TMRS Highlights from March 26, 2026 Board Meeting

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The TMRS Board met on Thursday, March 26th in Austin and this meeting was open to the public.  I was able to attend in person.  All TMRS Board Members were present at the meeting.

Takeaways from the meeting include:

Agenda Item #1 – Consider and Act on Consent Agenda

  • Consent agenda consisted of approving the Minutes from the February 18-19, 2026, Board of Trustees Retreat; quarterly confirmation of member retirements; quarterly confirmation of supplemental death benefit payments and extended supplemental death benefits coverage; and approval of financial statements as of December 31, 2025.
  • Motion made to accept the Consent Agenda.  Motion passed.

Agenda Item #2 – Deputy Executive Director’s Report

  • TMRS Executive Director, Debbie Munoz, opened her presentation with a TMRS Member Spotlight segment – Gary Smith, retired City Attorney for the City of Richmond. 
  • Ms. Munoz gave a report on some internal happenings, staffing updates, member education updates, member feedback, etc.  
  • Notable items discussed by Ms. Munoz:
    1. Last month’s Board Retreat was a success, resulting in a renewed vision and mission statements, including putting the 2026 Strategic Plan in motion.
    2. 2025 Investment returns were exceptional with returns of 13.29% that added $5.6 billion to the Trust.
    3. TMRS received GFOA’s Certificate of Achievement for Excellence in Financial Reporting for their 2024 Annual Comprehensive Financial Report (ACFR).
    4. Director of Actuarial Services, Leslee Hardy, announced her retirement effective April 30th.
    5. 2025 Member Annual Statements have been uploaded and mailed.

Agenda Item #3 – Receive Senior Staff Reports

  • All Board members received TMRS senior staff quarterly updates in their packets for review. 
  • No formal report was given and no action was required for this item.

Agenda Item #4 – Report on Audit Committee Meeting and Agenda Item #5 – Present Risk Assessment and Audit Plan to the Board

  • Trustee Tommy Gonzalez and TMRS Director of Internal Audit, Kristyn Scoggins, gave an overview of the Audit Committee meeting held on March 25, 2026.
  • Items covered included:
    1. Act on approval of the revised 2026 Audit Plan, including the Risk Assessment Plan, and ultimately forwarding to the Board for approval.   

Agenda Item #6 – Consider and Act on Selection of Auditor for Private Markets Investment Audit

  • TMRS Director of Internal Audit, Kristyn Scoggins, reported to the Board on selection of an auditor for a Private Markets Investment Audit. 
  • Ms. Scoggins reported that the Audit Committee’s recommendation for the auditor was Weaver and Tidwell, LLP.        
  • Motion made to approve recommendation.  Motion passed.

Agenda Item #7 – Consider and Act on Revisions to 2025-2026 Audit Plan

  • Motion made to approve revisions to the 2025-2026 Audit Plan as presented to the Board.  Motion passed. 

Agenda Item #8 – Report on Budget and Compensation Committee Meeting

  • TMRS Chief Financial Officer, Cindy Demers, reported to the Board an update of items discussed at the Budget and Compensation Committee Meeting, which was held March 25, 2026. 
  • Items covered included:
    1. Approval of Minutes from the last meeting.
    2. Reviewed Charter – no changes.
    3. Reallocation of current 2025-2026 Budget.
    4. Compensation Study.   

Agenda Item #9 – Report on Stakeholder Advisory Committee Meeting

  • Trustee Jaime Reyes and TMRS Chief Services Officer, Colin Davidson, reported to the Board an update of items discussed at the Stakeholders Advisory Committee Meeting, which was held March 25, 2026.  (I was not able to attend this meeting in person due to a work conflict, but I was able to listen in and participate in the meeting virtually)
  • Items covered included:
    1. Discussion of potential benefit topics in preparation for the 2027 Legislative Session.
    2. All members should go back to their respective associations and get a feel for any benefit topics that members have an interest in pursuing changes/modifications.
    3. Based on the previous Legislative Session in 2025 and the fact that neither TMRS-sponsored HB 4609 nor SB 2436 made it anywhere, moving forward, perhaps a different approach should be taken.  In particular, try splitting out the more “administrative” proposals from the more contentious proposals such as COLA’s or USC’s.  

