in ABEST, to the LBB and the Governor’s office. A good faith effort
should be made to identify expected performance for fiscal year 2016 and projected performance for fiscal years 2017, 2018, and
2019.
Additional information on the state’s performance measurement system can be found in the Instructions for Preparing and
Submitting Agency Strategic Plans for Fiscal Years 2017–21 (April 2016) on the LBB website
(www.lbb.state.tx.us/AgenciesPortal.aspx ĺ Instructions ĺStrategic Plan Instructions).
IMPORTANT
3URMHFWLQJSHUIRUPDQFHWZRWRWKUHH\HDUVRXWLVGLIILFXOW$VDJHQFLHVUHFHLYHDGGLWLRQDOLQIRUPDWLRQRQSHUIRUPDQFHWUHQGVDIWHU
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SHUIRUPDQFHSURMHFWLRQVDVDSSURSULDWHWKURXJKRXWWKHOHJLVODWLYHSURFHVV
JUNE 2016
3
INTRODUCTION
MAJOR MILESTONES
The 2018–19 biennial cycle for allocating state resources began with the issuance of Instructions for Preparing and Submitting
Agency Strategic Plans for Fiscal Years 2017–21 (April 2016). Figure 2 shows major milestones in the cycle.
FIGURE 2
MILESTONES IN THE STATE BUDGET PROCESS, 2016–17 BIENNIUM
MILESTONE
DATE
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4
JUNE 2016
STATE OF TEXAS
DAN PATRICK
LIEUTENANT GOVERNOR
GREG ABBOTT
GOVERNOR
JOE STRAUS
SPEAKER Of THE HOUSE
P.O. Box 12068
P.O. Box 12428
P.O. Box 2910
AUSTIN, TEXAS 78711-2068
AUSTIN, TEXAS 7871 1-2468
AUSTIN, TEXAS 78768-29 10
(512) 463-0001
(512) 463-2000
(512) 463-3000
June 30, 2016
To:
State Agency Board/Commission Chairs
State Agency Heads/Executive Directors
Appellate Court Justices and Judges
Chancellors, Presidents, and Directors of Institutions and Agencies of Higher Education
Limited government, pro-growth economic policies and sound financial planning are the key budget
principles responsible for Texas’ economic success. During the 84th Legislative Session, we worked
together to prioritize spending and made our state even stronger and more efficient. With your help,
we can restrain the size and scope of government to ensure that employers are empowered to create
more jobs that benefit hardworking Texans.
An initial step in developing the 2018-19 biennial budget for the State of Texas is submission of
agency and institution Legislative Appropriations Requests (LAR). Detailed instructions for the
submission are posted on the websites of the Legislative Budget Board (LBB) and the Office of the
Governor, including a staggered schedule of submission dates.
It is imperative that every state agency engage in a thorough review of each program and budget
strategy and determine the value of each dollar spent. As the starting point for budget deliberations,
we are requiring each agency to trim four percent from their base appropriation levels. These levels
will be provided to each agency by the Governor’s Office and LBB.
Exceptions to the baseline request limitation include amounts necessary to:
• maintain funding for the Foundation School Program under current law;
• maintain public safety resources in the border region to help secure Texas;
• satisfy debt service requirements for bond authorizations;
• maintain funding at fiscal year 2017 budgeted levels plus amounts necessary to cover the
impact of payroll growth for state pension systems and employee group benefits (not including
payroll contributions made by state agencies and institutions of higher education for retirement
and group health insurance), though group benefit modifications may be considered;
• maintain funding for Child Protective Services;
• maintain funding for behavioral health services programs; and
• maintain current benefits and eligibility in Medicaid programs, the Children’s Health Insurance
Program, the foster care program, the adoption subsidies program and the permanency care
assistance program. Baseline requests for these programs should include amounts sufficient
for projected caseload growth.
June 30, 2016
Page 2
Specific questions with respect to the treatment of the above items should be directed via email to both
your Governor’s Office and LBB analyst.
The reduction in the baseline request will require agencies to maximize the efficient use of state
resources, and all LAR should express the agency’s priorities for programs and items that are of
highest value to Texas taxpayers.
Funding requests that exceed the adjusted baseline spending level may not be included in the baseline
request, but these additional funding requests may be submitted as Exceptional Items. The
Exceptional Items schedule now includes required fields for information on potential contract,
information technology and out-year costs in order to better identify and analyze ongoing state
expenses associated with requested items. Agencies that request Exceptional Items should be prepared
to suggest lower-priority programs or other cost savings to help offset the increased costs associated
with their requests.
Each LAR submission must include information providing the budget request by program in a format
prescribed by the LBB and Governor’s Office. Additionally, zero-based budget information will also
be requested from agencies throughout development of the 2018-19 state budget.
Thank you for your service to the State of Texas, and we look forward to working with you in
preparation for the 85th Legislative Session.
Governor Greg Abbott
Lt. Governor Dan Patrick
Speaker Joe Straus
7/11/2016
Pension Review Board (338)
Calculation of the GR/GR-D Limit and the 10% Reduction for the 2018-19 Baseline Request
Biennial
General Revenue
Biennial
GR-Dedicated
$
1,872,175
a GOBPP / LBB Approved 2016-17 Base
Remove authorized exception(s) from the 2016-17 base expenditure level
(negative entry):
1 2018-19 Authorized Exception
$
1,872,175
b
Total, Authorized Exceptions
$
-
$
c 2016-17 Total Less Exceptions
$
1,872,175
d 96% of 2016-17 Total Less Exceptions
$
1,797,288
GOBPP / LBB Approved 2016-17 GR and GR-Dedicated Base
Biennial
GR/GR-D Total
$
1,872,175
$
1,872,175
$
-
-
$
-
$
-
$
1,872,175
$
-
$
1,797,288
$
-
1 CALCULATION OF 2018-19 GR/GR-D LIMIT
(for LAR Schedule 2.B. Summary of Base Request by Method of Finance)
e
$
-
Add back authorized exception(s) to finalize 2018-19 GR/GR-D Limit, and any
incremental increases related to authorized exception(s) (positive entry)
1 2018-19 Authorized Exception
$
-
$
-
$
-
$
1,797,288
$
-
$
1,797,288
a 96% of 2016-17 Total Less Exceptions (line 1d)
$
1,797,288
$
-
$
1,797,288
b 2018-19 10% GR/GR-D Reduction
$
179,729
$
-
$
179,729
f
Total, Authorized Exceptions added back
2018-19 GR/GR-D Limit (96% of Total Less Exceptions, plus exceptions)
2 CALCULATION OF 10% GR/GR-D REDUCTION
(for LAR Schedule 6.I, 10% Biennial Base Reduction Options)
NOTES
1. No authorized exceptions for 2018-19 were identified.
Legislative Appropriations Request
2018 – 2019 Biennium
Exceptional Items
1. Critical Agency Operations
Description/Justification: This exceptional item request is for $36,500 each fiscal year to attract
and retain talented staff. In fiscal year 2015 alone, the PRB’s turnover rate was 35.7 percent,
with five employees leaving, including three senior-level positions and both of the agency’s
accounting positions. Turnover continues to be a critical issue. It is imperative for the PRB to be
able to offer salary amounts comparable to other agencies of our size to retain qualified staff.
