Orange County Employees Retirement System 2223 East Wellington Avenue Santa Ana 92701 2018 BUSINESS PLAN 1
MISSION, VISION AND VALUES MISSION STATEMENT: We provide secure retirement and disability benefits with the highest standards of excellence. VISION STATEMENT: To be a trusted partner providing premier pension administration, distinguished by consistent, quality member experiences and prudent financial stewardship. VALUES: Open and Transparent Commitment to Superior Service Engaged and Dedicated Workforce Reliable and Accurate Secure and Sustainable 2
2018-2020 STRATEGIC GOALS Fund Sustainability Excellent Service and Support Risk Management Talent Management 3
FUND SUSTAINABILITY GOAL: STRENGTHEN THE LONG-TERM STABILITY OF THE PENSION FUND Business Plan Initiatives Mitigate the Risk of Significant Investment Loss Executive Lead Molly Murphy 1. Fund the Risk Mitigating asset class 2. Explore and evaluate investment/risk management systems Develop an Integrated View of Pension Assets and Liabilities Executive Leads Molly Murphy; Gina Ratto 1. Update the asset liability study 2. Develop procedure for new employers entering the system Employ a Governance Structure that Supports a Dynamic Investment Program Executive Lead Molly Murphy 1. Evaluate governance best practices (year one) Prudent Use of Resources Executive Leads Molly Murphy; Brenda Shott 1. Using CEM Benchmarking, evaluate the cost and efficiency of OCERS plan administration 2. Increase transparency of investment management fees and investigate actionable items to reduce fees in the future 3. Study and enhance private equity capabilities and activities 4
EXCELLENT SERVICE AND SUPPORT GOAL: ACHIEVE EXCELLENCE IN THE SERVICE AND SUPPORT WE PROVIDE TO OUR MEMBERS AND PLAN SPONSORS Business Plan Initiatives Provide Accurate and Timely Benefits Executive Leads Suzanne Jenike; Gina Ratto 1. Develop and communicate OCERS Administrative Procedures 2. Streamline the disability determination and appeals processes 3. Streamline the benefit appeals process 4. Update and create desk manuals and procedures 5. Improve customer service standards 6. Perform a comprehensive review of all employer pay items to determine pensionable attributes Provide Education to our Members and Plan Sponsors Executive Lead Suzanne Jenike 1. Web site redesign (year two) 2. Circular letters to employers 3. Roll out updated Summary Plan Descriptions 5
RISK MANAGEMENT GOAL: CULTIVATE A RISK-INTELLIGENT ORGANIZATION Business Plan Initiatives Provide System and Data Security and a Robust Business Continuity Solution Executive Lead Jenny Sadoski 1. Implement tools to mitigate the risk of data or financial loss or information disclosure 2. Develop and implement formalized IT governance framework 3. Enhance crisis and security management program Implement Operational Risk Management Program Executive Lead Brenda Shott 1. Define the scope of the Operational Risk Management Program and implement an operational risk management process 2. Determine if a risk management system is needed Ensure a Safe and Secure Workplace and Public Service Facility Executive Lead Brenda Shott 1. Evaluate building security and access system and upgrade if necessary 2. Improve employee resources and training 3. Evaluate functionality of the agency s existing work space 4. Plan and implement facility upgrades and space management projects 6
TALENT MANAGEMENT GOAL: RECRUIT, RETAIN AND INSPIRE A HIGH-PERFORMING WORKFORCE Business Plan Initiatives Recruit and Retain a High-Performing Workforce to Meet Organizational Priorities Executive Lead Cynthia Hockless 1. Enhance onboarding and transitioning of new hires into the organization 2. Implement recommendations from workforce analysis 3. Develop a comprehensive and competitive compensation package Develop and Empower Every Member of the Team Executive Lead Steve Delaney 1. Implement a comprehensive training program covering OCERS policies, processes and procedures 2. Recognize individual needs and career goals within OCERS 3. Create or update executive management charters 4. Create succession plans across the agency Cultivate a Collaborative, Inclusive and Creative Culture Executive Lead Steve Delaney 1. Launch cultural celebration initiative 7
ORANGE COUNTY EMPLOYEES RETIREMENT SYSTEM www.ocers.org 8
