MOTION: 2024-38 ADJOURNMENT
Meeting Date: June 18, 2024
MOTION: 2024-37 INDEPENDENT ACTUARY REPLICATION AUDIT – RFP 23-023
Meeting Date: June 18, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Audit, Risk and Compliance Committee to grant the bid protest made in the procurement of Independent Actuary Replication services under Request for Proposal “SERS – RFP 23-023” and authorize the Board Secretary to provide the appropriate written notice to the Bid Protester, as set forth in the attachment (ATTACHMENT F).
MOTION: 2024-36 IPI PARTNERS III-A, L.P. REAL ESTATE RECOMMENDATION
Meeting Date: June 18, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to commit up to $100 million to IPI Partners III-A, L.P., plus investment expenses and pro rata share of partnership operating expenses, consistent with executed partnership documents, as an investment within the Real Estate asset class, subject to successful completion of contract negotiations and execution and delivery of closing documents by all parties, including required Commonwealth legal approvals, within 12 months, as set forth in the attachment (ATTACHMENT E).
MOTION: 2024-35 PUBLIC EQUITY MANAGER STRUCTURE STUDY
Meeting Date: June 18, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to:
Notification of all implementation actions pursuant hereto shall be provided at the next regularly scheduled Investment Committee or Board meeting.
MOTION: 2024-34 BOARD POLICIES REVIEW (PHASE EIGHT)
Meeting Date: June 18, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee to adopt the Policy for indemnification of Board Members, Designees, Officers and Employees, as set forth in the attachment (ATTACHMENT C).
MOTION: 2024-33 SOC 1 TYPE 2 AUDIT VENDOR PROCUREMENT
Meeting Date: June 18, 2024
RESOLVED: That, based on the results of the technical evaluation and recommendation from the Issuing Officer, the State Employees’ Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to approve the Issuing Officer Recommendation and authorize the Issuing Office to award the contract and to proceed with contract negotiations with the selected vendor, to be publicly named at a later date after successful contract negotiations, as set forth in the attachment (ATTACHMENT B).
MOTION: 2024-32 RESULT OF THE 2023 INDEPENDENT AUDIT
Meeting Date: June 18, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to accept:
MOTION: 2024-31 COMMITTEE REPORTS/ACTION ITEMS
Meeting Date: June 18, 2024
RESOLVED: That the board approves the Consent Calendar items, as listed, for the June 18, 2024, board meeting.
A. Finance and Member & Participant Services Committee
Committee Chair Dan Frankel presented a report of the Finance and Member & Participant Services Committee meeting of June 11, 2024, to the board. No action was taken.
B. Audit, Risk and Compliance Committee
Designee Christopher Craig on behalf of Committee Chair Stacy Garrity presented a report of the Audit, Risk, and Compliance Committee meeting of June 11, 2024, to the board. The following actions were taken:
MOTION: 2024-30 ADOPTION OF THE AGENDA/APPROVAL OF CONSENT CALENDAR
Meeting Date: June 18, 2024
RESOLVED: That the board adopts the agenda for the June 18, 2024, board meeting.
A. Approving Board Meeting Minutes – May 7, 2024, Regular Meeting and May 22, 2024, Special Meeting
B. Defined Benefit Plan Statement of Changes in Fiduciary Net Position for the Period Ending – December 31, 2023, January 31, 2024, February 29, 2024
C. Deferred Compensation Plan (DCP) Statement of Changes in Net Position Available for Benefits for the Period Ending – December 31, 2023, January 31, 2024, February 29, 2024
D. Defined Contribution Plan Statement of Changes in Fiduciary Net Position for the Period Ending – December 31, 2023, January 31, 2024, February 29, 2024
MOTION: 2024-29 MOTION TO ADJOURN
Meeting Date: May 7, 2024
MOTION: 2024-28 INTERNAL AUDIT OFFICE CHARTER UPDATE
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Audit, Risk, and Compliance Committee to approve and adopt the State Employees’ Retirement System’s Internal Audit Office Charter, after the Board receives input from the Board Governance and Personnel Committee, as set forth in the attachment (ATTACHMENT K).
MOTION: 2024-27 AUDIT, RISK AND COMPLIANCE COMMITTEE CHARTER UPDATE
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Audit, Risk and Compliance Committee to approve the amendment to the Audit, Risk and Compliance Committee charter, after the Board receives input from the Board Governance and Personnel Committee, as set forth in the attachment (ATTACHMENT J).
