Houston's 3 Pensions Support Mayor's Reform Plan

HOUSTON, TX -- Houston Mayor Sylvester Turner's plan to reform the city's three pension plans has received the backing from the Houston Police Department , Houston Fire Department and the Houston Municipal Employees, Turner said Monday.

Turner’s plan, which he hopes to present to the Texas Legislature in January, called for the city’s pension systems to be fully funded by 2046.

The plan is designed to eliminate $5.6 billion in unfunded pension liability within 30 years, but would also reduce benefits avoiding more than $2.5 billion in future costs, and include the issuance of at least $1 billion in bonds.

When the plan was originally pitched in September, the firefighters' governing body was not willing to put its support behind it. Turner said the final vote in favor of the plan was 7-2.

"I've said to them, if there's any attempt to unravel it, I will not support it," Turner said. "This is the deal."

The plan will be presented to the City Council on Wednesday. After approval by the council, the plan must
be approved by Texas legislators in 2017.