The Chronicle's May
14th headline that said that the city of Houston ``can't keep its promise to the
pension fund'' was simply untrue.
This administration has increased the city's contribution to the
Municipal Pension Fund and made it more secure by reducing unfunded liabilities
by about $1 billion.
Neither I nor anyone
in my administration has ever stated that the city would pay the ``statutory
rate'' for contributions to the Municipal Pension Fund.
In 2004, we defined
annual contributions for three years and agreed to negotiate with the Municipal
Pension System concerning our contribution thereafter. No other promise was
made, and for years I have told all who would listen that the statutory rate is
unrealistic.
The article's
sub-headline was also wrong in stating that I am citing ``strained resources''
as a reason for letting workers ``contribute less, get fewer
benefits.''
To give our work force
more options, our chief pension executive has proposed to allow workers to
contribute more or less, and obtain more or less pension, depending on their
personal choices about retirement planning.
In March, our finance
director stated that we would budget the same percentage of payroll as we did
last year - this is not some breaking news. We have budgeted to pay 15.8 percent of
municipal payroll into the pension fund, a higher contribution than the 14.5
percent rate which was the basis for enhanced pension benefits in 2001. The Municipal Pension Board has the
obligation to bring benefits in line with the costs, which they advertised in
2001.
I assure municipal
employees that our city's contribution to the pension fund, including both cash
contributions and the transfer of the Convention Center hotel, has increased
pension security. We avoided massive layoffs or pay cuts to pay for the Pension
Board's 2001 mistake or outright fraud. We are fully and deeply committed to the
security of the pension system.
We have not broken any
promise. We look forward to working
with the municipal pension board to keep the city's contribution affordable and
sustainable to make municipal pensions more secure, and to give employees more
options.
Bill
White,
Mayor