Strategic Planning Committee Meeting - Texas Documents/strategic_planning_commi… · STRATEGIC...

April 19, 2018

Strategic Planning Committee Meeting

TEACHER RETIREMENT SYSTEM OF TEXAS MEETING BOARD OF TRUSTEES

AND STRATEGIC PLANNING COMMITTEE

(Committee Chair and Members: John Elliott, Chair; David Corpus, Jarvis V. Hollingsworth,

Christopher Moss, James D. Nance)

All or part of the April 19, 2018, meeting of the TRS Strategic Planning Committee and Board of Trustees may be held by telephone or video conference call as authorized under Sections 551.130 and 551.127 of the Texas Government Code. The Board intends to have a quorum and the presiding officer of the meeting physically present at the following location, which will be open to the public during the open portions of the meeting: 1000 Red River, Austin, Texas 78701 in the TRS East Building, 5th Floor, Boardroom.

AGENDA

April 19, 2018 – 10:45 a.m.

TRS East Building, 5th Floor, Boardroom

1. Call roll of Committee members.

2. Consider the approval of the proposed minutes of the December 14, 2017, Risk Management Committee meeting – Chair John Elliott.

3. Receive an update of the TRS Strategic Plan and an overview of the planning process – Rebecca Merrill.

4. Discuss the development of TRS' strategic communications plan – Carolyn Perez.

NOTE: The Board of Trustees (Board) of the Teacher Retirement System of Texas will not consider or act upon any item before the Strategic Planning Committee (Committee) at this meeting of the Committee. This meeting is not a regular meeting of the Board. However, because the full Strategic Planning Committee constitutes a quorum of the Board, the meeting of the Committee is also being posted as a meeting of the Board out of an abundance of caution.

Minutes of the Risk Management Committee

December 14, 2017

The Risk Management Committee of the Board of Trustees of the Teacher Retirement System of Texas met on December 14, 2017, in the boardroom located on the fifth floor of the TRS East Building offices at 1000 Red River Street, Austin, Texas.

Committee Members present: Mr. John Elliott, Chair Mr. David Corpus Mr. Jarvis V. Hollingsworth Mr. Chris Moss Mr. James D. Nance Other Board Members present: Dr. Greg Gibson Ms. Dolores Ramirez Ms. Nanette Sissney Others present: Brian Guthrie, TRS Dr. Keith Brown, Investment Advisor Ken Welch, TRS Steve Huff, Fiduciary Counsel, Reinhart Boerner Van Deuren s.c. Don Green, TRS Steve Voss, Aon Hewitt Carolina de Onis, TRS Jerry Albright, TRS Jase Auby, TRS Heather Traeger, TRS Rebecca Merrill, TRS Katherine Farrell, TRS Risk Management Committee Chair Ms. Elliott called the meeting to order at 3:26 p.m.

1. Call roll of Committee members.

Ms. Farrell called the roll. A quorum was present.

2. Consider the approval of the proposed minutes of the September 21, 2017 committee meeting – Committee Chair John Elliott.

On a motion by Mr. Moss, seconded by Mr. Corpus, the proposed minutes for the September 21, 2017 Risk Management Committee meeting were approved as presented with Mr. Hollingsworth and Mr. Nance abstaining.

3. Review of the Enterprise Risk Management Report by Michelle Pagán and Heather Traeger.

Ms. Michelle Pagán provided an overview of the three levels of reports: first level is the stoplight report, second level is the risk profile report and the third level is the risk report. In response to Mr. Hollingsworth and Mr. Moss’ inquiries, Mr. Guthrie explained that staff meets internally on a quarterly basis to review risk and controls for the Stoplight Report categories. He noted that the risk information is updated on an annual basis, except for TEAM which is updated twice a year.

Ms. Pagán discussed next the risk level and trend summary. She noted that the TRS-ActiveCare affordability risk level changed from elevated to caution due to TRS’ efforts to manage the cost trend. Ms. Pagán shared the 16 assessments that were updated during this reporting period. She then shared the risk profile report.

Ms. Pagán presented the ethics and fraud prevention risk assessment. Ms. Pagán stated that while this was the first time to present this report to the Committee, fraud and ethics risks have always been considered in the assessment of each stoplight report category. Ms. Heather Traeger stated having the report separated out emphasizes TRS’ strong interest in developing and maintaining a culture of ethics and commitment to compliance and fraud prevention.

Ms. Pagán concluded by reporting on activities of the Enterprise Risk Management for strategic planning. She said staff is currently updating and revising the plan’s goals and objectives to be reported on in the spring. Without further discussion, the committee adjourned the meeting at 3:50 p.m. APPROVED BY THE STRATEGIC PLANNING COMMITTEE OF THE BOARD OF TRUSTEES OF THE TEACHER RETIREMENT SYSTEM OF TEXAS ON THE 19th DAY OF April 2018.

______________________________ _________________ Katherine H. Farrell Date Secretary of the TRS Board of Trustees

PRESENTATION TITLE >>> NAME FEB-09-15Strategic Planning >>> Rebecca Merrill >>> April 19, 2018

Presentation Objectives

• Strategic Planning Overview.• TRS Strategy Framework and Strategic Planning Process.• Role of the Strategic Planning Committee.• Draft Strategic Plan Goals and Objectives.• Example Key Performance Indicators (KPIs).• Enterprise Risk Management and Strategic Planning.• Proposed July Committee Items.

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Strategic Planning Overview

• State requires all agencies to submit strategic plans in June of off-session years.

• Plan submitted to:– Governor, Lt. Governor, Speaker of the House– State Auditor– Department of Information Resources– Sunset Advisory Commission– Legislative Budget Board

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• Components of the Strategic Plan includes:– Historically Underutilized Business Plan– Agency Workforce Plan– Report on Customer Service

• 2014 TRS exceeded state requirements with the adoption of the Goals, Objectives, Strategies, and Tactics (GOST) framework.

• We continue to improve our process with the adoption of Key Performance Indicators (KPI).

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Work That’s Over the Horizon

Work That’s In Sight

StrategicPreparing for

tomorrow’s demands

Anticipating tomorrow’s problems

and opportunities

Next practices

OperationsExecuting

today’s tasks

Solving today’sproblems

Best practices

Action(Tactics)

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TRS Strategy Framework

6

PRESENTATION TITLE >>> NAME FEB-09-15

TRS Strategic Planning Process

Inform the process and plan regarding:

• Direction• Priorities• Clarity

Board’s biennial mission and vision review.

Annual Executive Council retreat (Develop Goals & Objectives).

Build out strategies and develop key performance indicators.

Finalize plan in June.

Present final plan to Strategic Planning Committee in July.

Begin regular reporting of progress and key performance indicators.7


• Direction• Priorities• Clarity

Examine the results and advise on:

• Relevance• Alignment• Adaption

Bring your perspectives on:

• Trends• Drivers• Growth

Opportunities

Role of the Strategic Planning Committee

Execution 8



• Direction• Priorities• Clarity• Address a longer-term time frame?

• Create value or contribute to key results and outcomes?• Enhance positive differentiation?• Enhance organizational productivity?• Lead to sustained success and growth of the organization?

Ask yourself, do the Strategic Plan Objectives...

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PRESENTATION TITLE >>> NAME FEB-09-15PRESENTATION TITLE >>> NAME >>> DATE



• Direction• Priorities• Clarity• Measurable and quantifiable?

• Based on data that is reliable, valid, and accessible?• Linked to key initiatives and outcomes?• Leading indicators when possible?• Indicators that are a reasonable stretch?

Ask yourself, are the Key Performance Indicators...

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Draft TRS Strategic Plan 2019-2023

Objectives:1: Improve communication regarding pension funding needs.2: Increase identification of underpayments and collection of future contributions to TRS.3: Achieve the trust’s actuarial assumed rate of return as measured on rolling 20-year periods.4: Improve information regarding the impact of changing pension plan design.

Objectives:1: Improve the customer service experience.2: Improve timeliness and accuracy in employer reported data. 3: Improve awareness of and modernize the 403(b) program.

Sustain a financially sound pension system.GOAL 1

Continuously improve our benefit delivery.GOAL 2

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Objectives:1: Improve communication efforts regarding health care funding needs.2: Increase the value of health care benefits.3: Improve the health of our members.

Objectives:1: Attract, retain and develop a highly competent staff.2: Implement modern pension benefit and health information systems that allow TRS staff

to serve our members and deliver accurate benefits effectively and timely by August 2019.

Facilitate access to competitive, reliable health care benefits for our members.GOAL 3

Ensure that people, processes, and technology align to achieve excellence in the delivery of TRS goals.GOAL 4

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Objectives (cont’d):3: Advance and enhance IT systems and services.4: Continue to enhance a strong information security program to protect critical systems and

data.5: Modernize TRS facilities and maximize space utilization.6: Strengthen ethics and culture across TRS (This is still in development)7: Improve strategic communications (This is still in development)

Objectives:1: Increase the number of utilized Historically Underutilized Businesses (HUBs).

Ensure that people, processes, and technology align to achieve excellence in the delivery of TRS goals.GOAL 4

Promote purchasing selection practices that foster meaningful and substantive inclusion of historically underutilized businesses (HUBs). GOAL 5

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Example Key Performance Indicators

Objective:1: Improve the customer service experience.

Example Key Performance Indicators

• Average hold time (Target 80% of calls within 3 minutes).• Decrease in call abandonment rate (Target TBD).• Wait time for office visit. (Target no more than 15 days).• Percentage of team cross-trained with HIB. (Target 100 %)

Continuously improve our benefit delivery.GOAL 2

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Enterprise Risk Management and Strategic Planning

• Enterprise risk management (ERM) is key to strategic plan execution.

• TRS will continue conducting ERM assessments and reporting risk management items to this committee.

• Risk assessments will be reported along with the associated strategic plan objective.

• Plan is for a higher-level risk verbal report with the full detail regularly provided as an appendix.

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Proposed July Committee Items

• Receive the final 2019-2023 Strategic Plan.• Receive an overview of continuous improvement at TRS.

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Appendix

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APPENDIX

Risk Report Details

BUSINESS CONTINUITY RISK REPORT

RISK OWNER RISK LEVEL/TREND REPORTING DATE

Rebecca Merrill April 2018

GOAL OVERALL RISK OBJECTIVE Ensure the continuity of TRS’ essential functions in the event of a major business interruption.

