HMEPS has been working with Mayor Sylvester Turner and his administration to address pension matters in a way that is mutually beneficial to both HMEPS participants and the City of Houston, and that brings about lasting reform for a sustainable retirement system.
Thus far, negotiations have resulted in proposed changes that we believe provide competitive benefits and future funding for the pension plan that are reasonable and actuarially sound, and that include stepped up payments to address past underfunding. The proposed changes will not be final unless and until a Meet and Confer agreement is reached between HMEPS and the City, with the expectation that the agreed provisions will be enacted into law by the Texas Legislature in the 2017 session.
We know these negotiations have caused concern among many of you, and we appreciate your continued patience and confidence as we work together toward a sound resolution. We believe it is important to work with Mayor Turner at the local level to develop a practical and tailored solution that is mutually agreeable rather than having the legislature work one out for us. We anticipate future adjustments to the COLA, DROP interest rate, member contributions and retiree death benefits, but no changes to eligibility for retirement or DROP, and no retroactive adjustments to earned or accumulated benefits.
We remain committed to a defined benefit plan that provides meaningful and competitive benefits with appropriate funding that will strengthen our participants’ financial future for the long term.
We are continuing our efforts with the City to develop a final agreement. Check this site for updates as we will keep you informed on the status of negotiations.