Public Employee Benefit Authority, South Carolina

16
AGENCY NAME: South Carolina Public Employee Benefit Authority AGENCY CODE: F500 SECTION: 105 A-1 Fiscal Year 2014-15 Accountability Report SUBMISSION FORM AGENCY MISSION To recommend, offer, and administer competitive programs of retirement and insurance benefits for public employers, employees, and retirees in South Carolina. Please identify your agency’s preferred contacts for this year’s accountability report. Name Phone Email PRIMARY CONTACT: Peggy G. Boykin, CPA 803-734-8117 [email protected] SECONDARY CONTACT: Sarah N. Corbett 803-737-7751 [email protected] I have reviewed and approved the enclosed FY 2014-15 Accountability Report, which is complete and accurate to the extent of my knowledge. AGENCY DIRECTOR (SIGN/DATE): 09/08/2015 (TYPE/PRINT NAME): Peggy G. Boykin, CPA BOARD/CMSN CHAIR (SIGN/DATE): 09/08/2015 (TYPE/PRINT NAME): Arthur M. Bjontegard, Jr.

Transcript of Public Employee Benefit Authority, South Carolina

Page 1: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-1

Fiscal Year 2014-15

Accountability Report

SUBMISSION FORM

AGENCY MISSION

To recommend, offer, and administer competitive programs of retirement and insurance benefits for public employers, employees, and retirees in South Carolina.

Please identify your agency’s preferred contacts for this year’s accountability report. Name Phone Email

PRIMARY CONTACT: Peggy G. Boykin, CPA 803-734-8117 [email protected]

SECONDARY CONTACT: Sarah N. Corbett 803-737-7751 [email protected]

I have reviewed and approved the enclosed FY 2014-15 Accountability Report, which is complete and accurate to the extent of my knowledge.

AGENCY DIRECTOR

(SIGN/DATE):

09/08/2015

(TYPE/PRINT NAME): Peggy G. Boykin, CPA

BOARD/CMSN CHAIR

(SIGN/DATE):

09/08/2015

(TYPE/PRINT NAME): Arthur M. Bjontegard, Jr.

Page 2: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-2

AGENCY’S DISCUSSION AND ANALYSIS For the first time since 2012, the South Carolina Public Employee Benefit Authority Board (PEBA) was under the leadership of its Board of Directors and a permanent executive director. In July 2014, PEBA’s Board of Directors appointed Peggy G. Boykin, CPA, as the agency’s executive director. Subsequently, a major focus during fiscal year 2015 was the review of the agency’s organizational structure. The executive management team conducted a comprehensive review of the organization, both departmentally and as a whole. As a result, the remaining separate Insurance Benefits and Retirement Benefits operational functions of the mail room, imaging, enrollment, cash receipts and accounting were consolidated and the following positions and units were created:

Chief Operating Officer

Chief Financial Officer

Insurance Policy Director

Procurement Officer

Employer Services Director

Employer Services Unit

Health Care Policy Unit

Operational Research and Development Unit These organizational changes were designed to make PEBA function more efficiently, effectively, and most importantly, responsively to its stakeholder groups. This goal was the mitigating factor behind the creation of the new Employer Services Unit. This unit has three major functions:

Educating employers on PEBA functions, services and legislation; and providing employers with the essential tools and resources to effectively meet their PEBA-related responsibilities;

Ensuring our diverse group of employers receive high-quality customer services across PEBA functions; and

Advocating for operational and technical improvements to PEBA functions to benefit our employers. Employer Services staff began soliciting feedback from both employers and PEBA employees on current PEBA services and opportunities for improvements as well as conducting a review of other similar-sized state plans to identify other areas for service enhancement. Ownership of PEBA’s employer websites have also been transferred to this unit. Along with reviewing the agency’s structure, PEBA also developed Characteristics of High Performance, which were designed to define and promote an organizational culture of high performance. Town Hall style meetings were scheduled to introduce these characteristics to staff, to explain how these characteristics will guide how staff perform as individuals and as an agency, and to give staff a chance to offer comments. During FY15, PEBA updated its identity. PEBA developed a new logo and tag line which define the agency by encompassing both insurance and retirement. A style guide and templates were also designed and issued to staff to ensure that PEBA presents a consistent look and feel across all mediums. As part of this update, PEBA staff recommended and the Board approved co-branding products with the agency’s various insurance and retirement vendors. Along with co-branding, PEBA staff began a strategic review and oversight of all external vendor’s marketing and communications plans and contractual responsibilities.

Page 3: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-3

Beginning in October 2014, Funston Advisory Services (FAS), with oversight from the South Carolina Office of the State Inspector General (SIG), conducted a fiduciary performance audit of PEBA. The purpose of the audit was to critically evaluate the fiduciary roles and responsibilities of PEBA and staff; the relationship with other fiduciaries of the Retirement Systems; and the operational policies and practices of PEBA. The goal of the audit was to identify areas of strengths and weaknesses, provide comparison with leading practices of other retirement agencies and make improvement recommendations. The final report, which was issued on January 16, 2015, contained 113 recommended improvements. Of the recommendations presented, 102 can be addressed by PEBA directly; legislative changes by the General Assembly will be needed for the remaining 11. During the audit, FAS found that PEBA has been keeping its service promise while maintaining strong cost controls:

97 percent or higher customer satisfaction rating for the Call Center and Visitor Center for the previous two fiscal years; and

PEBA staff are competent, dedicated and service-oriented. After the final FAS report was issued, PEBA staff incorporated the audit recommendations into PEBA’s strategic actions plans for the organization. The Board of Directors adopted the action plans during its March 2015 retreat. As of June 30, 2015, PEBA had completed 47 of the recommendations. Completed tasks include:

Confirming State Optional Retirement Program and Deferred Compensation investment advisors acknowledge their compliance with the Securities and Exchange Commission;

Prioritizing strategic planning as a focus for the Board of Directors;

Updating the Board of Directors’ Bylaws and Committee Charters to include formalizing a process for calling a committee meeting and developing an agenda, developing a Board Orientation Manual and process for new members, and creating a framework for evaluating the Executive Director; and

Enhancing the Board’s Education Policy to include expanded framework on ethical standards and fiduciary training and added outside, non-vendor training requirement.

