Board meeting - May 2024

Unless otherwise specified, meetings will be held at the following location:

CalSTRS Board Room, 100 Waterfront Place, West Sacramento, CA 95605

Members of the public may provide public comment via telephone by calling (866) 236-6010. Board members may participate in this meeting via teleconference.

For labor dispute issues contact the General Counsel office at legalservices@calstrs.com.

Public Call Letter

All meeting times are approximate depending upon the end of the previous meeting.

April 30, 2024

Regular Meeting - 1:00 p.m.

Item 1 - Approval of Agenda

Session: Open | Type: Action | Presenter: Chairperson

Item 01 Attachment 01

Item 2 - Approval of Minutes of the February 5, 2024, and April 11, 2024, Search Committee Meeting – Open Session

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 02

Item 3 - CIO Search Committee Charter (Gov. Code, sec 11126 (g)(1))

Session: Closed | Type: Action | Presenter: Kristel Turko

Item 4 - Chief Investment Officer Interviews (Gov. Code, sec. 11126(g)(1))

Session: Closed | Type: Action | Presenter: Kristel Turko

Item 5 - Approval of Minutes of the February 5, 2024, and April 11, 2024, Search Committee Meeting – Closed Session (Gov. Code, sec. 11126)

Session: Closed | Type: Consent Action | Presenter: Chairperson

Item 6 - Review of Information Requests

Session: Open | Type: Information | Presenter: Chairperson

Item 7 - Opportunity for Statements from the Public

Session: Open | Type: Information | Presenter: Chairperson

May 1, 2024

Audits & Risk Management Committee - 9:00 a.m.

Item 1 - Approval of Committee Agenda

Session: Open | Type: Action | Presenter: Chairperson

Item 01 Attachment 01

Item 2 - Approval of Minutes of the March 7, 2024, Audits and Risk Management Committee – Open Session

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 02

Item 3 - Audit Services 2024 Six-Month Audit Plan Update

Session: Open | Type: Consent Information | Presenter: Chairperson

Item 03

Item 4 - Fiscal Year 2024-25 Audit Services Audit Plan

Session: Open | Type: Action | Presenter: Cheryl Cervantes Dietz / Chris Wall / Roseanne Oyoung

Item 04 Attachment 01 Presentation 01

Item 5 - Enterprise Risk Management Framework - First Reading

Session: Open | Type: Information | Presenter: Julie Underwood / Lynn Bashaw

Item 05 Attachment 01 Presentation 01

Item 6a - Audits and Risk Management Committee Charter - First Reading

Session: Open | Type: Information | Presenter: Cheryl Cervantes Dietz / Julie Underwood

Item 06a Attachment 01 Attachment 02 Presentation 01

Item 6b - Enterprise Risk Management Program Charter - First Reading

Session: Open | Type: Information | Presenter: Lynn Bashaw

Item 06b Attachment 01 Presentation 01

Item 6c - Enterprise Compliance Services Program Charter - First Reading

Session: Open | Type: Information | Presenter: Lynn Bashaw

Item 06c Attachment 01 Presentation 01

Item 7 - Enterprise Risk Management & Compliance Services Maturity Plan Progress Report

Session: Open | Type: Information | Presenter: Lynn Bashaw / Phil Burkholder / Meagan Hatfield

Item 07 Attachment 01 Attachment 02 Presentation 01

Item 8 - Input on 2024-25 Committee Work Plan

Session: Open | Type: Information | Presenter: Cheryl Cervantes Dietz / Julie Underwood

Item 08 Attachment 01

Item 9 - Review of Information Requests

Session: Open | Type: Information | Presenter: Chairperson

Item 10 - Draft Agenda for the Next Committee Meeting

Session: Open | Type: Information | Presenter: Chairperson

Item 10

Item 11 - Opportunity for Statements from the Public

Session: Open | Type: Information | Presenter: Chairperson

Investment Committee - 10:35 a.m.

