November 2020 Committee on School Finance/Permanent School Fund Item 6
Approval of an Extension of the Standard Contract with NEPC, LLC, and Authorization for Contract Execution by the Commissioner of Education
November 20, 2020
COMMITTEE ON SCHOOL FINANCE/PERMANENT SCHOOL FUND: ACTION
STATE BOARD OF EDUCATION: CONSENT
SUMMARY: This item provides an opportunity for the committee and board to extend the standard contract with NEPC, LLC, and authorize contract execution by the commissioner of education.
The Texas Constitution, Article VII, §2 and §5 establish the permanent school fund, the assets that comprise the permanent school fund, the bond guarantee program, the available school fund, and authorize the State Board of Education (SBOE) to manage and invest the permanent school fund in accordance with the prudent person standard.
NRC, §51.414 establishes the Permanent School Fund Liquid Account as an account in the permanent school fund in the State Treasury to be managed by the SBOE.
19 TAC Chapter 33 codifies administrative rules that provide a statement of investment objectives, policies, and guidelines of the Texas Permanent School Fund and Bond Guarantee Program as adopted by the SBOE.
The full text of statutory citations can be found in the statutory authority section of this agenda.
PREVIOUS BOARD ACTION: At the July 2015 meeting, the board selected NEPC, LLC as the Permanent School Fund’s investment counsel with the option to extend the contract for two additional 3-year terms. That period expired on August 31, 2018. At the April 2018 meeting the board extended the NEPC, LLC contract for the period of September 1, 2018 through August 31,2021.
BACKGROUND INFORMATION AND JUSTIFICATION: None.
Staff Member Responsible:
Holland Timmins, Executive Administrator and Chief Investment Officer, Texas Permanent School Fund