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 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:

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%

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

17.00%

6.4%

Private Equity

20.00%

9.40%

Global Equities

17.00%

6.70%

Int'l Equities - Developed Markets

18.00%

6.40%

Int'l Equities - Emerging Markets

26.00%

6.90%

Investment-Grade Bonds

4.00%

1.75%

Strategic Credit

5.86%

4.37%

Direct Lending

8.00%

8.85%

Distressed Debt

11.00%

7.10%

REIT Equities

22.00%

5.70%

Master Limited Partnerships (MLPs)

24.00%

6.45%

Private Real Estate Partnerships

30.00%

7.7%

Hedge Funds

4.40%

4.15%

Cash Equivalents

2.00%

1.55%

Geometric real rates of return equal the expected return minus the assumed inflation rate of 2.0%, per Cliffwater's 2022 capital market assumptions

Historical Investments

investmentresults

Net of all fees as of Dec.31, 2021
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%

Employer

14.61%

14.92%

14.19%

14.35%

13.76%

Total Required Contributions

21.61%

21.92%

21.19%

21.35%

20.76%

actuariadetermined

Click here for downloadable data

Download

Public Pension Reports

2021 TCDRS CAFR

Actuarial Valuation on pg. 64
Statement of Fiduciary Net Position on pg. 26
Statement of Changes in Fiduciary Net Position on pg. 27
2020 TCDRS CAFR

Actuarial Valuation on pg. 64
Statement of Fiduciary Net Position on pg. 26
Statement of Changes in Fiduciary Net Position on pg. 27
2019 TCDRS CAFR

Actuarial Valuation on pg. 64
Statement of Fiduciary Net Position on pg. 26
Statement of Changes in Fiduciary Net Position on pg. 27
2018 TCDRS CAFR

Actuarial Valuation on pg. 63
Statement of Fiduciary Net Position on pg. 26
Statement of Changes in Fiduciary Net Position on pg. 27
2017 TCDRS CAFR

Actuarial Valuation on pg. 63
Statement of Fiduciary Net Position on pg. 26
Statement of Changes in Fiduciary Net Position on pg. 27