Item 1 - Approval of Committee Agenda

Session: Open | Type: Action | Presenter: Chairperson

Item 01 Attachment 01

Item 2 - Opportunities for Statements from the Public

Session: Open | Type: Information | Presenter: Chairperson

Item 3 - Investment Policy Statement: Strategic Asset Allocation Targets - Step 2 - First Reading

Session: Open | Type: Information | Presenter: Geraldine Jimenez

Item 03 Attachment 01 Attachment 02 Attachment 03

Item 4 - Chief Investment Officer's Report

Session: Open | Type: Information | Presenter: Christopher Ailman

Item 04 Attachment 01 Presentation 01

Item 5 - Collaborative Strategies Portfolio Investment Policy – Second Reading

Session: Open | Type: Action | Presenter: Scott Chan, Mike DiRe, Glen Blacet, and Kirsty Jenkinson

Item 05 Attachment 01 Attachment 02 Attachment 03 Attachment 04

Item 6a - Special Mandates Review

Session: Open | Type: Action | Presenter: June Kim and Margot Wirth

Item 06a Attachment 01 Attachment 02

Item 6b - Special Mandates Policy Revision - First Reading

Session: Open | Type: Action | Presenter: June Kim and Margot Wirth

Item 06b Attachment 01 Attachment 02 Attachment 03

Item 7 - Net Zero Strategy – Annual Branch Wide Updates

Session: Open | Type: Information | Presenter: Christopher Ailman, Scott Chan, Kirsty Jenkinson, and Brian Rice

Item 07 Attachment 01 Attachment 02 Attachment 03 Presentation 01

Item 8 - Diversity in the Management of Investments (“DIMI”): Work Plan

Session: Open | Type: Information | Presenter: Scott Chan, June Kim, Shifat Hasan, and LaShae Badelita

Item 08 Presentation 01

Item 9 - Diversity in Management of Investments Annual Update

Session: Open | Type: Information | Presenter: Shifat Hasan and LaShae Badelita

Item 09 Attachment 01 Attachment 02 Presentation 01

Item 10 - Input on 2024-25 Committee Work Plan

Session: Open | Type: Information | Presenter: Christopher Ailman

Item 10 Attachment 01

Item 11 - Investment Charter Review

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 11 Attachment 01

Item 12 - Approval of Minutes of the March 6, 2024, Investment Committee Meeting – Open Session

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 12

Item 13 - Review of Information Requests

Session: Open | Type: Information | Presenter: Chairperson

Item 14 - Draft Agenda for the Next Committee Meeting

Session: Open | Type: Information | Presenter: Chairperson

Item 14

Item 15 - Tactical Investment Strategy Discussion (Gov. Code, sec. 11126(c)(16))

Session: Closed | Type: Information | Presenter: Investment Staff and Consultants

Item 16 - Confer with and Receive Advice from Legal Counsel Regarding Pending Litigation (Gov. Code, sec. 11126(e))

Session: Closed | Type: Information | Presenter: Brian J. Bartow

Item 17 - Director of Investment Services – Semi-Annual Compliance Report (Gov. Code, sec. 11126(c)(16))

Session: Closed | Type: Information | Presenter: April Wilcox and Shifat Hasan

Item 18 - Approval of Minutes of March 6, 2024, Investment Committee Meeting – Closed Session (Gov. Code, sec 11126)

Session: Closed | Type: Consent Action | Presenter: Chairperson

May 2, 2024

Regular Meeting - 9:00 a.m.

