Houston faced an increasing unfunded liability for its employee pensions that totaled at least $3.9 billion, as of 2015, up from $212 million in 1992. If no action is taken, that unfunded liability is expected to continue growing.
Photo: Jujutacular/Flickr
There are two big reasons Houston’s pension challenges are growing. To fix the problem, they have to be addressed.
The good news, for Houston, is there are clear steps it can take to manage its pension finances. The bad news? Almost all of them will cause some pain.
Houston’s pension reform plan -- and in particular, its risk-sharing provisions -- should be viewed by other cities as a national model.
Rice University
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