Mission Focused Teacher Retirement System

1. Mission FocusedTeacher Retirement System Ronnie Jung Deputy Director

2. TRS Mission • To deliver retirement and related benefits authorized by law for members and their beneficiaries; and • To prudently invest and manage the assets held in trust for members and beneficiaries in an actuarially sound system administered in accordance with applicable fiduciary principles.

3. TRS Philosophy • Dedicated to professional, accurate, timely, and cost-effective delivery of services. • Sensitive, caring and fair to those we serve and to our co-workers. • Take pridein our work and strive tocontinuously improve. • Open, responsive, and ethical.

4. A Snapshot View • 1 Million+ Members • $80 Billion Pension Fund • $4 Billion Annual Payout to Annuitants • Retiree and Active Members’ Insurance Plans • 425+ Employees

5. TRS directly serves 1 in 20 Texans.

6. Teacher Retirement SystemCompact with Texans TRS is committed to achieving the highest levels of customer satisfaction by delivering services consistent with our mission and in a manner that actively encourages honesty, integrity, and ethical behavior among our employees.

7. Sunset Review 1992

8. In 1992 began TRS 2000 Project Initiative to Improve member satisfaction with TRS services, including— • Benefit Information Services, such as retirement counseling and account information requests • Benefit Delivery, such as processing retirement requests, refunds, billing for service repurchase, and beneficiary claims

9. Another Sunset Review 1994

10. New Management • Board Restructured: • Financial Experts Added • Governor Appoints Chair • In late 1995, new Executive Director selected by Board

11. Cooperative Relationships with Stakeholders Governor Legislature Legislative Committees and Staff Members Employees

12. Survey of Organizational Excellence: 96, 98, 00, 02 After each survey . . . • Senior management analyzed results and developed communication plan for employees • Actively solicited employee views on how to improve their departments and the agency

13. Survey Strategies Agency-wide Efforts: • Published special employee newsletters on results • Indicated areas of strength and concern identified by employees • Highlighted areas of progress since 1996 survey • Offered full access to agency-wide results • Encouraged employee involvement in developing solutions through various means (meetings, email, anonymous paper suggestions, etc.)

14. Used focus groups to develop job descriptions, job standards, and workable team structures. Prompted two-way communicationabout areas of concern; continued process with small group “touch base” meetings. MBWA: Chief Benefit Officer recognizes each staff member’s employment anniversary every year. Survey Strategies Benefit Services Efforts:

15. Key Survey Results 2002 • 59% response rate in 2002; up 13% • All 20 constructs rated higher than in 2000 (and all but Fair Pay consistently increased with each iteration) • All 20 constructs rated higher than peer agencies • All five dimensions rated higher than all other survey respondents’ results

16. Board Involvement • Supported additional FTE’s and resources for the agency -- Approved by the Legislature • Supported career ladder development and competitive staff salaries

17. Building Morale & Commitment • Employee Involvement in Strategic Planning • “Donuts with Dunlap” meetings • “Appleseed” Recognition Process • (Apple-a-Day notes, Peck of Thanks, Bushel of Fun, Golden Apple Awards) • “Chalkboard” Employee Newsletter • Increased Training Opportunities for All; Leadership Skills Training • Casual Days Expanded

18. Membership Involvement • TRS conducted Member Satisfaction Surveys in 1998, 2000, and 2002 to assess effects of internal changes on customer satisfaction • 2001Mystery Shopper program (customer service evaluation project) for Benefit Counseling • These quantitative and qualitative assessments helped TRS fine-tune efforts to improve agency service delivery

19. Actual: 96% Actual: 98.3% Quantitative Outcome2002 Goals and Actual Performance • Goal: Percent of active members rating TRS services satisfactory or better—85% • Goal: Percent of retired members rating TRS services satisfactory or better—85%

20. Actual: $25.00 Quantitative Outcome2002 Goals and Actual Performance Efficient and effective delivery of services has fiscal impact, which benefits all members of the system. • Goal: Annual Operating Expenses Per Active and Retired Member (excluding Investment costs)-- $25.20

21. Qualitative Outcome A Mystery Shopper program evaluated the quality of all Benefit Counseling services from October—December 2001, including: • Office visit appointments • Benefit presentations throughout Texas • Telephone counseling information services • TRS lobby services • TRS received a higher score than any other government agency evaluated by the private sector research firm conducting the evaluation

22. Conclusion A broad range of efforts by management to: Remain focused on mission and provide an environment that supports employees in their pursuit of goals (including adequate resources, clear expectations, and appropriate recognition and rewards) has resulted in an exemplary level of service to TRS members.

23. Challenges Ahead • Funding • Membership • Legislation • Operational/ Staffing

24. Questions & Answers