Members do not receive statutorily required services timely.

Restore TRS infrastructure and provide continuation of services within the timeframes required by business units.

SUMMARY Two risk events were identified for this risk category. Both risk levels are at caution; however, mitigations are in progress or planned to further reduce the likelihood of the risks.

RISK EVENTS

Risk Description Mitigations

A. TRS cannot recover critical information systems

Business continuity plans Co-location data center Data centers have redundant energy sources Developed disaster recovery plans Disaster recovery plans/procedures inventory Emergency purchase option Emergency purchase option Established co-location data center Knowledge transfer and cross-training for critical

recovery functions

Leverage business partners Multiple methods of communication Multiple options for data recovery Multiple options for un-encrypting TRS data Regular disaster recovery/business continuity

testing Remote officing Require critical vendors submit DRPs for review

TRS Stoplight Report Category



B. TRS cannot resume critical business operations

Business Continuity Awareness Annual Training Confirmed critical vendors have adequate DRPs in

place Data centers have redundant energy sources Developed disaster recovery plans Disaster recovery plans/procedures inventory Established co-location data center IMT Plan Knowledge transfer and cross-training for critical

recovery functions Leverage business partners

Maintain updated business continuity plans for critical functions

Multiple methods of communication Multiple options for data recovery Multiple options for un-encrypting TRS data Regular disaster recovery/business continuity

testing Rely on existing contracted workers Remote officing Virtual desktop infrastructure

RISK EVENT DETAILS

CAUSES RISK EVENT A

CONSEQUENCES What would cause this event to happen? What would the consequences be if this event

occurs? • Critical vendors do not have Disaster

recovery plans (DRPs) in place • Data backup media is not available • DRPs do not exist or are incomplete • DRPs do not capture critical functions • Electrical grid failure • Lack of hardware capacity • Lack of staff to recover critical systems • Lack of testing critical IT systems and

business functions • Recovery data cannot be un-encrypted

TRS cannot recover critical information systems

• Communication between TRS and members is suspended

• Data loss following a recovery (6- to 24-hour period)

• Lose connectivity (VPN, remote desktop) • Reputational and financial risk (e.g.,

penalties, lawsuits) • TRS cannot resume IT operations • TRS is unable to communicate with business

partners, external entities or access third-party systems



CAUSES RISK EVENT A


occurs? • Recovery vendors cannot provide nor

guarantee services • Transition of Legacy applications into TRUST

• Unable to complete member or healthcare services (e.g., annuity payroll)

• Unable to process TRS employee services (e.g., payroll)

PREVENTION/PREPAREDNESS FUTURE PLANS (ACTION ITEMS) MINIMIZE DAMAGE What are we currently doing? What more can we do? What plans do we have in place to minimize the

damage if the consequences materialize? • Require critical vendors submit DRPs for

review • Data centers have redundant energy sources • Developed disaster recovery plans • Disaster recovery plans/procedures

inventory • Emergency purchase option • Established co-location data center • Knowledge transfer and cross-training for

critical recovery functions • Multiple options for data recovery • Multiple options for un-encrypting TRS data • Regular disaster recovery/business

continuity testing

• Call Center Modernization (#1) • Include a component in department BCPs to

help identify which critical vendors require DRPs and/or BCPs (#6)

• Collect and review DRPs from critical vendors during contracting phase (#7)

• Business continuity plans • Co-location data center • Emergency purchase option • Leverage business partners • Multiple methods of communication • Remote officing • Virtual desktop infrastructure



CAUSES RISK EVENT B


occurs? • Access to downtown area is prohibited/unsafe • Business continuity plan (BCP) partners

cannot fulfill MOA and MOU • BCPs are not communicated to affected

department staff • BCPs do not capture critical functions • BCPs do not exist or are incomplete • Continuity facilities are not available for

operations • Disaster event/property damage • Electrical grid failure • Fail-back strategy does not exist • Incident Management Team (IMT) is not

available for key decision-making • Lack of available property restoration vendors • Lack of hardware/software • Lack of skillsets needed to recover/resume

operations • Lack of staff to resume operations • Pandemic event • Personal impact of disaster • Statutory restrictions (e.g., state payroll rules,

hiring freeze) • TRS cannot recover information systems • Transition of Legacy applications into TRUST

TRS cannot resume critical business operations

• Failed telecommunications with business partners or external entities

• Loss of member confidence • Loss of staff resources • Reputational and financial risk (e.g.,

penalties, lawsuits, loss of fund capital) • TRS is unable to meet contractual obligations

with business partners or external entities • Unable to complete member or healthcare

services (e.g., annuity payroll) • Unable to perform investment activities




damage if the consequences materialize? • Business Continuity Awareness Annual

Training • Confirmed critical vendors have adequate

DRPs in place • Data centers have redundant energy sources • Developed disaster recovery plans • Disaster recovery plans/procedures inventory • Established co-location data center • Knowledge transfer and cross-training for

critical recovery functions • Maintain updated business continuity plans

for critical functions • Multiple options for data recovery • Multiple options for un-encrypting TRS data • Regular disaster recovery/business continuity

testing

• Call Center Modernization (#1) • Test continuity aspects of new TRUST

environment (#5) • Include a component in department BCPs

to help identify which critical vendors require DRPs and/or BCPs (#6)

• Collect and review DRPs and/or BCPs from critical vendors (#7)

• Business continuity plans • Co-location data center • Communications Plan (public) • Emergency purchase option • Hire non-TRS workers • Organizational Excellence BCP (e.g.,

communications, EAP) • IMT Plan • Leverage business partners • Multiple methods of communication • Rely on existing contracted workers • Remote officing • Virtual desktop infrastructure

Future Plans (Action Items) Owner Target Date Revised Status Comments

1. Call Center Modernization (Risk Event A, B)

Benefit Services, Information Technology

8/2018 In Progress

2. Research delivering all mail to imaging for distribution to individual departments both short- and long-term (Risk Event B)

Strategic Initiatives, Mail, Print & Supply,

Records Management, Information Technology

12/2017 3/2018 Complete Research complete. Action item will be pursued with individual departments during the annual BCP update.




3. Research and develop a long-term (>6 weeks) continuity of operations strategy (Risk Event B)

Strategic Initiatives, Information Technology

12/2018 In Progress A 3-5 year contract for a dedicated DR/BC site has been executed. Continuity space will be available as of 6/1/2018.

4. Explore opportunities to include Organizational Change Management response in Organizational Excellence BCP (Risk Event B)

Organizational Excellence

3/2017 4/2017 Complete

5. Test continuity aspects of new TRUST environment (Risk Event B)

Strategic Initiatives, Information Technology

12/2018 Planned Following the completion of our DR/BC site, recovery of designated TRUST components will be tested.

6. Include a component in department BCPs to help identify which critical vendors require DRPs and/or BCPs (Risk Event A, B)

Strategic Initiatives, Investment

Management Division

6/2018 Planned

7. Collect and review DRPs and/or BCPs from critical vendors (Risk Event A, B)

Strategic Initiatives, Investment

Management Division

12/2018 Planned


COMMUNICATIONS & EXTERNAL RELATIONS RISK REPORT


Carolyn Perez April 2018

GOAL OVERALL RISK OBJECTIVES Maintain effective communication and positive relations with members, retirees, employers, TRS employees, news media, and the public.

Poor communication could lead to confusion resulting in increased calls to TRS, poor or inappropriate decision-making regarding TRS benefits, and incorrect information provided to external parties.

Publicize the agency’s updated Staff External Communications Policy.

Review and improve existing procedures relating to internal and external communications.

Develop new procedures to address potential spikes in Social Media activity and how to most effectively address them.

SUMMARY Three risk events have been identified for this risk category. All risk events are guarded risks and the risk owner is pursuing action items to further mitigate the likelihood of these risks.

RISK EVENTS


A. Inaccurate, insufficient, or misleading information is released (external or internal)

Adjust staffing resources Collaborate with associations Communications Plan Consistent messaging Contact news media to retract incorrect

information Corrective or contract actions Extensions or waivers for participants FAQs and other information on TRS website Notifying participants via postcards

Policy and procedures Prepared clarified statements and talking points Prior review and approval of vendor

communications on behalf of TRS Proactive talking points and prepared statements Publicize options in advance for members or

retirees to receive TRS communications Review process of communication materials Social media and website messaging Training




B. TRS-related information is not disseminated to TRS participants or the public in a timely and effective manner

Adjust staffing resources Collaborate with associations Collect retiree email addresses Co-location Communications Plan Compact with Texans Conduct penetration tests Consistent messaging Corrective or contract actions Daily system monitoring Disaster recovery plan Extensions or waivers for participants FAQs and other information on TRS website Immediately contact participants (e.g., email,

phone calls, expedited mail delivery)

Inform board and management Issue apology/explanation List of scheduled publications Multiple vendor contingencies Policy, processes and procedures Prior review and approval of vendor

communications on behalf of TRS Proactive talking points and prepared statements Provide timelines internally Publicize options in advance to receive TRS

communications Review process of communication materials Social media and website messaging Training Webcast testing

C. Online communication channels are disrupted or compromised

Backup webpage for notifying visitors Business continuity plan Change passwords regularly Collaborate with other state agencies,

associations, TRS-covered employers, and contractors

Collect retiree email addresses Co-location Contract provisions Disaster recovery plan

Email communications Incident response plan Include messaging for the call center and IVR for

members Planning and testing Policy, processes, and procedures Press releases System monitoring tools System/data backups Training



RISK EVENT DETAILS

CAUSES RISK EVENT A


occurs? • Insufficient or inadequate review process • Misinformation from external sources • Third-party uses TRS for endorsement

purposes without TRS’ permission • TRS replaced hard copy communications

with electronic communications, which all participants may not receive

• Unauthorized contact/interviews with the news media

• Unauthorized TRS information disseminated by TRS staff (e.g., media, blogs, public events, panels, associations)

Inaccurate, insufficient, or misleading information is released (external or

internal)

• Financial risk • Headline risk • Negative perceptions about TRS • Participant complaints • Participants act or fail to act based on

incorrect information • Participants are not aware of important TRS

information • Political or legal ramifications


damage if the consequences materialize? • Collaborate with associations • Communications Plan • Consistent messaging • FAQs and other information on TRS website • Notifying participants via postcards • Policy and procedures • Prior review and approval of vendor

communications on behalf of TRS

• Increase information for new TRS members on options for obtaining benefit information (#1)

