First Eagle Investment Management LLC

The Mission of SERS is to provide our members, retirees, and beneficiaries with pension benefit programs and services that are soundly financed, prudently administered, and delivered with understanding and responsiveness. Vision Where We Will Go - SERS understands the need to change based on our current environment and mission. Our values will help guide us as we explore the development of a sustainable pension and health care model, the creation of a "change-ready" culture, and the development of new strategic partnerships over the next five years. SERS will explore the costs and benefits of new types of pension and health care funding structures and investment models, eligibility and service delivery models to ensure the most efficient and effective uses of our members’ resources. SERS will review pension and health care plan design, eligibility and reduction factors in light of current and future environmental factors. In weighing the alternatives, SERS will keep in mind the overriding goals to: Maintain a sound level of funding. Provide access to health care for eligible SERS retirees and their dependents. SERS is committed to an organizational culture in which both Board and staff support success in meeting the challenges of our environment. This change-ready culture will require: Understanding the emerging needs of members and retirees, and how our partners can help us meet those needs. Highly skilled and empowered Board and staff members who clearly understand their roles and responsibilities, and are provided with the training, tools, and organizational support to enable success. Performance measures that hold vendors as well as SERS accountable for individual and team performance in achieving SERS’ goals. Collaboration and partnership within and across departments and partner organizations, focused on achieving the mission and goals of SERS. Continual process improvement and innovation to reduce costs and improve service levels. SERS believes that the key to achieving our mission will be through strategic partnerships with those organizations and individuals who have an impact on our members’ well-being and financial security. This new model of communication and collaboration will allow us to identify, and deliver solutions for, the issues of greatest impact to our members and retirees. SERS will explore new ways to communicate with our strategic partners: Multiple service channels for our members: (face-to-face, electronic, web, multi-lingual, etc.). Increased communications through employers, as well as directly to members and retirees. Lobbying and public education to minimize the potential for detrimental legislation. Education and communication to all partners, to provide: Realistic expectations of benefits Clear understanding of the value of the employers' investment Tools to assist our members in effective retirement planning and preparation Our Values Who We Are - We believe these deeply ingrained principles guide all of our actions and enable SERS to fulfill its mission: Member and Retiree Focus We focus on the needs of our members and retirees by “serving the people who serve our schools.” Integrity We believe in the highest professional standards and ethical conduct and the accountability needed to succeed and achieve our goals. We uphold ethical and professional conduct by word and example. Open Communication We practice respectful, direct, and proactive communication. Continuous Innovation We celebrate success and strive for quality, and continually seek better ways to fulfill our mission to our members and retirees. We value individual and organizational courage, and a willingness to change. Teamwork We are committed to achieving our mission in a manner that encourages participation and values each person’s contributions. Strategic Plan Creating a secure retirement requires a partnership among members, employers, and public retirement systems, each with important responsibilities. The SERS Leadership team defined the responsibilities for each partnerfor four critical elements of retirement security, and created a Retirement Security Compact. This Compact described each partners’ responsibilities and provided a framework that the Leadership team used in developing strategic priorities and tactics. Elements of a secure retirement include: A well thought-out plan for retirement Sufficient financial resources Good health Life resources In light of the Retirement Security Compact, the Leadership team identified 5 strategic priorities: Develop Long-Term Plan for Pension Security Develop Long-Term Plan for Healthcare Security Ensure Effective Board and Staff Collaboration Communicate Effectively with Stakeholders Ensure Appropriate Resource Structure (human, financial, infrastructure)

TO PROVIDE HEALTH AND WELFARE BENEFITS