February 2020
Texas Public Pension News
PRB adds new reporting rules to Texas Administrative Code

During its Feb. 6 meeting, the Texas Pension Review Board followed through on legislative bills passed last year by adding rules to the Texas Administrative Code for the reporting of investment fees.

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Public employees are looking for security in retirement

On St. Valentine’s Day, the Texas Association of Public Employee Retirement Systems asked a few of the nonprofit’s board members to share their love of defined-benefit retirement plans. Find out why the love their pensions.

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TEXPERS' Pension Observer magazine
TEXPERS' membership magazine is printed and mailed. But, you can see what's inside now, thanks to our  digital version .
City of Dallas owes more than $2 million to police and fire pension, lawsuit claims
The City of Dallas owes police officers and firefighters who served in the military more than $2 million in pension contributions, a lawsuit filed by the Dallas Police and Fire Pension System claims.

Texas Municipal tops up commitment to FTV Capital's growth equity fund
Texas Municipal Retirement System , Austin, topped up its original commitment to growth equity fund FTV VI with an additional $25 million.

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Retired teachers group director says members shocked by TRS rent
The recently revealed  starting base rent of $326,000 a month  that the Teacher Retirement System of Texas plans to pay for upscale office space in downtown Austin has stunned at least one group of taxpayers — retired teachers.

Texas TRS’ plan to invest more than $3 billion with emerging managers
The Teachers Retirement System of Texas announced plans last year to invest an additional $3 billion with Emerging Managers over 3-5 years. This came on top of an existing $5.8 billion TRS has already invested with emerging managers since 2005.

In this installment of Perspectives, NAIC's online video series, Jarvis V. Hollingsworth , chairman of the Teacher Retirement System of Texas , explains how the program was structured and why a 'transition portfolio' was implemented for certain managers.

TCDRS to deploy $120 million in January PE commitments
Texas County & District Retirement System set aside $120m of commitments for two private equity funds in January.

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Mark Your Calendar
Attend TEXPERS' 31st Annual Conference for education and fun
Attending TEXPERS' conference is one of the best things you can do for your service to a public employee retirement plan as an administrators, trustee or investment manager.

By attending sessions, listening to speakers, and talking with your peers, you'll have the opportunity to learn about industry trends, gain some new skills, and maike all kinds of new connections. Some of you may even register to attend pre-conference trustee training classes scheduled for May 2 to fulfill some state-mandated minimum education requirements.

Network while playing golf during TEXPERS' Annual Conference
TEXPERS is hosting a golf tournament May 3 at Moody Gardens Golf Course during the association's 31st Annual Conference on Galveston Island. Members are invited to register to network during a 7 a.m. breakfast. The tournament has a 8 a.m. shotgun start.

Studies and Research
Actuarial Standards Board publishes second exposure draft on ASOP 4, measuring pension obligations, etc.
The Actuarial Standards Board believes that the calculation and disclosure of [a solvency value] measure provides appropriate, useful information for the intended user regarding the funded status of a pension plan. The calculation and disclosure of this additional measure is not intended to suggest that this is the "right" liability measure for a pension plan. However, the ASB does believe that this additional disclosure provides a more complete assessment of a plan's funded status and provides additional information regarding the security of benefits that members have earned as of the measurement date.


Also, read the response to the draft by the National Conference of Public Employee Retirement Systems
Public pensions reducing fee outlays to improve efficiency
Public retirement systems are squeezing down their expenses to operate more efficiently, according to an annual study by the  National Conference on Public Employee Retirement Systems .

85% of millennials working in state and local government plan to stick with employer, but benefit changes could push them out the door
As governments struggle to fill jobs that deliver vital public services, new research from the National Institute on Retirement Security finds that Millennials working in state and local government are satisfied with their jobs and intend to stay with their employers so long as their benefits are not cut. 

U.S. Public Pension News
Ohio lawmakers pursuing pension oversight bills

OHIO - Some Ohio lawmakers are pushing for increased oversight of the state's public pension systems, amid recent moves by some of the systems to cut benefits for hundreds of thousands of current and future retirees.

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Arizona pension chairman, vice chairman removed from leadership posts after news report
ARIZONA - The Public Safety Personnel Retirement System chairman and vice chairman were stripped of their leadership positions last month, after The Arizona Republic reported the two trustees had business dealings with a former director of the pension system.

New York Pension to coal companies: Evolve or we'll divest
NEW YORK - The New York State Common Retirement Fund, the third-largest U.S. public pension fund, said it may divest from coal mining companies that aren’t ready to move away from relying on thermal coal for profits.

Is your city’s pension fund a little short? Marijuana might help
South Beloit, Ill., faces steep bills to fund its firefighter and police pensions and repave its cracked streets. Now, Mayor Ted Rehl has a plan to help cover the shortfall: marijuana.

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Economic & Investment News
The Texas economy added almost 1,000 jobs a day in 2019
Texas employers created 28,900 new jobs in December, even as the state’s unemployment rate crept up slightly, according to data released Friday by the Texas Workforce Commission.

For the year, the state’s labor force grew by 342,800 jobs — the equivalent of nearly 1,000 new jobs a day.

North Texas adds more than million residents over decade
North Texas enjoyed robust population growth in the past decade, adding more than a million new residents since 2010.

Consumer Price Index for All Urban Consumers up 0.1% in January
The Consumer Price Index for All Urban Consumers (CPI-U) rose 0.1 percent in January on a seasonally adjusted basis, after rising 0.2 percent in December, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.5 percent before seasonal adjustment.  

Texas Petro Index: Downsizing Continues While Production Soars
The  Texas Petro Index  – used to indicate the health of the oil and gas industry -- declined for 10 straight months to finish 2019 at 193.6. That's down 9.1% from the December 2018 TPI of 213.1.

End of 2019 marks 4th consecutive quarter of annualized state and local wage growth of 2.5 percent or higher
Wages and salaries for state and local government workers increased by 2.5 percent for the 12-month period ending December 2019, according to data published by the U.S. Bureau of Labor Statistics. This marks the fourth consecutive quarter of annualized growth of 2.5 percent or higher, which had not occurred previously since 2008-2009.

Aging & Retirement
Congressman looks to re-establish Aging Committee in House
Rep. David Cicilline, D-RI, has introduced a resolution to re-establish a Permanent Select Committee on Aging in the U.S. House of Representatives more than 25 years after the committee disbanded amid budgetary woes.

Most older households exhibit enough residential stability to make tapping home equity viable:Brief
For a comfortable retirement, many households may need to tap their home equity but, currently, few take out a reverse mortgage or defer their property taxes, according to a new brief issued by the Center for Retirement Research at Boston College.

A cost in retirement of no-benefit jobs
Only about one in four older Americans consistently work in a traditional employment arrangement throughout their 50s and early 60s. For the rest, their late careers are punctuated by jobs – freelancer, independent contractor, and even waitress – that do not have any health or retirement benefits.

US life span lags other rich countries
Life expectancy for 65-year-olds in the United States is less than in France, Japan, Spain, Italy, Australia, Canada, the United Kingdom, the Netherlands, and Germany. Fifty years ago, we ranked third.

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About Us 
The Texas Association of Public Employee Retirement Systems (TEXPERS) is a statewide voluntary nonprofit association that provides education and legislative advisory services to the trustees, administrators, professional service providers and employee groups that manage the retirement money of police, firefighters, municipal and district employees in cities across Texas.