The Permanent School Fund Corporation met on April 7 to discuss several administrative matters, review corporation requirements, among other items. The agenda can be found here.
This report is intended to give you an overview and highlight of the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but is based upon what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.
Item 2. Election of Officers of the Board of Directors (Discussion and Possible Action)
- PSF Corporation Board Member Tom Maynard elected as permanent chair
- PSF Corporation Board Member Brad Wright elected as vice-chair
- PSF Corporation Board Member Lawrence Allen elected as secretary
Item 3. Consideration of Policy for Hiring the Chief Executive Officer (Discussion and Possible
Action)
- Staff – Draft hiring policy before the board today; idea is to allow the board to have maximum flexibility on how they hire a candidate
- Staff – Recommended position qualifications are listed, but are not requirements
- Staff – Board will not be subject to a lot of the state hiring requirements; especially certain posting requirements
- Board adopts the policy unanimously
Item 4. Process for and Selection of Chief Executive Officer of the Corporation (Discussion and
Possible Action)
- The board went into closed session to discuss personnel matters
- Motion to solely review the interim CEO is adopted
- Motion to approve Holland Timmins as the CEO of the PSF Corporation is adopted
Item 5. Update on and Possible Approval of Facilities (Discussion and Possible Action)
- The board went into closed session to discuss facilities matters
- No action was taken
Item 6. Review of Actions Required by Statute by the PSF Corporation (Discussion and Possible
Action)
- Staff overviewed the statutory requirements of the PSF Corporation
- Awaiting one more member of the board to be appointed; will then set the terms for the three appointed members
- Staff working on draft ethics and conflict of interest polices and will bring those to the board later this year
- To determine and set dates of assets, employees, and management of the fund
- Appropriation; strategic plan submission in a couple weeks
- Audit submission to the LBB will be discussed coming up
- Discussing biennium amounts will be a process the board will determine; report due November 1, 2022
- Chair Maynard – Could we set board terms before the last member is appointed? Maybe in June
- Is staggered by position, so would not be an issue
- Chair Maynard and staff discuss the 13 positions posted for the corporation; most significant choice in terms of staffing is whether to handle IT internally or externally
- Chair Maynard – Do we have a list of what is in rule text that we need to build into corporate policy?
- Yes, are in process; will also be administrative polices that need to be set up
- Setting of the distribution rate has to have a rule in TAC, everything else will migrate from statutory rule to corporate policy
- Corporation adopting investment policy and ethics policy are required
- Chair Maynard – Do not have many meeting dates this year, need to keep on this
Item 7. Review of Asset Allocation Process (Discussion Only)
- Is policy to review this asset allocation every two years; last set in June 2020
- Is the function of the state board this year; will not move to the corporation until 2023
- Staff overviews the asset allocation process
- PSF Corporation CEO Holland Timmins – Merging asset accounts will be moved quickly into the parallel accounts; short intermediate fixed income needs more planning
- PSF Corporation Member Todd Williams – Would like to see historical returns and data on emerging market debt
Item 8. Review of the Core Fixed Income Asset Class for the Permanent School Fund
 (Discussion Only)
- Staff overviews the core fixed income asset class and portfolio positioning/monitoring
Item 9. Report of the Interim CEO (Discussion Only)
- Was not discussed