November 17, 2022
12:30 p.m.
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Approval of Board Meeting Minutes |
The Board approved the minutes of the September 22, 2022 meeting. These minutes, as well as those from prior meetings, can be found on MPERS’ website. Minutes from the current meeting will be posted after they are adopted at the Board’s next regular meeting.
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Approval of the 2023 Board Meeting Dates |
The Board approved dates for the 2023 board meetings. Meetings are scheduled for the following dates:
- Friday, February 17, 2023
- Friday, April 28, 2023 (tentative)
- Thursday, June 22, 2023
- Thursday, September 21, 2023
- Thursday, November 16, 2023
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Audit Committee Report
Presenter: Todd Tyler, Audit Committee Chair
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At a meeting of the Audit Committee on November 8, 2022, Nick Mestres of Williams-Keepers presented the 2022 Audit Report, which was a clean or unmodified report. The Committee accepted the report. Williams-Keepers also reviewed MPERS’ new system of vital signs and approved the results. In addition, Mr. Mestres explained the updated format of the audit report to reflect increased transparency.
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Annual Audit Report
Presenter: Nick Mestres (Williams-Keepers)
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Mr. Mestres presented the 2022 Audit Report. Mr. Mestres indicated that the report was an unmodified or clean report, the best report MPERS could receive. He briefly mentioned an ongoing recommendation regarding investment accounting procedures and management review. He noted that the managing of several timber accounts in-house was new for the prior calendar year and staff was still working to establish accounting procedures. Management concurred with the recommendation. |
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Legislative Update
Presenter: Scott Simon, Executive Director (MPERS)
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The Board was apprised of the proposed legislation for the upcoming legislative session. The collaborative cleanup bill with MOSERS from the past few years will be filed again. A previously Board-supported bill that would stagger the terms of the elected representatives of the Board will also be filed again this year. |
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Cybersecurity Risk Assessment
Presenters: Aaron Clegg & John Pohlman (Tanner)
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Messrs. Clegg and Pohlman presented the results of a recent cybersecurity assessment. Overall, the results were favorable for the System and those performing the audit from Tanner stated that MPERS is in much better shape from a cybersecurity standpoint than many organizations of a similar size. The auditors did recommend ongoing annual testing for comparison against this year’s baseline results. The cybersecurity audit is the first item completed from the strategic plan approved by the board in June. Staff members will now begin the work of shoring up identified deficiencies and making plans for the future. |
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Investment Performance
Presenters: Larry Krummen, Chief Investment Officer (MPERS) and Keith Stronkowsky (NEPC)
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MPERS’ diversified portfolio was able to limit losses during a difficult market environment in the third quarter of 2022. The fund finished the quarter down 1.5% relative to MPERS’ policy benchmark, which fell 5.1% and a traditional 60/40 stock and bond portfolio which fell 5.9%. MPERS’ one-year excess return of 10.3% relative to the policy benchmark is unprecedented. The System’s exposure to alternative investment strategies has clearly mitigated overall losses and while we anticipate some downward pressure on alternative valuations, are holding up well thus far.
MPERS’ overall return profile ranks in the top 1% of the peer universe across all time frames. The risk-adjusted returns (measured by a system’s Sharpe ratio) also rank in the top 1% of the peer rankings.
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Director's Comments
Presenter: Scott Simon, Executive Director (MPERS)
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The first annual State of System will be held virtually on December 7, from 3:00-4:00 p.m. The meeting will include System updates from the MPERS’ executive staff. Register here for the meeting.
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The Annual Comprehensive Financial Report is complete and has been posted to the website. Click here to view the report.
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- Friday, February 17
- Friday, April 28*
- Thursday, June 22
- Thursday, September 21
- Thursday, November 16
*Only if needed for the legislative session.
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Col. Eric Olson
Board Chair
Superintendent of MSHP
Ex-Officio Member
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W. Dustin Boatwright
Highways & Transportation Commissioner
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Terry Ecker
Highways & Transportation Commissioner
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Bill Seibert
MSHP Retiree Representative
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Todd Tyler
Board Vice Chair
MoDOT Active Representative
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Matt Morice
MSHP Active Representative
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Representative Barry Hovis
Appointed by the
Speaker of the House
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Gregg Smith
Highways & Transportation
Commissioner
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Senator Mike Bernskoetter
Appointed by the President
Pro Tem of the Senate
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Sue Cox
MoDOT Retiree Representative
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Patrick McKenna
Director of MoDOT
Ex-Officio Member
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MoDOT & Patrol Employees' Retirement System| www.mpers.org
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