For several years, the PRB has not had appropriate funding to retain talented employees and as
a result, several individuals have resigned for more lucrative offers. Given current funding
constraints, the PRB has been unable to match or partially match these offers to retain strong
personnel. The responsibilities of the staff of the PRB are highly specialized and require
considerable training/professional development, thus losing trained staff due to salary
constraints and needing to train new ones further hampers our continuing ability to provide
excellent service to the State of Texas. This exceptional item would allow the agency to provide
merit-based salary increases to retain talented staff, to continue to grow internal expertize of
staff in pension-related areas by investing in professional development of staff, and to help
attract a qualified applicant pool for any future vacancies at the agency.
2. List of Scrutinized Companies Doing Business in Iran
Description/Justification: This exceptional item request is $20,000 per fiscal year to develop and
maintain the Pension Review Board’s (PRB) List of Scrutinized Companies Doing Business in Iran
(Iran List) as mandated by Chapter 807 of the Texas Government Code. Chapter 807 was
enacted by the 83rd Legislature in 2013 and required the PRB to create and maintain the Iran
List applicable to the five statewide retirement systems. The agency did not receive requested
funding during the 83rd Session to develop and maintain the Iran List. Hence, the PRB used
publicly available information regarding companies with business operations in Iran to create
and update the List. However, given that the PRB is a small state agency, this exceptional item
would allow the agency to contract with an external vendor, a financial service or market
research firm that specializes in providing the necessary investment information, which would
help the PRB maintain the Iran List more effectively. In accordance with Texas Government
Code, Chapter 2254, the agency would enter into a consulting services agreement with an
outside vendor to accomplish this mandate. The Iran List would be updated annually or more
often, as the Board considered necessary, and within budgetary means. This exceptional item
would allow the PRB to continue to ensure the integrity of the List and provide critical updates
to the Iran List as required by Government Code, Chapter 807.
1
3. Development of Online Dashboard for Public Pension Data
Description/Justification: This exceptional item request is $90,000 for fiscal year 2018 and the
authority to carry the unexpended balance into fiscal year 2019 to comply with the statutory
requirements of Government Code Section 801.209, as added by the 83rd Legislature, directing
the PRB to post the most recent data from pension system reports online. This request would
fund the development of an online dashboard tool to meet the requirements of the law and to
provide lawmakers, taxpayers, pension systems, and other stakeholders with a searchable,
downloadable database of public pension information. The PRB would use the Department of
Information Resources’ (DIR) IT commodity purchasing program to contract with an external
vendor, a database developer, for this service.
2
Budget Overview - Biennial Amounts
85th Regular Session, Agency Submission, Version 1
Automated Budget and Evaluation System of Texas (ABEST)
338 Pension Review Board
Appropriation Years: 2018-19
GENERAL REVENUE FUNDS
2016-17
Goal: 1. Provide Info to Help Ensure
Actuarially Sound Retirement Systems
1.1.1. Retirement System Reviews
1.2.1. Technical Assistance And
Education
2018-19
GR DEDICATED
2016-17
2018-19
FEDERAL FUNDS
2016-17
2018-19
OTHER FUNDS
2016-17
2018-19
EXCEPTIONAL
ITEM
FUNDS
ALL FUNDS
2016-17
2018-19
2018-19
778,844
731,990
778,844
731,990
51,000
1,093,331
1,065,298
1,093,331
1,065,298
152,000
Total, Goal
1,872,175
1,797,288
1,872,175
1,797,288
203,000
Total, Agency
1,872,175
1,797,288
1,872,175
1,797,288
203,000
14.0
14.0
0.0
DR
AF
T
Total FTEs
Page 1 of 1
2.A. Summary of Base Request by Strategy
7/28/2016 11:20:16PM
Goal / Objective / STRATEGY
Exp 2015
Est 2016
Bud 2017
Req 2018
Req 2019
360,517
389,717
389,127
365,995
365,995
486,310
546,371
546,960
532,649
532,649
$846,827
$936,088
$936,087
$898,644
$898,644
$846,827
$936,088
$936,087
$898,644
$898,644
Provide Info to Help Ensure Actuarially Sound Retirement Systems
1
1
Determine Actuarial Condition of Defined Benefit Public Ret Systems
1 RETIREMENT SYSTEM REVIEWS
2
Respond to Requests From Legislature and Public Retirement Systems
TOTAL, GOAL
1
TOTAL, AGENCY STRATEGY REQUEST
TOTAL, AGENCY RIDER APPROPRIATIONS REQUEST*
GRAND TOTAL, AGENCY REQUEST
AF
T
1 TECHNICAL ASSISTANCE AND EDUCATION
$0
$0
$936,088
$936,087
$898,644
$898,644
846,827
936,088
936,087
898,644
898,644
SUBTOTAL
$846,827
$936,088
$936,087
$898,644
$898,644
TOTAL, METHOD OF FINANCING
$846,827
$936,088
$936,087
$898,644
$898,644
METHOD OF FINANCING:
General Revenue Funds:
1 General Revenue Fund
DR
$846,827
2.A.
Page 1 of 2
2.B. Summary of Base Request by Method of Finance
7/28/2016 11:20:16PM
Agency code:
Agency name:
338
METHOD OF FINANCING
Exp 2015
Est 2016
Bud 2017
Req 2018
Req 2019
$722,001
$0
$0
$0
$0
$0
$923,658
$923,657
$0
$0
$0
$0
$0
$898,644
$898,644
$48,344
$0
$0
$0
$0
$65,500
$0
$0
$0
$0
GENERAL REVENUE
General Revenue Fund
REGULAR APPROPRIATIONS
AF
T
Regular Appropriations from MOF Table (2014-15 GAA)
Regular Appropriations Request
RIDER APPROPRIATION
DR
1
Article IX, Sec. 18.07, Contingency for HB 13 (2014-15 GAA) Biennium
FFPC Rider 4, Contingency for SB200 (2014-15 GAA)
Comments: Pursuant to SB200 of Regular Appropiations (2014-15 GAA)
relating to the transfer from the Fire Fighter's Pension Commissioner to the
Pension Review Board, by the Eight-third Legislature
2.B.
