Pension Crisis

Houston Sues Pension Funds to Rein In Costs

Uses Detroit as an example

|

Houston pays millions of dollars a year to its firefighters' retirement fund, a spiraling debt an unconstitutional Texas law gives the city no authority to rein in, the city claims in court.

The city sued the Houston Firefighters' Relief and Retirement Fund in Harris County Court.

Citing its "growing concerns about its long-term ability to meet its pension obligations," Houston claims it had to sue the fund to prevent the financial woes that put Detroit into bankruptcy.

"Houston cannot and will not ignore the lessons to be learned from the recent Detroit bankruptcy and the financial difficulties related to pension obligations being experienced by municipalities throughout the country," the complaint states.