Retired City Employees Face Delays in Pension Payments

Nearly 300 retired employees from Houston are reportedly waiting months to receive their pension payments after opting for an early retirement package aimed at cost reduction.

Houston’s Mayor John Whitmire has defended the city’s Employee Pension Plan (HMEPS) amid complaints about the delays. He emphasized that the city has no control over the pension funds. “I don’t control the pension fund,” he stated, adding that the information provided by the city has not been accurately represented by critics.

In May, more than 1,000 city workers took the early retirement deal, a significant increase compared to the usual monthly average of around 39 retirements, according to Shelley Mose, chair of HMEPS.

Initially, retirees were informed that pension payments would take about 30 to 60 days. Unfortunately, that timeline has not been met. Kathy Caldwell, a retired city employee, expressed her distress over the situation, saying, “I strongly regret retirement… It’s a lot.” She feels overwhelmed with bills and finds herself in a tough spot.

Mose stated that all pending payments should be processed by the end of September, attributing the delays to timing issues and missing paperwork from some retirees. To expedite the process, HMEPS has increased staff and extended working hours, which has led to receiving over 13,000 calls regarding the payment delays. “My board members, everyone is working on this. It’s not on the backburner,” she assured.

The HMEPS is responsible for providing pension benefits to over 25,000 current and retired employees, including disability and survivor benefits. Mayor Whitmire and HMEPS have not yet responded to requests for additional comments.