Page 1 of 5
7/28/2016 11:20:16PM
Agency code:
338
Agency name:
Est 2016
Bud 2017
Req 2018
Req 2019
$0
$0
$0
$0
$0
$12,430
$12,430
$0
$0
$(50)
$0
$0
$0
$0
$846,827
$936,088
$936,087
$898,644
$898,644
$846,827
$936,088
$936,087
$898,644
$898,644
$10,000
$0
$0
$0
$0
Exp 2015
METHOD OF FINANCING
GENERAL REVENUE
TRANSFERS
Art IX, Sec 17.06 Salary Increase for General State Employees (2014-15 GAA)
$11,032
LAPSED APPROPRIATIONS
AF
T
Art IX, Sec 18.02, Salary Increase for General State Employees (2016-17 GAA)
TOTAL,
TOTAL, ALL
DR
Regular Appropriations for MOF Table (2014-15 GAA)
GENERAL REVENUE
OTHER FUNDS
666
Appropriated Receipts
2.B.
Page 2 of 5
7/28/2016 11:20:16PM
Agency code:
338
Agency name:
METHOD OF FINANCING
Exp 2015
Est 2016
Bud 2017
Req 2018
Req 2019
$0
$10,000
$10,000
$0
$0
$30,000
$0
$0
$0
$0
$(10,000)
$0
$0
$0
$0
$0
$(10,000)
$(10,000)
$0
$0
$(30,000)
$0
$0
$0
$0
$0
$0
$0
$0
OTHER FUNDS
AF
T
RIDER APPROPRIATION
Article IX, Sec 18.07, Contingency for HB 13 (2014-15 GAA) Biennium
DR
LAPSED APPROPRIATIONS
Article IX, Sec 18.07, Contingency for HB 13 (2014-15 GAA) Biennium
TOTAL,
$0
2.B.
Page 3 of 5
7/28/2016 11:20:16PM
Agency code:
Agency name:
338
METHOD OF FINANCING
TOTAL, ALL
Exp 2015
Est 2016
Bud 2017
Req 2018
Req 2019
$0
$0
$0
$0
$0
$846,827
$936,088
$936,087
$898,644
$898,644
13.0
0.0
0.0
0.0
0.0
0.0
15.0
15.0
0.0
0.0
0.0
0.0
0.0
14.0
14.0
1.0
0.0
0.0
0.0
0.0
1.0
0.0
0.0
0.0
0.0
(2.1)
(2.3)
(1.0)
0.0
0.0
12.9
12.7
14.0
14.0
14.0
OTHER FUNDS
GRAND TOTAL
FULL-TIME-EQUIVALENT POSITIONS
AF
T
Regular Appropriations form MOF Table
(2014-15 GAA)
Request Appropraitions
RIDER APPROPRIATION
Article IX, Sec 18.07, Contingency for
HB 13 (2014-15) Biennium
DR
Regular Appropriations form MOF Table
(2016-17 GAA)
FFPC Rider 4, Contingency for SB200
(2014-15 GAA)
UNAUTHORIZED NUMBER OVER (BELOW) CAP
Unauthorized number below cap
TOTAL, ADJUSTED FTES
2.B.
Page 4 of 5
7/28/2016 11:20:16PM
Agency code:
338
Agency name:
Exp 2015
METHOD OF FINANCING
Est 2016
DR
AF
T
NUMBER OF 100% FEDERALLY
FUNDED FTEs
2.B.
Page 5 of 5
Bud 2017
Req 2018
Req 2019
7/28/2016 11:20:17PM
2.C. Summary of Base Request by Object of Expense
OBJECT OF EXPENSE
Exp 2015
Est 2016
Bud 2017
BL 2018
BL 2019
1001 SALARIES AND WAGES
$695,665
$713,812
$816,000
$794,478
$794,478
1002 OTHER PERSONNEL COSTS
$44,934
$65,959
$19,600
$19,600
$19,600
2001 PROFESSIONAL FEES AND SERVICES
$10,000
$10,148
$12,500
$12,500
$12,500
$2,090
$11,101
$3,500
$3,500
$3,500
$0
$1,500
$0
$0
$0
$11,082
$23,528
$26,000
$26,000
$26,000
$1,058
$1,119
$1,000
$1,000
$1,000
$15,977
$16,185
$15,000
$15,000
$15,000
$66,021
$92,736
$42,487
$26,566
$26,566
$846,827
$936,088
$936,087
$898,644
$898,644
$846,827
$936,088
$936,087
$898,644
$898,644
2003 CONSUMABLE SUPPLIES
2004 UTILITIES
2007 RENT - MACHINE AND OTHER
2009 OTHER OPERATING EXPENSE
OOE Total (Excluding Riders)
OOE Total (Riders)
Grand Total
DR
2006 RENT - BUILDING
AF
T
2005 TRAVEL
2.C
Page 1 of 1
7/28/2016 11:20:17PM
2.D. Summary of Base Request Objective Outcomes
Automated Budget and Evaluation system of Texas (ABEST)
Goal/ Objective / Outcome
1
KEY
Exp 2015
Est 2016
Bud 2017
BL 2018
BL 2019
1 Determine Actuarial Condition of Defined Benefit Public Ret Systems
1
Percent of Systems That Are Actuarially Sound
98.67%
2
99.02%
98.00%
98.00%
98.00%
41.94%
50.00%
60.00%
70.00%
70.00%
100.00%
100.00%
100.00%
100.00%
100.00%
0.00%
95.00%
95.00%
95.00%
95.00%
89.58%
89.58%
98.00%
98.00%
98.00%
75.00%
75.00%
80.00%
80.00%
Percent of Systems in Compliance with Reporting Requirements
2 Respond to Requests From Legislature and Public Retirement Systems
2
% of Training Session Participants Satisfied
3
% All Constituents Satisfied w/Educ Svcs
4
% Trustees, Administrators Complying W/Minimum Training Requirements
DR
KEY
% of Legislative and System Requests Answered
AF
T
1
0.00%
2.D.
Page 1 of 1
DATE: 7/28/2016
TIME : 11:20:17PM
2.E. Summary of Exceptional Items Request
Agency code: 338
Agency name: Pension Review Board
2018
Priority
Item
GR and
GR/GR Dedicated
Biennium
2019
All Funds
FTEs
GR and
GR Dedicated
All Funds
FTEs
GR and
GR Dedicated
All Funds
$36,500
$36,500
$36,500
$36,500
$73,000
$73,000
2 Iran List
$20,000
$20,000
$20,000
$20,000
$40,000
$40,000
3 PRB Database Dashboard
$90,000
$90,000
$0
$0
$90,000
$90,000
Total, Exceptional Items Request
$146,500
$146,500
$56,500
$56,500
$203,000
$203,000
$56,500
$56,500
$203,000
$203,000
$56,500
$56,500
$203,000
$203,000
Method of Financing
General Revenue
$146,500
Federal Funds
Other Funds
$146,500
DR
General Revenue - Dedicated
AF
T
1 Staff Salaries
$146,500
$146,500
Full Time Equivalent Positions
Number of 100% Federally Funded FTEs
2.E.