PEBA is slated to complete 28 of the tasks in fiscal year 2016; 11 in fiscal year 2017; and six in fiscal year 2018. PEBA continued its participation in Cost Effectiveness Measurement, Inc., benchmarking service for retirement systems. The annual administrative cost per active and retired member was $31, which was $47 below the peer median of $78 as reported in the fiscal year 2014 report. In cooperation with the Retirement System Investment Commission, PEBA began holding quarterly meetings with stakeholder groups as a way to help ensure that information about important benefits and programs is reaching as many members as possible. A public policy comment form was also added to PEBA’s website as a method for the Board to receive comments and feedback on issues facing the agency. In keeping with PEBA’s strategic plan for FY15, the Health and Wellness Initiatives Unit developed health initiatives designed to improve members’ health outcomes while reducing costs. These initiatives included a free biometric screening, the Generic Copay Waiver program, a shingles vaccine at no cost for those members age 60 and older and a flu vaccine at no cost beginning July 1, 2015. Marketing kits were developed and distributed to promote the biometric screening and Generic Copay Waiver program. Promotion of the shingles and flu vaccines will continue through the end of 2015.

For claims incurred and paid from January to May of 2014 compared to 2015, there was a 62.7 percent increase in the biometric screening and a 64.1 percent increase in the shingles vaccine utilization rates.

Page 4: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-4

Biometric screening utilization increased from 11,318 to 18,413 and the shingles vaccine utilization increased from 2,440 to 4,005 during the same period.

Participation in the Generic Copay Waiver program also increased from 3,546 to 6,001 as of first quarter 2015.

The PEBA Board adopted a strategic goal to “design and implement an updated health care plan that focuses on improving health outcomes and reducing costs.” To make progress toward that end, PEBA staff worked in collaboration with its health care consultants and BlueCross BlueShield of South Carolina to benchmark the State Health Plan against both public and private sector insurance plans and to recommend best practices in plan design change to drive improving health outcomes and reducing costs. As part of that process, PEBA staff reviewed the “2015 Segal Health Plan Cost Trend Survey: Top Medical Plan and Prescription Drug Plan Cost-Management Strategies Implemented in 2014” and benchmarked the State Health Plan against those strategies (see charts beginning on Page A-5). The PEBA Board adopted strategies to pursue in 2016-2018 as a result of this work. The PEBA staff and Board have focused attention on plan design changes that are within the control of PEBA. However, as with every other entity in the health care industry, PEBA is constantly mitigating continual cost increases. Much of the cause of those increases are systemic and not within PEBA’s control. To address this, PEBA is beginning participation in the “Alliance for a Healthier South Carolina” and is receptive to participating in any other collaborative initiative with other state agencies within South Carolina that would help PEBA impact the overall systemic issues of cost in the health care system. During FY 2015, PEBA continued its record of cost-efficient and effective stewardship for the State Health Plan in particular as is evident from the following data from the “2015 Segal Health Plan Cost Trend Survey:” PEBA staff continued to work closely with the external actuary and participating employers to implement the Governmental Accounting Standards Board (GASB) Statements 67 and 68 requirements. Staff surveyed employers to obtain information about their audit and financial statements and to ensure PEBA has the appropriate senior level finance contact for each employer. The first GASB 68 Special Audit as of the June 30, 2014, Measurement Date was completed for which an unmodified opinion was issued. Staff continued to enhance PEBA’s online GASB resource center by adding the following:

• Pension Disclosure Memorandum for June 30, 2014, Measurement Date; • A four-part Online Educational Series on GASB 67/68; • June 30, 2014, Accounting Valuation Report; • Contribution Reconciliation Template for Employers; and • Q&A Document with Frequently Asked Questions.

During FY 2015, PEBA began an operational assessment to evaluate its business processes and procedures for consolidating the Insurance and Retirement information technology systems. One of the goals of the assessment is to increase the availability of online services for employers and members. PEBA will also ensure that its information technology resources are deployed in the safest and secure manner feasible. The assessment is scheduled to be completed by June 2016 and will include a roadmap and recommendations for implementation moving forward. Our new agency tagline—Serving those who serve South Carolina—serves as a reminder to our staff that the work we do every day makes a difference in the lives of our members and subscribers. PEBA’s Board of Directors, Executive Director and management team remain committed to excellence, accountability and transparency with respect to all of the agency’s responsibilities.

Page 5: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-5

State Health Plan vs. national trends Public and private

sector plans1 State Health Plan2

2011 6.7% 2.3%

2012 6.7% 6.4%

2013 5.6% 4.0%

2014 7.4% -1.3%

1 Includes active participants and retirees under the age of 65 in private and public sector insurance plans. 2 Trend is defined as claims paid per member (includes employee and dependents).

