John Klumb, Veronica McClelland, Vivian Montejano, John Gonzalez, Anita Robles, and Charmaine Pilgrim, on Behalf of Themselves and All Others Similarly Situated, and the City of Houston v. Houston Municipal Employees Pension System, Barbara Chelette, David L. Long, Lenard Polk, Roy Sanchez, and Lonnie Vara
This case concerns a dispute over the Houston Municipal Employees Pension System (HMEPS) and whether its board members violated the enabling statute by requiring petitioners' continued participation in the City of Houston's defined-benefit pension plan. The City attempted to remove a division of employees from the pension system by forming quasi-governmental entities. The pension board, however, determined these employees remained under the City's control and payroll, thus falling under the "employee" definition for HMEPS membership. Petitioners, including individual employees and the City of Houston, asserted ultra vires and constitutional claims, arguing the board unlawfully redefined "employee" and denied vested rights. The Supreme Court of Texas affirmed the lower court's judgment, finding the trial court lacked subject-matter jurisdiction because the pension board acted within its broad statutory authority in construing the term "employee" and the petitioners' constitutional claims were facially invalid as they lacked vested property rights in pension benefits or contributions.