Item 1 - Approval of Agenda

Session: Open | Type: Action | Presenter: Chairperson

Item 01 Attachment 01

Item 2 - Approval of Minutes of the March 6-7, 2024, Regular Meeting – Closed Session (Gov. Code, sec. 11126)

Session: Closed | Type: Consent Action | Presenter: Chairperson

Item 3 - Committee Reports (Gov. Code, Sec. 11126)

Investment Committee
Appeals Committee

Session: Closed | Type: Consent Information| Presenter: Chairperson

Item 4 - Setting of CEO/CIO Performance Targets/Compensation for 2024-25 Performance Year (Gov. Code, sec 11126(a), (b), (g)1))

Session: Closed | Type: Action | Presenter: Chairperson

Item 5 - Chief Executive Officer Briefing on Performance and Personnel Issues (Gov. Code, sec. 11126(a), (b), (g))

Session: Closed | Type: Information | Presenter: Cassandra Lichnock

Item 6 - Confer with and Receive Advice from Legal Counsel Regarding Pending Litigation (Gov. Code, sec. 11126(e))

Session: Closed | Type: Information | Presenter: Brian J. Bartow

Item 7 - Annual Board Chair & Vice-Chair Elections

Session: Open | Type: Action | Presenter: Chairperson

Item 07

Item 8a - Report on Labor Market Benchmarking for Statutory Positions Under the Board’s Compensation Setting Authority

Session: Open | Type: Action | Presenter: Kristel Turko / Michael Oak, McLagan Partners

Item 08a Attachment 01 Presentation 01

Item 8b - Policy Amendment to the Limitation Provision of Annual Salary Adjustments for General Counsel

Session: Open | Type: Action | Presenter: Kristel Turko

Item 08b

Item 9a - Valuation of the Defined Benefit Program and Setting of Contribution Rates

Session: Open | Type: Action | Presenter: Rick Reed / David Lamoureux and Nick Collier/Julie Smith, Milliman

Item 09a Attachment 01 Attachment 02 Attachment 03 Attachment 04 Presentation 01

Item 9b - Valuation of the Defined Benefit Supplement Program and Consideration for the Adoption of an Additional Earnings Credit

Session: Open | Type: Action | Presenter: Rick Reed/David Lamoureux and Nick Collier/Julie Smith, Milliman

Item 09b Attachment 01 Attachment 02 Presentation 01

Item 9c - Valuation of the Cash Balance Benefit Program and Consideration for the Adoption of an Additional Earnings Credit

Session: Open | Type: Action | Presenter: Rick Reed/David Lamoureux and Nick Collier/Julie Smith, Milliman

Item 09c Attachment 01 Attachment 02 Presentation 01

Item 10 - Review of Lump Sum Death Benefit

Session: Open | Type: Action | Presenter: Rick Reed/David Lamoureux

Item 10 Attachment 01 Attachment 02 Presentation 01

Item 11 - Actuarial Projection for the Supplemental Benefit Maintenance Account

Session: Open | Type: Action | Presenter: Rick Reed/David Lamoureux and Nick Collier/Julie Smith, Milliman

Item 11 Attachment 01 Attachment 02 Presentation 01

Item 12 - Options on the Use of the Supplemental Benefit Maintenance Account

Session: Open | Type: Action | Presenter: Rick Reed/David Lamoureux

Item 12 Attachment 01

Item 13 - State and Federal Legislation

Session: Open | Type: Action | Presenter: Joycelyn Martinez-Wade

Item 13 Attachment 01 Attachment 02 Attachment 03

Item 14 - Updates to the Penalties and Interest Regulation

Session: Open | Type: Action | Presenter: Joycelyn Martinez-Wade

Item 14 Attachment 01

Item 15 - Initiative 21-0042A1: Taxpayer Protection and Government Accountability Act

Session: Open | Type: Information | Presenter: Joycelyn Martinez-Wade

Item 15 Attachment 01 Attachment 02 Attachment 03 Attachment 04 Attachment 05

Item 16 - Chief Executive Officer Report

Session: Open | Type: Information | Presenter: Cassandra Lichnock

Item 16 Attachment 01

Item 17 - Review Board Priorities for FY 2024-25

Session: Open | Type: Information | Presenter: Cassandra Lichnock / Amy McDuffee, Mosaic Governance Advisors