Page 1 of 1
2.F. Summary of Total Request by Strategy
Agency code:
338
Agency name:
DATE :
7/28/2016
TIME :
11:20:18PM
Base
2018
Goal/Objective/STRATEGY
Base
2019
Exceptional
2018
Exceptional
2019
Total Request
2018
Total Request
2019
1 Provide Info to Help Ensure Actuarially Sound Retirement Systems
1 RETIREMENT SYSTEM REVIEWS
$365,995
$365,995
$25,500
$25,500
$391,495
$391,495
532,649
532,649
121,000
31,000
653,649
563,649
$898,644
$898,644
$146,500
$56,500
$1,045,144
$955,144
$898,644
$146,500
$56,500
$1,045,144
$955,144
$898,644
$146,500
$56,500
$1,045,144
$955,144
2 Respond to Requests From Legislature and Public Retirement System
TOTAL, AGENCY
STRATEGY REQUEST
TOTAL, AGENCY RIDER
APPROPRIATIONS REQUEST
GRAND TOTAL, AGENCY REQUEST
$898,644
DR
TOTAL, GOAL 1
AF
T
1 TECHNICAL ASSISTANCE AND EDUCATION
$898,644
2.F.
Page 1 of 2
2.F. Summary of Total Request by Strategy
Agency code:
338
Goal/Objective/STRATEGY
Agency name:
DATE :
7/28/2016
TIME :
11:20:18PM
Base
2018
Base
2019
$898,644
$898,644
$146,500
$56,500
$1,045,144
$955,144
$898,644
$898,644
$146,500
$56,500
$1,045,144
$955,144
$898,644
$898,644
$146,500
$56,500
$1,045,144
$955,144
14.0
14.0
0.0
14.0
Exceptional
2018
Exceptional
2019
Total Request
2018
Total Request
2019
FULL TIME EQUIVALENT POSITIONS
DR
AF
T
General Revenue Funds:
2.F.
Page 2 of 2
0.0
14.0
Date : 7/28/2016
Time: 11:20:18PM
2.G. Summary of Total Request Objective Outcomes
Automated Budget and Evaluation system of Texas (ABEST)
Agency code: 338
Agency name: Pension Review Board
Goal/ Objective / Outcome
BL
2018
1
1
BL
2019
Excp
2018
Excp
2019
Total
Request
2018
Total
Request
2019
Determine Actuarial Condition of Defined Benefit Public Ret Systems
1 Percent of Systems That Are Actuarially Sound
KEY
98.00%
98.00%
98.00%
70.00%
70.00%
100.00%
100.00%
95.00%
95.00%
95.00%
98.00%
98.00%
98.00%
80.00%
80.00%
98.00%
2 Percent of Systems in Compliance with Reporting Requirements
2
70.00%
Respond to Requests From Legislature and Public Retirement Systems
1 % of Legislative and System Requests Answered
100.00%
100.00%
95.00%
DR
2 % of Training Session Participants Satisfied
KEY
AF
T
70.00%
3 % All Constituents Satisfied w/Educ Svcs
98.00%
4 % Trustees, Administrators Complying W/Minimum Training Requirements
80.00%
80.00%
2.G.
Page 1 of 1
4.A. Exceptional Item Request Schedule
Agency code:
338
DATE:
TIME:
7/28/2016
11:20:20PM
Agency name:
CODE
DESCRIPTION
Excp 2018
Excp 2019
36,500
36,500
$36,500
$36,500
36,500
36,500
$36,500
$36,500
Item Name:
Funding for Staff Salaries
Item Priority:
1
No
IT Component:
Yes
Anticipated Out-year Costs:
No
Involve Contracts > $50,000:
Conduct Reviews of Texas Public Retirement Systems.
Includes Funding for the Following Strategy or Strategies: 01-01-01
01-02-01
Provide Technical Assistance; Issue Impact Statements; Educate
OBJECTS OF EXPENSE:
1001
SALARIES AND WAGES
1
AF
T
TOTAL, OBJECT OF EXPENSE
DR
DESCRIPTION / JUSTIFICATION:
Description/Justification: This exceptional item request is for $36,500 each fiscal year to attract and retain talented staff. In fiscal year 2015 alone, the PRB’s turnover rate was
35.7 percent, with five employees leaving, including three senior-level positions and both of the agency’s accounting positions. Turnover continues to be a critical issue. It is
imperative for the PRB to be able to offer salary amounts comparable to other agencies of our size to retain qualified staff. For several years, the PRB has not had appropriate
funding to retain talented employees and as a result, several individuals have resigned for more lucrative offers. Given current funding constraints, the PRB has been unable
to match or partially match these offers to retain strong personnel. The responsibilities of the staff of the PRB are highly specialized and require considerable
training/professional development, thus losing trained staff due to salary constraints and needing to train new ones further hampers our continuing ability to provide excellent
service to the state of Texas. This exceptional item would allow the agency to provide merit based salary increases to retain talented staff, to continue to grow internal
expertize of staff in pension-related areas by investing in professional development of staff, and to help attract qualified applicant pool for any future vacancies at the agency.
EXTERNAL/INTERNAL FACTORS:
Agency turnover rate was 35.7% for fiscal year 2015.
DESCRIPTION OF ANTICIPATED OUT-YEAR COSTS :
Continuation of funding for staff salaries.
4.A
Page 1 of 6
Agency code:
338
DATE:
TIME:
7/28/2016
11:20:20PM
Agency name:
CODE
DESCRIPTION
Excp 2018
ESTIMATED ANTICIPATED OUT-YEAR COSTS FOR ITEM:
2021
2022
$36,500
$36,500
$36,500
DR
AF
T
2020
4.A
Page 2 of 6
Excp 2019
Agency code:
338
DATE:
TIME:
7/28/2016
11:20:20PM
Agency name:
CODE
DESCRIPTION
Item Name:
Iran List
Item Priority:
2
No
IT Component:
Yes
No
01-02-01
20,000
20,000
$20,000
$20,000
20,000
20,000
$20,000
$20,000
AF
T
Excp 2019
OBJECTS OF EXPENSE:
2009
OTHER OPERATING EXPENSE
1
Excp 2018
DR
This exceptional item request is $20,000.00 per fiscal year to develop and maintain the Pension Review Board’s (PRB) List of Scrutinized Companies doing business in Iran
(Iran List) as mandated by Chapter 807 of the Texas Government Code. Chapter 807 was enacted by the 83rd Legislature in 2013 and required the PRB to create and maintain
the Iran List applicable to the five statewide retirement systems. The agency did not receive requested funding during the 83rd Session to develop and maintain the Iran List.