• Adjust staffing resources • Collaborate with associations • Contact news media to retract incorrect

information • Corrective or contract actions • Extensions or waivers for participants • Prepared clarified statements and talking

points • Social media and website messaging




damage if the consequences materialize? • Proactive talking points and prepared

statements • Publicize options in advance for members or

retirees to receive TRS communications • Review process of communication materials • Training

CAUSES RISK EVENT B


occurs? • Catastrophic event • Hacking of internal/external systems • Information is inaccessible to persons with

disabilities • Lack of administrative support/staffing • Materials cannot be printed due to

equipment failure or insufficient expertise to fully utilize equipment

• Not able to maintain technical expertise/ experience due to rapidly changing technology

• Not enough lead time • Review process takes longer than expected • Vendor fails to meet contractual obligations

TRS-related information is not disseminated to TRS participants or the public in a timely and effective manner

• Headline/financial risk • Higher chance of exceptions/appeals • Increased social media comments/workload • Negative perceptions about TRS • Negative perceptions are not responded to

in a timely manner • Participant complaints via phone calls • Participants act or fail to act based on

incorrect information • Participants are not aware of important TRS

information • Political or legal ramifications • Statutory violations




damage if the consequences materialize? • Collaborate with associations • Collect retiree email addresses • Communications Plan • Compact with Texans • Conduct penetration tests • Consistent messaging • Daily system monitoring • Disaster recovery plan • FAQs and other information on TRS website • List of scheduled publications • Multiple vendor contingencies • Policy, processes and procedures • Prior review and approval of vendor

communications on behalf of TRS • Proactive talking points and prepared

statements • Provide timelines internally • Publicize options in advance to receive TRS

communications • Review process of communication materials • Training • Webcast testing

• Monitor compliance with requirement that public and higher education employers provide active member email addresses (#2)

• Explore automated phone call/text options (#5)

• Evaluate and consider crisis scenarios and effective responses for inclusion in the Communications Plan (e.g., Health Care, refunds) (#7)

• Develop and implement public outreach campaign (#8) for top-tier issues

• Adjust staffing resources • Collaborate with associations • Co-location • Corrective or contract actions • Extensions or waivers for participants • Immediately contact participants (e.g.,

email, phone calls, expedited mail delivery) • Inform board and management • Issue apology/explanation • Social media and website messaging



CAUSES RISK EVENT C


occurs? • Catastrophic event • Emergency interruptions • Employee error • Hacker or software/hardware/other

equipment failure disrupts live webcasts, TRS website and/or social media sites

• Lack of system administration training • Poor system monitoring • Vendor error during live webcasts

Online communication channels are disrupted or compromised

• Delay in conducting meetings • Important information not received by the

public (e.g., legal postings) • Inappropriate, inaccurate, excessive, or

negative social media comments posted and/or left unattended

• Increased workload/phone calls • Interruption of contracted services • Member web self-service is inaccessible • Negative perceptions are not responded to

in a timely manner • Penalties/cancellation of vendor contract • Release of confidential information


damage if the consequences materialize? • Business continuity plan • Change passwords regularly • Collect retiree email addresses • Co-location • Contract provisions • Planning and testing • Policy, processes, and procedures • System monitoring tools • System/data backups • Training

• Monitor compliance with requirement that public and higher education employers provide active member email addresses (#2)

• Explore automated phone call/text options (#5)

• Research email communication options in vendor contracts (#6)

• Backup webpage for notifying visitors • Collaborate with other state agencies,

associations, TRS-covered employers, and contractors

• Disaster recovery plan • Email communications • Incident response plan • Include messaging for the call center and IVR

for members • Press releases




1. Increase information for new TRS members on options for obtaining benefit information (Risk Event A)

Communications 7/2017 8/2018 In Progress A “new member” video is one of 11 member education videos now being jointly produced with Benefit Services. 8 of the 11 videos should be completed by August 2018. 3 more will be done beginning Jan, 2019

2. Monitor compliance with requirement that public and higher education employers provide active member email addresses (Risk Event B, C)

Benefit Services (as part of

administering TRUST)

9/2017 (scheduled go-live date

for full reporting

entity use)

8/2018 In Progress On Oct. 21, 2018 reporting entities are expected to begin reporting their employees’ email addresses as part of the member records they send us. They will continue doing so through the end of FY18.

3. Collect retiree email addresses (Risk Event B, C)

Communications 8/2017 Complete MyTRS Email subscriptions have been publicized through newsletters, our website, social media, and associations. This is an ongoing activity.

4. Establish process for automated reminders about publication deadlines (e.g., SharePoint) (Risk Event B)

Communications 7/2017 7/2017 Closed After further review of this option, staff determined that this would not mitigate the risk in question.

5. Explore automated phone call/text options (Risk Event B, C)

Communications 7/2017 8/2019 Planned

6. Research email communication options in vendor contracts (Risk Event C)

Communications 7/2017 8/2019 Planned

7. Evaluate and consider crisis scenarios and effective responses for inclusion in

Communications 8/2018 Planned Will include relevant information in the Communications Plan.




the Communications Plan (e.g., Health Care, refunds) (Risk Event B)

8. Develop and implement public outreach campaign(s) (Risk Event B)

Communications 8/2018 Planned Campaigns will be developed as needed.


INVESTMENT ACCOUNTING RISK REPORT


Don Green April 2018

GOALS OVERALL RISK • Ensure all TRS Investments are properly and completely accounted for • Ensure cash flows into and out of the Fund are complete and properly

controlled • Accurately calculate performance incentive pay (PIP)

TRS investments are not properly accounted for, valued correctly or properly reported, and investment-related cash is not properly controlled.

SUMMARY Three risk events have been identified for this risk category. All risks are low risk.

RISK EVENTS


A. TRS investments are not properly and completely accounted for

Annual due diligence of custodian accounting operations performed by TRS Investment Accounting

Certified Public Accountants (CPAs) on staff Communicate with GP Communicate with internal/external parties Communicate with State Auditor’s Office Communication with custodian Communication with other pension funds to

discuss new accounting issues Correct financials for next reporting period

Communication with IT Detailed review of custodian pricing reports Investment accounting fee reconciliation to

custodian bank and general partner financial reports

Leverage consultant relationships to gather fee information and assess for reasonableness

Leverage Institutional Limited Partners Association (ILPA) guidelines for consistent fee reporting from general partners

Long-term custodian contract Monthly reconciliation of custodian accounting




Corrective entries can be made to fix GL accounts

Detailed reconciliations of partnership valuations

Detailed review of custodian bank SOC 1 review of internal controls

Education and planning for GASB and other regulatory standard changes

Ongoing communication with custodian accounting and pricing teams

Ongoing monitoring of GASB, GFOA and other reporting requirements

Regular review of monthly valuations Restate accounting records

B. Unauthorized cash flows out of TRS Communicate with general partner Daily reconciliation of cash movements Detailed policy and procedures in place Multiple layers of review and oversight required

for each external cash flow

Quarterly review of cash movements performed by TRS Internal Audit

Review procedures to improve processes Stop payment on unauthorized cash flow

C. Performance incentive pay awards are not properly calculated

Calculation performed by automated system Collect overpayments Detailed policy and procedures in place Detailed review of results by Internal Audit

Issue additional awards for underpayments Manual check of system calculations are performed Multiple layers of review documented

RISK EVENT DETAILS

CAUSES RISK EVENT A


occurs? • Accounting errors at Custodian Bank • Incomplete review and sign off of

Investment financial information

TRS investments are not properly and

completely accounted for

• Financial Statement errors • Financials might be materially misstated • GL accounts might not balance • Investment financial operations are halted • Negative attention by media outlets



CAUSES RISK EVENT A


occurs? • Investment accounting information loaded

into TRS systems does not match custodian investment accounting values

• Investments valued incorrectly • Mapping between custodian general ledger

(GL) accounts and TRS GL accounts is incorrect

• Partnership fees are not properly received, reported or disclosed

• Subsequent accounting entries made by custodian not communicated to TRS

• Over/underpay investment managers or incentive compensation

• Qualified audit opinion • Reputational and political risk • TRS financials not in compliance with GASB,

GFOA, and other regulatory requirements • TRS is not awarded the Certificate of

Achievement for Excellence in Financial Reporting from the GFOA

• TRS makes investment decisions that are adverse to the fund’s goals


damage if the consequences materialize? • Annual due diligence of custodian

accounting operations performed by TRS Investment Accounting

• Certified Public Accountants (CPAs) on staff • Communication with other pension funds to

discuss new accounting issues • Detailed reconciliations of partnership

valuations • Detailed review of custodian bank SOC 1

review of internal controls

• Formalize review and sign-off process with IMD (#1)

• Communicate with GP • Communicate with internal/external parties • Communicate with State Auditor’s Office • Communication with custodian • Communication with IT • Correct financials for next reporting period • Corrective entries can be made to fix GL

accounts • Restate accounting records




damage if the consequences materialize? • Detailed review of custodian pricing reports • Education and planning for GASB and other

regulatory standard changes • Investment accounting fee reconciliation to

custodian bank and general partner financial reports

• Leverage consultant relationships to gather fee information and assess for reasonableness

• Leverage Institutional Limited Partners Association (ILPA) guidelines for consistent fee reporting from general partners

• Long-term custodian contract • Monthly reconciliation of custodian

accounting • Ongoing communication with custodian

accounting and pricing teams Ongoing monitoring of GASB, GFOA and

other reporting requirements • Regular review of monthly valuations



CAUSES RISK EVENT B


occurs? • Collusion between departments • Custodian error/fraud

Unauthorized cash flows out of TRS

• Corrective action/criminal prosecution • Loss of funds • Reputational and political risk • Terminate custodian services


damage if the consequences materialize? • Daily reconciliation of cash movements • Detailed policy and procedures in place • Multiple layers of review and oversight

required for each external cash flow • Quarterly review of cash movements

performed by TRS Internal Audit

• None at this time. • Communicate with general partner • Review procedures to improve processes • Stop payment on unauthorized cash flow



CAUSES RISK EVENT C


occurs? • Formulas to calculate incentive pay are

incorrect • IMD employee salaries are incorrect in the

system • IMD employees are not classified correctly • Investment performance is not calculated

correctly • System errors

Performance incentive pay awards are

not properly calculated

• Incorrect incentive award is paid • Reputational and political risk


damage if the consequences materialize? • Calculation performed by automated system • Detailed policy and procedures in place • Detailed review of results by Internal Audit • Manual check of system calculations are

performed • Multiple layers of review documented

• None at this time. • Collect overpayments • Issue additional awards for underpayments


1. Formalize review and sign-off process with IMD (Risk Event A)

Investment Accounting, IMD

8/2018 Planned


PENSION BENEFIT SERVICES RISK REPORT


Barbie Pearson April 2018

GOAL OVERALL RISK Deliver accurate benefits and superior service to TRS participants and stakeholders.

