Texas Pension Review Board Seminar. June 13, 2011 Hyatt Regency Hotel on Lady Bird Lake Austin, Texas

Transcription

1 Texas Pension Review Board Seminar June 13, 2011 Hyatt Regency Hotel on Lady Bird Lake Austin, Texas

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3 Texas Pension Review Board 2011 Seminar June 13, 2011 Hyatt Regency Hotel on Lady Bird Lake Austin, Texas Texas Pension Review Board P.O. Box Austin, Texas

4 AGENDA 7:30 AM Registration and Continental Breakfast Texas Ballroom 4-7 8:00 AM Welcome Remarks Richard E. McElreath, Texas Pension Review Board, Chair 8:15 AM Current Trends and Issues in Public Retirement Keith Brainard, Research Director, National Association of State Retirement Administrators 9:15 AM Fiduciary Responsibility in Today s Public Pension Climate Chuck Campbell, Partner, Jackson Walker L.L.P. 10:00 AM Morning Break 10:15 AM Challenges in Pension Plan Management Cheryl Alston, Executive Director, City of Dallas Employees Retirement Fund Ann Fuelberg, Executive Director, Employees Retirement System of Texas Sampson Jordan, Chief Executive Officer, Austin Police Retirement System 2

5 11:00 AM Why Commodities, Why Now, How Pension Funds are Participating in the Commodity Markets Barry Goldblatt, Managing Director, Citi Global Commodities 12:00 PM Lunch U.S. Prospects and Global Challenges Rodger Baker, Vice President of Strategic Intelligence, STRATFOR Foothills 2-17th Floor 1:15 PM Does Debt Matter Kyle Bass, Portfolio Manager, Managing Partner and Principle, Hayman Capital Management, LP and a member of the Board of Directors of the University of Texas Investment Management Co. (UTIMCO) 2:15 PM Changing Face of the Texas Labor Market Richard C. Froeschle, Director, Labor Market & Career Information, Texas Workforce Commission 3:15 PM Closing Remarks 3:20 PM Afternoon Break 3:30 PM Pension Review Board Meeting 3

6 KEITH BRAINARD NATIONAL ASSOCIATION OF STATE RETIREMENT ADMINISTRATORS As research director for the National Association of State Retirement Administrators (NASRA), Keith Brainard collects, prepares and distributes to NASRA members news, studies and reports pertinent to public pension design, administration and policy. NASRA members are the directors of 82 statewide public retirement systems in the United States. Combined, these systems hold assets of more than $2 trillion to fund pension and other benefits for most of the nation s 22 million working and retired employees of state and local government. Mr. Brainard is co-author of The Governmental Plans Answer Book, and he created and maintains the Public Fund Survey, an online compendium of public pension data sponsored jointly by NASRA and the National Council on Teacher Retirement. Keith created the State & Local Pension Exchange, predecessor to the Public Fund Survey and recipient of the Award for Excellence in Government Finance from the Government Finance Officers Association. He has discussed public pension issues with federal, state, and local policymakers; public pension trustees; and on broadcast television and radio. Mr. Brainard previously served as manager of budget & planning for the Arizona State Retirement System and he provided fiscal research and analysis for the Texas and Arizona legislatures. He has a master s degree from the University of Texas-Austin, LBJ School of Public Affairs. 4

7 CHUCK CAMPBELL JACKSON WALKER L.L.P. Chuck Campbell represents public and private sector clients in all areas of employee benefits and executive compensation. A significant part of his practice involves representing public pension plans and their trustees. Mr. Campbell specializes in addressing the variety of complex and unique issues that these organizations face with a keen awareness of the political and regulatory environment in which these plans operate. He serves as primary outside for several pension plan funds and regularly attends their Board meetings, where he advises trustees on a variety of fiduciary, ethics, and open government issues. He also assists clients with various plan administrative issues and compliance with qualified plan requirements under the Internal Revenue Code. Mr. Campbell also handles a variety of investment matters for such clients, including review of investment policies and procedures and negotiation of investment-related agreements, particularly as to state and employee benefit law issues. In addition, Mr. Campbell has experience representing public pension plans in front of state legislatures and the Internal Revenue Service, including handling determination letter and voluntary correction filings. Aside from his public pension plan work, he regularly assists clients in the design, drafting, and compliance aspects of retirement plans (including 401(k), 403(b), and traditional pension plans), health and disability plans, deferred compensation plans (including handling aspects of 409A and 457 compliance), stock option and other equity compensation plans, severance arrangements, and executive employment agreements. Mr. Campbell is a member of both the National and Texas Association of Public Pension Plan Attorneys and a regular speaker at the annual conference for Texas Local Fire Fighter Retirement Act funds. He is listed in the editions of The Best Lawyers in America under Employee Benefits Law and has been honored as a Rising Star by Thomson Reuters. Mr. Campbell earned his B.S. degree in Psychology from Washington and Lee University in Lexington, Virginia and his J.D. degree, with honors, from the University of Texas School of Law. 5

