June 2019 Committee of the Full Board Item 7
Approval of Nominees to Recommend to the Governor for Appointment on the Board of Trustees of the Teacher Retirement System of Texas
June 14, 2019
COMMITTEE OF THE FULL BOARD: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: The board of trustees of the Teacher Retirement System of Texas (TRS) is comprised of nine members. Two of the members are appointed by the governor, subject to Senate confirmation, from lists of nominees submitted by the State Board of Education (SBOE). The term of office for one of the board positions expires August 31, 2019. This item provides an opportunity for the SBOE to approve a list of nominees to be sent to the governor for his consideration for an appointment to the TRS board of trustees.
STATUTORY AUTHORITY: Texas Government Code (TGC), §825.003 and §825.0032
TGC, §825.003 requires the governor to appoint two members of the board of trustees of TRS from lists of nominees submitted by the SBOE. The appointment is subject to Senate confirmation. The nominees must be persons who have demonstrated financial expertise, have worked in private business or industry, and have broad investment experience, preferably in the investment of pension funds.
TGC, §825.0032 lists those who are ineligible to serve on the TRS board of trustees.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: From a list of nominees submitted by the SBOE, Governor Rick Perry appointed David Corpus to a six-year-term of office on the TRS board. His term expires August 31, 2019. Based on a list of nominees submitted by the board, Governor Greg Abbott appointed Christopher Moss to a six-year term on the TRS board. His term expires August 31, 2021.
BACKGROUND INFORMATION AND JUSTIFICATION: The Texas Government Code, Title 8, Public Retirement Systems, Subtitle C, Teacher Retirement System of Texas, relates to the functions, systems, and programs administered by the TRS, and Chapter 825, Administration, pertains to the administration of the TRS. In accordance with the Texas Government Code, §825.003, Trustees Appointed by Governor From Nominees of Board of Education, the governor shall appoint two members of the board of trustees for the TRS, subject to confirmation by two-thirds of the Senate, from lists of nominees submitted by the SBOE. The law specifies that these members must be persons who have demonstrated financial expertise, have worked in private business or industry, and have broad investment experience, preferably in investment of pension funds. The Texas Government Code, §825.0032, Ineligibility for Board and of Certain Employees, contains information regarding persons who are not eligible for appointment to the board.
The board administers TRS and invests its funds. The assets of the TRS pension fund are required by state and federal law to be held in trust for the exclusive benefit of plan participants and beneficiaries.
FISCAL IMPACT: Trustees serve without compensation but are entitled to reimbursement from the expense account of the retirement system for all necessary expenses that they incur in the performance of official board duties.
PUBLIC BENEFIT AND COST TO PERSONS: The board of trustees is responsible for the general administration and operation of the retirement system, which provides health care and retirement services to 1.6 million public education employees and retirees.
PUBLIC COMMENTS: None
MOTION TO BE CONSIDERED: The State Board of Education:
Approve the list of nominees to be submitted to the governor for consideration for appointment to the board of trustees of the Teacher Retirement System of Texas for a term expiring on August 31, 2025.
Staff Members Responsible:
Debbie Ratcliffe, Executive Director, State Board of Education Support Division
Separate Exhibit: Nominations from the State Board of Education members for the board of trustees of the Teacher Retirement System of Texas
(to be distributed at the board meeting)
June 14, 2019
COMMITTEE OF THE FULL BOARD: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: The board of trustees of the Teacher Retirement System of Texas (TRS) is comprised of nine members. Two of the members are appointed by the governor, subject to Senate confirmation, from lists of nominees submitted by the State Board of Education (SBOE). The term of office for one of the board positions expires August 31, 2019. This item provides an opportunity for the SBOE to approve a list of nominees to be sent to the governor for his consideration for an appointment to the TRS board of trustees.
STATUTORY AUTHORITY: Texas Government Code (TGC), §825.003 and §825.0032
TGC, §825.003 requires the governor to appoint two members of the board of trustees of TRS from lists of nominees submitted by the SBOE. The appointment is subject to Senate confirmation. The nominees must be persons who have demonstrated financial expertise, have worked in private business or industry, and have broad investment experience, preferably in the investment of pension funds.
TGC, §825.0032 lists those who are ineligible to serve on the TRS board of trustees.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: From a list of nominees submitted by the SBOE, Governor Rick Perry appointed David Corpus to a six-year-term of office on the TRS board. His term expires August 31, 2019. Based on a list of nominees submitted by the board, Governor Greg Abbott appointed Christopher Moss to a six-year term on the TRS board. His term expires August 31, 2021.
BACKGROUND INFORMATION AND JUSTIFICATION: The Texas Government Code, Title 8, Public Retirement Systems, Subtitle C, Teacher Retirement System of Texas, relates to the functions, systems, and programs administered by the TRS, and Chapter 825, Administration, pertains to the administration of the TRS. In accordance with the Texas Government Code, §825.003, Trustees Appointed by Governor From Nominees of Board of Education, the governor shall appoint two members of the board of trustees for the TRS, subject to confirmation by two-thirds of the Senate, from lists of nominees submitted by the SBOE. The law specifies that these members must be persons who have demonstrated financial expertise, have worked in private business or industry, and have broad investment experience, preferably in investment of pension funds. The Texas Government Code, §825.0032, Ineligibility for Board and of Certain Employees, contains information regarding persons who are not eligible for appointment to the board.
The board administers TRS and invests its funds. The assets of the TRS pension fund are required by state and federal law to be held in trust for the exclusive benefit of plan participants and beneficiaries.
FISCAL IMPACT: Trustees serve without compensation but are entitled to reimbursement from the expense account of the retirement system for all necessary expenses that they incur in the performance of official board duties.
PUBLIC BENEFIT AND COST TO PERSONS: The board of trustees is responsible for the general administration and operation of the retirement system, which provides health care and retirement services to 1.6 million public education employees and retirees.
PUBLIC COMMENTS: None
MOTION TO BE CONSIDERED: The State Board of Education:
Approve the list of nominees to be submitted to the governor for consideration for appointment to the board of trustees of the Teacher Retirement System of Texas for a term expiring on August 31, 2025.
Staff Members Responsible:
Debbie Ratcliffe, Executive Director, State Board of Education Support Division
Separate Exhibit: Nominations from the State Board of Education members for the board of trustees of the Teacher Retirement System of Texas
(to be distributed at the board meeting)