OCERS 2018 Business Initatives Budget Impact Estimates Strategic Plan Goal: FUND SUSTAINABILITY Mitigate the Risk of Significant Investment Loss Coordinator: Molly Murphy Initiative: #1: Fund the Risk Mitigating asset class Initiative #2: Explore and evaluate investment/risk management systems $ 50,000 Develop an Integrated View of Pension Assets and Liabilities Coordinator: Molly Murphy Initiative: #1: Initiative #2: Update the asset liability study Develop procedure for new employers entering the system Employ a Governance Structure that Supports a Dynamic Investment Program Coordinator: Molly Murphy Initiative: #1: Evaluate governance best practices (year one) Prudent Use of Resources Coordinators: Molly Murphy, Brenda Shott Initiative: #1: Using CEM Benchmarking, evaluate the cost and efficiency of OCERS' plan administration $ 20,000 Initiative #2: Increse transparency of investment mangement fees and investigate actionable items to reduce fees in the future Initiative #3: Study and enhance private equity capabilities and activities $ 210,000 Budget Impact FUND SUSTAINABILITY 2018 BUSINESS INITIATIVES $ 20,000 $ 260,000 1 of 4
OCERS 2018 Business Initatives Budget Impact Estimates Strategic Plan Goal: Excellent Service and Support Provide Accurate and Timely Benefits Coordinators: Suzanne Jenike, Gina Ratto Initiative: #1: Develop and communicate OCERS Administrative Procedures Initiative #2: Streamline the disability determination and appeals processes $ 1,800 Initiative #3: Streamline the benefit appeals process Initiative #4: Update and create desk manuals and procedures $ 160,000 Inititiative #5 Improve customer service standards and reduce administration costs Provide Education to our Members and Plan Sponsors Coordinator: Suzanne Jenike Initiative: #1: Web site redesign (year two) $ 250,000 Initiative #2: Circular letters to employers Initiative #3: Roll out updated Summary Plan Descriptions Budget Impact EXCELLENT SERVICE AND SUPPORT 2018 BUSINESS INITIATIVES $ 410,000 $ 1,800 2 of 4
OCERS 2018 Business Initatives Budget Impact Estimates Strategic Plan Goal: Risk Management Provide System and Data Security and a Robust Business Continuity Solution Coordinators: Steve Delaney, Brenda Shott & Jenny Sadoski Initiative: #1: Implement tools to mitigate the risk of data or financial loss or information disclosure $ 100,000 $ 165,000 Initiative #2: Develop and implement formalized IT governance framework Initiative #3: Enhance crisis and security management program $ 200,000 Initiative #4: Review, update and enhance the Disaster Recovery and Business Continuity Plans Implement Operational Risk Management Program Coordinator: Brenda Shott Define the scope of the Operational Risk Management Program and implement Initiative: #1: operational risk management process Initiative #2: Determine if risk management system is necessary $ 25,000 Ensure a Safe and Secure Workplace and Public Service Facility Coordinator: Brenda Shott Initiative: #1: Evaluate building security and access systems and upgrade where necessary $ 250,000 Initiative #2: Improve employee resource training Initiative #3: Plan and implment facility upgrades and space management projects $400,000 Budget Impact RISK MANAGEMENT 2018 BUSINESS INITIATIVES $ 750,000 $ 390,000 3 of 4
OCERS 2018 Business Initatives Budget Impact Estimates Strategic Plan Goal: Talent Management Recruit and Retain a High-Performing Workforce to Meet Organizational Priorities Coordinator: Cynthia Hockless Initiative: #1: Enhance onboarding and transitioning of new hires into the organization Initiative #2: Implement recommendations from workforce analysis TBD TBD Initiative #3: Develop a comprehensive and competitive compensation package $ 125,000 Develop and Empower Every Member of the Team Coordinator: Steve Delaney Initiative: #1: Recognize individual needs and career goal within OCERS Initiative #2: Create succession plans across the agency $ 30,000 Implement a comprehensive training program covering OCERS policies, processes Initiative #3: and procedures TBD Initiative #4: Create or update executive management charters Cultivate a Collaborative, Inclusive and Creative Culture Coordinator: Steve Delaney Initiative: #1: Launch cultural recognition initiative $ 10,000 Budget Impact TALENT MANAGEMENT 2018 BUSINESS INITIATIVES $ 135,000 $ 30,000 4 of 4