8 CHERYL D. ALSTON EMPLOYEES RETIREMENT FUND OF THE CITY OF DALLAS Cheryl Alston is the Executive Director for the Employees Retirement Fund of the City of Dallas, Texas ( ERF ). She began her term as Executive Director in October 2004 and provides leadership for the Fund s staff in implementing the programs necessary to achieve the mission, goals and objectives established by the Board of Trustees. In 2011, Ms. Alston was appointed by President Barack Obama to the Pension Benefit Guaranty Corporation (PBGC) Advisory Committee. The PBGC protects the retirement incomes of more than 44 million American workers in 27,500 private-sector defined benefit plans. In 2010, she was selected as one of the Rising Stars of Public Funds by the editors of Institutional Investor News as one of the up-and-coming professionals poised to be future leaders of the industry. In addition to serving as Executive Director for the Fund, she is a member of the Council of Institutional Investors (CII), the National Council of Public Employee Retirement Systems (NCPERS), the Texas Association of Public Employee Retirement Systems (TEXPERS) and the National Association of Securities Professionals (NASP). She is also a Vice-Chair of the Volunteer Center of North Texas and Chair of the Investment Committee for CHRISTUS Health. Ms. Alston has over twenty years of expertise in the financial services industry. She served as an Executive with CIGNA Retirement & Investment Services. Prior to CIGNA, she served as a Corporate Banking Officer at Chase Global Services providing investment banking services for Fortune 500 clients. Ms. Alston has an M.B.A. in Finance from The Leonard N. Stern School at New York University and an undergraduate degree from The Wharton School at the University of Pennsylvania. 6

9 ANN FUELBERG EMPLOYEES RETIREMENT SYSTEM OF TEXAS Ann S. Fuelberg was appointed Executive Director of the Employees Retirement System of Texas (ERS) by the ERS Board of Trustees in Under her leadership, ERS administers programs that provide retirement, health insurance, deferred compensation, and flexible benefits for more than 200,000 state employees and retirees. During Ms. Fuelberg s tenure, ERS has successfully negotiated cost-saving contracts and tapped new technology to advance investment opportunities and diversify the system s portfolio to strengthen the $20 billion ERS trust. Ms. Fuelberg is a veteran of state government who has served as a Deputy Comptroller of Public Accounts and was named the first executive director of the Department of Information Resources when it was created in She has also operated an independent business consulting service and served as vice president of Transactive Corporation, handling business development, marketing and customer relations for the Austin-based online processing company. Ms. Fuelberg holds a business degree from the University of Texas at Austin and a juris doctorate from Texas Tech University School of Law. 7

10 SAMPSON JORDAN AUSTIN POLICE RETIREMENT SYSTEM Sampson Sam Jordan has served as Chief Executive Officer at the City of Austin Police Retirement System since Prior to his appointment he worked 14 years in credit union management at a local credit union in Austin. He has more than 30 years experience in financial management including fifteen years experience in real estate management. He was awarded the 2003 Meritorious Award for Exceptional Service on behalf of all Texas Public Employee Systems on his work in promoting the passage of Texas Constitutional Amendment to guarantee retirement benefits for municipal public employees. Mr. Jordan received a Bachelor s Degree in Business from Texas State University, certification designations as CPE (Charter Pension Executives) from the Texas Society of Pension Professionals and CTTP (Chartered Trustee Training Program) from the Texas Public Employees Retirement Association. 8

11 BARRY GOLDBLATT CITI GLOBAL COMMODITIES Barry Goldblatt joined Citi in 2010 as the Head of Commodities Investor Sales for the Americas. This group covers Pension Funds, Hedge Funds, Insurance Companies, Endowments and Foundations and Citi Private Bank clients for all aspects of commodities. Prior to joining Citi, Mr. Goldblatt was the Global Head of Commodities for the CME Group which is the largest and most diverse commodities exchange in the world. Prior to the CME Group, he spent 13 years at Merrill Lynch as the Global Head of Commodity Structured Notes and Head of Americas Commodities derivative sales and structured products. Mr. Goldblatt has a B.A. in History from Binghamton University and an M.B.A. from the University of North Carolina at Chapel Hill. He resides in Houston with his wife and 2 daughters aged 14 and 16. 9

