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

Actuarial accrued liability (AAL)
$8,419,267,147
Actuarial value of assets (AVA)
$7,705,899,571
Unfunded actuarial accrued liability (UAAL)
$713,367,577
Funded Ratio (AVA/AAL)
91.53%
Remaining amortization period
18 years
Assumed rate of return
7.60%
Valuation payroll
$1,263,557,808
UAAL as a percent of covered payroll
56.46%

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 Allocation(1)
Long-Term Expected Real Rate of Return (Geometric)(2)
U.S. Equities
11.50%
4.95%
Global Equities
2.50%
4.95%
Int'l Equities - Developed Markets
5.00%
3.95%
Int'l Equities - Emerging Markets
6.00%
4.95%
Investment-Grade Bonds
3.00%
2.40%
Strategic Credit
9.00%
3.39%
Direct Lending
16.00%
6.95%
Distressed Debt
4.00%
7.60%
REIT Equities
2.00%
4.15%
Master Limited Partnerships (MLPs)
2.00%
5.30%
Private Real Estate Partnerships
6.00%
5.70%
Private Equity
25.00%
7.95%
Hedge Funds
6.00%
2.90%
Cash Equivalents
2.00%
0.20%

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)

2022
2021
2020
2019
2018
Employee
7.00%
7.00%
7.00%
7.00%
7.00%
Employer
15.69%
14.61%
14.92%
14.19%
14.35%
Total Required Contributions
22.69%
21.61%
21.92%
21.19%
21.35%

Pension-Contribution

Click here for downloadable data