Item 17 Attachment 01

Item 18 - Compensation Committee Charter – First Reading

Session: Open | Type: Information | Presenter: Kristel Turko

Item 18 Attachment 01 Attachment 02 Attachment 03 Attachment 04

Item 19 - Input on 2024-25 Compensation Committee Work Plan

Session: Open | Type: Information | Presenter: Kristel Turko

Item 19 Attachment 01

Item 20 - Input on 2024-25 Board Work Plan

Session: Open | Type: Information | Presenter: Cassandra Lichnock

Item 20 Attachment 01

Item 21 - Pension Solution Project Update

Session: Open | Type: Information | Presenter: Ashish Jain/ Bill Perez/ Anthony Suine/ Chriss Cabodi, Guidehouse

Item 21 Attachment 01 Attachment 02 Presentation 01 Presentation 02

Item 22 - Update on Integrating Sustainability Principles Across the Enterprise

Session: Open | Type: Information | Presenter: Lisa Blatnick/ Scott Chan

Item 22

Item 23a - Committee Reports

Investment Committee
Appeals Committee
Audits and Risk Management Committee
Benefits and Services Committee
Board Governance Committee

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 23b - Approval of Minutes of the March 7, 2024, Regular Meeting – Open Session

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 23b

Item 23c - Board Member Education - Revised

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 23c

Item 23d - Contracts Requiring Board Approval

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 23d

Item 23e - Adoption of Contribution Rates and Interest Rates for Fiscal Year 2024-25

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 23e Attachment 01 Attachment 02 Attachment 03 Attachment 04 Attachment 05 Attachment 06 Attachment 07 Attachment 08

Item 23f - HQE CEO Delegation

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 23f

Item 24 - Actuarial Valuation of the Medicare Premium Payment Program

Session: Open | Type: Consent Information | Presenter: Chairperson

Item 24 Attachment 01

Item 25 - Administrative Procedure Changes Pursuant to CEO Delegation

Session: Open | Type: Consent Information | Presenter: Chairperson

Item 25 Attachment 01

Item 26 - Items Referred by Committee for Board Decision

Session: Open | Type: Information | Presenter: Chairperson

Item 27 - New Business / Review of Information Requests

Session: Open | Type: Information | Presenter: Chairperson

Item 28 - Draft Agenda for Next Meeting

Session: Open | Type: Information | Presenter: Chairperson

Item 28

Item 29 - Opportunity for Statements from the Public

Session: Open | Type: Information | Presenter: Chairperson

Benefits and Services Committee - 2:35 p.m.

Item 1 - Approval of Committee Agenda

Session: Open | Type: Action | Presenter: Chairperson

Item 01 Attachment 01

Item 2 - Approval of Minutes of the January 10, 2024, Benefits and Services Committee Meeting – Open Session

Session: Open | Type: Consent Action | Presenter: Chairperson

Item 02

Item 3 - Quality Management and Account Review Approaches in Employer Services

Session: Open | Type: Information | Presenter: Jeff Zimmer

Item 03 Presentation 01

Item 4 - Evolving Telephony Technology within Benefits & Services

Session: Open | Type: Information | Presenter: Shani Keyser Boes

Item 04 Presentation 01

Item 5 - Input on 2024-25 Committee Work Plan

Session: Open | Type: Information | Presenter: Bill Perez

Item 05 Attachment 01

Item 6 - Review of Information Rquests

Session: Open | Type: Information | Presenter: Chairperson

Item 7 - Draft Agenda for the Next Committee Meeting

Session: Open | Type: Information | Presenter: Chairperson

Item 07

Item 8 - Key Performance Indicators

Session: Open | Type: Consent Information | Presenter: Chairperson

Item 08.00

Item 9 - Committee Charter Review

Session: Open | Type: Consent Information | Presenter: Chairperson

Item 09 Attachment 01

Item 10 - Opportunity for Statements from the Public

Session: Open | Type: Information | Presenter: Chairperson