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Houston Firefighters' Relief & Retirement Fund

Overview

Contact Information:
4225 Interwood N Pkwy
Houston, TX 77032
http://www.hfrrf.org
Phone: (281) 372-5100
Fax: (281) 372-5104

Classification: Muni
Year Created: 1937
Fiscal Year-End Month: 6

Total Members : 7,364

  Active Members: 3,640
  Inactive Members : 73
  Total Annuitants: 3,651
  (Effective Date: 6/30/2022)

Financials

(Effective Date: 6/30/2022)

Total Net Assets: $5,093,736,459

Total Assets : $5,140,283,295
Total Liabilities : $46,546,836
Total Additions : $120,956,424
Employer Contributions:
$81,351,512
67.26%
Employee Contributions:
$30,941,552
25.58%
Other Contributions:
$0
0.00%
Investment Income:
$8,663,360
7.16%
Other Income:
$0
0.00%

Total Deductions  : $283,982,773
Benefit Payments:
Benefit Tier Details
$2,227,893
0.78%
Withdrawals:
$268,370,833
94.50%
Administrative Expenses:
$4,160,884
1.47%
Investment Expenses:
$8,140,843
2.87%
Other Expenses:
$1,082,320
0.38%
Total Contribution Rate: 22.55%
(Effective Date: 7/1/2021)
Employer: 10.50%
Employee: 33.05%

Historical Investment Returns

(Report Date: 6/30/2022)
—  Assumed Rate of Return 7.00%
  • 1-Year Return: 0.01%
  • 3-Year Return: 10.86%
  • 10-Year Return: 8.58%
  • 30-Year Return: N/A
  • Note: Rates of return are reported net of fees.
  • Investment Policy Details
  • Assumed Rate of Return : 7.00%

Actuarial

(Effective Date: 7/1/2021)
Actuarial Value of Assets : $5,256,763,000
Actuaries often select an asset valuation method that smooth the effects of short‐term volatility in the market value of assets. The actuarial value of assets is intended to give fund managers a more accurate picture of the fund’s ability to cover its liabilities.
Market Value of Assets: $4,550,468,000
Actuarial Assumption Details

Actuarial Funded Ratio : 93.22%

Market Funded Ratio: 107.69%

Amortization Period (Yrs) : 26
Unfunded Liability : $331,140,000
Unfunded Liability per Member: $44,967

Benefit Tier Details

Tier:
Tier 1
Eligible Members:
Hired before 7/1/17
Vesting:
20 YCS
Age/YCS:
20 YCS
Benefit Formula:
(Members accrued benefit as of 7/1/17) + (2.75% x Final Average Salary x Years of Credited Service on/after 7/1/17 < = 20) + (2% x Final Average Salary x Years of Credited Service on/after 7/1/17 > 20)
Final Average Salary:
Highest 78 pay periods
Automatic COLA:
100% of 5-yr smoothed return - 4.75%; min 0%, max 4%. Beginning at age 55 with a 3-yr freeze on COLAs for members under 70 yrs until 2021. COLA for FY 2018 and 2019 = 100% of 5-yr smoothed return - 5%.
Benefit Tier Options:
Forward DROP, 13-yr max. (10-yr max for contribution credit.) Interest credit: 65% x 5-yr compounded avg fund return (min 2.5%); No COLA or contributions credited after 7/1/17. Retro DROP option, 3 year max. PROP option before 7/1/17.
Social Security:
No
Note:
HFRRF retirement benefit after DROP is further increased 2% x initial DROP benefit x years of DROP participation, max 20% increase.
Tier:
Tier 2
Eligible Members:
Hired on/after 7/1/17
Vesting:
20 YCS
Age/YCS:
Rule of 70
Benefit Formula:
(2.25% x Final Average Salary x Years of Credited Service < = 20) + (2% x Final Average Salary x Years of Credited Service > 20); max 80%
Final Average Salary:
Final 78 pay periods
Automatic COLA:
100% of 5-yr smoothed return - 4.75%; min 0%, max 4%. Beginning at age 55 with a 3-yr freeze on COLAs for members under 70 yrs until 2021. COLA for FY 2018 and 2019 = 100% of 5-yr smoothed return - 5%.
Benefit Tier Options:
None
Social Security:
No

Investment Policy Details

Effective Date: 7/19/2022

Asset Class:
Alternative Investments
Minimum Allocation:
0%
Maximum Allocation:
49%
Target Allocation:
30%
Asset Class:
Real Estate
Minimum Allocation:
5%
Maximum Allocation:
15%
Target Allocation:
7%
Asset Class:
Fixed Income
Minimum Allocation:
6%
Maximum Allocation:
45%
Target Allocation:
23%
Asset Class:
Equities
Minimum Allocation:
14%
Maximum Allocation:
62%
Target Allocation:
38%
Asset Class:
Cash
Minimum Allocation:
1%
Maximum Allocation:
8%
Target Allocation:
2%