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 : 7,281

  Active Members: 3,693
  Inactive Members : 19
  Total Annuitants: 3,569
  (Effective Date: 6/30/2020)


Financials

Note:
(Effective Date: 6/30/2020)

Total Net Assets: $4,102,931,779

Total Assets : $4,176,454,379
Total Liabilities : $73,522,600
Total Additions : $208,208,492
Employer Contributions:
$83,836,678
40.27%
Employee Contributions:
$33,441,101
16.06%
Other Contributions:
$0
0.00%
Investment Income:
$90,930,713
43.67%
Other Income:
$0
0.00%

Total Deductions  : $342,968,793
Benefit Payments:
Benefit Tier Details
$327,324,432
95.44%
Withdrawals:
$2,998,517
0.87%
Administrative Expenses:
$4,516,309
1.32%
Investment Expenses:
$6,815,731
1.99%
Other Expenses:
$1,313,804
0.38%

Total Contribution Rate: 42.39%
(Effective Date: 7/1/2020)
Employer: 31.89%
Employee: 10.50%

Historical Investment Returns

(Report Date: 6/30/2020)
—  Assumed Rate of Return 7.00%
  • 1-Year Return: 2.03%
  • 3-Year Return: 5.23%
  • 10-Year Return: 7.65%
  • 30-Year Return: 9.23%
  • Note: Rates of return are reported net of fees. 30 year Return is the gross return number as a net return was not available
  • Investment Policy Details
  • Assumed Rate of Return : 7.00%

Actuarial

Note:
(Effective Date: 7/1/2020)
Actuarial Value of Assets : 4,251,851,000
Market Value of Assets: 4,102,932,000
Actuarial Assumption Details

Actuarial Funded Ratio : 86.20%

Market Funded Ratio: 83.18%

Amortization Period (Yrs) : 27
Unfunded Liability : 680,456,000
Unfunded Liability per Member: $93,456

Benefit Tier Details


Tier:
Tier 1
Eligible Members:
Hired before 7/1/17
Vesting:
20 YCS
Age/YCS:
20 YCS
Benefit Formula:
(Member's 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
Note:

Investment Policy Details

Effective Date: 6/21/2018


Asset Class:
Alternative Investments
Minimum Allocation:
15%
Maximum Allocation:
37%
Target Allocation:
28%
Note:

Asset Class:
Cash
Minimum Allocation:
1%
Maximum Allocation:
5%
Target Allocation:
1%
Note:

Asset Class:
Equities
Minimum Allocation:
24%
Maximum Allocation:
60%
Target Allocation:
34%
Note:

Asset Class:
Fixed Income
Minimum Allocation:
15%
Maximum Allocation:
35%
Target Allocation:
30%
Note:

Asset Class:
Real Estate
Minimum Allocation:
4%
Maximum Allocation:
10%
Target Allocation:
7%
Note: