City of Houston Retired Employees Obligations

Slides:

Advertisements

Similar presentations

FISCAL ACCOUNTABILITY OF STATE GOVERNMENT Presentation Prepared for the Appropriations Committee and the Finance, Revenue, and Bonding Committee by the.

Advertisements

Florida’s Municipal Pensions (and OPEBs): Research from the LeRoy Collins Institute Carol S. Weissert Director of Institute Professor of Political Science.

WORKING WITH ACT 47 To secure Pittsburgh’s future.

Work Session Four 2011 City Budget ~ Manhattan ~ Kansas.

CAFR Analysis Amanda Grieco December 2,  Incorporated in 1857  Located in the northeastern part of the state  Top growth area in the state 

Finance Department Presentation to the City of Houston Budget and Fiscal Affairs Committee FY2011 Budget Overview and General Fund Five Year Scenario May.

© Center for Tax and Budget Accountability CENTER FOR TAX AND BUDGET ACCOUNTABILITY 70 E. Lake Street Suite 1700 Chicago, Illinois direct:

City of Houston Long Range Financial Management Task Force City Financial Overview Part 2 September 6, 2011.

OPEN – C&HR – INFO 1-2 UM Retirement Plan Annual Valuation Board of Curators January 31, 2013.

The Illinois Pension Problem What is Wrong with Illinois Pensions?

1 A Review of MCPS Budget Category 12 Office of Legislative Oversight Report Presentation to Montgomery County Board of Education Fiscal Management.

TEACHERS’ RETIREMENT SYSTEM OF OKLAHOMA Actuarial Valuation as of June 30, 2008 Presented by J. Christian Conradi and Mark Randall on October 22, 2008.

Administrative Services EVANSTON ILLINOIS 2014 Year End Financial Report Martin Lyons Assistant City Manager / CFO March 16, 2015.

D. Roderick Kiewiet California Institute of Technology June 5, 2012 Institutions in Context: Dictatorship and Democracy University of Tampere.

Report on State Actuarial Valuation Joint Hearing Assembly Public Employees, Retirement and Social Security Committee Senate Public Employment and Retirement.

Vancouver Webcast Financial and Operational Review Accountable To You 4th Annual General Meeting October 15, 2005.

Arizona State Retirement System Presentation to the Government Finance Officers Association of Arizona January 7, 2011.

Resolution on 6/17 to Increase Premiums, Spousal Carve Out, Smoker Surcharge Increase.

Public Act and its Effect on Illinois’ Teachers By Marc Ansay and Jill Kaner.

Collin County Retirement Plan Briefing September 7, 2010.

SOCCCD TENTATIVE BUDGET BOARD OF TRUSTEES MEETING JUNE 24, 2008.

CALPERS AND PENSION OBLIGATION BONDS City Council Workshop July 13, 2005.

OPEB 101 & Next Steps in Retirement Report David S. T. Matkin, PhD Assistant Professor of Public Administration Florida State University Research Fellow,

Vermont’s Expanding Pension Crisis Presented by David Coates to the Ethan Allen Institute June 19,

© Center for Tax and Budget Accountability CENTER FOR TAX AND BUDGET ACCOUNTABILITY 70 E. Lake Street Suite 1700 Chicago, Illinois direct:

Presented by: G.S. Curran & Co. GASB 68 FOR COST SHARING EMPLOYERS OF THE ASSESSORS’ RETIREMENT FUND.

Funding Public Pensions Seventh Annual Employee Benefits Symposium John Marshall Law School April 20, 2009 by Jon Forman Alfred P. Murrah Professor of.

Fire and Police Retirement System Funding Plan March 28, 2010.

Chapter 10 Objectives: Learn about permanent funds Learn about fiduciary funds Learn how gains and losses are treated How trusts guard against inflation.

Retirement Benefits in Florida Governments David S. T. Matkin, PhD Research Fellow, LeRoy Collins Institute Assistant Professor of Public Administration.

Actuarial Measures of US Household Income and Wealth from Defined Benefit Pension Plans By Marshall Reinsdorf for presentation at the UNECE Group of Experts.

FY12 BUDGET PRESENTATION January 25, Key Revenue Assumptions  Property Tax Change per 2 1/2  State Aid is level funded  Estimated Receipts.

Hollis-Brookline NHRS Summit June 25, 2013 Barbara T. Reid NHMA Government Finance Advisor And Dean Michener NHSBA Associate Director.

St. Petersburg City Employee Forum Protecting your Retirement Benefits and Preventing Bankruptcy.

Our Work Policy work Consulting on employee compensation and pensions MEPCO House of Commons Finance Committee Senate National Finance Committee Provincial.

Budget Focus To prepare a structurally balanced general operating budget with recurring revenues supporting recurring expenditures. To provide a budget,

City of San Diego Retiree Medical Proposal City Council Presentation May 13, 2011.

