Houston officials move toward landmark pension reform
HOUSTON (AP) — Two Houston pension boards have approved landmark reform that could resolve a 15-year crisis that’s contributed to recent credit downgrades and severe strains on the city budget.
Details of the plan were revealed Thursday and are meant to end Houston’s pension underfunding in 30 years and eliminate more than $2.5 billion in future costs by reducing benefits.
The Houston Chronicle reports (http://bit.ly/2ergbmj) the deal also includes a provision requiring benefit reductions or higher worker contributions if factors push the city’s own contribution above a cap.
Several hurdles remain. For instance, the state Legislature must give its OK.
Other pension boards in Texas also are facing significant problems. The Dallas police and fire pension board this month asked that taxpayers contribute more than $36 million to pay for the pension fund’s overhead costs.