Skip to main content
MENU
Subscribe
  • Sign Up Free
  • LOGIN
  • Subscribe
  • Topics
    • Alternatives
    • Artificial Intelligence
    • Consultants
    • Defined Contribution
    • ESG
    • ETFs
    • Face to Face
    • Hedge Funds
    • Industry Voices
    • Investing
    • Money Management
    • Partner Content
    • Pension Funds
    • Private Equity
    • Real Estate
    • Regulation
    • SECURE 2.0
    • Special Reports
    • Washington
    • White Papers
  • Rankings & Awards
    • 1,000 Largest Retirement Plans
    • Top-Performing Managers
    • Largest Money Managers
    • DC Money Managers
    • DC Record Keepers
    • Largest Hedge Fund Managers
    • World's Largest Retirement Funds
    • Best Places to Work in Money Management
    • Excellence & Innovation Awards
    • WPS Innovation Awards
    • Influential Women in Institutional Investing 2023
    • Eddy Awards
  • ETFs
    • Latest ETF News
    • Fund Screener
    • Education Center
    • Equities
    • Fixed Income
    • Commodities
    • Actively Managed
    • Alternatives
    • ESG Rated
  • ESG
    • Latest ESG News
    • The Institutional Investor’s Guide to ESG Investing
    • ESG Sustainability - Gaining Momentum
    • ESG Investing | Industry Brief
    • Innovation in ESG Investing
    • 2023 ESG Investing Conference
    • ESG Rated ETFs
    • Divestment Database
  • Defined Contribution
    • Latest DC News
    • The Plan Sponsor's Guide to Retirement Income
    • DC Money Manager Rankings
    • DC Record Keeper Rankings
    • Innovations in DC
    • DC Plan Design: Improving Participant Outcomes
    • 2023 Defined Contribution East Conference
  • Searches & Hires
    • Latest Searches & Hires News
    • Searches & Hires Database
    • RFPs
  • Research Center
    • The P&I Research Center
    • Earnings Tracker
    • Endowment Returns Tracker
    • Corporate Pension Contribution Tracker
    • Pension Fund Returns Tracker
    • Pension Risk Transfer Database
  • Careers
  • Events
    • View All Conferences
    • View All Webinars
  • Print
Breadcrumb
  1. Home
  2. ASSET OWNERS
August 22, 2014 01:00 AM

Houston mayor proposes new DB plan for incoming firefighters

Meaghan Offerman
  • Tweet
  • Share
  • Share
  • Email
  • More
    Wikicommons

    Houston Mayor Annise Parker unveiled a proposal for a new defined benefit plan for incoming city firefighters on Thursday.

    The proposed firefighters pension plan would be managed by the city, said a news release from the mayor's office. Under state law, the city is excluded from financial decisions related to the existing firefighter pension plan, the $3.8 billion Houston Firefighters' Relief and Retirement Fund, including benefit levels and employer contributions. All decisions are made by the pension fund board.

    Firefighters who are currently employed by the city will remain in the existing pension fund, according to the release.

    The proposed plan for new employees, which is expected to save the city $110 million in costs over the next 20 years, would resemble the $2.3 billion Houston Municipal Employees Pension System and $3.9 billion Houston Police Officers Pension System. However, the proposed plan does not guarantee annual cost-of-living increases.

    Under the mayor's proposed plan, employees would contribute a mandatory 9% of their base pay or one-third of the total actuarially determined contribution rate, whichever is greater, to the plan.

    Retirement eligibility would be determined based on age and years of service. Under the proposed plan, firefighters would have to be 55 years or older with at least 10 years of service in order to retire with full benefits. Under the existing firefighters' plan, employees can retire after reaching 20 years of service, regardless of their age.

    The state constitution gives Houston the authority to create the proposed plan, according to the release.

    “I have said from the beginning that I am committed to maintaining defined benefit plans for our city employees, but I also strongly believe that the taxpayers who have to pay the bills deserve to have a say in what those plans look like and how much they cost,” Ms. Parker said in the news release. “This provides the local control we have been seeking and puts in place a plan that will, over time, achieve parity among our public safety employee pensions and help the city meet its employee pension obligations.”

    The proposed plan would be managed by an appointed committee consisting of a senior city finance department employee, a senior city human resources department employee, a firefighter appointee, an independent mayoral appointee and an independent appointee of the city controller. Plan assets would be invested and held by an independent institutional trustee, according to the release.

    On May 7, a Texas state district court rejected Houston's petition to declare unconstitutional the law under which the Houston Firefighters' Relief and Retirement Fund operates. The city has unsuccessfully petitioned the Legislature to overturn the pension fund's statute twice before.

    The city is able to negotiate with trustees of the Houston Police Officers' Pension System and Houston Municipal Employees Pension System.

    Janice Evans, a spokeswoman for the mayor's office, did not return a telephone call seeking more information on the proposed plan by press time.

    “(The proposed) board makeup is absolutely ridiculous.

    The Houston Firefighters' Relief and Retirement Fund board will have no control at all,” said Todd E. Clark, board chairman for the Houston Firefighters' Relief and Retirement Fund, in a letter to pension fund members posted on the pension fund's Facebook page. “The city of Houston has been warned of litigation if they decide to carry through with this nonsense. Our statute that governs HFRRF is clear, all firefighters employed by the city of Houston Fire Department belong to HFRRF,” wrote Mr. Clark.

    Savings generated from the new plan can help reduce the $533 million in unfunded liability in the existing pension plan, according to the release.

    Related Articles
    Houston Municipal Employees invests in Soroban hedge fund
    Houston Municipal goes with Valor Equity Partners
    Houston Police Officers adds to private equity, real estate commitments
    Houston Firefighters CIO resigns
    Interim CIO selected at Houston Firefighters
    Houston Firefighters board awaits mayor's response on plan for new hires
    Houston Firefighters commits $30 million to 2 funds
    Houston Firefighters reach deal with city that avoids lawsuits, new pension fund
    Bill dies in Texas House that would have raised firefighters' pension fund cont…
    Texas appeals court reaffirms operation of Houston Firefighters pension fund is…
    Recommended for You
    ONLINE_170829937_AR_0_CRSABUSJISEY.jpg
    Asia-Pacific funds lose share among the world's top 100 asset owners
    CITs Poised to Shine Across the DC Stage
    Sponsored Content: CITs Poised to Shine Across the DC Stage
    Sponsored
    White Papers
    A Guide to Home Equity Investments: The Untapped Real Estate Asset Class
    Modernize your K-12 retirement plan with vendor consolidation
    Q4 2023 Credit Outlook: Price Is What You Pay, Value Is What You Get
    There's More Than One Way to Be a Climate Investor
    Exploring the Commercial Application of Artificial Intelligence
    Private Credit Insights: Every Problem Is an Opportunity in Disguise
    View More
    Sponsored Content
    Partner Content
    The Industrialization of ESG Investment
    For institutional investors, ETFs can make meeting liquidity needs easier
    Gold: the most effective commodity investment
    2021 Investment Outlook | Investing Beyond the Pandemic: A Reset for Portfolios
    Ten ways retirement plan professionals add value to plan sponsors
    Gold: an efficient hedge
    View More
    E-MAIL NEWSLETTERS

    Sign up and get the best of News delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    Subscribe Today
    October 23, 2023 page one

    Get access to the news, research and analysis of events affecting the retirement and institutional money management businesses from a worldwide network of reporters and editors.

    Subscribe
    Connect With Us
    • RSS
    • Twitter
    • Facebook
    • LinkedIn

    Our Mission

    To consistently deliver news, research and analysis to the executives who manage the flow of funds in the institutional investment market.

    About Us

    Main Office
    685 Third Avenue
    Tenth Floor
    New York, NY 10017-4036

    Chicago Office
    130 E. Randolph St.
    Suite 3200
    Chicago, IL 60601

    Contact Us

    Careers at Crain

    About Pensions & Investments

     

    Advertising
    • Media Kit
    • P&I Custom Content
    • P&I Careers | Post a Job
    • Reprints & Permissions
    Resources
    • Subscribe
    • Newsletters
    • FAQ
    • P&I Research Center
    • Site map
    • Staff Directory
    Legal
    • Privacy Policy
    • Terms and Conditions
    • Privacy Request
    Pensions & Investments
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • Topics
      • Alternatives
      • Artificial Intelligence
      • Consultants
      • Defined Contribution
      • ESG
      • ETFs
      • Face to Face
      • Hedge Funds
      • Industry Voices
      • Investing
      • Money Management
      • Partner Content
      • Pension Funds
      • Private Equity
      • Real Estate
      • Regulation
      • SECURE 2.0
      • Special Reports
      • Washington
      • White Papers
    • Rankings & Awards
      • 1,000 Largest Retirement Plans
      • Top-Performing Managers
      • Largest Money Managers
      • DC Money Managers
      • DC Record Keepers
      • Largest Hedge Fund Managers
      • World's Largest Retirement Funds
      • Best Places to Work in Money Management
      • Excellence & Innovation Awards
      • WPS Innovation Awards
      • Influential Women in Institutional Investing 2023
      • Eddy Awards
    • ETFs
      • Latest ETF News
      • Fund Screener
      • Education Center
      • Equities
      • Fixed Income
      • Commodities
      • Actively Managed
      • Alternatives
      • ESG Rated
    • ESG
      • Latest ESG News
      • The Institutional Investor’s Guide to ESG Investing
      • ESG Sustainability - Gaining Momentum
      • ESG Investing | Industry Brief
      • Innovation in ESG Investing
      • 2023 ESG Investing Conference
      • ESG Rated ETFs
      • Divestment Database
    • Defined Contribution
      • Latest DC News
      • The Plan Sponsor's Guide to Retirement Income
      • DC Money Manager Rankings
      • DC Record Keeper Rankings
      • Innovations in DC
      • DC Plan Design: Improving Participant Outcomes
      • 2023 Defined Contribution East Conference
    • Searches & Hires
      • Latest Searches & Hires News
      • Searches & Hires Database
      • RFPs
    • Research Center
      • The P&I Research Center
      • Earnings Tracker
      • Endowment Returns Tracker
      • Corporate Pension Contribution Tracker
      • Pension Fund Returns Tracker
      • Pension Risk Transfer Database
    • Careers
    • Events
      • View All Conferences
      • View All Webinars
    • Print