Plan
Houston Police
State
Texas
Funded Ratio
70.4%
Assets
$7.21B
Members
10,358
Health Grade: C — Underfunded — significant gap between assets and liabilities
FY2023 data Grade C Public Plans Database

Houston Police

Funded ratio, unfunded liability, member counts, ARC coverage, and 23-year financial history for Houston Police — sourced from the Public Plans Database (Boston College CRR) and cross-checked against actuarial valuations.

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By · · Texas · Police & Fire Plan · Data through FY2023

Funded Ratio: 70.4% (At Risk) Houston Police funded ratio compared to national public pension benchmark. FUNDED RATIO 70.4% At Risk Nat'l avg 73.5% 0% 60 70 80 100% Healthy > 80% · At-risk 70-80% · Critical < 60%
Houston Police funded ratio is 70.4 percent — classified as At Risk. National public-pension benchmark is 73.5 percent.
C
Financial Health Grade
Underfunded — significant gap between assets and liabilities

Funded Ratio

70.4%

actuarial assets / liabilities

Unfunded Liability

$3.03B

actuarial shortfall

Total Members

10,358

active + retired + vested

1-Year Return

10.4%

net investment return

3.0pp vs 5-yr avg

5-Year Avg Return

7.4%

annualized, net of fees

How Houston Police Funded Ratio Compares

Plan Funded Ratio 70.4%
National avg

A ratio of 70.4% compared against the national public-pension average of 73.5%.

Healthy Threshold

Plans above 80% are generally considered adequately funded by NASRA standards.

Participant Composition

Participants: 5.2K active, 5.1K retired, 0 separated Plan participant breakdown showing active workers, retirees, and separated-vested members. PARTICIPANT MIX 10.4K total members 50% 49% Active 5.2K Retired 5.1K Separated 0 Active-to-Retiree 1.02 · Transitioning
Plan participant breakdown: 5.2K active workers, 5.1K retirees, 0 separated-vested members. Sustainability rating: Transitioning.

The active-to-retiree ratio is a leading indicator of long-term plan sustainability — plans with more retirees than active contributors face mounting cash-flow pressure as benefit payments outpace incoming contributions.

Investment Policy Mix

Asset Allocation: 55% equity, 25% fixed income, 17% alternatives Houston Police investment policy mix as reported in Form 5500 Schedule H disclosures. ASSET ALLOCATION $7.2B market assets · Form 5500 Schedule H 55% 25% 17% Equity 55.0% Fixed Inc. 25.0% Alternatives 17.0% Cash 3.0% Investment Stance: Growth-Tilted · Equity + Alts 72%
Houston Police asset allocation: 55% equity, 25% fixed income, 17% alternatives, 3% cash. Investment stance: Growth-Tilted.

Public pension plans report their asset allocation in Form 5500 Schedule H Part I disclosures. Equity-heavy mixes capture market upside but introduce volatility; fixed-income tilts protect funded status during downturns at the cost of long-run return.

Historical Funded Ratio

Year Funded Ratio
2024 N/A
2023 N/A
2022 70.4%
2021 N/A
2020 65.6%
2019 N/A
2018 55.2%
2017 N/A
2016 54.0%
2015 N/A
2014 55.5%
2013 N/A
2012 56.6%
2011 N/A
2010 32.6%
2009 N/A
2008 27.2%
2007 N/A
2006 32.5%
2005 N/A

What the Data Says About Houston Police

Houston Police reports a funded ratio of 70.4% as of fiscal year 2023, earning a financial health grade of C in the Public Plans Database. The plan holds $7.21B in market assets against an unfunded liability of $3.03B. As a Police & Fire plan operating under Texas sponsorship, it covers 10,358 members (5,198 active contributors, 5,082 retirees drawing benefits). These figures aggregate from Form 5500 filings submitted to the Department of Labor and actuarial valuations reported through NASRA.

A funded ratio in the 60–80% range indicates moderate underfunding that falls near the national average of 72–75% but leaves the plan exposed to market downturns and demographic shifts. Annual Required Contribution data was not reported for the latest cycle, while the plan posted a 5-year average investment return of 7.4%. The relationship between contribution adequacy and investment performance determines whether the unfunded liability narrows or expands year over year.

For Texas taxpayers and plan members, the $3.03B unfunded gap represents the actuarial shortfall that must eventually be closed through a combination of contributions, investment returns, or benefit modifications. Unlike private-sector pensions governed by ERISA and backstopped by the PBGC, public plans like Houston Police rely on the full faith and credit of Texas — meaning funding shortfalls flow through to state and local budgets rather than a federal insurance program. This information summarizes official Public Plans Database disclosures and is provided for research and educational purposes only. It is not financial, legal, or retirement-planning advice; active and retired members with specific benefit questions should consult their plan administrator directly.

Membership

5,198
Active Members
5,082
Retirees
10,358
Total Members

Plan Details

Plan Type
Police & Fire
State
Texas
Market Assets
$7.21B
Source: Public Plans Database (PPD)
Boston College CRR / NASRA

Other Texas Plans

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Related Resources

Pension Guides

Frequently Asked Questions

Is Houston Police fully funded?

Houston Police has a funded ratio of 70.4% as of FY2023, earning a health grade of C. A funded ratio of 100% means the plan has enough assets to cover all projected liabilities. Ratios above 80% are generally considered adequately funded; ratios below 60% indicate significant underfunding and risk to future benefits.

What happens if Houston Police runs out of money?

Public pension plans like Houston Police are backed by the sponsoring government entity — in this case Texas. If a plan's assets are insufficient, the state or local government is typically required to make up the difference through increased contributions, benefit adjustments, or tax measures. Unlike private pensions, public pensions are not insured by the PBGC, but they do carry the full faith and credit of the sponsoring government.

What does a funded ratio of 70.4% mean?

A funded ratio of 70.4% means that Houston Police currently has assets equal to 70.4% of its projected benefit obligations. The unfunded liability — the gap between assets and liabilities — stands at $3.03B. This represents a moderate funding gap that requires ongoing monitoring.

How does Houston Police compare to other public pensions?

Houston Police is a Police & Fire plan in Texas serving 10,358 members. Nationally, the average funded ratio for public pension plans tracked by the Public Plans Database is approximately 72–75%. Houston Police's funded ratio of 70.4% places it near the national average.

How many members does Houston Police have?

Houston Police covers 10,358 total members, including 5,198 active employees and 5,082 retirees currently receiving benefits. The ratio of active members to retirees is a key indicator of plan sustainability — when the number of retirees grows relative to active contributors, funding pressure increases.

What is the ARC payment percentage for Houston Police?

ARC payment data is not currently available for Houston Police. The Annual Required Contribution (ARC) is the actuarially determined amount a plan sponsor should contribute each year to keep the pension on track. Employer contribution patterns are tracked annually in the Public Plans Database.

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Data sourced from official Public Plans Database and actuarial valuations from federal and state pension systems. See our methodology for details. Retrieved and formatted by Kiznis Studio Editorial

Disclaimer: This information is provided for informational purposes only and does not constitute professional advice. Data is sourced from the Public Plans Database (PPD). Consult a qualified professional before making decisions based on this data.

Read our methodology — how this data is sourced, computed, and verified.

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