Approval of Nominees to Recommend to the Governor for Service on the Board of Trustees of the Teacher Retirement System of Texas
January 23, 2009
COMMITTEE OF THE FULL BOARD: ACTION
STATE BOARD OF EDUCATION: ACTION
SUMMARY: The board of trustees of the Teacher Retirement System of Texas (TRS) is comprised of nine members. Two of the members are appointed by the governor, subject to confirmation by two-thirds of the senate, from lists of nominees submitted by the State Board of Education (SBOE). Due to the resignation of James H. Lee, this item provides an opportunity for the SBOE to approve a list of nominees for an appointment to the board of trustees of the TRS to be transmitted to the governor. The term of office of the governor's appointee will expire on August 31, 2013. The list of nominations from SBOE members for the board of trustees of the TRS will be distributed at the meeting.
STATUTORY AUTHORITY: Texas Government Code, §825.003.
PREVIOUS BOARD ACTION: From a list of nominations submitted by the SBOE to the governor on July 11, 2003, Governor Perry appointed John Graham, Jr. to a term expiring on August 31, 2009. Due to the December 2005 resignation of James W. (Jim) Fonteno, Jr., on February 10, 2006, the SBOE approved a list consisting of three nominees that was submitted to the governor on February 13, 2006 for consideration of appointment to the board of trustees of the TRS to fulfill the unexpired term that ended on August 31, 2007. From the board’s list of nominations, Governor Perry appointed James H. Lee to fill the unexpired term. On September 21, 2007, the SBOE approved a list consisting of two nominees. From the board’s list of nominations, Governor Perry reappointed James H. Lee to a full term that expires August 31, 2013.
BACKGROUND INFORMATION AND SIGNIFICANT ISSUES: The Texas Government Code, Title 8, Public Retirement Systems, Subtitle C, Teacher Retirement System of Texas, relates to the functions, systems, and programs administered by the TRS, and Chapter 825, Administration, pertains to the administration of the TRS. In accordance with the Texas Government Code, §825.003, Trustees Appointed by Governor From Nominees of Board of Education, the governor shall appoint two members of the board of trustees for the TRS, subject to confirmation by two-thirds of the senate, from lists of nominees submitted by the SBOE. The law specifies that these members must be persons who have demonstrated financial expertise, have worked in private business or industry, and have broad investment experience, preferably in investment of pension funds. The Texas Government Code, §825.0032, Ineligibility for Board and of Certain Employees, contains information regarding persons who are not eligible for appointment to the board.
FISCAL IMPACT: Trustees serve without compensation but are entitled to reimbursement from the expense account of the retirement system for all necessary expenses that they incur in the performance of official board duties (Texas Government Code, §825.007).
PUBLIC AND STUDENT BENEFIT: The board of trustees of the TRS is responsible for the general administration and operation of the retirement system.
PROCEDURAL AND REPORTING IMPLICATIONS: Not applicable.
PUBLIC COMMENTS: None.
ALTERNATIVES: No alternative actions are proposed regarding this item.
OTHER COMMENTS AND RELATED ISSUES: No other comments or related issues are presented.
MOTION TO BE CONSIDERED:
Approve the list of nominees to be submitted to the governor for consideration for appointment to the board of trustees of the Teacher Retirement System to fill an unexpired term ending on August 31, 2013.
Respectfully submitted,
Robert Scott
Commissioner of Education
Staff Member Responsible:
Reneé Jackson, Executive Assistant
State Board of Education
Separate Exhibit:
Nominations from the State Board of Education members for the Board of Trustees of the Teacher Retirement System of Texas (to be distributed at the board meeting)