From: Sheila Beckett [sheila.beckett@ers.state.tx.us]
Sent: Monday, May 19, 2003 3:35 PM
To: rule-comments@sec.gov
Subject: Re: Release No. 34-47778, File no. S7-10-03

Jonathan G. Katz
Secretary
Securities and Exchange Commission
450 Fifth Street, NW
Washington, DC  20549-0609


                    Re:  Release No. 34-47778, File no. S7-10-03

Dear Mr. Katz:

The Employees Retirement System of Texas is a $17 billion public
pension fund.  We are responding to the Notice of Solicitation of Public
Views Regarding Possible Changes to the Proxy Rules.  It is encouraging
that the commission is reviewing the procedures for which shareholders
elect directors.

Proxy voting and specifically the election of directors is an important
and vital aspect of investing.  It is one way for shareholders to
oversee their investments and enhance their returns.  The proxy vote is
extremely important for funds, like ours, that do not always have the
choice to divest a holding due to poor corporate governance.

With the failures of Enron, Worldcom, et al, it has become imperative
that shareholders ensure directors are acting in their interest and that
directors are held accountable for their actions.  Without the proper
mechanism to effectively oversee directors, our markets are inherently
riskier and less efficient.  The current rules and procedures put us at
a disadvantage to carry out our fiduciary duty in overseeing our
investments.  Better access to proxies and more disclosure will help
facilitate this responsibility.

Thank you again for taking steps to ensure our markets continue to set
the standard for global markets.

Sincerely,



Sheila Beckett
Executive Director
Employees Retirement System of Texas
512.867.7174