Agenda Item #10 – Discuss Potential Topics for 2027 Legislative Session and Agenda Item #11 – Consider and Act on Topics for the Stakeholder Advisory Committee

  • TMRS Executive Director, Debbie Munoz, provided an overview of the process, including timeline, for drafting and submitting proposed legislation as it relates to revisions to the TMRS Act.
  • Ms. Munoz reported that at this time, there are no pressing issues or matters that staff think require any legislative changes.  She also expressed to the Board the need for a Governmental Relations-type person to work closely as a liaison between TMRS and the legislature.
  • After much discussion amongst the Board, it was decided to let the Stakeholder Advisory Committee continue to do their due diligence, go back to their respective associations for any ideas, and bring forward to the Board any potential benefit changes which will require legislative action.
  • In addition, Trustee Bryan Langley asked staff to ultimately provide a prioritized list of any potential legislative items. 
  • TMRS Board Chair, Jim Parish, expressed the importance and need for the Stakeholder Advisory Committee and encouraged all members to work collaboratively in an open, honest and transparent manner and to not hesitate to bring any ideas to the Board for consideration.
  • Motion made that the Board should consider any potential legislation as well as take a look at previous items that did not pass the last Legislative Session and any list of items that staff develops.  Motion passed.

Agenda Item #12 – Review and Discuss TMRS Actuarial Funding Policy

  • Gabriel, Roeder, Smith & Company (GRS) gave an overview of TMRS’ current actuarial funding policy.  This was a timely topic considering there are (4) relatively new Board members.
  • Summary of Current TMRS Funding Policy:
    1. The current policy annually calculates the required contribution for each individual city based on:
      • Closed amortization of the current UAAL
      • 20-year layered, closed amortization of any new loss
      • Combination of 10-year and 3-year asset smoothing – 10-year most of the time with acceleration to 3 years if market value gets more than 12% away from smoothed value
      • Both the asset and amortization methods allow for offsetting gains and losses to reduce volatility
      • Perpetual amortization credit of any surplus

Agenda Item #13 – Consider and Act on 2025 Interest Credit Allocation to the Benefit Accumulation Fund and Interest Reserve Account

  • Gabriel, Roeder, Smith & Company (GRS), along with TMRS staff, recommended crediting the Benefit Accumulation Fund (BAF) interest equal to approximately 13.54% which will be credited based on the beginning of year market value BAF balance for each City, as well as target the initial Interest Reserve Account balance at $340 million to allow for unanticipated changes in the market values as all investments are finalized.  In addition, it was recommended that a credit of 5% interest be allocated to each of the Supplement Disability Benefits Fund and the Supplemental Death Benefits Fund.  For 2024, the TMRS Total Fund performance will result in an estimated 7.60% smoothed (or actuarial) investment return for 2025.  Per TMRS Financial Policy, the goal performance is 6.75%.   Annually, the difference between actual and expected credits at 6.75% is smoothed over a 10-year period to determine the amount of excess/shortfall to recognize in a given valuation. 
  • As a result of the investment performance, cities can expect a slight decrease of approximately 0.27% in contribution rates for 2027 from the 2025 investment performance (will vary by city). 
  • Motion made to credit the BAF with an interest credit of approximately 13.54%.  Motion passed.

Agenda Item #14 – Review and Discuss Board’s Bylaws

  • TMRS Fiduciary Counsel, Robert Klausner, reported to the Board that the last comprehensive overview of the Bylaws was last done in 2020.  He stated that it is now time for another comprehensive overview. 
  • Mr. Klausner will review he Bylaws and come back to the Board at a future meeting with suggested modifications based on Trustee input and requests.   

Agenda Item #15 – Report on Investment Committee Meeting

  • Trustee Bryan Langley and Trustee Pamela Williams reported to the Board an update of items discussed at the Investment Committee Meeting, which was held March 25, 2026.  Both reported that they had a very productive meeting.

Agenda Item #16 – Consider and Act on Possible Amendments to the Investment Policy Statement

  • TMRS Chief Investment Officer, Tom Masthay, went over some very minor recommended changes/updates to the Investment Policy Statement and recommended the Board approve the minor changes/updates.       
  • Motion made to approve recommendation.  Motion passed.

Agenda Item #17 – Board Education:  Public Equity Annual Review

  • In accordance with the Investment Policy Statement, comprehensive asset class reviews are conducted at least annually.  TMRS Senior Director of Public Equity, Frank Atkins, gave a Global Public Equities review.
  • Global Equity offers the highest expected long-term returns of any public market asset class with high returns relative to other asset classes, cost effectiveness, and private market placeholder.
  • 2025 was an especially strong year in Global Public Equity, up 22.6%.

Hand-outs and Agenda for the TMRS Board Meeting are available on the following site:  https://www.tmrs.com/board-of-trustees

Please let me know if you have any questions or need clarification on any of the items on the agenda.

Next Stakeholder Advisory Committee Meeting:  June 24, 2026.

Next TMRS Board Meeting:  June 25, 2026.

Casey Srader