Dallas approves new 30-year police and fire pension funding plan
DALLAS - A long battle over the Dallas Police and Fire Pension fund is a step closer to being over.
The Dallas City Council approved spending $11 billion over the next 30 years to hopefully fix a more than $3 billion budget shortfall.
The city’s plan also gives retirees a 1% stipend per year based on how the pension performs.
"1% is not a lot for the average retiree. It may be $500 a year, and that will not go a long way towards curbing the erosion of the pensions from inflation. But it will be a start," said David Elliston, the president of the Dallas Police Retired Officers Association.
But the plan is on hold right now because of a lawsuit.
The pension board passed its own plan and sued the city over who gets the final say over the pension plan.
"We cannot afford to have retirees going without any kind of supplement. We haven’t gotten one since 2017. We can’t afford any more years. Those that are about to retire, they need to know is this going to be my pay or am I going to get some kind of stipend between now and the next 22 years. That’s very important to their families. It’s something that needs to be hashed out right now," said Jaime Castro, the president of the Dallas Police Association.
Dallas Police and Fire Pension Board likely won't agree with City's proposed plan, executive director says
Members of the Dallas Police and Fire Pension Fund have not received a cost-of-living adjustment in nearly 8 years. The city and pension board are still far apart on many issues, according to the system's executive director.
"I think the vote is a good step in the right direction. They’ve approved a plan, a funding restoration plan. It should fund the pension system over a 30-year period just as the law dictates," Elliston added.
Dallas Mayor Eric Johnson released a statement on the city’s approved plan, saying, "When Dallas makes a commitment, we keep it."
"We have promised to take care of both our retired and active first responders, and we will keep that promise," he said.
Johnson said he will continue to make public safety a top priority.
Dallas City Council debates hiring consultant to improve pension fund's rate of return
As the city's hired consultant, Dory Wiley is working to encourage the council to hire his company or another to serve as a watchdog to fix the city's pension fund.
The stipend for retirees to help with cost-of-living increases is on hold until the lawsuit is resolved. It’s already been approved for next year’s budget.
The pension board meets again on Thursday.