Inadequate delivery of benefits or customer service could lead to inaccurate information or benefits/payments, dissatisfied participants, loss of credibility, adverse public perception, increased scrutiny, and oversight.

OBJECTIVES • Process 98% of initial annuity payments to TRS retirees when first due. • Minimize time members spend waiting to speak to a counselor. • Minimize time to respond to reporting entity inquiries or requests. • Maintain a Benefit Counseling Department quality average score at the “successful” rating.

SUMMARY Four risk events were identified for this risk category. One risk event is elevated and the others are guarded. Mitigation strategies are in progress to reduce the likelihood of these risks occurring.

RISK EVENTS


A. Delay in refunds Additional FTE approvals Annual review of processes and procedures Authority in plan terms to make corrections Automated systems Business continuity plans Cross-training Disaster recovery plans Escalation process for complaints

Ongoing outreach to reporting entity partners Overnight payments Overtime Post-counseling surveys Proactive communication with affected members

related to identified issues Redundant technology Reporting Entity training




Evaluate processes and procedures Focused training Manual vouchers Manual workaround process Member concerns are escalated to management

for resolution through telephone survey Monitoring performance standards

Shift resources/adjust priorities Streamlined appeals procedure Targeted videos TEAM Program Verification process Workload aging reports

B. Delay in benefit payments Additional FTE approvals Agreement with Comptroller of Public Accounts to

reproduce last annuity file Annual review of processes and procedures Authority in plan terms to make corrections Automated systems Bi-annual member satisfaction survey Business continuity plans Cross-training Disaster recovery plans Escalation process for member complaints Evaluate processes and procedures Focused training Manual vouchers Member concerns are escalated to management

for resolution through telephone survey

Manual workaround process Monitoring performance standards Overnight payments Overtime Post-counseling surveys Proactive communication with affected members

related to identified issues Redundant technology Reporting Entity training Shift resources/adjust priorities Streamlined appeals procedure Targeted videos TEAM Program Verification process Workload aging reports

C. Delay in benefit information or incorrect benefit information

Additional FTE approvals Annual review of processes and procedures Annual salary review and equity adjustments as

needed Authority in plan terms to make corrections Automated systems Bi-annual member satisfaction survey

Proactive communication with affected members related to identified issues

Quality assurance for phone calls, office visits, and correspondence

Quality assurance performance measures Quality monitoring program for calls Reporting entity training




Centralized training for Benefit Services Comprehensive review of publications Cross-training Data Conditioning Project Escalation process for member complaints Evaluate processes and procedures Immediately contact the participant Internal audit Internet content is up to date Maintain current intranet resources Manual validation for special payments Manual vouchers Member concerns are escalated to management

for resolution through telephone survey Monthly calibration sessions for call scoring Post-counseling surveys

Review extent of incorrect information/identify target audience for corrective response

Review of forms and letters as a result of TEAM Shift resources/adjust priorities Singular database of record (TRUST) Streamlined appeals procedure Succession planning Targeted training Targeted videos TEAM Program Track duplicate payments Updated content of TRS website through Website

Redesign Project Verification process Verify member complaints through recorded calls

D. Fraud Annual review of system security access Comptroller of Public Accounts fraud investigation

office Death match audit, 100-year old and over, and

foreign payee reports Employee Assistance Program Fraud hotlines (TRS and SAO) Fraud investigations by Adult Protective Services Made aware of fraud through various sources

OCM Team Separation of duties (intra- and inter-

departmental) State Auditor’s Criminal Investigation unit Targeted reports (e.g., duplicate addresses,

duplicate payments) TRS employer audits Verification process



RISK EVENT DETAILS

CAUSES RISK EVENT A


occurs? • Catastrophic event or disaster • Conflicting priorities due to TEAM Program

implementation impacts service levels • Delay in employer reporting • Disruption of or interruption in service levels

between Phase 1 and Phase 2 during transitional phase of TEAM Program implementation

• Employee staffing level inadequate • Errors • Incorrect/incomplete information received

from reporting entities and/or participants • Increased workload • Issues outside of TRS control (e.g., bank

system failure, natural disaster, delivery service problems, issues with vendors, Comptroller of Public Accounts systems go down)

• Legislative changes • Spikes in retirement/other service areas due

to legislative changes or outside factors create backlog

• Technology issues (internal/external) • Turnover (e.g., staff retirements,

resignations, terminations)

Delay in refunds

• Increase in workload • Increased communication to the board • Increased legislative oversight • Legislative/board inquiries • Member/Reporting Entity partner

complaints • Participant dissatisfaction • Payee tax implications • Payment is incorrect • Reputational impact • Result in appeal




damage if the consequences materialize? • Annual review of processes and procedures • Automated systems • Business continuity plans • Cross-training • Disaster recovery plans • Focused training • Manual workaround process • Monitoring performance standards • Ongoing outreach to reporting entity

partners • Redundant technology • Reporting Entity training • Targeted videos • TEAM Program • Verification process • Workload aging reports

• Increase number of phone calls and office visits monitored for quality assurance purposes (#4)

• Implement partial refund functionality in TRUST (#16)

• Additional FTE approvals • Authority in plan terms to make corrections • Escalation process for complaints • Evaluate processes and procedures • Manual vouchers • Member concerns are escalated to

management for resolution through telephone survey

• Overnight payments • Overtime • Post-counseling surveys • Proactive communication with affected

members related to identified issues • Shift resources/adjust priorities • Streamlined appeals procedure

CAUSES RISK EVENT B


occurs? • Bridging of data between TRUST and Legacy

systems • Catastrophic event or disaster • Conflicting priorities due to TEAM Program

implementation impacts service levels • Disruption of or interruption in service levels

between Phase 1 and Phase 2 during

Delay in benefit payments

• Increase in workload • Increased communication to the board • Increased legislative oversight • Legislative/board inquiries • Member complaints • Participant dissatisfaction • Payee tax implications



CAUSES RISK EVENT B


occurs? transitional phase of TEAM Program implementation

• Employee staffing level inadequate • Errors • Incorrect/incomplete information received

from reporting entities and/or participants • Increased workload • Issues outside of TRS control (e.g., bank

system failure, natural disaster, delivery service problems, issues with vendors, Comptroller of Public Accounts systems go down)

• Legislative changes • Spikes in retirement/other service areas due


• Sustained reliance on legacy information systems (e.g., level of staff effort to maintain systems, performance issues)


resignations, terminations)

• Payment is incorrect • Payments sent late • Reputational impact • Result in appeal

PREVENTION/PREPAREDNESS FUTURE PLANS (ACTION ITEMS) MINIMIZE DAMAGE

What are we currently doing? What more can we do? What plans do we have in place to minimize the damage if the consequences materialize?

• Annual review of processes and procedures • Automated systems

• Eliminate majority of manual processes by automating them in TRUST Phase 2 (#1)

• Additional FTE approvals




damage if the consequences materialize? • Business continuity plans • Cross-training • Disaster recovery plans • Focused training • Manual workaround process • Monitoring performance standards • Redundant technology • Reporting Entity training • Targeted videos • TEAM Program • Verification process • Workload aging reports

• Mandatory training of staff (#2) • Benefit payments processed daily versus

twice a week (TRUST Phase 2) (#3) • Increase number of phone calls and office

visits monitored for quality assurance purposes (#4)

• Business Procedures and Training Project (TEAM) (#10)

• Discontinue bridging process once Phase 2 is fully implemented (#17)

• Agreement with Comptroller of Public Accounts to reproduce last annuity file

• Authority in plan terms to make corrections • Bi-annual member satisfaction survey • Escalation process for member complaints • Evaluate processes and procedures • Manual vouchers • Member concerns are escalated to

management for resolution through telephone survey

• Overnight payments • Overtime • Post-counseling surveys • Proactive communication with affected

members related to identified issues • Shift resources/adjust priorities • Streamlined appeals procedure

CAUSES RISK EVENT C


occurs? • Benefit Services staff provides incorrect

information to member or reporting entity • Bridging of data between TRUST and Legacy

systems • Catastrophic event or disaster

Delay in benefit information or incorrect benefit information

• Adverse social media posts • Employee burnout • Increase in appeals/litigation • Increased communication to the board • Increased employee dissatisfaction • Increased legislative oversight



CAUSES RISK EVENT C


occurs? • Complexity of plan terms for pension and

health benefits • Conflicting priorities due to TEAM Program

implementation impacts service levels • Data entry errors • Difficulty in ensuring compliance with

employment after retirement due to complexity of rules

• Disruption of or interruption in customer service levels between Phase 1 and Phase 2 during transitional phase of TEAM Program implementation

• Employee staffing level inadequate • Inability to monitor employee performance

and overall service delivery performance against set metrics during transitional phase of TEAM Program implementation

• Inadequate workflow design limits prioritization of work

• Inconsistent administration due to complexity of the pension plan

• Inconsistent information within multiple databases

• Incorrect information provided to participants by third parties

• Incorrect/incomplete information received from reporting entities and/or participants

• Increased workload

• Increased workload volume • Legislative/board inquiries • Member complaints • Open records requests • Participant dissatisfaction • Payments are sent late • Payments issued incorrectly

(electronic/manual) • Reputational harm to TRS • Retirement packets are sent late • State auditor’s office complaints



CAUSES RISK EVENT C


occurs? • IT application defect • Lack of knowledge of TRS laws and rules • Legislative changes • Limited training • Manual processes and inflexible systems

allow the possibility of more errors or delays in processing (e.g., alternate payments)

• Plan requirements not understood • Spikes in retirement/other service areas due


• Sustained reliance on legacy information systems (e.g., level of staff effort to maintain systems, performance issues)


resignations, terminations) PREVENTION/PREPAREDNESS FUTURE PLANS (ACTION ITEMS) MINIMIZE DAMAGE


