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Houston Police Officers' Pension System

Overview

Contact Information:
602 Sawyer St Ste 300
Houston, TX 77007
http://www.hpops.org/
Phone: (713) 869-8734
Fax: (713) 869-7657

Classification: Muni
Year Created: 1947
Fiscal Year-End Month: 6

Total Members : 10,065

  Active Members: 5,162
  Inactive Members : 54
  Total Annuitants: 4,849
  (Effective Date: 6/30/2022)

Financials

(Effective Date: 6/30/2022)

Total Net Assets: $6,861,988,000

Total Assets : $7,104,568,000
Total Liabilities : $242,580,000
Total Additions : $202,403,000
Employer Contributions:
$152,375,000
75.28%
Employee Contributions:
$50,028,000
24.72%
Other Contributions:
$0
0.00%
Investment Income:
$0
0.00%
Other Income:
$0
0.00%

Total Deductions  : $396,575,000
Benefit Payments:
Benefit Tier Details
$2,645,000
0.67%
Withdrawals:
$372,282,000
93.87%
Administrative Expenses:
$3,900,000
0.98%
Investment Expenses:
$17,446,000
4.40%
Other Expenses:
$302,000
0.08%
Total Contribution Rate: 31.98%
(Effective Date: 7/1/2021)
Employer: 10.50%
Employee: 42.48%

Historical Investment Returns

(Report Date: 6/30/2022)
—  Assumed Rate of Return 7.00%
  • 1-Year Return: -1.40%
  • 3-Year Return: 9.60%
  • 10-Year Return: 8.40%
  • 30-Year Return: 8.90%
  • 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 : $7,137,251,000
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: $6,082,317,000
Actuarial Assumption Details

Actuarial Funded Ratio : 85.41%

Market Funded Ratio: 100.23%

Amortization Period (Yrs) : 26
Unfunded Liability : $1,038,643,000
Unfunded Liability per Member: $103,194

Benefit Tier Details

Tier:
Tier 1
Eligible Members:
Hired before 10/9/2004
Vesting:
20 YCS
Age/YCS:
20 YCS or 60/10
Benefit Formula:
Years of Credited Service x 2.75% (First 20 YCS) then 2% (> 20 YCS) x Final Average Salary
Final Average Salary:
Final 78 biweekly pay periods
Automatic COLA:
100% of 5-yr smoothed return - 5%; min 0%, max 4%. Beginning at age 55 with a 3-yr freeze on COLAs for members under 70 yrs until 2021.
Benefit Tier Options:
Forward DROP - 20-yr max; interest: 65% of 5-yr compounded avg fund return, min 2.5%. No COLA or contribs after 7/1/17. Retro DROP - allows member to recalc notional DROP account by selecting a different entrance date. PROP - same interest as DROP.
Social Security:
No
Note:
One-time lump sum payment of $5,000 at retirement.
Tier:
Tier 2
Eligible Members:
Hired on/after 10/9/2004
Vesting:
20 YCS
Age/YCS:
Rule of 70
Benefit Formula:
Years of Credited Service x 2.25% (First 20 YCS) then 2.0% (>20 YCS) x Final Average Salary
Final Average Salary:
Final 78 biweekly pay periods
Automatic COLA:
100% of 5-yr smoothed return - 5%; min 0%, max 4%. Beginning at age 55 with a 3-yr freeze on COLAs for members under 70 yrs until 2021.
Benefit Tier Options:
Partial Lump Sum Option of up to 20% of the actuarial value of the members accrued pension at retirement.
Social Security:
No

Investment Policy Details

Effective Date: 3/12/2020

Asset Class:
Real Estate
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
10%
Asset Class:
Alternative Investments
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
38%
Asset Class:
Cash
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
-10%
Asset Class:
Equities
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
52%
Asset Class:
Fixed Income
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
11%