Average Annual Gross Plan Cost per Active Employee1 Amount2 Amount2

State Health Plan $9,237 All Employers $10,196

Public Employers $11,478 Employers – 500+ $10,658

Private – Mfg. $10,748 Employers – 20k+ $10,550

Private – Financial Services $10,580 South3 $9,894

1Average cost in PPO (Preferred Provider Organization) and POS (Point of Service) plans 2Average Annual Gross Plan Cost per Employee (Medical and Pharmacy Only for Active Employees and Their Dependents) = (Claims

cost for employee and dependents + administrative costs + employee contributions)/number of active employees 3South: Includes Alabama, Arkansas, Delaware, Florida, Georgia, Kentucky, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma,

South Carolina, Tennessee, Texas, Virginia and West Virginia

2014 Average Monthly Total Premiums1

Totals include Employee and Employer Contributions

Single Family

State Health Plan $429 $1,129

Lg. Public & Private Sector Employers1 $528 $1,469

Public & Private Sector Employers in South2 $495 $1,378

Public Employers $530 $1,317

Private – Manufacturing $511 $1,451

Private – Financial Services $522 $1,439

1Lg. Public and Private Sector Employers: ≥ 200 employees in public and private sectors 2Public & Private Sector Employers in South: Includes Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky,

Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia

Page 6: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-6

0

20

40

60

80

100

2014 Average Annual Deductible

Amount

State Health Plan $420

Lg. Public & Private Sector Employers1 $657

Public & Private Sector Employers in South2 $893

1Lg. Public and Private Sector Employers: ≥ 200 employees in public and private sectors 2Public & Private Sector Employers in South: Includes Alabama, Arkansas, Delaware, District of Columbia, Florida, Georgia, Kentucky,

Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia and West Virginia

2015 Composite Monthly Premiums1

Compared to Other State Employee Health Plans

Employer Employee Total

State Health Plan $487.64 $159.32 $646.96

South2 $637.06 $172.45 $809.51

United States $765.26 $173.16 $938.42

1Composite Monthly Premiums: Weighted average of all PEBA health subscribers enrolled in each coverage level 2South: Includes Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,

Texas, Virginia and West Virginia

SHP Composite Monthly Premiums1 as a Percentage of Regional and National

Averages Compared to Other State Employee Health Plans

1Composite Monthly Premiums: Weighted average of all PEBA health subscribers enrolled in each coverage level 2South: Includes Alabama, Arkansas, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee,

Texas, Virginia and West Virginia

SHP 79.89%

South2

SHP 68.94%

United States

Page 7: Public Employee Benefit Authority, South Carolina

AGENCY NAME: South Carolina Public Employee Benefit Authority

AGENCY CODE: F500 SECTION: 105

A-7

Organizational Structure

Page 8: Public Employee Benefit Authority, South Carolina

Agen

cy Nam

e:

Fiscal Year 2014-15

Acco

un

tability R

epo

rt

Age

ncy C

od

e: F5

00

Section

:105

Pro

gram Tem

plate

Gen

eral

Oth

er

Fede

ralTO

TAL

Gen

eral

Oth

er

Fede

ralTO

TAL

I. Ad

min

istration

To p

rovid

e adm

inistrative service

s to th

e

Emp

loyee

Insu

rance

Pro

gram an

d

Retire

men

t Systems

$ 1,946,087 $ 1,9

46,087

$ 3,452,426 $ 3,4

52,426

1.1.1 thro

ugh

1.1.7

II. A. Em

plo

yee In

suran

ce P

rogram

To p

rovid

e cost effective in

suran

ce b

enefits

to em

plo

yees an

d re

tirees o

f pu

blic secto

r

emp

loyers in

Sou

th C

arolin

a to in

clud

e

health

, den

tal, life, lon

g term care

and

flexible sp

end

ing acco

un

ts.

$ 7,680,837 $ 7,6

80,837

$ 7,896,610 $ 7,8

96,610

2.1.1 thro

ugh

2.3.2

II. B. R

etirem

ent System

s

To ad

min

ister a com

pre

hen

sive pro

gram o

f

retire

men

t ben

efits resp

on

sive to th

e nee

ds

of p

ub

lic emp

loyee

s and

to p

erform

fidu

ciary du

ties as steward

s of th

e

con

tribu

tion

s and

distrib

utio

ns o

f the

pen

sion

trust fu

nd

s.

$ 10,052,028 $ 10,0

52,028

$ 10,549,102 $ 10,5

49,102

3.1.1 thro

ugh

3.4.1

III. Emp

loyee

Ben

efitsTo

increase th

e econ

om

ic security o

f agency

staff and

imp

rove w

orker re

tentio

n.

$ 4,125,399 $ 4,1

25,399

$ 4,524,173 $ 4,5

24,173

1.5.4, 1.5.7, 1.5.9

$ - $ -

$ - $ -

Total Exp

end

iture

s $ 23,804,351

$ 23,804,3

51 $ 26,422,311

$ 26,422,3

11

Pu

blic Em

plo

yee Ben

efit A

uth

ority

FY 2013-14 Exp

end

itures

FY 2014-15 Exp

end

itures

Pro

gram/Title

Pu

rpo

seA

ssociated

Ob

jective(s)Page 1 o

f 1

Page 9: Public Employee Benefit Authority, South Carolina

Age

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em

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Page 10: Public Employee Benefit Authority, South Carolina

Age

ncy N

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Age

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e:

F50

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em

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Pu

blic/P

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r Emp

loyers

Single

- $5

28

Family- $

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69

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lic/Private

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r Emp

loyers

in th

e So

uth

Single

-$4

95

Family- $

1,3

78

3. P

ub

lic Emp

loyers

Single

- $5

30

Family- $

1,3

17

4. P

rivate

Man

ufactu

ring

Single

- $5

11

Family- $

1,4

51

5. P

rivate Finan

cial

Service

s

Single

- $5

22

Family- $

1,4

39

Cale

nd

ar Year

Kaise

r Family Fo

un

datio

n

Emp

loyer H

ealth

Be

ne

fits 20

14

An

nu

al Surve

y, ann

ual

An

nu

al

Ave

rage Mo

nth

ly Total P

rem

ium

s

(inclu

din

g em

plo

yee an

d e

mp

loyer

con

tribu

tion

s)

2.1

.1, 2

.1.2

, 2.1

.5

Page 11: Public Employee Benefit Authority, South Carolina

Age

ncy N

am

e:

Age

ncy C

od

e:

F50

0Se

ction

:1

05

Item

Pe

rform

an

ce Me

asure

Last V

alu

eC

urre

nt V

alu

eT

arge

t Va

lue

Tim

e A

pp

licable

Da

ta So

urce

an

d A

vaila

bility

Re

po

rting Fre

q.