Hence, the PRB used publicly available information regarding companies with business operations in Iran to create and update the List. However, given that the PRB is a small
state agency, this exceptional item would allow the agency to contract with an external vendor, a financial service or market research firm that specializes in providing the
necessary investment information, which will help PRB to continue to maintain the Iran List more effectively. In accordance with Texas Government Code, Chapter 2254, the
agency will enter into a consulting services agreement with an outside vendor to accomplish this mandate. The Iran List will be updated annually or more often as the Board
considers necessary and within budgetary means. This exceptional item will allow the PRB to continue to ensure the integrity and provide critical updates to the Iran List as
required by Government Code, Chapter 807.
Mandated by Chapter 807 of the Texas Government Code enacted by the 83rd Legislature in 2013.
DESCRIPTION OF ANTICIPATED OUT-YEAR COSTS :
Continuation of maintaining and updating the Iran list.
4.A
Page 3 of 6
Agency code:
338
DATE:
TIME:
7/28/2016
11:20:20PM
Agency name:
CODE
DESCRIPTION
Excp 2018
ESTIMATED ANTICIPATED OUT-YEAR COSTS FOR ITEM:
2021
2022
$20,000
$20,000
$20,000
DR
AF
T
2020
4.A
Page 4 of 6
Excp 2019
Agency code:
338
DATE:
TIME:
7/28/2016
11:20:20PM
Agency name:
CODE
DESCRIPTION
Excp 2018
Excp 2019
90,000
0
$90,000
$0
90,000
0
$90,000
$0
Item Name:
Development and Creation of Online PRB Database Dashboard
Item Priority:
3
Yes
IT Component:
No
Yes
OBJECTS OF EXPENSE:
2001
PROFESSIONAL FEES AND SERVICES
1
AF
T
DR
This exceptional item request is $90,000 for fiscal year 2018 and the authority to carry the unexpended balance into fiscal year 2019 to comply with the statutory requirements
of Government Code section 801.209, as added by the 83rd Legislature, directing the PRB to post the most recent data from pension system reports online. This request will
fund the development of an online dashboard tool to meet the requirements of the law and to provide lawmakers, taxpayers, pension systems, and other stakeholders with a
searchable database of public pension information and the reports submitted by retirement systems. The PRB will use the Department of Information Resources’ (DIR) IT
commodity purchasing program to contract with an external vendor, a database developer for this service.
Brief analysis of project alternatives
The agency can create a page on its website to include spreadsheets containing most current actuarial and financial plan data and house plan reports submitted by retirement
systems.
No external or internal factors.
DESCRIPTION OF IT COMPONENT INCLUDED IN EXCEPTIONAL ITEM:
PRB online dashboard database tool to provide lawmakers, taxpayers, pension systems, and other stakeholders with a searchable database of public pension information and
the reports submitted by retirement systems.
IS THIS IT COMPONENT RELATED TO A NEW OR CURRENT PROJECT?
CURRENT
4.A
Page 5 of 6
DATE:
Agency code:
TIME:
7/28/2016
11:20:20PM
Agency name:
338
CODE
DESCRIPTION
Excp 2018
Excp 2019
PROPOSED SOFTWARE EXAMPLES (Client-side, cerver-side, Midrange and Mainframe)
update
PROPOSED HARDWARE EXAMPLES (Desktop, Laptop, Tablets, Servers, Mainframes, Printers and Monitors )
N/A
DEVELOPMENT COST AND OTHER COSTS
Update
TYPE OF PROJECT
Data Management / Data Warehousing
ALTERNATIVE ANALYIS
ESTIMATED IT COST
2017
$0
$0
2018
$45,000
APPROXIMATE PERCENTAGE OF EXCEPTIONAL ITEM :
CONTRACT DESCRIPTION :
2019
$45,000
DR
2016
AF
T
The agency can create a page on its website to include spreadsheets containing most current actuarial and financial plan data and house plan reports submitted by retirement
systems.
2020
2021
2022
$0
$0
$0
Total Over Life of Project
100.00%
The PRB will use the Department of Information Resources’ (DIR) IT commodity purchasing program to contract with an external vendor, a database developer for this service.
4.A
Page 6 of 6
$90,000
4.B. Exceptional Items Strategy Allocation Schedule
DATE: 7/28/2016
TIME: 11:20:20PM
Agency code:
338
Agency name:
Code Description
Item Name:
Excp 2018
Excp 2019
1-1-1
Allocation to Strategy:
OBJECTS OF EXPENSE:
1001
SALARIES AND WAGES
15,500
$15,500
$15,500
15,500
15,500
$15,500
$15,500
DR
AF
T
15,500
4.B.
Page 1 of 5
DATE: 7/28/2016
TIME: 11:20:20PM
Agency code:
338
Agency name:
Code Description
Item Name:
Excp 2018
Excp 2019
1-2-1
OBJECTS OF EXPENSE:
1001
SALARIES AND WAGES
21,000
$21,000
$21,000
21,000
21,000
$21,000
$21,000
DR
AF
T
21,000
4.B.
Page 2 of 5
DATE: 7/28/2016
TIME: 11:20:20PM
Agency code:
338
Agency name:
Code Description
Item Name:
Excp 2018
Excp 2019
Iran List
1-1-1
OBJECTS OF EXPENSE:
2009
10,000
$10,000
$10,000
10,000
10,000
$10,000
$10,000
DR
AF
T
10,000
4.B.
Page 3 of 5
DATE: 7/28/2016
TIME: 11:20:20PM
Agency code:
338
Agency name:
Code Description
Item Name:
Excp 2018
Excp 2019
Iran List
1-2-1
OBJECTS OF EXPENSE:
2009
10,000
$10,000
$10,000
10,000
10,000
$10,000
$10,000
DR
AF
T
10,000
4.B.
Page 4 of 5
DATE: 7/28/2016
TIME: 11:20:20PM
Agency code:
338
Agency name:
Code Description
Item Name:
Excp 2018
Excp 2019
1-2-1
OBJECTS OF EXPENSE:
2001
PROFESSIONAL FEES AND SERVICES
0
$90,000
$0
90,000
0
$90,000
$0
DR
AF
T
90,000
4.B.
