Rulings expected in firefighters' lawsuit to block city pension reform law

Houston City Hall in downtown Houston. (File Photo) Houston City Hall in downtown Houston. (File Photo) Photo: Nick De La Torre, Staff Photo: Nick De La Torre, Staff Image 1 of / 1 Caption Close Rulings expected in firefighters' lawsuit to block city pension reform law 1 / 1 Back to Gallery

A state district judge is expected to rule Friday in Houston firefighters' legal challenge to the city's landmark pension reform legislation, a case that went to court for the first time Thursday.

The city and its fire pension fund have spent a lot of time squabbling in courtrooms in recent years, but this latest showdown risks torpedoing the key accomplishment of Mayor Sylvester Turner's tenure and sinking the city budget along with it by reversing $2.8 billion in benefit cuts across the police, fire and municipal pension plans.

Judge Patricia Kerrigan is expected to rule on whether to temporarily block implementation of the law – which is to take effect Saturday – as well as the city's request to dismiss the case.

The suit argues that SB2190, the reform law, infringes on the fund's exclusive right to select its own actuaries and choose the actuarial assumptions that will be used to calculate the necessary contributions from the city and workers into the pension system.

Attorneys for the city argued Thursday that the firefighters have failed to lodge a valid constitutional claim and, therefore, have no standing to pursue the case.

Reagan Brown, of Norton Rose Fulbright, called the firefighters' claims "remarkable," arguing that they have read the relevant provision of the law so broadly as to usurp power from the Legislature.

"There is nothing in that statute that prohibits or precludes the fund's board form selecting legal counsel or from selecting an actuary or adopting sound actuarial assumptions," Brown said. "Those words, those phrases, there are no such provisions in SB2190."

Fire fund attorney George Shipley, of Shipley Snell Montgomery, pushed back, arguing legislative history suggests the city pushing for changes the fund didn't want was actually why some provisions were enshrined in the state Constitution.

"We think the Constitution is clear: 'The board shall select an actuary and adopt sound actuarial assumptions,'" he said. "It spells out who gets to decide."