• Annual review of processes and procedures • Annual salary review and equity adjustments

as needed • Automated systems • Centralized training for Benefit Services • Comprehensive review of publications • Cross-training


• Mandatory training of staff (#2) • Increase number of phone calls and office

visits monitored for quality assurance purposes (#4)

• Additional FTE approvals • Authority in plan terms to make corrections • Bi-annual member satisfaction survey • Escalation process for member complaints • Evaluate processes and procedures • Immediately contact the participant • Manual vouchers




damage if the consequences materialize? • Data Conditioning Project • Internal audit • Internet content is up to date • Maintain current intranet resources • Manual validation for special payments • Monthly calibration sessions for call scoring • Quality assurance for phone calls, office

visits, and correspondence • Quality assurance performance measures • Quality monitoring program for calls • Reporting entity training • Review of forms and letters as a result of

TEAM • Singular database of record (TRUST) • Succession planning • Targeted training • Targeted videos • TEAM Program • Track duplicate payments • Updated content of TRS website through

Website Redesign Project • Verification process

• During detailed level requirements specify employee performance and business processing monitoring reports needed out of the workflows (#5)

• Develop comprehensive process for implementing changes in plan terms (e.g., forms, processes, training, systems, letters) (#6)

• Create ad-hoc reports (#8) • Business Procedures and Training Project

(TEAM) (#10) • Customer service training on soft skills (#11) • Replicate current reports in TRUST for

performance and turnaround time (#12) • Develop member education videos (#13) • Provide selected forms and publications in

Spanish (#14) • Discontinue bridging process once Phase 2 is

fully implemented (#17)

• Member concerns are escalated to management for resolution through telephone survey

• Post-counseling surveys • Proactive communication with affected

members related to identified issues • Review extent of incorrect

information/identify target audience for corrective response

• Shift resources/adjust priorities • Streamlined appeals procedure • Targeted training • Verify member complaints through recorded

calls



CAUSES RISK EVENT D


occurs? • Altered or forged warrants • Collusion between Benefit Services

departments to issue a refund, create a retirement or death benefit

• Employee association with nefarious third-parties

• Employee dissatisfaction • Employee financial distress • Enter/set up fraudulent member accounts • Falsifying data/member accounts • Fraudulent documentation • Intentional misreporting of employee data

(internal/external) • Member account information altered to

benefit internal staff or external individual • Receive forged documents • Unresolved grievances

Fraud

• Corrective action including termination • Criminal charges • Increased fraud activity • Increased scrutiny/oversight • Increased workload • Ineligible access to benefits • Payment of incorrect amounts • Payment to incorrect payee • Potential for audits/investigations • Reputational risk • Trust fund loses money

PREVENTION/PREPAREDNESS FUTURE PLANS (ACTION ITEMS) MINIMIZE DAMAGE


• Annual review of system security access • Death match audit, 100-year old and over,

and foreign payee reports • Employee Assistance Program • Fraud hotlines (TRS and SAO) • Made aware of fraud through various

sources


• Create ad-hoc reports (#8) • Third-party validations (identity proofing)

(#15)

• Comptroller of Public Accounts fraud investigation office

• Employee Assistance Program • Fraud investigations by Adult Protective

Services • State Auditor’s Criminal Investigation unit




damage if the consequences materialize? • OCM Team • Separation of duties (intra- and inter-

departmental) • Targeted reports (e.g., duplicate addresses,

duplicate payments) • TRS employer audits • Verification process


1. Eliminate majority of manual processes by automating them in TRUST Phase 2 (Risk Event B, C, D)

Benefit Services, DXC Technology

5/2018 3/2019 In Progress Complete for Phase 1.

2. Mandatory training of staff (Risk Event B, C)

Benefit Services, Organizational

Excellence (OE), Health & Insurance

Benefits (HIB)

8/2019 In Progress There is current mandatory new hire training for Benefit Services. We are working on an annual plan. We are in the process of creating the curriculum for the mandatory 15-hour training requirement.

3. Benefit payments processed daily versus twice a week (TRUST Phase 2) (Risk Event B)


5/2019 In Progress Complete for Phase 1.

4. Increase number of phone calls and office visits monitored for quality assurance purposes (Risk Event A, B, C)

Benefit Services, OE, HIB

8/2018 In Progress The increases will be dependent upon staffing levels to handle an increase in the number of calls scored for quality assurance.




5. During detailed level requirements specify employee performance and business processing monitoring reports needed out of the workflows (Risk Event C)

Benefit Services, Core Program

Team, Core Management

Team

9/2017 3/2019 In Progress Complete for Phase 1. Phase 2 will be completed 3/2019.

6. Develop comprehensive process for implementing changes in plan terms (e.g., forms, processes, training, systems, letters) (Risk Event C)

Benefit Services 5/2019 In Progress We are currently reviewing processes and forms as part of TEAM. We also update and review processes with rule/Legislative changes. The plan is to implement an annual review of processes, forms and letters.

7. Full payroll with implementation of Phase 1 of TRUST


9/2016 9/2017 Complete

8. Create ad-hoc reports (Risk Event C, D) Information Technology,

Benefit Services

9/2017 3/2019 In Progress Complete for Phase 1. Phase 2 will be completed 3/2019.

9. Develop interim processes for Phase 1 Benefit Services, Core Program

Team

5/2015 9/2017 Complete This action item has been incorporated into business procedures and training.

10. Business Procedures and Training (BPT) Project (TEAM) (Risk Event B, C)

BPT Project Team

9/2017 2/2019 In Progress Complete for Phase 1. Cross-reference Health Care Plans Administration risk report.

11. Customer service training on soft skills (Risk Event C)

Benefit Services OE

8/2016 12/2018 In Progress All business staff would receive group training, either conducted by OE trainers or by a vendor. The first of the soft skills training was delivered in late 2016. There are several courses planned. The courses




will need to be developed or sourced. While this is an ongoing process, we anticipate completing the initial delivery of the curriculum by December 2018.

12. Replicate current reports in TRUST for performance and turnaround time (Risk Event C)

Information Technology,

Benefit Services

9/2017 5/2018 In Progress The majority of the reports will be generated for employee performance in Microsoft Dynamics (CRM). TRUST will provide high-level statistical reporting. For Phase 1 only, Phase 2 will be completed in 8/31/2019.

13. Develop member education videos (Risk Event C)

Benefit Services, Communications

9/2017 12/2018 In Progress Currently working with staff and communications to develop a timeline.

14. Provide selected forms and publications in Spanish (Risk Event C)

Benefit Services, Communications

1/2018 3/2019 In Progress The committee has met and recommended forms for the first phase. Decided we shouldn’t go live with this until TRUST and complete all form updates in TRUST instead of legacy. Need to consider all brochures related to the forms.

15. Third-party validations (identity proofing) (Risk Event D)

Benefit Services 5/2019 In Progress Currently in DLR phase of Web Self Service.

16. Implement partial refund functionality in TRUST (Risk Event A)

Benefit Services 4/2018 In Progress

17. Discontinue bridging process once Phase 2 is fully implemented (Risk Event B, C)

Benefit Services, Information Technology

8/2019 In Progress


PROCUREMENT & CONTRACTS RISK REPORT


Don Green April 2018

GOAL OVERALL RISKS OBJECTIVES Establish and maintain effective procurement and contract management practices.

• Inappropriate procurement practices could result in purchases of sub-standard products and services, unfavorable pricing or contract terms, and violation of laws.

• Ineffective contract management could result in contractors not fulfilling their contractual obligations.

• Mitigate Procurement risk associated with processing purchases and contracts.

• Mitigate Contract Management risk through effective monitoring processes.

SUMMARY One risk event was identified for this risk category. The risk level is elevated and mitigation strategies are planned or in progress to reduce the likelihood of the risk occurring.

RISK EVENTS


A. TRS not fulfilling its fiduciary obligation for obtaining best value in complying with TRS procurement and contracting practices

Additional training Ad-hoc coaching Alert management Business process improvements Consult with L&C Contract and compliance documents (e.g., Code of

Ethics, Business Associate Agreement) Coordination between Procurement & Contracting

(P&C) and Legal & Compliance (L&C) prior to/during engagement

Corrective action plans Developing additional tools Ethics & fraud training Improving contract language Internal P&C team development Lessons learned Policy and procedure amendments Separation of duties



RISK EVENT DETAILS

CAUSES RISK EVENT A


occurs? • Cultural attitude toward procurement and

contracting process • Failure to comply with legislative mandates • Failure to define and maintain complete

contract documentation • Failure to ensure adequate contract monitoring

or oversight • Failure to have adequate policies and

procedures • Delay in implementing new or revised policies

and procedures • Failure to receive information in a timely

manner, including notice of impending contract expiration or renewal/extension deadline

• Inadequate communication and coordination between departments

• Inadequate market testing • Inadequate staffing resources • Internal fraud and/or collusion • Lack of adequate training • Lack of clearly defined roles and responsibilities • Lack of contract monitoring tools • Undefined or poorly defined deliverables or

scope of work

TRS not fulfilling its fiduciary

obligation for obtaining best value in complying with TRS procurement and

contracting practices

• Audit findings • Budget overages • Contract overpayments • Contract void; TRS terminates contract • Employee termination • Fraud • Inaccurate contract value determination • Incorrect reporting • Inefficient use of resources • Legal risk • Loss of services, value, etc. • Low morale and employee turnover • Potential for punitive action by the

legislature • Purchases and/or contract may not be the

best value • Reputational risk • TRS not meeting contract obligations • TRS unable to obtain needed services in a

timely manner • Using a prohibited contractor




damage if the consequences materialize? • Contract and compliance documents (e.g., Code

of Ethics, Business Associate Agreement) • Coordination between Procurement &

Contracting (P&C) and Legal & Compliance (L&C) prior to/during engagement

• Developing additional tools • Ethics & fraud training • Improving contract language • Internal P&C team development • Separation of duties

• Research contract management tool options (#1)

• Review, as necessary, desk procedures drafted by business units to assist with consistency and compliance with contract administration policy (#2)

• Improve coordination between all cross-functional departments in association with contract execution documentation (#3)

• Create departmental work groups to update Contract Administration Policy and develop agency-wide procurement procedures (#4)

• Develop and implement agency procurement and contract training (#5)

• Additional training • Ad-hoc coaching • Alert management • Business process improvements • Consult with L&C • Corrective action plans • Lessons learned • Policy and procedure amendments


1. Research contract management tool options (Risk Event A)

P&C 12/2016 9/2019 In Progress Resource tool funding - IT and TEAM budgets

2. Review, as necessary, desk procedures drafted by business units to assist with consistency and compliance with contract administration policy (Risk Event A)

Business Units, P&C, Strategic

Initiatives

9/2018 9/2019 In Progress




3. Improve coordination between all cross-functional departments in association with contract execution documentation (Risk Event A)

L&C, P&C, Strategic Initiatives

9/2018 In Progress

4. Create departmental work groups to update Contract Administration Policy and develop agency-wide procurement procedures (Risk Event A)

P&C 9/2019 Planned Work with cross-functional work groups to develop policies and procedures that meet TRS’ unique needs. Develop tools and templates to help agency with procurement.

