Harris County at a Glance: Public Pensions
Harris County is committed to transparency in every aspect of its operations and believes that financial transparency and accountability are critical components of good stewardship of taxpayer resources. It is our mission to be an independent and progressive organization that presents accurate, timely, understandable, and readily accessible information for the citizens of Harris County.
Through its “Transparency Star” program, The Texas Comptroller of Public Accounts recognizes local governments across Texas for going above and beyond in their transparency efforts. This is accomplished by providing citizens with clear and meaningful financial information not only by posting financial documents, but also through summaries, visualizations, downloadable data, and other relevant information.
Harris County Pension Information
Harris County is a member of the Texas County & District Retirement System (TCDRS). TCDRS is a statewide, agent multiple-employer, public-employee retirement system. TCDRS serves over 700 actively participating counties and governmental districts throughout Texas. Each employer maintains its own customized plan of benefits. Harris County’s plan provides the following benefit level:
| Employee contribution rate: |
7% of pay |
| Employee matching rate: |
225% |
| Years required for vesting: |
8 years |
| Service retirement eligibility: |
Age 60 with 8 or more years of service, or
75 years total (age + service), or
30 years at any age
|
| Prior service credit: |
160% |
Actuarial Information
As of December 31, 2016, the Actuarial Information for the County as follows:
| Actuarial accrued liability (AAL):
|
$5,772,461,748 |
| Actuarial value of assets (AVA): |
$5,030,762,068 |
| Unfunded actuarial accrued liability (UAAL): |
$741,699,680 |
| Funded Ratio (AVA/AAL): |
87.15% |
| Remaining amortization period: |
14.5 years |
| Assumed rate of return: |
8.10% |
| Valuation payroll: |
$974,216,968 |
| UAAL as a percent of covered payroll: |
76.13% |
Click here for downloadable data
Portfolio Management Strategy:
The long-term expected rate of return of TCDRS assets is determined by adding expected inflation to expected long-term real returns, and reflecting expected volatility and correlation. The target allocation and best estimate of geometric real rate of return for each major asset class are summarized in the following table:
| U.S. Equities |
13.50% |
4.70% |
| Private Equity |
16.00% |
7.70% |
| Global Equities |
1.50% |
5.00% |
| International Equities - Developed Markets |
10.00% |
4.70% |
| International Equities - Emerging Markets |
7.00% |
5.70% |
| Investment-Grade Bonds |
3.00% |
0.60% |
| High-Yield Bonds |
3.00% |
3.70% |
| Opportunistic Credit |
2.00% |
3.83% |
| Direct Lending |
10.00% |
8.15% |
| Distressed Debt |
3.00% |
6.70% |
| REIT Equities |
2.00% |
3.85% |
| Master Limited Partnerships (MLPs) |
3.00% |
5.60% |
| Private Real Estate Partnerships |
6.00% |
7.20% |
| Hedge Funds |
20.00% |
3.85% |
*Geometric real rates of return equal the expected return minus the assumed inflation rate
of 2.0%, per Cliffwater's 2017 capital market assumptions
Historical Investments:
Net of all fees of Dec.31, 2016
TCDRS Investment Results
https://www.tcdrs.org/OurInvestments/Pages/OurResults.aspx
Contributions:
Actuarially Determined Contributions (as a % of pay) :
| Employee |
7.00% |
7.00% |
6.00% |
6.00% |
6.00% |
| Employer |
13.55% |
13.88% |
12.43% |
11.59% |
10.67% |
| Total Required Contributions |
20.55% |
20.88% |
18.43% |
17.59% |
16.67% |
Click here for downloadable data