Mayor Warns 2,200 Layoffs Loom For Houston City Employees If Pension Plan Fails

HOUSTON, TX -- Massive layoffs of city employees could happen as soon as this summer if the state legislature fails to pass the city’s pension plan proposed by Mayor Sylvester Turner last year.

The plan, which Turner presented at the start of the legislative session in January, has passed out of committee and is in the Senate and has been placed on the calendar, and Turner expressed optimism that the Senate will pass the bill.

However, not passing the bill could result in layoffs of as many as 2,200 city employees including municipal personnel, firefighters and police officers, which could compromise public safety.

In September, Turner pitched his reform plan to the Houston Police Department, Houston Fire Department and the Houston Municipal Employees and asked each to restructure their benefits plans.

Turner’s pension reform plan is designed to eliminate $8.1 billion in unfunded pension liability within 30 years, but also reduces benefits avoiding more than $2.5 billion in future costs, and will include the issuance of at least $1 billion in bonds.

Read Also: Houston's 3 Pensions Support Mayor's Reform Plan

Turner said he has presented a budget to the city council that is contingent on the passage of the pension reform plan.

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Despite Turner’s optimism, Houston Police Chief Art Acevedo said he’s worried about cuts to what he called an “already lead police force.”

Houston Fire Chief Sam Pena, also expressed worry, saying the possibility of cutting personnel will have an effect on emergency response times.

The Senate expected to vote on the plan next week.

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