5. Develop and implement agency procurement and contract training (Risk Event A)

P&C 9/2018 Planned Develop annual trainings, instructor-led and video training.


TALENT CONTINUITY RISK REPORT


Janet Bray April 2018

GOAL OVERALL RISK OBJECTIVES Attract, retain and develop a highly competent staff.

The delivery of member services and pension fund management could be negatively impacted by turnover, the inability to retain qualified staff, lack of a sufficient knowledge transfer program, and an inconsistent performance management process.

• Develop and maintain a desirable work environment.

• Develop an effective recruitment/retention strategy and a competitive total rewards package.

SUMMARY One risk event was identified for this risk category. The risk level is at caution and mitigation strategies are in progress to reduce the likelihood of the risk occurring.

RISK EVENTS


A. Insufficient staffing levels Centralized knowledge transfer repository Consult with executive leadership Continual partnering with divisions on workforce

needs Continue to partner with business units to create a

strategic approach to their hiring needs Cross-training Document internal procedures Education assistance Employee and leadership development Employee assistance program

Improving processes Knowledge transfer OCM Team Performance improvement plans Recognition/appreciation programs Recommend changes to FTE levels Remote officing Salary surveys Stay interviews Streamlining procedures Targeted recruiting




Employee engagement surveys Enhancing succession planning Hire contractors, as warranted

Waiver request for hiring freeze Wellness program Workforce planning

RISK EVENT DETAILS

CAUSES RISK EVENT A


occurs? • Budgetary constraints • Employee burnout • Excessive or unanticipated staff turnover • Full-time equivalent (FTE) cap • Hiring freeze • Increased workloads • Ineffective management styles • Internal transfers • Lack of developmental resources • No opportunities for growth • Over-reliance on manual processes • Retirements • Salary does not match the market • Voluntary or involuntary terminations

Insufficient staffing levels

• Backlogs • Employee burnout • Employee morale issues • Increased workloads • Loss of employee engagement • Loss of staff • Lost opportunities to reap benefits of

developed employees ( e.g., succession planning, workforce planning)

• Not meeting deadlines • Siloing of key institutional knowledge and

skills • Unable to replace employees • Unable to timely identify developmental

needs




damage if the consequences materialize? • Continual partnering with divisions on

workforce needs • Cross-training • Education assistance • Employee and leadership development • Employee assistance program • Employee engagement surveys • Enhancing succession planning • Improving processes • Knowledge transfer • OCM Team • Performance improvement plans • Recognition/appreciation programs • Remote officing • Salary surveys • Stay interviews • Streamlining procedures • Targeted recruiting • Waiver request for hiring freeze • Wellness program • Workforce planning

• Implement data analytics to gain better insight into staffing needs (#2)

• Implement integrated technology solution (#5)

• Explore options to incrementally increase FTE levels (#7)

• Centralized knowledge transfer repository • Consult with executive leadership • Continue to partner with business units to

create a strategic approach to their hiring needs

• Cross-training • Document internal procedures • Employee and leadership development • Employee assistance program • Employee engagement surveys • Hire contractors, as warranted • OCM Team • Recognition/appreciation programs • Recommend changes to FTE levels


1. Enhance workforce planning (Risk Event A)


8/2017 Complete We have processes in place to monitor turnover, retirement trends, and anticipated changes in the workplace.




2. Implement data analytics to gain better insight into staffing needs (Risk Event A)



3. Exploring ambassador program for new hires (Risk Event A)


8/2017 Complete Steering committee formed and pilot program planned and initial launch has started. HR recruiting first ambassadors for October or November new hires.

4. Continue to enhance social media recruiting (Risk Event A)


8/2017 Complete LinkedIn presence continues to be expanded and recent intern group expanded the agency’s use of social media network. Opened career Instagram account.

5. Implement integrated technology solution (Risk Event A)



6. Work with divisions to create pipelines (recruiting outreach) or pathways (e.g. organizations) to reach out quickly to qualified potential candidates (Risk Event A)


8/2017 Complete Hiring/recruiting developed targeted recruitment strategies for select positions.

7. Explore options to incrementally increase FTE levels (Risk Event A)

Executive Management

9/2022 In Progress


APPENDIX

TRS FY 2017-2021 Strategic Plan Status

TRS Strategic Plan 2017-2021 (Goals, Objectives, Strategies and Tactics)

1

Goal Objective Strategy Tactics Status

G1: Sustain a financially sound pension trust fund.

O1: To manage to an actuarially sound retirement system that maintains an amortization period of less than 31 years and achieves full funding over the long-term.

S1: Monitor trust funding status. T1: Ensure all TRS Investments are properly and completely accounted for. (daily) Complete



S1: Monitor trust funding status. T2: Ensure investments are valued correctly. (daily) Complete



S1: Monitor trust funding status. T3: Ensure investment fees are accurately reported and disclosed. (annually) Complete



S1: Monitor trust funding status. T4: Ensure cash flows into and out of the Fund are complete and properly controlled. (daily) Complete



S1: Monitor trust funding status. T5: Ensure ongoing material accuracy of total member, reporting entity and state contributions and benefit distributions. (daily/weekly)

Complete



S1: Monitor trust funding status. T6: Monitor key actuarial assumptions to include trends in membership growth, salary growth, retirement age, years of service, life expectancy, etc. annually.

Complete



S2: Foster and maintain an effective working relationship with legislative stakeholders on trust sustainability issues.

T1: Develop a comprehensive annual (unless dynamics of underlying assumptions dictate a higher frequency report) trust level report/dashboard designed to educate and inform legislative stakeholders on the following: actuarial evaluation, plan design and the rate of return assumptions with an assessment of the expected return near term relative to current market conditions.

In Progress




T2: Request Actuarial Required Contribution in Legislative Appropriations Request biennially and before each legislative session.

Complete


2





T3: Improve and implement the process for developing TRS legislative initiatives by January 2017. Complete




T4: Collaboratively manage the process to have legislation developed for the session in a timely manner in advance of the legislative session.

Complete




T5: Engage new legislators on TRS pension and health care issues. Complete



S3: Develop/improve the communication strategy for employer and participant stakeholders with respect to the sustainability of the trust.

T1: Develop publications/materials/website content to educate employers and participants and update them annually. (ongoing)

Complete




T2: Conduct annual briefings/webcasts/town halls to discuss any plan changes and developments to include: legislative changes, actuarial changes, TRS organization and strategy, and investment performance impacts. (annually)

Complete




T3: Execute Communications Plan to more effectively and efficiently communicate TRS investment-related information to the news media, members, employees, and general public. (beginning of each calendar year)

Complete


O2: Maintain and implement an evolving investment policy capable of achieving the trust’s actuarial assumed rate of return as measured on rolling 20-year periods.

S1: Establish and implement an effective investment governance structure.

T1: Maintain a professional investment management division with clearly delineated roles and obligations on an ongoing basis. (daily)

Complete




T2: Maintain on an ongoing basis board of trustees oversight and delegated authority. (daily) Complete


3





T3: Perform regular reporting and review. (quarterly)

Complete




T4: Perform regular audit and compliance activities. (daily) Complete



S2: Establish a world-class investment policy statement.

T1: Collaborate with Board consultants and industry experts in developing investment policy that is reviewed and updated at least every two years, ensuring it is in line with current fiduciary standards.

Complete




T2: Communicate policy with relevant stakeholders at least annually. Complete




T3: Maintain the largest potential universe of investable securities and asset classes that may enhance returns, add diversification value or lower costs at least every two years.

Complete


O3: Develop, maintain and implement a sound, professional and systematic risk management and capital allocation system.

S1: Establish the trust’s asset allocation to meet the return and risk goals as determined by the Investment Policy.

T1: Implement and maintain on an ongoing basis long-term neutral allocation exposures through the purchase of appropriate securities.

Complete




T2: Conduct periodic strategic asset allocation studies to re-assess the appropriate asset class allocations at least every five years. (by Sept. 2019)

Complete




T3: Tactically adjust asset class exposures as dictated by current market conditions in order to create additional investment return or reduce the risk exposure(s) on an ongoing basis. (daily/weekly)

Complete



S2: Where appropriate, pursue added investment returns through active management.

T1: Determine asset classes where individual security selection will be beneficial to Trust returns annually.

Complete


4




S2: Where appropriate, pursue added investment returns through active management.

T2: Continue to use and review on an ongoing basis quantitative and qualitative methods to construct portfolios with the goal of producing returns in excess of passive benchmarks. (daily/weekly)

Complete



S3: Employ a dedicated investment risk management function to help maintain appropriate risk exposures.

T1: Maintain on an ongoing basis quantitative risk signals monitoring that alerts investment personnel when portfolio adjustments may be needed. (daily/weekly)

Complete




T2: Monitor trust exposures to ensure compliance with risk metrics as set out in Investment Policy. (daily/weekly) Complete




T3: Review the risk profile of individual investments and investment management firms before any allocation of capital. (as needed)

Complete



S4: Ensure investment decisions are properly executed and tracked by maintaining an effective investment operations unit.

T1: Conduct monthly performance tracking and reporting to maintain transparency around the pursuit of the investment objectives.

