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 and District Retirement System (TCDRS). TCDRS is a statewide, agent multiple-employer, public-employee retirement system. TCDRS serves over 780 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, 2018, the Actuarial Information for the County as follows:


Actuarial accrued liability (AAL)
$6,476,539,775
Actuarial value of assets (AVA)
$5,531,202,842
Unfunded actuarial accrued liability (UAAL)
$945,336,933
Funded Ratio (AVA/AAL)
85.40%
Remaining amortization period
12.9 years
Assumed rate of return
8.10%
Valuation payroll
$1,032,142,316
UAAL as a percent of covered payroll
91.59%

actuarialvalue

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:

Asset Class
Target %
Long-Term Expected Real Rate of Return (Geometric)*
U.S. Equities
10.50%
5.40%
Private Equity
18.00%
8.40%
Global Equities
2.50%
5.70%
Int'l Equities - Developed Markets
10.00%
5.40%
Int'l Equities - Emerging Markets
7.00%
5.90%
Investment-Grade Bonds
3.00%
1.60%
Strategic Credit
12.00%
4.39%
Direct Lending
11.00%
7.95%
Distressed Debt
2.00%
7.20%
REIT Equities
2.00%
4.15%
Master Limited Partnerships (MLPs)
3.00%
5.35%
Private Real Estate Partnerships
6.00%
6.30%
Hedge Funds
13.00%
3.90%

Historical Investments

investmentresults

Net of all fees as of Dec.31, 2018 
TCDRS Investment Results https://www.tcdrs.org/OurInvestments/Pages/OurResults.aspx

Contributions

Actuarially Determined Contributions (as a % of pay)
2018
2017
2016
2015
2014
Employee
7.00%
7.00%
7.00%
7.00%
6.00%
Employer
14.35%
13.76%
13.55%
13.88%
12.43%
Total Required Contributions
21.35%
20.76%
20.55%
20.88%
18.43%

actuariadetermined

Click here for downloadable data