Texas Comptroller Susan Combs just held a press conference releasing a report calling for more “transparency and accountability” in public pension funds.  She said pension funds in cities from states like Rhode Island, Michigan and California faced bankruptcy.  She acknowledged that Texas was not California, but she pointed to “warning signs” in places like Houston and Fort Worth where she said we may need some “mid-course” corrections.  The problems involved “spiking of benefits,” or inadequate contributions from the cities or employees, she said.

Combs did not call for a conversion of defined benefit plans to a defined contribution system.  She said she was “agnostic” on that issue.  Also, she said that she thought the “leadership” at the legislature was on board with her proposals.  In regards to TRS and ERS, she complimented the “great folks managing” those funds.

From my perspective, our opposition is engaging in a “discovery” phase so that they may amass information they can use against pension funds.  The target they have identified are the municipal pension funds.  My guess is that the bills they file to accomplish “accountability and transparency” will call for website posting of benign items such as historical investment returns.  But the legislation will be a perfect vehicle for amendments that require much more information from pension funds.

The report can be found at: 

http://www.texastransparency.org/yourmoney/pdf/TexasItsYourMoney-Pensions.pdf

Ron Martin

EPMPOA President