Retired Dallas police, fire likely wouldn't see cost of living increase until 2046 under proposed city plan
DALLAS - The City of Dallas' proposal to fund the Dallas Police and Fire pension would delay cost of living increases for retirees for the next few decades.
Retired Dallas police and firefighters have not received a cost of living increase in eight years.
Under the proposed city staff plan, they would not be eligible to get one until likely the year 2046.
Council members are struggling with keeping the pension funded, walking a fine line between not putting too heavy a burden on taxpayers and keeping the promise to take care of retired Dallas police and firefighters.
"I just want to ask that we focus on getting the fund healthy, and making sure it is a sustainable option moving forward," said one council member.
The current proposal ramps up city funding over five years.
Dallas City Council member Cara Mendelsohn wants to be more aggressive.
"This is going to cost more by doing a five-year ramp up than if we just did the traditional plan. I don't understand how we are going to do this," she said.
One option would be for the city to call an election to let voters decide if a tax should fund the pension shortfall.
"Nobody wants to go to the taxpayers and ask for that kind of increase, however it's allowing them to decide," said Council member Gay Donnell Willis.
Retired Dallas police officers, firefighters seeking restored cost-of-living adjustments to their pension
Retired Dallas police officers and firefighters have not received an adjustment for inflation since the pension crisis began in 2016.
The city's proposal provides an additional 17 to 20 million dollars for each of the next five fiscal years and a one percent benefit increase in Fiscal Year 2025 to add to a retiree's base benefit.
Starting in 2026, retirees would get a 1% supplemental check that does not add to a base benefit, if the fund has a positive return.
Then there's the cost of living adjustment, or COLA, that has not changed in eight years, even with record inflation.
The proposal includes an adjustment, but only when the system reaches 70 percent funding, and it would be capped at 1.5 percent.
Compare that to the COLA for Social Security this year of 3.2 percent.
Mendelsohn is critical of the city staff's proposal, which took into account an outside review.
"Cheiron has made recommendations to you," she said. "You're recommending the least preferred of the five they say would be acceptable. They recommend COLA options, and you are recommending something outside of that."
Mendelsohn argued it will be harder to recruit and retain public safety employees the city is depending on to fund the pension.
"I don't want to kick the can down the road, we definitely want to get it right, but we also have an obligation to taxpayers. We also policy makers, we need to make a sound decision based on sound information," said Dallas Mayor Pro Tem Tennell Atkins.
Atkins told council members to submit any questions about the plan in writing by 5 p.m. Tuesday.
The police and fire pension is only 39 percent funded right now.
It is not expected to reach 70 percent funding until 2046.