MOTION: 2024-26 2023 ACTUARIAL VALUATION RESULTS AND PROPOSED FY 2024/2025 CONTRIBUTION RATESMeeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Finance and Member & Participant Services Committee to:
(A) approve the results of the December 31, 2023, actuarial valuation; and for the Commonwealth’s fiscal year 2024-2025, certify the following contribution rates: 1. Shared-risk contribution rate of 0.00%; 2. Employer normal cost contribution rate of 7.94%; 3. Composite employer contribution rate necessary for the funding of the system of 33.60%; and 4. Employer contribution rates by group and class of service of employees as set forth in the actuarial valuation as calculated by SERS’ consulting actuary, Korn Ferry, pursuant to Section 5508 of the State Employees’ Retirement Code;
(B) authorize SERS staff and Korn Ferry to use those rates to develop all the employer rates for the period of July 1, 2024, through June 30, 2025, pursuant to Section 5902(k) of the State Employees’ Retirement Code;
(C) establish an employer contribution rate of .05% for fiscal year 2024-2025 to fund the Benefits Completion Plan established pursuant to Section 5941 of the State Employees’ Retirement Code; and
(D) authorize the Executive Director to certify such rates to all employers with employees who are active members of SERS and to the Secretary of the Budget, as set forth in the attachment (ATTACHMENT I).
MOTION 2024-25 COMPENSATION OF MANAGEMENT-CLASSIFIED AND NON-REPRESENTED JOB TITLES
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee to retain pay parity with other commonwealth positions, to authorize salary increases and other payments to management-classified and non-represented positions, excluding those positions in the XH pay scall group, investment professionals, and legal counsel, at the time, in the amount, and in the same manner as established by the Executive Board of the Commonwealth for the period starting July 1, 2024 and ending June 30, 2027.
MOTION: 2024-24 2024 BOARD EDUCATION PLAN
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee to approve the 2024 Board Education Plan, as set forth in the attachment (ATTACHMENT H).
MOTION: 2024-23 2024 AUDIT, RISK AND COMPLIANCE COMMITTEE CHARTER REVIEW
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation and concurrence of the Board Governance and Personnel Committee to approve the amendments to the Charter of the Audit, Risk and Compliance Committee, as set forth in the attachment (ATTACHMENT G).
MOTION: 2024-22 BOARD POLICIES REVIEW (PHASE SEVEN)
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation and concurrence of the Board Governance and Personnel Committee to adopt the following Board Governance Policies:
1. [Omitted from Motion – Action Deferred]
2. Board Travel Policy
3. Independent Actuarial Audit Policy
4. Internal Audit Office Charter
5. [Omitted from Motion – Action Deferred]
6. Committee Work Plan Procedures,
as set forth in the attachment (ATTACHMENT F).
MOTION: 2024-21 2024 BOARD COMMITTEE CHARTER REVIEWS
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation and concurrence of the Board Governance and Personnel Committee to approve the amendments to the Charters of the Finance and Member and Participant Services Committee, the Board Governance and Personnel Committee, the Investment Committee and the Securities Litigation Committee, as set forth in the attachment (ATTACHMENT E).
MOTION: 2024-20 BOARD SELF-EVALUATION CONSULTANT PROCUREMENT
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Board Governance and Personnel Committee that it direct SERS staff to begin the RFP procurement process, consistent with the Commonwealth of Pennsylvania procurement procedures and the polices and guidelines of the SERS Board, to secure a consultant to facilitate the 2024 Board-Self-Assessment process, as set forth in the attachment (ATTACHMENT D).
MOTION: 2024-19 SERS U.S. AND INTERNATIONAL PROXY VOTING POLICY
Meeting Date: May 7, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to adopt the proposed revisions to the SERS U.S. and International Proxy Voting Policy, as set forth in the attachment (ATTACHMENT C).
MOTION: 2024-18 UPDATES TO THE EMERALD’S INVESTMENT MANAGEMENT AGREEMENT
RESOLVED: That the State Employees’ Retirement Board accept the recommendation of the Investment Committee to approve the proposed updates to Emerald’s Investment Management Agreement, as set forth in the attachment (ATTACHMENT B).
MOTION: 2024-17 COMMITTEE REPORTS/ACTION ITEMS
RESOLVED: That the board approves the Consent Calendar items, as listed, for the May 7, 2024, board meeting.
A. Investment Committee
Committee Chair Uri Monson presented a report of the Investment Committee meeting of April 30, 2024, to the board. The following actions were taken:
MOTION: 2024-16 ADOPTION OF THE AGENDA
APPROVAL OF CONSENT CALENDAR
Meeting Date: May 7, 2024
RESOLVED: That the board adopts the agenda for the May 7, 2024, board meeting.
A. Approving Board Meeting Minutes – March 5, 2024
MOTION: 2024-15 MOTION TO ADJOURN
Meeting Date: March 05, 2024
MOTION: 2024-14 SECURITIES LITIGATION COMMITTEE WORK PLAN
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Securities Litigation Committee to approve the Securities Litigation Committee Work Plan as set forth in the attachment (ATTACHMENT G).
MOTION: 2024-13 AUDIT, RISK, AND COMPLIANCE COMMITTEE WORK PLAN
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Audit, Risk, and Compliance Committee to approve the Audit, Risk, and Compliance Committee Work Plan as set forth in the attachment (ATTACHMENT F).
MOTION: 2024-12 SALARY INCREASE FOR SERS’ CHIEF INVESTMENT OFFICER
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Board Governance and Personnel Committee to approve a pay increase to $198.41 an hour for James Nolan, Chief Investment Officer SERS, to be effective the first full pay period of March 2024.
MOTION: 2024-11 BOARD GOVERNANCE AND PERSONNEL COMMITTEE WORK PLAN
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Board Governance and Personnel Committee to approve the 2024 Board Governance and Personnel Committee Work Plan, as set forth in BoardDocs at Agenda Item 6.b. (ATTACHMENT E).
MOTION: 2024-10 BOARD FIDUCIARY REVIEW POLICY
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Board Governance and Personnel Committee to approve the delegation of the board’s responsibility for administering the Board Fiduciary Review Policy to the Board Governance and Personnel Committee and approve the existing draft policy containing a delegation of authority (ATTACHMENT D).
MOTION: 2024-09 FINANCE AND MEMBER & PARTICIPANT SERVICES COMMITTEE WORK PLAN
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Finance and Member & Participant Services Committee to approve the Finance and Member & Participant Services Committee Work Plan as set forth in the attachment (ATTACHMENT C).
MOTION: 2024-08 DCP STABLE VALUE FUND GUIDELINES
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to approve the proposed update to Invesco’s Investment Management Agreement.
MOTION: 2024-07 NOMINAL U.S. TREASURY PORTFOLIO
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to adopt the proposed update to the Fixed Income section of the SERS Defined Benefit Plan’s Investment Policy Statement.
MOTION: 2024-06 CAPITAL MARKETS AND ASSET ALLOCATION OPTIONS
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to adopt the proposal to increase U.S. Equity by 3% while proportionally decreasing Fixed Income and approve the corresponding updates to the SERS Defined Benefit Plan’s Investment Policy Statement.
MOTION: 2024-05 INVESTMENT COMMITTEE CHARTER
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to approve the Investment Committee charter.
MOTION: 2024-04 2024 INVESTMENT COMMITTEE WORK PLAN
Meeting Date: March 05, 2024
RESOLVED: That the State Employees’ Retirement Board accepts the recommendation of the Investment Committee to approve the Investment Committee Work Plan as set forth in the attachment (ATTACHMENT B).
MOTION: 2024-03 COMMITTEE REPORTS/ACTION ITEMS
Meeting Date: March 05, 2024
RESOLVED: That the board approves the Consent Calendar items, as listed, for the March 5, 2024, board meeting.
APPROVAL OF CONSENT CALENDAR
A. Approving Board Meeting Minutes – December 12, 2023
B. Approving Board Meeting Minutes – January 9, 2024
C. Approving Defined Benefit Plan Statement of Changes in Fiduciary Net Position for the Periods
Ending – October 31 and November 30, 2023
D. Approving Deferred Compensation Plan (DCP) Statement of Changes in Net Position Available for Benefits for the Periods Ending – October 31 and November 30, 2023
E. Approving Defined Contribution Plan Statement of Changes in Fiduciary Net Position for the Periods Ending – October 31 and November 30, 2023
MOTION: 2024-02 ADOPTION OF THE AGENDA
Meeting Date: March 05, 2024
RESOLVED: That the board adopts the agenda for the March 5, 2024, board meeting.
MOTION: 2024-01 MOTION TO ADJOURN
Meeting Date: January 9, 2024
RESOLVED:
By motion of Chair Thall, the board unanimously agreed to adjourn the meeting at 9:38 a.m.