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 is 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%

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
13.50%
4.70%
Private Equity
16.00%
7.70%
Global Equities
1.50%
5.00%
Int'l Equities - Developed Markets
10.00%
4.70%
Int'l 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%

Historical Investments

investmentresults

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)
2016
2015
2014
2013
2012
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%

actuariadetermined

Click here for downloadable data