Public Pensions

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 more than 830 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:

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 nearly 850 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, 2021, the Actuarial Information for the County as follows:


Actuarial accrued liability (AAL)
$8,066,366,968
Actuarial value of assets (AVA)
$8,325,113,143
Unfunded actuarial accrued liability (UAAL)
$(258,746,176)
Funded Ratio (AVA/AAL)
103.21%
Remaining amortization period
18.5 years
Assumed rate of return
7.60%
Valuation payroll
$1,255,581,364
UAAL as a percent of covered payroll
20.61%

Assests-Liabilities-graph1024_1

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
11.50%
3.80%
Private Equity
25.00%
6.80%
Global Equities
2.50%
4.10%
Int'l Equities - Developed Markets
5.00%
3.80%
Int'l Equities - Emerging Markets
6.00%
4.30%
Investment-Grade Bonds
3.00%
-0.85%
Strategic Credit
9.00%
1.77%
Direct Lending
16.00%
6.25%
Distressed Debt
4.00%
4.50%
REIT Equities
2.00%
3.10%
Master Limited Partnerships (MLPs)
2.00%
3.85%
Private Real Estate Partnerships
6.00%
5.10%
Hedge Funds
6.00%
1.55%
Cash Equivalents
2.00%
-1.05%

Historical Investments

Investment-Results

Net of all fees as of Dec. 31, 2022

TCDRS Investment Results (https://www.tcdrs.org/OurInvestments/Pages/OurResults.aspx)

Contributions

Actuarially Determined Contributions (as a % of pay)
2021
2020
2019
2018
2017
Employee
7.00%
7.00%
7.00%
7.00%
7.00%
Employer
14.61%
14.92%
14.19%
14.35%
13.76%
Total Required Contributions
21.61%
21.92%
21.19%
21.35%
20.76%

Pension-Contribution

Click here for downloadable data