Ca

lcula

tion

Me

tho

dA

ssocia

ted

Ob

jective

(s)

Fiscal Y

ear 2

01

4-1

5

Acco

un

tab

ility Re

po

rt

Pe

rform

an

ce Me

asure

me

nt T

em

pla

te

Pu

blic Em

plo

yee

Be

nefit A

uth

ority

13

Ave

rage An

nu

al He

alth D

ed

uctib

le-SH

P$

35

0

$4

20

Rate favo

rably

against o

the

r

em

plo

yers:

1. Lg.

Pu

blic/P

rivate

Secto

r Emp

loyers

$6

57

2. P

ub

lic/Private

Secto

r Emp

loyers

in th

e So

uth

$8

93

Cale

nd

ar Year

Kaise

r Family Fo

un

datio

n

Emp

loyer H

ealth

Be

ne

fits 20

14

An

nu

al Surve

y, ann

ual

An

nu

alA

verage A

nn

ual D

ed

uctib

le2

.1.1

, 2.1

.2, 2

.1.5

14

Co

mp

osite M

on

thly P

rem

ium

sEm

plo

yer $4

69

.33

Emp

loyee

$1

59

.66

Emp

loyer $

48

7.64

Emp

loyee

$1

59

.32

Rate favo

rably

against o

the

r

em

plo

yers:

1. So

uth

-

Emp

loyer $

63

7.06

Emp

loyee

$1

72

.45

2. U

nited

States-

Emp

loyer $

76

5.26

Emp

loyee

$1

73

.16

Cale

nd

ar Year5

0 State Su

rvey, an

nu

alA

nn

ual

We

ighted

average o

f all PEB

A h

ealth

me

mb

ers e

nro

lled

in e

ach co

verage

leve

l

2.1

.1, 2

.1.2

, 2.1

.5

15

Total P

en

sion

Ad

min

Co

st pe

r Active

Mem

be

r and

An

nu

itant

$3

5

$3

1

Rate favo

rably

against th

e p

ee

r

average-$

78

Fiscal YearC

EM B

en

chm

arking, an

nu

alA

nn

ual

Total p

en

sion

adm

inistratio

n co

st

divid

ed

by n

um

be

r of active

me

mb

ers

1.4

.1, 1

.5.1

, 1.5

.2, 1

.5.4

,

1.5

.7, 1

.5.8

, 1.6

.4

16

Particip

ation

in P

reve

ntive

Bio

me

tric

Scree

nin

gs1

4,1

21

2

4,4

77

Incre

ase

Particip

ation

by

10

,00

0

No

te: Initiative

be

gan Jan

20

15

;

20

16

Acco

un

tability

Re

po

rt will re

flect

calen

dar year in

time

app

licable

colu

mn

Jan 1

- Jun

e 3

0C

laims D

ata, daily

Mo

nth

ly

Nu

mb

er o

f eligib

le SH

P m

em

be

rs

wh

o p

articipated

in P

reve

ntive

Bio

me

tric Scree

nin

gs wh

ere

the

SHP

is the

prim

ary payer

2.1

.1, 2

.1.2

, 2.1

.3, 2

.1.5

,

2.3

.1, 2

.3.2

17

Particip

ation

in G

en

eric C

o-P

ay Waive

r

Pro

gram3

.6%6

.9%

Incre

ase

particip

ation

to 7

%

of e

ligible

po

pu

lation

Jun

e 3

0C

o-P

ay Waive

r Eligibility D

ata,

daily

Mo

nth

ly

Pe

rcen

tage of e

ligible

SHP

me

mb

ers

wh

o p

articipated

in G

en

eric C

o-P

ay

Waive

rPro

gram w

he

re th

e SH

P is

the

prim

ary payer

2.1

.1, 2

.1.2

, 2.1

.3, 2

.1.5

,

2.3

.1, 2

.3.2

18

Shin

gles V

accine

2

,98

24

,70

3

8,7

10

No

te: Initiative

be

gan Jan

20

15

;

20

16

Acco

un

tability

Re

po

rt will re

flect

calen

dar year in

time

app

licable

colu

mn

Jan 1

- Jun

e 3

0C

laims D

ata, daily

Mo

nth

lyN

um

be

r of e

ligible

SHP

me

mb

ers

wh

o re

ceive

d Sh

ingle

s vaccine

2.1

.1, 2

.1.2

, 2.1

.3, 2

.1.5

,

2.3

.1, 2

.3.2

Page 12: Public Employee Benefit Authority, South Carolina

Fiscal Ye

ar 20

14

-15

Acco

un

tability R

ep

ort

Sectio

n:

10

5

Strategic P

lann

ing Te

mp

late

Go

alStrat

Ob

ject

G1

Cre

ate an

organ

ization

drive

n b

y the

pu

rsuit o

f exce

llen

ce in

all areas.

S1

.1

O1

.1.1

O1

.1.2

O1

.1.3

O1

.1.4

O1

.1.5

O1

.1.6

S1

.2

O1

.2.1

O1

.2.2

O1

.2.3

S1

.3

O1

.3.1

S1

.4

Ensu

re P

EBA

Bo

ard an

ticipate

s and

de

velo

ps cre

ative so

lutio

ns to

challe

nge

s faced

by p

ub

lic em

plo

yee

insu

rance

and

retire

me

nt p

lans.

Age

ncy N

ame

:SC

Pu

blic Em

plo

yee

Be

ne

fit Au

tho

rity

Age

ncy C

od

e:

F50

0

Type

Item #

De

scriptio

n

Hire a

con

sulta

nt to

assist w

ith cu

stom

er satisfa

ction

surveys a

nd

on

-go

ing

perfo

rma

nce m

on

itorin

g b

y 20

15

Crea

te an

Emp

loyer A

dviso

ry Gro

up

with

emp

loyers b

y 20

15

Crea

te a fo

rma

l meth

od

for receivin

g feed

ba

ck on

emp

loyer services fro

m em

plo

yees by 2

01

5C

reate a

n in

terna

l com

mittee to

evalu

ate em

plo

yer need

s an

d h

ow

emp

loyer services a

re curren

tly pro

vided

an

d

ho

w em

plo

yer services can

be en

ha

nced

in th

e futu

re by 2

01

5

Survey o

ther p

lan

s to d

etermin

e ben

chm

arks fo

r emp

loyer services b

y 20

15

Main

tain an

en

gaged

and

op

en

relatio

nsh

ip w

ith th

e So

uth

Caro

lina R

etire

me

nt Syste

m In

vestm

en

t

Co

mm

ission

, the

Bu

dge

t and

Co

ntro

l Bo

ard, an

d th

e So

uth

Caro

lina Exe

cutive

and

Legislative

Bran

che

s

of go

vern

me

nt.

Evalu

ate th

e results o

f the fid

ucia

ry au

dit, in

tegra

te results in

to stra

tegic p

lan

an

d ta

ke actio

n o

n th

e

recom

men

da

tion

s as a

pp

rop

riate b

y 20

15

Evalu

ate cu

rrent sta

te of b

ran

din

g a

nd

imp

lemen

t imp

rovem

ents b

y 20

15

Meet w

ith sta

keho

lders to

determ

ine m

etho

d fo

r imp

rovin

g co

mm

un

icatio

ns w

ith th

e PEB

A B

oa

rd a

nd

staff b

y

20

15

Develo

p a

po

st-gra

nd

fath

ered h

ealth

pla

n fo

r review b

y the G

overn

or a

nd

Legisla

ture b

y 20

15

Cre

ate a "o

ne

-stop

-sho

p" fo

r me

mb

ers an

d b

en

efits ad

min

istrators to

rece

ive se

rvices.

Red

esign

web

site to im

pro

ve wh

at in

form

atio

n is p

rovid

ed a

nd

ho

w it is p

resented

for ea

se of u

se by 2

01

6

Ensu

re P

EBA

service

s are rate

d b

oth

cost e

ffective

and

of h

igh q

uality.

Page 13: Public Employee Benefit Authority, South Carolina

O1

.4.1

S1

.5

O1

.5.1

O1

.5.2

O1

.5.3

O1

.5.4

O1

.5.5

O1

.5.6

O1

.5.7

O1

.5.8

O1

.5.9

S1

.6

O

1.6

.1

O1

.6.2

O1

.6.3

Re

cruit an

d m

aintain

a stable

, sufficie

nt, an

d p

roficie

nt w

orkfo

rce to

carry ou

t the

strategic go

als of th

e

agen

cy.

Form

alize a

ffiliatio

n a

nd

track p

articip

atio

n in

ind

ustry a

ssocia

tion

s to en

sure co

re com

peten

cies are d

evelop

ed

an

d m

ain

tain

ed a

nd

best p

ractices a

re sha

red b

y 20

15

Co

ntin

ue reg

ula

r pa

rticipa

tion

in C

EM B

ench

ma

rking

services for p

ensio

n p

lan

s an

d th

e an

nu

al 5

0-Sta

te Survey

for p

ub

lic emp

loyee h

ealth

pla

ns N

ote: C

EM B

ench

ma

rking

an

d Fu

nsto

n A

dviso

ry Services pro

vided

the

follo

win

g feed

ba

ck to P

EBA

:

