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Legislative Updates

Legislative Update No. 86, Session 81
By Tim Lee, Executive DirectorPrinter Friendly ||| Print as PDF

October 14, 2010

TRS Executive Director Candidate Search Update; TRTA News Bulletin Hitting Now

The Issue: The Teacher Retirement System of Texas (TRS) is searching for a new Executive Director. The TRS Board of Directors (not TRTA) began searching for a replacement for current TRS Executive Director Mr. Ronnie Jung when he announced his retirement in April 2010.

At the last TRS search committee meeting, Korn/Ferry International (the firm tasked with bringing candidates to the TRS Board for their review) presented the names of 10 people they believed to be the most qualified for the position. From those 10, the firm then narrowed the field down to five.

The resumes of the top five candidates are provided for your information by clicking here.

Why this matters to you: TRS is the 7th largest pension fund in the country. It is the 17th largest pension fund in the world. It operates a traditional defined benefit retirement plan that provides a high level of benefit at a comparatively low cost to the members (active school employees) and the taxpayers (the state contribution). Having a leader who is qualified to maintain the current defined benefit structure and who will champion for it in the years ahead is of paramount concern for TRTA. Many individuals and groups want access to the pension fund, the active member contributions, or the annuitants in one way or another. The TRS Executive Director MUST be someone with broad public pension fund knowledge and a believer in this system as a defined benefit for all public education employees.

TRTA is concerned that the list of candidates presented by the executive search firm may NOT represent the best of the potential contenders for the top spot at TRS.

Additionally, the TRS Board is pushing to have a new person hired before the end of the year, if not sooner. November 4 and 5 are designated as candidate interview dates, and TRS plans to select a new Executive Director on November 12. The idea is to have a new person hired before the next legislative session begins. This would allow the new ED to work with current TRS Executive Director Ronnie Jung for on-the-job-training and to make important introductions with legislators.

TRTA believes this self-imposed TRS timeframe is unnecessary and potentially detrimental. It is our opinion that having a “director-in-waiting” is NOT essential for the hiring process. The system should put all its emphasis on finding the best candidate for TRS and its 1.3 million members. With a legislative session looming, your interests should be a top priority. It is not the time to rush in new leadership.

The bottom line: The TRS Board of Directors will not make a more important decision this year than the selection of a new executive director. Mr. Ronnie Jung, considered by people all over the country to be one of the most honest and capable public pension fund directors anywhere and who has been with TRS for 14 years, should not be rushed out of office. At the very minimum, TRS should endeavor to find a replacement that will have a broad public pension fund background, a demonstrable understanding of the issues with a strong belief in preserving the defined benefit pension plan, and a passion for the public education employees and retirees in the system.

The TRS Board would be wise to take their time with this search, and upon finding the right person, should be able to tell TRS members honestly that politics had nothing to do with the hiring process.

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