1. Is Governance Really Such A Big Deal???
Rich Goss
Administrator
California Association of Public Retirement Systems

2. The Way We Were… Run by an Agency Official Clerical administration
Not much budget impact
Boring to the Press
Agency Official = Treasurer, CFO, Controller, etc
PERS & STRS had common investment officer
All in Bonds, minor stock holdings, all buy and hold
Staff used worksheets and coding sheets
Tab card systems
Somewhat informal structure – part of larger organizaton

3. Then Things Started to Change
1971 Myers, Millias, Brown Act
1978 Proposition 13
1984 Proposition 20 – Prudent Expert
1985 Computer Work Stations
1986 Fiduciary Responsibility
1992 Proposition 162
Somewhere Along the Line - Independence

4. We Got Lots of Help With Some of those changes Investment Policies
Asset Allocation Studies
Multiple Asset Classes
Multiple Asset Managers
Discretionary Relationships
All managed by very willing Investment Consultants

5. We Got Less Help Data Processing Member Communications
Staff Operations
Financial Oversight
Staff Training and Succession Planning
Media Relations
Board Operations

6. And Then The Fresno County Employees’ Retirement Association
Went Independent!

7. So, Who Is In Charge? Barriers to Excellence
Time Spent on Important & Urgent
Effective Decision Making
Clear, documented, understood, mapped
The Board as Risk Controller
The Administrator as Performance Maximizer
Handout Panel 5: Barriers to Excellence #1 Poor Process, #3 Lack of focus
Handout Panel 9: Traditional Focus
Handout Panels
Handout Panel 13
Handout Panel 14

8. Investment Program/ Strategy
Decision Map
Level
Planning/ Policy
Investment Program/ Strategy
Management/
Implemen-
tation
Oversight/
Control
Board
Approves
Monitors
Investment
Committee
Reviews & Recommends to Board
Executives
& Staff
Develop & Recommend to Committee
Manages

9. Policies Board Governance Policy Board Charter Board Elections Policy
Board Officers’ Job Descriptions
Board Operations Policy
Conflict of Interest Policy
Liability Management Policy
Investment Gain/Loss Treatment
Travel Policy
Trustee Education Policy
Board Terms of Reference
Code of Conduct
Executive Director Evaluation Policy
Policy Development Process
Attachment: SUGGESTED MINIMUM ELEMENTS OF A GOVERNANCE STRUCTURE
This doesn’t even get in to Communications, Succession, Financial Oversight, etc.

10. What’s It Worth? Clearer Operating Focus Risk Management
Future Directed
Affects the Core of the Business

11. And…
You have to revisit it every couple of years