Appeals court rejects firefighters pension reform lawsuit

This is not related to Prop B. I know, it’s hard to keep all of this straight.

Mayor Sylvester Turner

Texas’ 14th Court of Appeals on Thursday sided with the city of Houston in a lawsuit over Mayor Sylvester Turner’s pension reform plan, which the Houston Firefighters’ Relief and Retirement Fund alleged violates the state constitution.

The firefighters’ pension fund sued Turner and other city officials in May 2017, shortly after the Legislature passed — and Gov. Greg Abbott signed — Senate Bill 2190, the legislation overhauling Houston’s pension systems. Firefighters opposed the measure, while Turner and other officials said it resolved a fiscal crisis that could threaten the city’s fiscal solvency.

In the lawsuit, the Houston Firefighters’ Relief and Retirement Fund argued the pension reform law strips its right under the Texas Constitution to “select legal counsel and an actuary and adopt sound actuarial assumptions.”

The pension fund contended the reform plan’s 7 percent assumed rate of return on investment, now codified in state law, gives the city and its actuaries a role in determining the fund’s cost projections, which the fund’s board of trustees said it alone should control.

See here and here for the background. The suit was dismissed by a district court judge, and the appeals court was basically ruling on whether that judge was correct to dismiss or not. You can read the opinion here, but it’s pretty dense and technical, and my eyes glazed over almost immediately. In short, the appellate court said the trial court judge’s decision was fine. The firefighters’ pension fund, who filed the suit and the appeal, will appeal again, to the Supreme Court. So we’re not quite finished with this yet.

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