The Employees Retirement System (ERS) calculated and paid incentive compensation for its plan year ending August 31, 2018, in accordance with most of its policies and procedures. However, ERS should strengthen controls over its calculation and review process to ensure that it uses accurate performance data in its calculations. ERS should also develop and implement a process to consistently communicate and document the approval of changes it makes to its performance calculation methodologies.
ERS awarded a total of $5,148,363 in incentive compensation to 76 employees. ERS awarded the most incentive compensation to its chief investment officer, who was awarded $361,297 payable during a three-year period. That $361,297 represented 7.0 percent of the $5,148,363 in total incentive compensation that ERS awarded. In addition, members of the ERS board of trustees approved the executive director to participate in the incentive compensation plan for plan year 2018.
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