The City Of Houston 's Pension Crisis

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The City of Houston’s Pension Crisis 1 From: Ervin Jackson III To: Dr. Sarmistha Rina Majumdar PAD 710: Capstone (CRN 21270) Subject: Part II Capstone Paper April 17, 2017 The City of Houston’s Pension Crisis Literature Review Every Houston city worker who works hard and play by the standards deserves a impartial and protected retirement. Yet the city administration has mess-up Houston’s pension systems for years, leaving them underfunded and on unstable ground. Political leaders have cut corners on pension payments, used dicey investment return assumptions, and disregard the warning signs…show more content…
They continued to deficiency employees declining to make responsible pension payment. That combined with the national financial downfall, causes Chicago’s pension debt to balloon into a full blown financial crunch. The difficulties in Chicago have only gotten worse; even as the city’s long-range economy has become better. In Houston, the city’s healthy economic position has helped to pad the punch of substandard pension funding decision thus far, but surroundings are changing. The decrease in the oil markets along with the property tax revenue cap could quickly enlarge the city’s pension predicament and outcome in much like the one in Chicago. In order to stay from dire consequences, leaders must immediately take action to fundamentally reform Houston’s pension systems so that they are impartial and maintainable for both employees and taxpayers. City official must access local management over the city’s pension systems in order to negotiate changes directly with workers and enact those changes locally. In addition, they must fully fund the pension system pay off the debt in 20 years or less; and make the projections, historical data and financial news publicly available. Retirement plans for public workers in the U.S of America face serious challenges. These pension plans are greater extent expensively, underfunded, and retention of the most talented public servants and create
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