12 RODGER BAKER STRATFOR In his capacity as STRATFOR s Vice President of Strategic Intelligence, Mr. Baker leads an experienced team of global analysts known for insightful and timely analysis of geopolitical developments worldwide. He also covers a wide range of security, political and economic affairs, analyzing and forecasting significant trends and developments in international relations. Mr. Baker writes and oversees the production of special reports for clients around the world, keeping them apprised of events of vital interest to their businesses and organizations. He was one of the first to voice concerns about the gathering difficulties for the Chinese economy and continues to monitor breaking intelligence out of the region. Mr. Baker analyzed the security and counter-terrorism issues in the run up to the Beijing Olympics, as well as threats of Islamist militancy in China. Recently, he has focused on the challenges facing the new Japanese government and the risks and implications of North Korea s nuclear program. Mr. Baker has been featured or cited in numerous journals, newspapers, television, national and international radio programs, including Reuters, The Associated Press, The Economist, The Washington Times, The National Journal, Investor s Business Daily, Stars & Stripes and Globe and Mail. Before joining STRATFOR, Mr. Baker studied and worked in Korea and the Caribbean and graduated with honors from Southampton College, Long Island University. 10

13 KYLE BASS HAYMAN Capital Management, LP UTIMCO Kyle Bass is the principal of Hayman Capital Management L.P., which was formed in December Hayman Capital Management serves as the investment manager to the Hayman Capital Master Fund, L.P. and Japan Macro Opportunities Master Fund, L.P. Previously, Mr. Bass co-managed the Subprime Credit Strategies Fund, L.P. and Subprime Credit Strategies Fund II, L.P. Mr. Bass is a member of the Board of Directors of The University of Texas Investment Management Co. (UTIMCO), which has aggregate assets of over $26 billion. Mr. Bass is a founding member of the Serengeti Asset Management Advisory Board and serves as a Board Member for the Troops First Foundation and Texas Rangers Foundation. In addition, Mr. Bass is a member of the Advisory Council of the Comeback America Initiative, which is dedicated to promoting fiscal responsibility and sustainability. Mr. Bass has testified as an expert witness before the US House of Representatives, the US Senate, and the Financial Crisis Inquiry Commission. Prior to forming Hayman Capital Management, Mr. Bass worked as a Senior Managing Director at Bear, Stearns & Co., Inc. and a Managing Director at Legg Mason, Inc. Mr. Bass graduated with a Bachelor of Business Administration in Finance and Real Estate Finance from Texas Christian University in May

14 RICHARD C. FROESCHLE TEXAS WORKFORCE COMMISSION Richard Froeschle currently serves as the Director of the Labor Market and Career Information (LMCI) department of the Texas Workforce Commission. He previously served as the Director of the Career Development Resources (CDR) department of the Texas Workforce Commission, a position he held between May 1990 and September He also served as a labor market economist with the Texas State Occupational Information Coordinating Committee (SOICC) and the Texas Department of Community Affairs. Prior to his work with Texas State government, Mr. Froeschle conducted in-service training with the National Labor Market Information Training Institute at the University of North Texas in the areas of strategic planning and regional economic analysis for CETA and JTPA employment and training programs. Mr. Froeschle has a bachelor s degree in Economics from the University of Texas at Austin and a master s degree in Manpower and Industrial Relations from the University of North Texas, where he also taught microeconomics, labor market analysis and regional planning for three years. His writings include three books, Where the Jobs Are, Connecting the Dots, and Working Texas Style: Think Globally, Plan Regionally, a dozen monographs including Targeting Your Labor Market, Getting Down to Business: A Practitioners Guide to Understanding and Operationalizing a Clusters Approach to Regional Workforce and Economic Development, and The Texas Economy: An Age of Global Economic Opportunity, and many related essays and briefs all focused on the application of labor market and career information in education policy, workforce planning and economic development. 12

15 RICHARD C. FROESCHLE Mr. Froeschle has made presentations at over 340 conference events over the past decade on a variety of labor market topics. His professional specialties and interests are in the fields of regional economic analysis, labor market dynamics and the development and interpretation of labor market information; all of which have occupied his career for the past 32 years. 13

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20 Texas Pension Review Board The Texas Pension Review Board is mandated to oversee all Texas public retirement systems, both state and local, in regard to their actuarial soundness and compliance with state law. Our mission is to provide the State of Texas with the necessary information and recommendations to ensure that our public retirement systems, whose combined assets total in the multi-billions, are financially 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 pension funds. TEXAS PENSION REVIEW BOARD Richard E. McElreath, Chair Paul A. Braden, Vice Chair Andrew W. Cable Leslie Greco-Pool J. Robert Massengale Norman W. Parrish Wayne R. Roberts The Honorable Vicki Truitt, State Representative The Honorable John H. Whitmire, State Senator Christopher Hanson, Executive Director 300 West 15 th Street Suite 406 Austin, Texas Telephone: Toll-Free: Fax: prb@prb.state.tx.us Website: