The city of Houston’s lawsuit against Towers Watson over calculations of required contributions and benefit costs for the firefighters pension fund can proceed, a U.S. District judge in Houston ruled Wednesday.
In 2014, Houston sued Towers Watson, alleging Towers Perrin, one of the predecessor firms and which served as the pension fund’s actuary, “negligently” miscalculated the cost of existing benefits for the $3.8 billion Houston Firefighters’ Relief & Retirement Fund and “misrepresented” that the city’s required contributions to the fund would not increase if benefits were enhanced, according to court documents.
Once the benefit changes were approved, the city’s required contributions did increase, Houston argued.
An official in the city’s legal department could not immediately be reached for comment.
A Towers Watson spokesman declined to comment.