A Performance Audit
An Audit Report on Incentive Compensation at the Permanent School Fund, General Land Office, Teacher Retirement System, and Employees Retirement System
August 2022
Summary Analysis
The Permanent School Fund Division (PSF Division) of the Texas Education Agency, the General Land Office (GLO), the Teacher Retirement System (TRS), and the Employees Retirement System (ERS) calculated and paid incentive compensation in accordance with their policies and procedures for plan year 2021.
The Permanent School Fund Division (PSF Division) of the Texas Education Agency calculated and paid incentive compensation for its plan year ending September 30, 2021, in accordance with its policies and procedures.
The PSF Division awarded a total of $4,628,062 in incentive compensation to 61 employees. Its chief investment officer received the largest incentive compensation award of $349,529 payable over three years.
The General Land Office (GLO) calculated and paid incentive compensation for its plan year ending June 30, 2021, in accordance with its policies and procedures.
GLO awarded a total of $285,743 in incentive compensation to 4 employees. Its chief investment officer received the largest incentive compensation award of $221,453 payable over two years.
Incentive Compensation Plan
The Teacher Retirement System (TRS) calculated and paid incentive compensation for its plan year ending September 30, 2021, in accordance with its policies and procedures.
TRS awarded a total of $17,092,791 in incentive compensation to 180 employees (excluding $47,460 awarded to the executive director as part of the separate executive performance incentive pay plan). A senior managing director received the largest incentive compensation award of $467,242 payable over two years.
Executive Performance Incentive Pay Plan
TRS calculated and paid executive incentive compensation for its plan year ending September 30, 2021, in accordance with its policies and procedures.
The executive director’s award for plan year 2021 was composed of an investment oversight award of $47,460; no leadership award was earned. The TRS executive director was the only executive plan participant for the plan year.
The Employees Retirement System (ERS) calculated and paid incentive compensation for its plan year ending August 31, 2021, in accordance with its policies and procedures.
ERS awarded a total of $6,186,136 in incentive compensation to 79 employees. Its executive director received the largest incentive compensation award of $316,117 payable over three years.
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