Page 5 of 5
4.C. Exceptional Items Strategy Request
Agency Code:
Agency name:
338
DATE:
TIME:
7/28/2016
11:20:21PM
GOAL:
OBJECTIVE:
Service Categories:
STRATEGY:
1 Conduct Reviews of Texas Public Retirement Systems.
Service: 05
CODE DESCRIPTION
Income:
A.2
Age:
B.3
Excp 2018
Excp 2019
15,500
15,500
10,000
10,000
Total, Objects of Expense
$25,500
$25,500
25,500
25,500
$25,500
$25,500
OBJECTS OF EXPENSE:
Total, Method of Finance
Iran List
DR
EXCEPTIONAL ITEM(S) INCLUDED IN STRATEGY:
AF
T
4.C.
Page 1 of 2
4.C. Exceptional Items Strategy Request
Agency Code:
Agency name:
338
DATE:
TIME:
7/28/2016
11:20:21PM
GOAL:
OBJECTIVE:
2 Respond to Requests From Legislature and Public Retirement Systems
Service Categories:
STRATEGY:
1 Provide Technical Assistance; Issue Impact Statements; Educate
Service: 05
CODE DESCRIPTION
Income:
A.2
Age:
B.3
Excp 2018
Excp 2019
21,000
21,000
2001 PROFESSIONAL FEES AND SERVICES
90,000
0
10,000
10,000
$121,000
$31,000
121,000
31,000
$121,000
$31,000
OBJECTS OF EXPENSE:
Total, Objects of Expense
Total, Method of Finance
Iran List
DR
EXCEPTIONAL ITEM(S) INCLUDED IN STRATEGY:
AF
T
4.C.
Page 2 of 2
DATE: 7/28/2016
TIME: 11:20:21PM
5.B. Capital Budget Project Information
Agency Code:
Category Number:
Project number:
Agency name:
Category Name:
Project Name:
338
5005
1
ACQUISITN INFO RES TECH.
PRB Database Dashboard
PROJECT DESCRIPTION
General Information
The 83rd Legislature, directed the PRB to post the most recent data from pension system reports online. This request will fund
the development of an online dashboard tool to meet the requirements of the law and to provide lawmakers, taxpayers, pension
systems, and other stakeholders with a searchable database of public pension information and the reports submitted by
retirement systems.
Number of Units / Average Unit Cost
90000
Estimated Completion Date
2019
Additional Capital Expenditure Amounts Required
2020
2018
2019
REVENUE GENERATION / COST SAVINGS
REVENUE_COST_FLAG
$0
N/A
2020
0
MOF_CODE
Total over
project life
2021
0
DR
0
CA
10 years
AF
T
Type of Financing
Projected Useful Life
Estimated/Actual Project Cost
Length of Financing/ Lease Period
ESTIMATED/ACTUAL DEBT OBLIGATION PAYMENTS
2021
0
0
CURRENT APPROPRIATIONS
0
0
AVERAGE_AMOUNT
Project Location:
To development of an online dashboard tool to meet the requirements of the law and to provide lawmakers, taxpayers, pension systems, and other
stakeholders with a searchable database of public pension information and the reports submitted by retirement systems.
Agency Website
Beneficiaries:
Beneficiaries would include lawmakers, taxpayers, pension systems, and other stakeholders.
Explanation:
Frequency of Use and External Factors Affecting Use:
Anticipated usage will vary daily.
5.B.
Page 1 of 1
5.C. Capital Budget Allocation to Strategies (Baseline)
DATE:
TIME:
Agency code:
Agency name:
338
7/28/2016
11:20:22PM
Category Code/Name
Project Sequence/Project Id/Name
Goal/Obj/Str
Strategy Name
Est 2016
Bud 2017
BL 2018
BL 2019
0
0
$90,000
$0
$0
$0
$90,000
$0
$0
$0
$90,000
$0
$0
5005 Acquisition of Information Resource Technologies
1/1
PRB Database Dashboard
GENERAL BUDGET
TECHNICAL ASSISTANCE AND EDUCATION
TOTAL, PROJECT
AF
T
1-2-1
TOTAL CAPITAL, ALL PROJECTS
$0
TOTAL INFORMATIONAL, ALL PROJECTS
TOTAL, ALL PROJECTS
DR
Capital
5.C.
Page 1 of 1
$90,000
$0
Date:
Time:
6.A. Historically Underutilized Business Supporting Schedule
Agency Code:
338
Agency:
7/28/2016
11:20:22PM
COMPARISON TO STATEWIDE HUB PROCUREMENT GOALS
A. Fiscal Year 2014 - 2015 HUB Expenditure Information
Procurement
Category
11.2%
21.1%
32.9%
23.7%
26.0%
21.1%
Heavy Construction
Building Construction
Special Trade
Professional Services
Other Services
Commodities
Total Expenditures
% Goal
0.0 %
0.0 %
0.0 %
0.0 %
26.0 %
21.1 %
HUB Expenditures FY 2014
% Actual
Actual $
Diff
0.0%
0.0%
0.0%
0.0%
83.2%
50.0%
72.1%
0.0%
0.0%
0.0%
0.0%
57.2%
28.9%
$0
$0
$0
$0
$65,125
$19,652
$84,777
Total
Expenditures
FY 2014
% Goal
$0
$0
$0
$0
$78,233
$39,338
$117,571
AF
T
Statewide
HUB Goals
0.0 %
0.0 %
0.0 %
0.0 %
26.0 %
21.1 %
HUB Expenditures FY 2015
% Actual
Diff
Actual $
0.0%
0.0%
0.0%
0.0%
27.2%
13.6%
20.5%
0.0%
0.0%
0.0%
0.0%
1.2%
-7.5%
$0
$0
$0
$0
$10,093
$4,879
$14,972
DR
B. Assessment of Fiscal Year 2014 - 2015 Efforts to Meet HUB Procurement Goals
Attainment:
The agency exceeded two of two of the applicable agency HUB procurement goals in FY 2014. The agency exceeded one of two of the applicable agency HUB
procurement goals in FY 2015.
Applicability:
The "Heavy Construction," "Building Construction," "Special Trade," and "Professional Services" categories are not applicable to agency operations in either fiscal
year 2014 or fiscal year 2015.
Factors Affecting Attainment:
PRB has limited purchasing power to obtain services or commodities since 91% of our budget is staff salaries.
"Good-Faith" Efforts:
The Agency makes a good faith effort to utilize HUBs in the procurement process of all goods and services whenever applicable for any dollar amount. PRB will
always strive to achieve and exceed the HUB Statewide goals whenever possible.
6.A.
Page 1 of 1
Total
Expenditures
FY 2015
$0
$0
$0
$0
$37,085
$35,938
$73,023
TAB 7C Bylaws of the
State Pension
Review Board
Updated December 17, 2014
Bylaws of the State Pension Review Board
Adopted December 8, 2010
TABLE OF CONTENTS
ARTICLE 1
Organization of the Board ............................................…………………………….1
ARTICLE 2
Meetings of the Board…................................................…………………………….9
ARTICLE 3
Committees .................................................................…………………………….12
ARTICLE 4
Executive Director ......................................................…………………………….15
ARTICLE 5
Miscellaneous Organizational Provisions ...................…………………………….18
ARTICLE 6
Amendment of Bylaws ...............................................…………………………….19
similar matters. Hence, the standing committee meetings will be posted and conducted as per
the Open Meetings Act (See the Code, Chapter 551.) Absence of eligible committee
members from scheduled committee meetings will not constitute a ground for removal of
such members under the Code Section 801.1061(a)(5).
ARTICLE 4
Executive Director
4
You
4.1 Responsibilities of Executive Director. The Board shall employ an executive director to
be the executive head of the Board and perform its administrative duties and such other
duties as may be required by law. The executive director, being the chief executive officer
and chief administrative employee of the Board, shall perform such other duties as may be
established by the Board in its policies, resolutions, and other actions. In these Bylaws, the
term “executive director” means the person appointed by the Board pursuant to the Code
Section 801.111 (or a successor statute).
4.1.1 With respect to the operations of the Board itself the executive director shall:
a) make preparations, including member travel arrangements in accordance with
section 1.10 of these Bylaws, for all meetings of the Board and its committees ;
b) under the direction of the chair of the Board or of a relevant committee, prepare
and distribute the agendas and appropriate documentation for all meetings of the
Board and its committees;
c) under the direction of the chair of the Board or of a relevant committee, post
notices of all meetings and the subject matter thereof as may be required by law;
d) cause the Board secretary to record, prepare, and index the official minutes of the
Board and its committees;
e) index, cross-index to statute, and make available for public inspection all adopted
rules, and final orders, decisions, and opinions, and other matters, as required by
Government Code Chapter 2001 Section 2001.004 of the Administrative
Procedure Act (Vernon 2008), or a successor statute;
f) file and preserve all official documents, correspondence, and proceedings of the
Board and its committees in compliance with records retention laws;
g) maintain, index, cross-index to statute, and make available for inspection the
official copy of these Bylaws and Board’s Policy Manual, as required by the
Government Code Chapter 2001 Section 2001.004 of the Administrative
Procedure Act (Vernon 2008), or a successor statute;
h) as directed by the Board, establish routine reporting mechanisms and procedures
to the Board and prepare special reports for the Board;
i) carry out other policies adopted by the Board;
15
j) assist in new Board member training in accordance with section 1.11 of these
Bylaws;
k) administer all Programs established by the Board in accordance with subsection
1.11.4 of these Bylaws; and
l) act pursuant to the Texas Administrative Code, Title 40, Part 17, Chapter 603
Section 603.1 as the Board’s designated personnel upon whom service of process
under judicial procedures may be served against the Board at the Board’s official
place of business.
4.1.2 The executive director is the chief executive officer of the Board and is responsible
to the Board for the general administration of its duties and responsibilities in
accordance with relevant state laws and with Board policies. In the aforementioned
capacity the executive director shall:
a) manage the daily operations of the Board as its executive head;
b) assume managerial responsibility and leadership for the planning, operation,
supervision, and evaluation of the programs and services;
c) coordinate and interface with the Board and its committees regarding Board
employee assigned projects and other pertinent matters including Board
publications and budget;
d) assume authority and responsibility for the selection, job description,
assignment of duties, performance evaluation, promotion, and discipline,
including dismissal of Board employees except as provided in section 1.9 of
these Bylaws;
e) assume authority and responsibility to set staff salaries within the limits of
state law, including the General Appropriations Act, and in consultation with
the Board;
f) prepare and submit an annual operating budget for consideration by the
Board;
g) prepare and report the current budget status to the Board during every regular
Board meeting;
h) prepare recommendations for policies and rules to be considered by the
Board and oversee the implementation of adopted policies and rules;
i) make recommendations to the Board regarding the selection of the actuarial
consultants when required under the Code, Chapter 802, Subchapter D and in
accordance with subsection 3.1.1 of these Bylaws; and
j) provide administrative assistance to the Board in conducting its duties, and in
carrying out its missions and goals.
4.2 Miscellaneous Duties.
4.2.1 The executive director pursuant to the Code Section 801.114 shall provide to the
members of the Board, as often as necessary, information regarding their qualification for
16
office, including the Code Sections 801. 1021, -.103, and -.1061, and their
responsibilities under applicable laws relating to standards of conduct and conflict of
interests for state officers, including the Texas Government Code Chapters and Sections
572 and 801.1061, Texas Penal Code Sections 36.08, 36.10, 39.01 and 39.03, and any
amended, new, or successor statutes.
4.2.2 The executive director pursuant to Code Section 801.114 shall provide to the Board
employees, as often as necessary, information regarding their qualification for
employment, and their responsibilities under applicable laws relating to standards of
conduct and conflict of interests for state officers including Texas Government Code
Chapter 572, Texas Penal Code Sections 36.08, 36.10, 39.01 and 39.03, and any
amended, new, or successor statutes.
4.2.3 In accordance with the Code Section 801.1061(c), the executive director shall notify the
chair of the Board if he or she has knowledge that a potential ground for removal of a
Board member exists. The chair shall then notify the appropriate appointing officer or
body that a potential ground for removal exists. If the potential ground for removal
involves the chair, the executive director shall notify the vice-chair or the next highest
ranking officer of the Board, who shall then notify the appropriate appointing officer or
body that a potential ground for removal exists.
4.3 Absence of Executive Director. If the executive director will be away from the Board’s
principal office for a brief period, as contemplated by section 4.4 of this article, the executive
director may temporarily designate the deputy director any senior staff member of the Board
to act in his or her behalf generally or for a particular purpose. In the absence of the
executive director due to incapacity, resignation, removal or otherwise when the duration of
the absence is unknown and the absence may be extended or permanent, the chair of the
Board shall temporarily designate the deputy director a person to assume the responsibilities
and authority of the executive director pending the Board’s permanent appointment of the
person to serve in the capacity of the executive director. A designee under this section shall
have the responsibility and authority of the executive director. A member of the Board is not
eligible for temporary designation or permanent appointment to serve in the capacity of the
executive director under Texas law.
4.4 Delegating Responsibilities. The executive director shall designate an employee of the
Board to serve as the staff secretary to the Board to assist in the execution of duties
enumerated in subsection 4.1.1 of this article and may assign other employees of the Board
as necessary to assist in carrying out these duties or other duties in accordance with the Code,
and other applicable law.
17
TAB 8A STATE PENSION REVIEW BOARD
OPERATING BUDGET
FISCAL YEAR 2016
as of July 31, 2016
LBB
Obj.