1. To

tal p

ensio

n a

dm

inistra

tion

cost p

er active m

emb

er is $4

7 b

elow

peer a

verag

e

2. Sta

te Hea

lth P

lan

costs (cla

ims p

aid

per m

emb

er) ha

ve risen a

t a m

uch

low

er rate yea

r after yea

r com

pa

red

to n

atio

na

l trend

s for o

ther p

ub

lic an

d p

rivate in

sura

nce p

lan

s from

20

11

thro

ug

h 2

01

4

3. P

EBA

ha

s ob

tain

ed a

97

percen

t or h

igh

er custo

mer service sa

tisfactio

n ra

ting

for o

ur C

usto

mer Service a

nd

Visito

r Cen

ter for th

e two

previo

us fisca

l years

4. P

EBA

staff a

re com

peten

t, ded

icated

, an

d service o

riented

. An

swered

12

5,8

26

calls a

nd

cou

nseled

12

,80

5

visitors in

20

14

Mo

dify h

iring

pra

ctices to en

sure effective recru

itmen

t an

d selectio

n o

f pro

fession

al level sta

ff with

the p

oten

tial

to serve th

e ag

ency in

vario

us ca

pa

cities by 2

01

5

Crea

te an

d co

mm

un

icate a

n a

gen

cy com

pen

satio

n p

lan

an

d p

hilo

sop

hy to

pro

vide tra

nsp

aren

cy an

d g

uid

an

ce in

pa

y pra

ctices by 2

01

5

Defin

e an

d p

rom

ote a

n o

rga

niza

tion

al cu

lture o

f hig

h p

erform

an

ce by 2

01

5

Develo

p a

set of C

ha

racteristics o

f Hig

h P

erform

an

ce- Intro

du

ce these to

the sta

ff thro

ug

h a

targ

eted ca

mp

aig

n

over a

two

mo

nth

perio

d a

nd

con

tinu

e to u

se as a

gu

ide in

ho

w w

e perfo

rm a

s ind

ividu

als a

nd

as a

n a

gen

cy

Develo

p o

rienta

tion

video

s for n

ew P

EBA

emp

loyees b

y 20

16

Imp

lemen

t a tra

inin

g a

nd

develo

pm

ent p

rog

ram

by 2

01

6

Increa

se intern

al p

articip

atio

n in

welln

ess pro

gra

ms fo

r PEB

A a

s an

ag

ency b

y 20

15

Iden

tify wo

rkforce n

eeds a

nd

develo

p a

wo

rkforce p

lan

by 2

01

6

Explo

re the u

tilizatio

n o

f bo

nu

ses for a

chievem

ent o

f bu

dg

et efficiencies a

nd

hig

h p

erform

an

ce by 2

01

6

Imp

lem

en

t a ne

w, in

tegrate

d syste

m th

at imp

rove

s efficie

ncy in

op

eratio

ns an

d e

ffective

ne

ss in se

rvice

de

livery.

Co

llect ema

il ad

dresses fo

r mem

bers a

nd

develo

p tech

nica

l mech

an

ism fo

r com

mu

nica

ting

ma

ss ema

ils: mo

dify

bu

siness p

rocesses to

inco

rpo

rate ca

ptu

re an

d u

se of em

ail a

dd

resses; pro

cure system

for m

ass em

ails b

y 20

15

Up

da

te call m

an

ag

emen

t system b

y 20

15

Develo

p a

lon

g term

facilities p

lan

, wh

ich in

clud

es remed

ying

curren

t issues in

the p

hysica

l pro

perty b

y 20

16

Page 14: Public Employee Benefit Authority, South Carolina

O1

.6.4

O

1.6

.5

S1

.7

O

1.7

.1

G2

S2

.1

O2

.1.1

O2

.1.2

O2

.1.3

O2

.1.4

O2

.1.5

S2

.2

O

2.2

.1

O2

.2.2

S2

.3

O2

.3.1

Co

mp

lete the co

nversio

n o

f pa

per d

ocu

men

ts to electro

nic su

bm

ission

an

d self service o

pp

ortu

nities via

the

intern

et by 2

01

5

Co

nd

uct a

n O

pera

tion

al A

ssessmen

t by 2

01

6 co

nsistin

g o

f:

1. ‘A

s Is’: Cu

rrent B

usin

ess Flow

do

cum

ent

2. ‘To

Be’: Fu

ture B

usin

ess Flow

do

cum

ent

3. H

igh

Level Ro

ad

ma

p

Inte

grate in

suran

ce an

d re

tirem

en

t staffs' fun

ction

s and

resp

on

sibilitie

s as app

rop

riate.

Co

ntin

ued

con

solid

ation

of co

mm

on

retiremen

t and

insu

rance p

rocesses. Exp

lore ad

ditio

nal o

rganizatio

nal

chan

ges to p

rovid

e op

po

rtun

ity for efficien

cies and

emp

loyee exp

osu

re by 2

01

6

Hea

lth a

nd

Welln

ess Initia

tives: develo

p a

nd

com

mu

nica

te a w

ellness sco

recard

to em

plo

yers by 2

01

6

Edu

cate m

em

be

rs on

the

natu

re o

f the

ir be

ne

fits in o

rde

r to m

ake so

un

d d

ecisio

ns re

gardin

g the

ir

be

ne

fit plan

s and

service

cho

ices.

Defin

e an

d m

easu

re ap

pro

pria

te ben

chm

arks a

ga

inst b

oth

pu

blic a

nd

priva

te sector in

sura

nce p

lan

s by 2

01

5

Review

externa

l vend

ors m

arketin

g a

nd

com

mu

nica

tion

s pla

ns a

nd

con

tractu

al resp

on

sibilities:

Develo

p m

arketin

g p

lan

s for key h

ealth

care p

rod

ucts a

nd

services iden

tified in

the h

ealth

care p

olicy stra

tegic

actio

n p

lan

by 2

01

5

De

sign an

d im

ple

me

nt an

up

date

d h

ealth

care p

lan th

at focu

ses o

n im

pro

ving h

ealth

ou

tcom

es an

d re

du

cing

costs. U

tilize b

en

chm

arking to

com

pare

pe

rform

ance

to o

the

r plan

s (pu

blic an

d p

rivate).

Pro

vide

the

maxim

um

com

pe

titively-n

ece

ssary be

ne

fit with

in th

e availab

le re

sou

rces o

n th

e m

ost co

st-

efficie

nt b

asis.

Expa

nd

an

d u

tilize da

tab

ase fo

r bio

metric d

ata

: pro

curem

ent o

r develo

pm

ent o

f da

tab

ase b

y 20

15

Mo

nito

r claim

s an

d clin

ical d

ata

experien

ce of M

USC

pilo

t hea

lth p

lan

an

d ta

ke ad

ditio

na

l actio

n a

s ap

pro

pria

te

by 2

01

5

Iden

tify an

d im

plem

ent a

com

preh

ensive h

ealth

care co

nsu

ltan

t relatio

nsh

ip fo

r the h

ealth

care p

lan

by 2

01

6

Ensu

re stake

ho

lde

rs un

de

rstand

the

ration

ale b

eh

ind

po

licy de

cision

s regard

ing P

EBA

pro

du

cts and

service

s.

Co

mp

lete ad

ditio

na

l repo

rting

requ

ired b

y the A

CA

by 2

01

6

Red

uce h

ealth

care p

lan

costs th

rou

gh

con

tinu

ed d

evelop

men

t of co

st savin

g in

itiatives:

1. V

alu

e-ba

sed co

ntra

cting

- Hig

h-P

erform

an

ce Ho

spita

l Netw

ork a

nd

Pa

tient-C

entered

Med

ical H

om

es (PC

MH

's)

2. R

eference-b

ased

pricin

g (h

osp

ital settin

g co

sts vs. no

n-h

osp

ital)

3. Sp

ecialty p

ha

rma

cy ma

na

gem

ent

4. V

alu

e-ba

sed in

sura

nce d

esign

5. C

on

tinu

ed fo

cus o

n w

ellness

Page 15: Public Employee Benefit Authority, South Carolina

O

2.3

.2

G3

S3

.1

O

3.1

.1

O

3.1

.2

O

3.1

.3

O3

.1.4

O

3.1

.5

O3

.1.6

O3

.1.7

O3

.1.8

S3

.2

O3

.2.1

O3

.2.2

O3

.2.3

Increa

se pa

rticipa

tion

in th

e follo

win

g H

ealth

an

d W

ellness In

itiatives b

y 20

16

:

1. B

iom

etric screenin

gs b

y 10

,00

0 p

articip

an

ts

2. C

o-p

ay w

aiver p

rog

ram

to a

t least 7

percen

t of elig

ible p

op

ula

tion

3. Sh

ing

les sho

ts by 4

0 p

ercent

4. Flu

sho

ts

5. C

olo

rectal ca

ncer screen

ing

(colo

no

scop

y)

6. A

du

lt vaccin

es

7. To

ba

cco cessa

tion

med

icatio

n

8. D

iab

etes edu

catio

n

Imp

lemen

t GA

SB 6

7 in

the R

etiremen

t Systems fin

an

cial sta

temen

ts for th

e fiscal yea

r end

ed Ju

ne 3

0, 2

01

4

Co

ntra

ct an

d w

ork w

ith extern

al a

ud

itor to

ob

tain

au

dit o

pin

ion

on

censu

s da

ta a

nd

actu

ary sch

edu

les con

tain

ing

da

ta req

uired

for co

vered em

plo

yers to b

e com

plia

nt w

ith G

ASB

68

by 2

01

5

Determ

ine m

etho

ds fo

r increa

sing

pa

rticipa

tion

in th

e SCD

CP

: Co

mp

lete lega

l ag

reemen

t to sh

arin

g in

form

atio

n

betw

een P

EBA

an

d Em

po

wer R

etiremen

t to in

crease p

articip

atio

n in

the SC

DC

P b

y 20

15

Ad

op

t best p

ractices fo

r State O

RP

structu

re an

d in

vestmen

t op

tion

s by 2

01

6:

1. Eva

lua

te con

solid

ated

investm

ent m

enu

for Sta

te OR

P p

rovid

ers

2. Im

plem

ent elim

ina

tion

of reven

ue sh

arin

g to

pla

n a

dm

inistra

tors

3. Im

plem

ent req

uirem

ent fo

r investm

ent a

dvice

Increa

se the n

um

ber o

f emp

loyers o

ffering

the SC

DC

P

Ensu

re stake

ho

lde

rs un

de

rstand

the

ration

ale b

eh

ind

po

licy de

cision

s regard

ing P

EBA

pro

du

cts and

service

s.

Pro

vide

for th

e e

fficien

t and

cost e

ffective

adm

inistratio

n o

f the

retire

me

nt syste

ms fo

r active an

d re

tired

me

mb

ers o

f the

system

s.

Ad

d retirem

ent rea

din

ess presen

tatio

ns to

field ed

uca

tion

semin

ars a

nd

web

site video

s by 2

01

5

Determ

ine co

mm

un

icatio

n stra

tegy fo

r ach

ieving

retiremen

t read

iness g

oa

ls by 2

01

7

Focu

s edu

catio

n fo

r all retirem

ent p

lan

pa

rticipa

nts o

n retirem

ent rea

din

ess by 2

01

6

Determ

ine m

etho

ds fo

r increa

sing

pa

rticipa

tion

in th

e SCD

CP

by 2

01

5: D

etermin

e a p

roto

col fo

r usin

g

info

rma

tion

ob

tain

ed via

the R

etiremen

t Systems to

increa

se pa

rticipa

tion

in th

e SCD

CP

Ensu

re m

em

be

rs are re

tirem

en

t read

y.

Ad

op

t best p

ractices fo

r SC D

eferred C

om

pen

satio

n P

rog

ram

's (SCD

CP

) structu

re an

d in

vestmen

t op

tion

s:

1. Eva

lua

te au

tom

atic en

rollm

ent

2. Im

plem

ent p

articip

an

t fee disclo

sures co

nfo

rmin

g to

ERISA

Section

40

4(a

)

3. Im

plem

ent th

e bu

siness tra

nsfo

rma

tion

pro

ject wh

ich req

uires em

plo

yers to o

ffer all fea

tures o

f the p

rog

ram

an

d a

dh

ere to sta

nd

ard

ized rem

ittan

ce an

d rep

ortin

g req

uirem

ents

Co

mp

lete op

eration

al requ

iremen

ts for n

ew G

ASB

OP

EB stan

dard

s (drafts) b

y 20

18

Page 16: Public Employee Benefit Authority, South Carolina

O3

.2.4

O3

.2.5

S3

.3Estab

lish fu

nd

ing m

ech

anism

s for th

e p

lans th

at are fiscally so

un

d.