Complete




T2: Maintain on an ongoing basis processes to execute transactions smoothly and in a cost-effective manner. (daily/weekly)

Complete




T3: Identify and implement technology resources across the investment division to enhance productivity and decision making abilities. (weekly) Complete


5





T4: Review custodian bank relationship at least every six years and actively manage the roles and responsibilities between the trust and the custodian bank to maximize operational efficiencies on an ongoing basis. (by July 2020)

Complete




T5: Ensure all TRS Investments are properly and completely accounted for. (daily) Complete




T6: Ensure investments are valued correctly. (daily) Complete


O4: Develop and maintain a highly capable and diversified external network of global investment, trading and consulting relationships.

S1: Establish a repeatable certification process for the selection of external investment managers.

T1: Maintain a premier list of top tier investment management firms across various asset classes reviewed on a semi-annual basis.

Complete




T2: Follow a comprehensive due diligence process using both quantitative and qualitative metrics and review process on an ongoing basis. (daily/weekly)

Complete




T3: Build diversified alpha-seeking portfolios in multiple asset classes (including public equity, private equity, real assets, hedge funds, and energy and natural resources) with high quality managers, inclusive of emerging managers, in attractive investment strategies and opportunities. (daily/weekly)

Complete



S2: Develop deep strategic relationships with key external partners.

T1: Leverage TRS’ competitive advantages to gain preferential access, terms and the alignment of interests on an ongoing basis. (as needed)

Complete


6




S2: Develop deep strategic relationships with key external partners.

T2: Develop customized investment mandates, including those involving multiple products or asset classes. (as needed)

Complete



S3: Leverage the resources and intelligence of the external network to complement internal capabilities.

T1: Gain access to proprietary research and investment knowledge. (daily/weekly) Complete




T2: Assign customized research projects and conduct surveys of external partners as necessary. (as needed)

Complete




T3: Utilize investment consultants for market intelligence and collaboration on manager sourcing, due diligence and investment decisions on an ongoing basis. (daily/weekly)

Complete



S4: Use external network to optimize trading and execution.

T1: Develop and maintain on an ongoing basis broker relationships to improve market access and optimize transaction costs and research capabilities. (daily/weekly)

Complete




T2: Monitor broker trading performance and order implementation on an ongoing basis. (daily/weekly) Complete


O4: Develop and maintain a highly capable and diversified external network of global investment, trading and consulting


T3: Monitor and manage counterparty risks on an ongoing basis. (daily/weekly)

Complete



S5: Become the preferred destination for high-quality investment opportunities.

T1: Support principal investment program through implementation of global offices. (as needed) Complete



S5: Become the preferred destination for high-quality investment opportunities.

T2: Implement and utilize standardized valuation method for principal investments on an ongoing basis.(as needed)

Complete


7


G2: Continuously improve our benefit delivery.

O1: Implement modern pension and benefit information systems that allow TRS staff to serve our members and deliver accurate benefits effectively and timely by August 2019.

S01: Design, build and test LOB system components for phase 1.

T1: Design modules for active membership functionality by May 2016. Complete




T2: Build modules for active membership functionality by July 2016.

Complete




T3: Test modules active membership functionality by July 2017.

Complete



S02: Ensure that staff and users are properly trained on phase 1 functionality of the new LOB System.

T1: Train internal TRS technical staff on support of LOB application by September 2017. Complete




T2: Train internal TRS business staff on use of LOB application by September 2017. Complete




T3: Train external reporting entities on use of LOB application by July 2016.

Complete



S03: Go live with phase 1 of the pension LOB System.

T1: Deploy the LOB code to production by September 2017.

Complete



S03: Go live with phase 1 of the pension LOB System.

T2: Support the LOB application. (ongoing)

Complete


8




S04: Validate commitments in LOB RFO and define high-level requirements for phase 2.

T1: Conduct internal TRS commitment review sessions by March 2017.

Complete




T2: Conduct high-level requirements sessions by May 2017.

Complete




T3: Prepare high-level vision documents for Phase 2 requirements by May 2017. Complete



S05: Define detailed requirements and use cases for the LOB phase 2.

T1: Conduct detail requirement sessions by June 2018.

In Progress




T2: Develop business rule specifications by June 2018.

In Progress




T3: Develop detailed use cases by June 2018.

In Progress




T1: Design the benefits module of the LOB by July 2018.

In Progress




T2: Build the benefits module of the LOB by July 2018.

In Progress


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T3: Test the benefits module of the LOB by December 2018.

In Progress




T4: Design the member self-service modules of the LOB by July 2018.

In Progress




T5: Build the member self-service modules of the LOB by July 2018.

In Progress




T6: Test the member self-service modules of the LOB by December 2018. In Progress




T1: Train internal TRS technical staff on support of LOB application phase 2 by August 2019. In Progress




T2: Train internal TRS business staff on use of LOB application phase 2 by August 2019. In Progress




T3: Provide documentation, videos and help for members on LOB web self-service functionality by August 2019. In Progress



S08: Go live with phase 2 of the pension LOB system.

T1: Deploy phase 2 code to production by August 2019.

In Progress


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S08: Go live with phase 2 of the pension LOB system.

T2: Support the LOB application. (ongoing)

Complete



S09: Prepare TRS Data for Migration to the new pension LOB system.

T1: Assess data (ongoing) to determine readiness for migration by February 2019. In Progress



S09: Prepare TRS Data for Migration to the new pension LOB system.

T2: Condition data (ongoing) prior to migration by February 2019.

In Progress



S10: Implement, test and go live with new ERP (financial and HR) system.

T01: Confirm TRS implementation of CAPPS by May 2017.

Complete




T02: Determine CAPPS implementation order, HR or Financial by May 2017. Complete




T03: Form implementation project team by August 2017.

Complete




T04: Work with Comptroller to implement CAPPS financial solution by June 2018. In Progress




T05: Test CAPPS financial solution by August 2018.

In Progress


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T06: Train users on CAPPS financial solution by August 2018.

In Progress




T07: Go live with CAPPS financial solution by September 2018.

In Progress




T08: Work with Comptroller to implement CAPPS HR solution by June 2019. In Progress




T09: Test CAPPS HR solution by August 2019.

In Progress




T10: Train users on CAPPS HR solution by August 2019.

In Progress




T11: Go live with CAPPS HR solution by September 2019.

In Progress



S11: Update the TRS public website with a modern intuitive response design.

T1: Develop approved website design by June 2016.

Complete




T2: Test redesigned website by August 2016.

Complete


12





T3: Launch redesign website by September 2016.

Complete


O2: Continuously improve quality of work and customer service levels for our participants.

S1: Explore, review and consider relevant benchmarks that encourage service excellence.

T1: Research and develop draft report on potential customer service metrics and benchmarks, including metrics captured as part of the TEAM Program goals, by the end of FY 2017.

Complete




T2: Collaborate with Benefit Services division management to develop a plan for implementing recommendations included in the ICMI Call Center Assessment report. (by December 2018)

In Progress




T4: Participate annually in CEM pension benefit administration survey. Complete




T5: Conduct the bi-annual TRS member satisfaction survey. Complete




T6: Develop and implement a revised organizational structure within the HIB area that supports higher customer service benchmarks. (by December 2018)

In Progress




T7: Implement a new process for enrollment in TRS-Care that is controlled by Medicare eligibility, so that communication and information can be more tailored to participant needs. (by June 2016)

Complete



S2: Provide and maintain accurate, timely and consistent information to participants, reporting entities and other stakeholders.

T1: Annual review to validate and update performance measures. (ongoing) Complete


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T2: Provide quality resources and tools.

Complete




T3: Partner with HR to ensure training programs meet the needs of the business. (monthly/as needed)

Complete




T4: Provide targeted communications on a regular basis. (as needed)

Complete




T5: Conduct and publish independent review and audits in accordance with best practices. (consistent with the annual audit plan)

Complete




T6: Continue to expand options for customer service, e.g., web self-service and redesign of automated telephone system (ongoing) Complete



S3: Expand training and quality assurance programs.

T1: Implement refreshed training materials for business units. (by December 2016)

Complete




T2: Implement revised or new quality assurance standards. (ongoing)

Complete


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T3: Implement, evaluate, and review curriculum to include customer service and other soft skills. (as needed) Complete



S4: Improve website accessibility. T1: Develop a Website Accessibility Compliance Strategy Development Plan (by April 2016)

Complete



S4: Improve website accessibility. T2: Launch an employee website accessibility awareness and training program in response to our members' needs and legal requirements (by August 2016)

Complete



S4: Improve website accessibility. T3: Formalize and implement an employee website accessibility awareness and training program in response to our members' needs and legal requirements (by May 2017)

Complete


O3: Develop and maintain ongoing stakeholder information and education to support the mission of TRS and provide excellence in our response.

S1: Provide (TRS) mission-centric and broader communication to stakeholders.

T1: Document and update an agency-wide communication plan. (by June 2016) Complete




T2: Establish a cross-section of departmental representatives to develop and implement a strategy to improve stakeholder communication, including personal financial education. (ongoing)

Complete




T3: Present before all 20 TRTA District meetings and additional local chapter meetings prior to the legislative session. (annual)

Complete




T4: Develop effective communications to explain TRS asset allocation strategies for TRS stakeholders. (ongoing)

Complete




T5: Execute, review and update the agency-wide Communications Plan annually. Complete


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S2: Continue to improve inquiry responsiveness to help participants make better financial, retirement and healthcare decisions.

T1: Authorize and train employees to expand their responsiveness to address broader or unasked questions from participants. (monthly/as needed)

Complete




T2: Identify and review FAQs on at least a semi-annual basis and develop responsive informational/educational materials as needed.

Complete




T3: Expand Contact Center Call Distribution Software (OpenScape) to all of Benefit Services Division to allow for a better tracking of calls and cross functional training and assistance during high call volume. (by August 2016)

Complete




T4: Implement a health care publication that can assist with maintaining ongoing stakeholder information and education to support the mission of TRS. (by February 2017) Complete




T5: Develop at least three health care informational videos that support our efforts to increase health care literacy and consumer awareness. (by December 2016)

Complete



S3: Leverage technological advances to assist with providing accurate, secure and timely information.

T1: Review and offer web links to supplemental information and other website content. (as needed) Complete




T2: Review the use of social media every two years to improve communications. Complete


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T4: Conduct an assessment of emerging technology. (as needed) Complete




T5: Identify and implement technology resources across the Benefits Division to enhance productivity and decision-making abilities. (by September 2018) (TEAM Objective 1)

In Progress

G3: Facilitate access to competitive, reliable health care benefits for our members.

O1: Manage the revenues and expenses of TRS-Care and TRS-ActiveCare.