Code
GAA
BUDGETED
ADJUSTED
BUDGETED
TOTAL
BUDGETED
TOTAL
EXPENDED
ENCUMBRANCES
PERCENT
EXPENDED
REMAINING
BALANCE
PERCENT
REMAINING
METHOD OF FINANCING
General Revenue
H.B. 1 84th Leg. 2.5% Salary Increase
$923,658.00
$12,430.00
Total Method of Financing
$936,088.00
$923,658.00
$12,430.00
$0.00
$0.00
$0.00
$936,088.00
OBJECT OF EXPENSE
Exempt Salaries
Classified Salaries
Other Personal Exp / Longevity Pay
Retirement Deduction .5% Salary
Benefit Replacement Pay
Non-Overnight Meals
Sub-Total Salaries & Wages
Professional Fees and Services
Consumable Supplies
Travel
Rent-Building (Record Storage)
Rent-Machine & Other (Copier/Software)
Operating Costs (Miscellaneous)
Telecommunication Services
Education and Training
Postage
Printing
Subscription/Publications
PHC Deduction 1% Salary
Hardware & Software
Sub-Total Operating Cost
Total Object of Expense
1001A
1001B
1002A
1002B
1004
1001C
$112,750.00
$715,992.75
$19,600.00
$4,202.50
$0.00
$500.00
$853,045.25
($10,250.00)
($90,000.00)
$43,250.00
($57,000.00)
$102,500.00
$625,992.75
$62,850.00
$4,202.50
$0.00
$500.00
$796,045.25
$102,499.92
$606,163.92
$63,113.41
$3,510.14
$0.00
$0.00
$775,287.39
$12,500.00
$8,500.00
$26,000.00
$1,000.00
$15,000.00
2001
2003
2005A
2006
2007
$12,500.00
$3,500.00
$26,000.00
$1,000.00
$15,000.00
2009A
2009D
2009B
2009C
2009E
2009G
2009H
2009F
$6,066.00
$2,000.00
$2,500.00
$500.00
$1,000.00
$2,000.00
$8,476.75
$2,500.00
$25,042.75
$20,000.00
$10,000.00
$9,000.00
$11,500.00
$52,000.00
$26,066.00
$12,000.00
$11,500.00
$500.00
$1,000.00
$3,500.00
$8,476.75
$14,000.00
$77,042.75
$936,088.00
$0.00
$936,088.00
$5,000.00
$1,500.00
$0.00
100.00%
96.83%
100.42%
83.53%
0.00%
0.00%
97.39%
$0.08
$19,828.83
($263.41)
$692.36
$0.00
$500.00
$20,757.86
0.00%
3.17%
-0.42%
16.47%
100.00%
100.00%
2.61%
$10,148.49
$1,101.81
$12,900.94
$947.20
$15,336.95
$0.00
$7,878.35
$0.00
$172.24
$451.38
81.19%
105.65%
49.62%
111.94%
105.26%
$2,351.51
($480.16)
$13,099.06
($119.44)
($788.33)
18.81%
-5.65%
50.38%
-11.94%
-5.26%
$19,063.47
$2,653.67
$8,607.25
$176.35
$1,205.78
$3,436.38
$6,609.38
$0.00
$41,752.28
$3,184.00
$533.32
$2,580.00
$0.00
$0.00
$0.00
$300.00
$6,597.32
85.35%
26.56%
97.28%
35.27%
120.58%
98.18%
77.97%
2.14%
62.76%
$3,818.53
$8,813.01
$312.75
$323.65
($205.78)
$63.62
$1,867.37
$13,700.00
$28,693.15
14.65%
73.44%
2.72%
64.73%
-20.58%
1.82%
22.03%
97.86%
37.24%
$857,475.06
$15,099.29
93.21%
$63,513.65
6.79%
TAB 8B STATE PENSION REVIEW BOARD
OPERATING BUDGET
FISCAL YEAR 2017
LBB
Obj.
Code
GAA
BUDGETED
ADJUSTED
BUDGETED
TOTAL
BUDGETED
$0.00
$0.00
$923,657.00
$11,250.00
$0.00
$934,907.00
TOTAL
EXPENDED
ENCUMBRANCES
PERCENT
EXPENDED
REMAINING
BALANCE
PERCENT
REMAINING
METHOD OF FINANCING
General Revenue
H.B. 1 84th Leg. 2.5% Salary Increase
$923,657.00
$11,250.00
Total Method of Financing
$934,907.00
OBJECT OF EXPENSE
Exempt Salaries
Classified Salaries
Other Personal Exp / Longevity Pay
Retirement Deduction .5% Salary
Benefit Replacement Pay
Non-Overnight Meals
Sub-Total Salaries & Wages
Professional Fees and Services
Consumable Supplies
Travel
Rent-Building (Record Storage)
Rent-Machine & Other (Copier/Software)
Operating Costs (Miscellaneous)
Telecommunication Services
Education and Training
Postage
Printing
Subscription/Publications
PHC Deduction 1% Salary
Hardware & Software
Sub-Total Operating Cost
Total Object of Expense
1001A
1001B
1002A
1001E
1004
1001C
$112,750.00
$714,812.75
$19,600.00
$4,202.50
$0.00
$500.00
$851,865.25
($10,250.00)
$10,250.00
$0.00
$102,500.00
$725,062.75
$19,600.00
$4,202.50
$0.00
$500.00
$851,865.25
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$102,500.00
$725,062.75
$19,600.00
$4,202.50
$0.00
$500.00
$851,865.25
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
2001
2003
2005A
2006
2007
$12,500.00
$3,500.00
$26,000.00
$1,000.00
$15,000.00
$12,500.00
$3,500.00
$26,000.00
$1,000.00
$15,000.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
0.00%
0.00%
0.00%
0.00%
0.00%
$12,500.00
$3,500.00
$26,000.00
$1,000.00
$15,000.00
100.00%
100.00%
100.00%
100.00%
100.00%
2009A
2009D
2009B
2009C
2009E
2009G
2009H
2009F
$6,065.00
$2,000.00
$2,500.00
$500.00
$1,000.00
$2,000.00
$8,476.75
$2,500.00
$25,041.75
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$6,065.00
$2,000.00
$2,500.00
$500.00
$1,000.00
$2,000.00
$8,476.75
$2,500.00
$25,041.75
$0.00
$0.00
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$6,065.00
$2,000.00
$2,500.00
$500.00
$1,000.00
$2,000.00
$8,476.75
$2,500.00
$25,041.75
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
$934,907.00
$0.00
$934,907.00
$0.00
$0.00
0.00%
$934,907.00
100.00%

August 4th Board Mtg. Packet

Transcription

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