A big part of the problem is that retirees can select an annuity with annual cost of living increases, something quite uncommon in private company retirement plans.
Great deal for the retirees. Unlimited exposure for the managers of the pension fund.
It depends on the cost of living adjustment. A full cost of living adjustment is very expensive to purchase in the private sector. A limited adjustment such as limited to 3% reduces the periodic annuity payments by a modest amount. I am not sure about the cost of living adjustments in the Texas plan. The website is not clear about the benefits.