Texas Public Pension Plans

What the Data Says About Texas Public Pensions

Texas currently sponsors 12 public pension plans tracked by the Public Plans Database (PPD), covering a combined 2,711,636.797 active employees and retirees across teacher, police-and-fire, municipal, and general state systems. The weighted average funded ratio across these 12 plans is 73.1%, with a combined unfunded liability of $142.79B. These disclosures derive from each plan's CAFR and actuarial valuation, compiled by NASRA and Boston College's Center for Retirement Research.

Texas's average funded ratio sits near or slightly below the national public-pension average of 75.5%, indicating moderate funding gaps that require sustained employer contributions and realistic assumption-setting to avoid erosion over the next economic cycle. The $142.79B unfunded liability represents the actuarial shortfall between projected obligations and current assets across all 12 plans, which flows through to state and local budgets over time as amortization payments.

Unlike private-sector pensions, which fall under ERISA and are backstopped by the Pension Benefit Guaranty Corporation (PBGC), Texas's public plans rely on the full faith and credit of the sponsoring government entity. That distinction matters for the 2,711,636.797 Texas workers and retirees covered by these systems: funding shortfalls are addressed through state and local budget decisions rather than federal insurance. 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 questions about their specific benefits should consult their plan administrator directly.