UPDATE: The Dallas Police and Fire Pension Review Board’s 6-5 vote to reject the city of Dallas’s “best and final” pension plan has escalated tensions surrounding the city’s pension crisis. This urgent decision, made during a heated meeting, raises significant concerns for retired and active first responders in Dallas.
The board, tasked with safeguarding the pensions of retired police officers and firefighters, is sounding alarms over what they perceive as an unfair agreement being pushed by the city. Trustee Rob Walters initiated a surprise motion last week, advancing a deal that board members believe undermines ongoing litigation related to the pension fund. This case, currently under appeal in federal court in El Paso, could determine the future management of the pension fund.
The board’s original plan, submitted to the state, aims for full funding in 30 years, yet the city’s proposal has raised alarms among trustees like Tina Hernandez Patterson, who argue it threatens the financial security of first responders. “This ‘best and final’ proposal is worse than anything we’ve previously faced,” Patterson stated, reflecting a growing frustration among board members.
With a September 2024 deadline looming, the board had worked diligently for two years to negotiate a viable plan, even obtaining independent assessments to guide their choices. However, the city has disregarded these efforts, opting instead for a unilateral proposal that many on the board view as inadequate.
The pension fund currently sits at a troubling 32% funding ratio, having plummeted from 45% in 2018. The city has failed to contribute meaningfully to resolve the underfunding, prompting concerns that ongoing delays could worsen the situation. “The city has had seven years to act, yet they continue to push for a plan that threatens our members’ security,” Patterson emphasized.
On November 12, 2023, oral arguments were presented in El Paso, focusing on whether the lower courts were correct in designating the board’s plan as the legitimate strategy to resolve this pension crisis. Observers noted that the justices appeared well-informed and keen to understand the implications of the city’s appeal.
Patterson warns that the city’s recent maneuvers, including the appointment of new trustees, are designed to create the illusion of consensus while compromising the board’s ability to advocate for its members. “We will not allow the city to gain control over our wages and retirement security,” she declared.
The board remains divided, with significant opposition to the city’s proposal. Many trustees are calling for a transparent negotiation process that includes input from active members, who have largely funded the pension since 2017 without seeing the city’s latest offer.
The stakes have never been higher as Dallas faces the very real prospect of a pension crisis that could impact hiring and retention of experienced officers. As tensions rise, the board is urging the courts to continue deliberations and render a judgment that reflects the true needs of the pension system.
As the situation develops, first responders and retirees are left in a precarious position, with their financial futures hanging in the balance. The Dallas Police and Fire Pension Review Board vows to continue fighting for a fair and equitable solution, emphasizing that any resolution must prioritize the interests of those who have dedicated their lives to serving the city.
Stay tuned for further developments in this urgent pension crisis as the implications for Dallas’s first responders become clearer.