O3

.3.1

O3

.3.2

G4

S4

.1

O4

.1.1

O4

.1.2

S4

.2

O4

.2.1

S4

.3

O4

.3.1

O4

.3.2

O4

.3.3

O4

.3.4

O4

.3.5

S4

.4

O4

.4.1

O4

.4.2

O4

.4.3

O4

.4.4

O4

.4.5

O4

.4.6

O4

.4.7

O4

.4.8

O4

.4.9

Pro

vide tra

inin

g a

nd

edu

catio

n to

covered

emp

loyers a

nd

their a

ud

itors o

n G

ASB

67

an

d 6

8 th

rou

gh

presen

tatio

ns a

t con

ferences, sem

ina

rs, an

d w

ebin

ars b

y 20

15

Co

nd

uct a

n in

dep

end

ent a

ctua

rial a

ud

it in 2

01

7

Review

written

train

ing

ma

terial to

ensu

re PII a

nd

HIP

AA

info

rma

tion

is ap

pro

pria

tely pro

tected b

y 20

15

Develo

p p

roced

ures to

determ

ine w

hen

an

d h

ow

to a

do

pt a

nn

uity o

ptio

n fa

ctor ch

an

ges b

y 20

17

Ensu

re th

e h

ighe

st fidu

ciary, legal, an

d e

thical stan

dard

s are kn

ow

n an

d ap

plie

d acro

ss the

organ

ization

.

Ensu

re stake

ho

lde

rs un

de

rstand

the

ration

ale b

eh

ind

po

licy de

cision

s regard

ing P

EBA

pro

du

cts and

service

s.D

evelop

a co

mp

rehen

sive com

mu

nica

tion

s pla

n fo

r PEB

A in

clud

ing

Bo

ard

of D

irectors, em

plo

yers, mem

bers,

emp

loyees, leg

islato

rs, the p

ub

lic an

d o

ther sta

keho

lders b

y 20

15

Ensu

re legisla

tive up

da

tes are co

mm

un

icated

with

emp

loyers tim

ely by 2

01

5

Sched

ule in

-ho

use fid

ucia

ry train

ing

for FY1

5 a

nd

a ro

tatin

g p

rog

ram

for th

e futu

re by 2

01

6. To

pics in

clud

e the

du

ties of lo

yalty a

nd

imp

artia

lity

Co

nsid

er enh

an

cing

the B

oa

rd Ed

uca

tion

Po

licy: Pro

vide a

n exp

an

ded

fram

ewo

rk aro

un

d eth

ical sta

nd

ard

s an

d

specific tra

inin

g n

eeds b

y 20

15

Evalu

ate th

e costs a

nd

ben

efits of cyb

er insu

ran

ce by 2

01

5R

eview a

nd

imp

rove IT secu

rity an

d co

mp

ly with

state g

overn

men

t gu

idelin

es

Develo

p a

“Po

wers R

eserved” g

overn

an

ce fram

ewo

rk by 2

01

5

Co

nfirm

tha

t investm

ent a

dviso

rs ackn

ow

ledg

e their co

mp

lian

ce with

SEC p

ay to

pla

y regu

latio

ns a

nd

state

requ

iremen

ts by 2

01

5

Edu

cate in

tern

al staff on

po

licy de

cision

s and

en

sure

un

de

rstand

ing o

f the

imp

act on

the

ir wo

rk.En

sure ea

ch o

pera

tion

al a

rea h

as u

p-to

-da

te written

po

licies an

d p

roced

ures a

nd

dep

artm

ent sp

ecific train

ing

to

be u

sed in

cross-tra

inin

g a

nd

on

-the-jo

b tra

inin

g b

y 20

16

Ensu

re in

form

ation

tech

no

logy re

sou

rces are

de

plo

yed

in th

e m

ost safe

and

secu

re m

ann

er fe

asible

.

Iden

tify a m

etho

d fo

r evalu

atin

g ven

do

r solicita

tion

s an

d in

clud

e a so

urcin

g a

nd

disclo

sure fo

rm b

y 20

15

Prep

are a

list of su

gg

ested extern

al B

oa

rd tra

inin

g a

nd

edu

catio

n p

rog

ram

s an

d u

pd

ate o

n a

nn

ua

l ba

sis by 2

01

5

Develo

p a

PEB

A B

oa

rd m

emb

er orien

tatio

n m

an

ua

l an

d p

rocess b

y 20

15

Eng

ag

e a co

nsu

ltan

t to fa

cilitate th

e PEB

A B

oa

rd’s self a

ssessmen

t pro

cess by 2

01

5

De

fine

the

fidu

ciary resp

on

sibilitie

s of th

e B

oard

and

it's com

mitte

es an

d e

nsu

re th

ey h

ave th

e

reso

urce

s to satisfy th

em

.

Review

and

determ

ine h

ow

to im

plem

ent En

terprise R

isk Man

agemen

t for P

EBA

by 2

01

7

Co

mp

lete a b

usin

ess con

tinu

ity pla

n b

y 20

16

Co

mp

lete a p

ost cyb

er atta

ck recovery p

lan

by 2

01

5

Imp

rove B

ylaw

s an

d ch

arters b

y 20

15