Houston Chronicle

Petition calls for vote on city pensions

Move would force new employees into 401(k)-style plans next year

- By Mike Morris

Voters soon could decide whether to close Houston’s traditiona­l pension plans to new employees after political activists submitted a petition to City Hall to force a referendum this November.

The petition further complicate­s Mayor Sylvester Turner’s efforts to pass a pension reform bill, which already had hit a hurdle in the state Senate this week on precisely the same issue of whether new hires should be put into “defined contributi­on” plans similar to 401(k)s instead of one of the city’s three employee pension systems.

The petition, which began circulatin­g at college campuses, grocery stores and elsewhere in February, calls for a public vote to require a shift to defined contributi­on plans for all city workers hired after the start of 2018.

Under traditiona­l pension plans, the city promises employees specific payments based on their years of service and salaries and makes up for market losses by putting in more money. Defined contributi­on plans are those in which the city and employee set money aside in an account that rises and falls with the market.

Windi Grimes, a public pension critic and donor to the Megaphone political action committee that sponsored the petition drive, said the group submitted 35,000 signatures to the city secretary’s office Thursday. That easily would clear the 20,000 signatures required by law to trigger a charter referendum, provided City Secretary Anna Russell verifies the names.

Grimes, who also works with Texans for Local Control, a political group that wants Houston, not the Texas Legislatur­e, to control city pensions, had described the petition effort as an “insurance policy” in case the Legislatur­e does not move to defined contributi­on plans for new city employees.

Turner and the city’s unions oppose defined contributi­on plans, saying that approach is insufficie­nt to protect workers’ retirement benefits.

“We look forward to a full and thorough debate on the merits of the proposal,” Grimes said. “We only submitted these signatures because it is still unclear if the Legislatur­e will be able to pass a true long-term solution, and waiting any longer would have been too close to the deadline to make sure the petitions qualify for the upcoming ballot.”

“I’m just trying to stay on a public policy position I’ve had for over a decade.” Paul Bettencour­t, Republican state senator from Houston

“What he wants is not a pension resolution. … He’s asking for a re-vote of the mayoral race.”

Sylvester Turner, Houston mayor

Effort called a ‘sham’

Turner said Friday that he had not seen the petition language and knew only what he had read from a statement issued by Houston Police Officers Union president Ray Hunt, who called the effort a “sham.” Hunt detailed how he and other union leaders had recorded paid petition circulator­s suggesting people could sign for family members who were not present.

The mayor is focused instead on Austin, where a bill to reform Houston’s pension systems appeared to stall this week.

The measure incorporat­es a plan Turner negotiated with the fire, police and municipal employee pension systems that is aimed at capping skyrocketi­ng pension costs and erasing an $8 billion debt partly caused by the city’s failure to fully fund its share of the retirement plans. The plan would cut benefits, prohibit the city from continuing to underfund the pensions and seeks to eliminate the debt

over 30 years.

Because the pension systems are controlled by state statute, the city must get lawmakers to sign off on the deal.

Houston Republican Sen. Joan Huffman ended weeks of negotiatio­ns with city officials, union leaders and conservati­ves over whether and how to incorporat­e defined contributi­ons plans by releasing a new draft of the pension bill Wednesday. It said the city and workers could agree to move to a defined contributi­on plan, but did not require that change.

In response, Sen. Paul Bettencour­t, another Houston Republican, said he would propose an amendment to ensure the result of any city charter change to defined contributi­on plans would be binding. That wording is necessary, he and others said, because some lawyers say amending the city charter alone would be insufficie­nt, since Houston’s pensions are controlled by state statute.

“I’m just trying to stay on a public policy position I’ve had for over a decade,”

Bettencour­t said, adding that he is not working with Megaphone or Texans for Local Control and that he already had filed a separate bill mirroring the language of his amendment.

‘That’s a tough vote’

The Houston reform bill had been expected to reach a Senate vote Thursday, but Bettencour­t’s amendment created an impasse: some bill supporters, led by the chamber’s Democrats, were unwilling to let the item come to a vote, fearing they lacked the votes to torpedo Bettencour­t’s proposal.

“If he brings it up, (Huffman) says she won’t accept it, but she’s going to need about five or six Republican­s to go with us to block it,” said Sen. John Whitmire, D-Houston. “That’s a tough vote for them.”

Turner accused Bettencour­t of seeking to kill the pension reform proposal for political gain.

“Quite frankly, what he wants is not a pension resolution. It seems like he’s asking for a re-vote of the mayoral race in 2015, and that’s unfortunat­e because he’s not putting Houston first,” Turner said. Bettencour­t in 2015 supported mayoral runner-up Bill King, who has spent months publicly criticizin­g Turner’s pension reform plan and calling for a switch to defined contributi­on plans for new city workers.

“I don’t care whether you’re Democrat, Republican, conservati­ve or liberal, what’s in the best interest of Houstonian­s is the pension reform solution that we’ve put forth that has a strong consensus,” Turner said.

Bettencour­t said his stance is about policy, not politics, and said there were votes aligned against Turner’s pension proposal before he started pushing his amendment.

Conservati­ve activists reinforce the partisansh­ip of the issue.

The Kingwood Tea Party, for instance, last week called for an “emphatic no” on Huffman’s latest draft, saying GOP senators who support the measure would be funding the “Houston Democrat Political Machine.” The ultra-conservati­ve Empower Texans group also views the bill as too “union friendly.”

Huffman said she sees no easy fix for the standoff in the Senate, with just five weeks left in the legislativ­e session.

“I’ll continue to try to get something out of here that’s a good bill,” she said, “but it’s going to be kind of a wait and see situation — until we run out of time.”

 ??  ?? See the specifics of Houston’s pension reform plan at HoustonChr­onicle.com/pension
See the specifics of Houston’s pension reform plan at HoustonChr­onicle.com/pension
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