S1: Improve revenue to TRS-Care and TRS-ActiveCare.

T1: Develop and deliver education to the Legislature prior to the start of each legislative session. Complete




T2: Monitor and pursue available revenue streams on an ongoing basis. (daily/weekly) Complete




T3: Request funding through an exceptional item in the Legislative Appropriations Request biennially, prior to the start of each legislative session.

Complete



S2: Manage the expenses of TRS-Care and TRS-ActiveCare.

T1: Work actively with GRS to closely monitor TRS-Care fund and cash balance and to report deviations from the projections on a timely manner. (monthly)

Complete




T2: Implement 100% claim audits for TRS-Care and TRS-ActiveCare with the 3rd party claim auditor to achieve higher claim billing accuracy. (annual)

Complete




T3: Identify and deliver proactive health care approaches which will help lower expenses on an ongoing basis. (daily/weekly)

Complete

TRS Strategic Plan 2017-2021 Status (Goals, Objectives, Strategies and Tactics)

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T4: Enhance HIB data analytics to drive key decision-making to support cost management and resource maximization. (by December 2017)

Complete




T5: Solicit, evaluate and apply new health care delivery methodologies through the medical plan administration service RFP as statutorily allowed. (by June 2017)

Complete


O2: Research and communicate the merits of varied solutions that contribute to the long-term sustainability of access to healthcare for our participants.

S1: Communicate and update the TRS-Care and TRS-ActiveCare sustainability study.

T1: Engage with our stakeholders (e.g., Legislature, relevant entities, participants and Retiree Advisory Committee)

Complete




T2: Prepare legislative materials prior to the start of each legislative session. (biennially prior to January 1, 2017)

Complete




T3: Engage new legislators on TRS pension and health care issues. Complete




T4: Provide effective background materials for the Joint Interim Committee on TRS health care. (as needed)

Complete




T5: Successfully support the information requests from the interim committee created by SB 194. (by June 2017)

Complete



S2: Develop and initiate a communication strategy that supports health care literacy and health care consumer awareness.

T1: Develop routine communication strategies, e.g., newsletter. (by February 2017) Complete




T2: Improve web content.

Complete


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T3: Develop targeted communication strategies based on data trends. Complete



S3: Improve and implement the process for developing TRS legislative initiatives.

T4: Collaboratively manage the process to have legislation developed for the session in a timely manner in advance of the legislative session.

Complete



S4: Implement any legislative changes related to the access to healthcare.

T1: Adopt necessary agency rules after each legislative session. (as needed) Complete



S4: Implement any legislative changes related to the access to healthcare.

T2: Provide notice and informational materials to participants and interested parties regarding legislative changes in advance of the effective date. (as needed)

Complete

G4: Attract, retain, and develop a highly competent staff.

O1: Develop and maintain a desirable work environment.

S1: Promote a strong workplace culture that exemplifies TRS’ core values and emphasizes TRS’ mission.

T1: Communicate and promote core values through the quarterly recognition program, annual Golden Apple Awards, and other methods.

Complete




T2: Perform annual reviews of performance evaluations and 360 assessments (where applicable) and take appropriate action to ensure alignment with core values and TRS mission and update job descriptions as necessary. (as needed)

Complete




T3: Solicit employee feedback to assess employee satisfaction/ engagement, quality of internal customer service and quality of management at least annually. (by end of fiscal year)

Complete




T4: Review feedback from employee surveys and identify opportunities for improvement at least annually. (by end of fiscal year)

Complete


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S2: Provide a physical work environment that is safe and enhances productivity.

T1: Identify areas of opportunity to refresh and update TRS facilities to provide a safe, productive and desirable work environment. (as needed)

Complete




T2: Determine and provide an optimal level of technology and resources that is reviewed annually to allow TRS to enhance productivity. (as needed and annually during budget cycle)

Complete




T3: Research and decide on options regarding effective space utilization. (as needed)

Complete




T4: Review and evaluate safety measures and implement additional measures. (as needed)

Complete


O2: Develop an effective recruitment/retention strategy and a competitive total rewards package.

S1: Develop and execute workforce plan.

T1: Conduct gap analysis every two years. (by June; even calendar years) Complete




T2: Conduct ongoing review of job descriptions and postings to reflect needs identified in the workforce plan. (as needed)

Complete




T3: Develop targeted recruiting to address gaps. (as needed) Complete




T4: Identify critical positions and high potential employees for succession planning program. (by August 2016)

Complete



S2: Develop and implement training programs and other resources for managers.

T1: Design and pilot a manager's tool kit (an online portal providing HR information and tools for managers).

In Progress



S3: Review and assess recruiting and hiring.

T1: Map and update the hiring process, leverage technology where possible, and develop tools to assist managers. (December 31, 2018)

In Progress



S4: Expand recruitment efforts. T1: Explore options for an employee referral process by the end of FY 2016. Complete


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S4: Expand recruitment efforts. T2: Develop an employer branding strategy and materials for TRS. (by December 2016)

Complete



S4: Expand recruitment efforts. T3: Expand and enhance the internship program to attract quality candidates annually. (ongoing)

Complete



S4: Expand recruitment efforts. T4: Explore the use of external search firms to enhance the ability to attract and retain high quality candidates. (by August 2016)

Complete



S5: Identify and implement successful strategies to retain and promote top-performing employees and managers.

T1: Research top employee rated retention strategies by the end of FY 2017.

Complete




T2: Evaluate and implement retention strategies based on career stage. Complete




T3: Accurately calculate investment performance incentive pay. (annually)

Complete



S6: Provide employee development opportunities.

T1: Enhance leadership development program on an ongoing basis. (biennially)

Complete




T2: Design and implement a program that pairs newly hired employees with current employees to help familiarize them with the TRS culture and business structure. (by end of FY 2017)

Complete




T3: Continue to provide education and/or training opportunities and resources and track annually (e.g., tuition reimbursement, certification courses, etc.). (ongoing)

Complete



S7: Review, update and enhance TRS’ compensation and total rewards package.

T1: Conduct a gap analysis on TRS’ total rewards package by the end of FY 2016 and review biennially thereafter. Complete


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S7: Review, update and enhance TRS’ compensation and total rewards package.

T2: Conduct ongoing reviews of positions to determine the market competiveness with similar positions in the private and public sector, using TRS’ compensation strategy as a guideline and review as needed.

Complete

G5: Promote purchasing selection practices that foster meaningful and substantive inclusion of historically underutilized businesses (HUBs).

O1: Provide contracting opportunities for HUBs that result in TRS' overall total value of purchasing contracts expended with HUBs exceeding the aggregate State of Texas HUB expenditure performance.

S1: Develop and implement a plan for increasing the use of HUBs through purchasing contracts and subcontracts.

T1: Follow CPA guidelines on soliciting HUBs. (over $5,000 - contact at least one minority-owned and one woman-owned HUB and over $25,000 - contact all CMBL vendors [including HUBs] for class, item, and geographic region) (ongoing)

Complete




T2: Require HUB subcontracting plans for purchases over $100,000 whenever possible. (ongoing) Complete




T3: Solicit HUBs from existing statewide contracts when possible. (ongoing) Complete




T4: Attend HUB forums. (ongoing)

Complete




T5: Conduct an annual HUB forum. (ongoing)

Complete




T6: Assist HUBs when inquiring on how to do business with TRS. (ongoing) Complete

PRESENTATION TITLE >>> NAME FEB-09-15Strategic Communication Planning Carolyn Perez April 19, 2018

TRS Communications Department

Communications Specialist

Michelle Bertram

Director of Communications

Carolyn Perez

PT EditorGraphic SpecialistDenise Childress

Communications Associate

Kaylee Nemec

Communications Specialist

Dan Herron

CommunicationsIntern

Caroline Haywood

Communications Manager

Rhonda Price

Investments Comm. Specialist

Open

Communications Specialist (2)

Open

Communication Department Services

PUBLICATION FREQUENCYTRS News (Active Edition) 3x per year

TRS News (Retiree Edition) 3x per yearUpdate (for reporting entities) MonthlyComprehensive Annual Financial Report (CAFR) AnnuallyCAFR Summary AnnuallyTRS Brochure – a Great Value for all Texans AnnuallyBilingual Benefits Handbook Following legislative sessionRequesting a Refund Brochure As neededEmployment After Retirement Brochure Following legislative sessionThe Pulse (TRS Care Edition) Produced in tandem with HIBThe Pulse (TRS Active Care Edition) Produced in tandem with HIB

Operating Budget Report AnnuallyTRS Laws & Rules Assist Legal with producing following legislative session

Communication Department Services

• Media Relations Daily clips Media inquiry coordination News releases

• Social Media Management Facebook (12, 450K followers) Twitter (3,738 followers) YouTube (798 subscribers)

• Graphic Design• Photography and Videography• Event Support• Webcasting • Digital Content Development

Strategic Communications: the Planning Process

1. Conduct a Situational Analysis Top to bottom audit of all external facing communications channels and products Assess the bench strength of the Communication Department – do we have the right mix of skills? What

type of skills would complement the team? Needs assessment with key business units—what are their top goals for the next 12-18 months? How can

Communications support these goals? Key questions to answer: What are the major issues facing TRS? What value can Communications bring to

the organization? List issues in order of importance and focus on the three or four we have the resources to manage

2. Set goals & determine tactics Goals will be fully aligned with organizational objectives

3. Measure progress, refine and adjust as needed

Board Feedback

Dr. Steven Stowell of The Center for Management Organization Effectiveness compiled the input you provided in 2017. In general, Trustees would like to see:

• A clear communication strategy that is aligned with and fully linked to the overarching TRS strategy• Technology optimized as a means of communicating with our customers• A more forward-looking, creative Communications Department• Content focused on quality of life, financial management, contemporary retirement issues, healthy

lifestyles/wellness

The Board’s desires for a communication plan will be taken into account, along with the needs of the entire agency.

Areas of Focus

• Reputation Management– get in front of thorny issues"A lie can travel around the world and back again while the truth is lacing up its boots.“ –Mark Twain

• Customer service How can we effectively serve those who serve our members and the members themselves? Optimize technology to deliver information

• Rebuild & Revitalize the Communications Department Rebrand the department Develop and engage our staff Incorporate excellent design into everything we do Build a culture of engagement and relentlessly maintain it Hire for fit

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