1 Article 7 - Concord Town Manager FY11 Transfer from Insurance Reserve Fund to OPEB Trust Mr. Whelan moves: that the Town vote to transfer the sum of.

FISCAL YEAR 2017 BUDGET PREPARATION WORKSHOP City Council November 23, 2015.

1 City of Hartford Municipal Employees’ Retirement Fund Overview Presented By: Treasurer Adam M. Cloud City of Hartford - MERF.

City of Houston: Challenges and Opportunities, 2016 and Beyond Chris B. Brown, City Controller Garden Oaks Civic Club, April 5, 2016.

1 Accounting for OPEB Retiree Health Benefits Committee September 11, 2006.

Illinois Pension Crisis By: Kaitlyn O’Shea, Connor Francesca, Nealkanth Patel, Darshan Kamdar.

Town of Plymouth, Massachusetts Results of the January 1, 2015 GASB 45 Valuation September 22, 2015 Linda L. Bournival, FSA Consulting Actuary KMS Actuaries,

New Member Mid-CareerNearRetirementAfterRetirement Municipal Pension Plan Operations and Financial Review December 31, 2002.

STRATHCLYDE PENSION FUND ANNUAL GENERAL MEETING 14 JUNE 2013.

Pensions GOMB Response to Budgeting For Results Commission Pension Questions.

Public Safety Personnel Retirement System (PSPRS): An Overview and Discussion of Recommendations to Reduce Costs Town Council Meeting May 20, 2015.

1 Foregone revenue & lost savings $ Impact on TRA Foregone revenue from 1% ER contribution increase$43.0 million Permanent foregone savings if delay COLA.

The Houston Pension Question How the City’s Pension Liability Grew And the Options for Reform August 2016.

EMPLOYEE PENSIONS March 24, Quiz Which costs the city of Houston the most? A) Parks B) Libraries C) Trash collection D) Firefighters’ pension payments.

GASB AND OPEB OBLIGATIONS – PROPOSING NEW ACCOUNTING STANDARDS TO IMPROVE TRANSPARENCY IN FINANCIAL REPORTING Roberta J. Cable, Patricia Healy and Claudia.

Opening Remarks Moderator R. Kinney Poynter Executive Director NASACT

MEDIAN ANNUALIZED RETURN (%)

2018 Proposed Executive Budget

Hidden Debt, Hidden Deficits in state and local government budgets

Chief Deputy County Executive

Employee Pensions GOVT 2306, Module 11.

Pension Obligation Restructuring

How We Pay for the Public Sector

California Public Employees’ Retirement System (CalPERS)

Other Post Employment Benefits

Fiscal Sustainability Task Force

Labor Negotiation Kick-off

Texas’ Retired Employees Obligations: Case Study – City of Houston

FY 2016 Administrative Departments Budget Presentations

Senate E-12 Finance March 19, 2018

AGENDA 2018 Pension Bill Overview of Minnesota Pension Plans

Oklahoma County Employees Retirement System

CalPERS Update & Discussion

Presentation transcript:

City of Houston Retired Employees Obligations Bill King www.BillKingHouston.com www.BillKingBlog.com

Pension Plans Three Plans State law mandates defined-benefit plans Police Fire All other Municipal Employees State law mandates defined-benefit plans Contributions to trust fund City Employee Trust fund administration (also mandated by state law)

Categories of Obligations Pension Plans Underfunding Pension Bonds Retiree Health Benefits Totally unfunded

Funding Adequacy Measuring adequacy of funding Variables – actuarial & investment return assumptions 8.5% rate of return on investments Actuarial Studies - Annually as June 30

City Contributions Contributions in 2010 = $233 million More than Parks, Library, Health & Solid Waste Departments, combined Projected contributions in 2020 = $505 Million Will be about ½ of all property taxes collected by the City at that time

Unfunded Liability - Actuarial Calculation 2010 Actuarial Studies $2.3 Billion Pension Bonds $.6 Billion Total $2.9 Billion

Unfunded Liability - Market Value Calculation 2010 Actuarial Studies $3.8 Billion Pension Bonds $.6 Billion Total $4.4 Billion

Funding History

Unfunded Liability Continues to Grow

Retiree Health Benefits Estimated Liability as of June 30, 2006 $3.0 Billion Annual Cost 2002 - $21 Million 2010 - $59 Million

City’s “official” numbers Perspective City’s “official” numbers Worst case Per Capita $2,521 $3,826 City’s Net Assets ($3.4 Billion) 1.7X 2.8X City’s Annual Budget ($3 Billion) 1.9X 3.1X City’s Total Bonded Debt ($13 Billion) 45% 68% City’s Annual Property Tax Collections ($830 Million) 7.2X 11.2X

www.BillKingHouston.com www.BillKingHouston.com www.BillKingBlog.com www.BillKingHouston.com www.BillKingHouston.com