Houston city council votes to support pension-reform plan

HOUSTON – Houston city council members passed a resolution Wednesday to support the city's plan to reform its three pension systems.

All but one council member (16-1) voted in favor to support the plan that Mayor Sylvester Turner announced Monday, saying the city and the pension systems reached a deal that would cut billions from the debt.

During Wednesday's meeting, Mayor Sylvester Turner was very passionate about moving this plan forward with the plan, which would reduce unfunded pension liability by more than 30 percent or $7.8 billion without raising taxes.

"I am thankful to everyone who has helped get us to this point. That includes City Council, the pension systems, our City employees and many others," Turner said. "This plan is historic, transformative and budget neutral. We are solving our pension problem permanent and we are doing it without needed a tax rate increase.  There is no other plan out there offering the same benefits. The Houston solution can be the model for other cities with similar challenges."

Turner's plan called for the city's cash-strapped system, which pays pensions for police officers, firefighters and municipal workers, to be fully funded by 2046.

State Senator Paul Bettencourt demanded a delay in Wednesday's vote and at the beginning of the meeting, Councilman Michael Kubosh asked the council for that delay.

The mayor openly and strongly disagreed, saying that after 15 years, firefighters, police officers and city employees deserve peace of mind about their futures.

“I stand with the people of the city of Houston. I was voted to represent their interests, not some party affiliation or some political interest or somebody who wants to be mayor. I represent the people of the city of Houston and the pension issue has been holding the city back for a long time. Employees deserve certainty,” said Turner.

In the plan, operating costs would be required to remain within a specified range. If costs rise above that range, the plan would require operators to immediately determine how to reduce spending to fall back within the range.

The city attorney and attorneys for the pension boards will start working to sign off on the language of the terms of the deal, which will be sent to state lawmakers soon for consideration during the 2017 legislation session.

The Houston Police Officers Union said they'll decide if they support it once it gets to the state level and a bill is written.

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