Dallas, Texas – Dallas City Council members received alarming presentations regarding the city’s civilian and uniformed pension systems, painting a bleak picture of massive shortfalls. The police and fire pension, in particular, faces a potential shortfall exceeding $1 billion. City leaders and council members expressed regret that solutions hadn’t been explored sooner.
Dallas Mayor Pro Tem Tennell Atkins expressed frustration over the city’s slow response to address the pension crisis, despite legislative efforts in Austin to stabilize the Dallas Police and Fire Pension System. The current board has been working diligently to rectify risky investments made during the previous director’s tenure, including investments in ultra-luxury properties and the $200 million museum tower in Downtown Dallas.
Before benefit cuts were implemented, the pension fund had a staggering $5.4 billion shortfall. While benefit cuts reduced this gap by $1 billion, a substantial liability remains. The city is eagerly awaiting the latest numbers, which will be presented next month.
Council members emphasized the need for swift action to secure the retirement of uniformed officers. Under the current plan, Dallas police and fire retirees won’t be eligible for a cost-of-living increase until 2073. Councilwoman Cara Mendelsohn expressed shock at the situation and called for a significant change in contributions.
Dallas CFO Jack Ireland defended the delayed response, citing a sudden $600 million withdrawal that needed to be addressed before considering changes. Nevertheless, lawmakers are pressing the city to have a viable plan in place by 2025 to address the looming pension crisis.
The city awaits the release of the latest data on the health of the Dallas Police and Fire Pension System, expected on November 9. With a projected shortfall of over $1 billion, Dallas faces the challenging task of devising a solution to safeguard the retirement security of its uniformed officers. The urgency to act is clear, with a growing consensus that the current trajectory is unsustainable.
